BC Hydro rates going up 28% over five years

The first of a series of BC Hydro rate increases takes effect in April 2014, adding $8 a month to the average residential power bill

Energy Minister Bill Bennett and BC Hydro CEO Charles Reid outline 10-year plan for BC Hydro in Victoria Monday.

VICTORIA – The first of a series of BC Hydro rate increases takes effect in April 2014, adding $8 a month to the average residential power bill.

Rate increases of nine per cent next year and six per cent in 2015 are the highest of a series of increases over five years announced Monday by Energy Minister Bill Bennett. The B.C. Utilities Commission will be directed to set rate increases that total up to 28 per cent over the next five years, then determine what rates are needed for the following five years, Bennett said.

Commercial rates are going up the same amount.

Bennett acknowledged that rate increases are being kept low by using a “rate smoothing” account that defers more than $1 billion of the utility’s debt. That account won’t begin to be paid down until after 2020.

BC Hydro CEO Charles Reid said the latest rate increases are driven mainly by a large increase in capital spending, including seismic refits of old dams at Campbell River and Ruskin, turbine expansions at two Kootenay power dams and other upgrades. BC Hydro’s “big build” era of 1973 to 1982 produced rate increases totalling 113 per cent.

BC Hydro cited an annual survey by Hydro Quebec that shows BC Hydro customers currently pay the third lowest rates in North America. Montreal and Winnipeg customers pay less, and Seattle and Miami residents pay slightly more.

NDP energy critic John Horgan said Bennett avoided the impact of private power purchases on BC Hydro’s rate increases.

“We’re going to have increased debt for the next five years,” Horgan said. “They’re going to continue to take a dividend from a company that can’t afford to pay one, and the consequences for people are going to be higher costs.”

Bennett said the 10-year plan calls for the government to “wean itself off” dividends from the utility, but the five years of reductions don’t start until 2018.

The government has instructed BC Hydro to shut down the gas-fired Burrard Thermal generating station in Port Moody by 2016, saving an estimated $14 million a year. The forecast electricity surplus over the 10-year plan allows that, but the facility will continue to be staffed for its grid stability function, Reid said.

 

Just Posted

Gentlemen, and ladies, start your motors!

Kitimat Memorial Hill Climb 2019

B.C. oil tanker ban squeaks through final vote in Senate

Bill C-48 bars oil tankers from loading at ports on B.C’s north coast

Under pressure: SD82 takes heat over principal reassignments

School district hears demands during packed board meeting in Terrace

We’re killing our bears

Attractants still a major problem in Kitimat

Kitimat City High students build their own hiking trail

The best part is that it’s right next to the school

Air Canada reviewing how crew left sleeping passenger on parked plane

In a Facebook post, the woman said she woke up ‘all alone’ on a ‘cold dark’ aircraft

Victoria woman in L.A. hospital after she was run over twice

Lynn Phillips has suffered from multiple broken bones and internal bleeding

‘Text neck’ causing bone spurs to grow from millennials’ skulls, researchers say

Technology use from early childhood causing abnormal bone growths in 41 per cent of young adults

B.C. judge defies lawyers and adds six months to man’s sex assault sentence

‘I find the joint submission is contrary to the public interest and I’m rejecting it’

Tiny Yorkshire terrier survives days on remote B.C. island

ROAM rescue crews, family searched for dog, missing in Greater Victoria for days

Man presumed dead after boat capsizes in Columbia River

Search and rescue efforts recovered a life jacket

Crews fight wildfire along Sea-to-Sky Highway

A cause has not been determined, although a downed power line is suspected

PHOTOS: Event marks one year since soccer team rescued from Thai cave

Nine players and coach took part in marathon and bike event to help improve conditions at cave

Rock climber dies after fall at Stawamus Chief in Squamish

The man had fallen about 30 metres while climbing in the Grand Wall area

Most Read