Revelstoke dam on the Columbia River is due to have a sixth water turbine added

BC Hydro rates rise as demand slows

Four per cent rate hike already in effect, more to come as BC Hydro looks for savings to offset slow industrial demand

BC Hydro is going ahead with its planned four per cent rate increase this year and deferring more debt to future years as it revises its electricity demand forecast downward.

The provincially-owned utility has not asked for an increase in its government-imposed rate plan despite a revised demand forecast with $3.5 billion less revenue over the next 10 years. BC Hydro has filed a three-year plan with the B.C. Utilities Commission that would increase rates four, 3.5 and three per cent in the next three years. The four per cent increase is already showing up on customer bills as an interim increase.

With the Site C dam on the Peace River and other upgrades amounting to $2 billion a year, the plan includes additional deferred debt until 2023, when Site C is due to be completed. BC Hydro CEO Jessica McDonald said the long-term nature of capital projects means its capital cost savings don’t start until the next decade.

BC Hydro has also cut some of its familiar Power Smart activities, such as the fridge buy-back plan and incentives for energy efficient light bulbs.

McDonald said BC Hydro is seeing lower revenues due to two warm winters and downturns in mining and forest products. It still projects growing overall demand as population and economic growth continue.

NDP energy critic Adrian Dix said the new deferred debt represents roughly $500 for each of BC Hydro’s two million customers, and it is a political move to get the B.C. Liberal government past next year’s election.

The 10-year rates plan imposed by Energy Minister Bill Bennett in 2013 overstated demand to justify the construction of Site C, and translates to a 28 per cent rate increase. It allows the utilities commission to regain control over approving customer rates by 2020, after five years of political direction.

Dix said with the new demand forecast and commodity prices expected to remain low, BC Hydro should have added a sixth turbine to its Revelstoke dam for $450 million before embarking on the $9 billion Site C project.

 

Just Posted

North Saanich pedals ahead with bike lane expansion

Road alignment modifications made following resident feedback

After dark: Sandown construction goes overnight

Noise concerns from Sidney could stop nighttime work schedule

Pioneer Park chosen as site of Central Saanich’s new cenotaph

After some back and forth over the years, Central Saanich councillors chose… Continue reading

Central Saanich property taxes may rise 2.97 per cent

Higher police costs due to new CRD dispatch

BC SPCA proposes fines for animal mistreatment, reduction in commercial trade

Animal welfare group’s ideas brought to Victoria councillors

B.C. Games open with Olympic touch

The 2018 B.C. Winter Games kicked off in Kamloops

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Suspect and Mountie bitten by police dog during arrest near Nanaimo

Two suspects were arrested in connection with a stolen pickup truck in Cassidy on Thursday evening

B.C. ski cross racer wins Olympic gold

Kelowna’s Kelsey Serwa wins the gold medal in thrilling fashion in PyeongChang

All aboard! Job fair ports this weekend in Victoria

Find out about the hundreds of jobs in Victoria’s cruise ship industry

New charges against ex-Trump campaign associates

More charges were laid Thursday against President Donald Trump’s former campaign chairman and his business associate

Sooke mom hopeful for funding to treat child’s debilitating arthritis

Jillian Lanthier ‘prays’ for $19,000 per-dose drug for her son

Man accused in death of Winnipeg teen Tina Fontaine not guilty

Raymond Cormier was accused of killing Indigenous 15-year-old and dumping her body in the Red River

Okanagan real estate agents brace for speculation tax impact

“There’s a real potential for a domino effect to hurt the market in Kelowna.”

Most Read