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.

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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kari, a 12-year-old Belted Galloway, produced triplets Wednesday, April 28 at Bridge Creek Ranch. (Kelly Sinoski photo -100 Mile Free Press).
Holy cow: triplets born in 100 Mile House

Linda and Don Savjord witnessed a rare experience last week at Bridge Creek Ranch.

Fireman’s Fairways between Chimney and Felker lakes is slated to open soon, following a clean up work bee this Sunday, May 9 starting at 10 a.m. (Photo submitted)
Cleanup slated for Sunday, May 9 at Fireman’s Fairways Golf Course

Fireman’s Fairway is an 11-hole, par 3 course, opened in 1994

A vial of the AstraZeneca COVID-19 vaccine is shown at a facility in Milton, Ont., on Wednesday, March 3, 2021. The White House says it is making plans to share up to 60 million doses of the Oxford-AstraZeneca COVID-19 vaccine. THE CANADIAN PRESS/Carlos Osorio - POOL
65 new cases of COVID-19 in Interior Health

The total number of cases in the region is now at 11,075 since the pandemic began

Williams Lake City Hall. (City of Williams Lake photo)
Williams Lake long-term debt decreasing

The city of Williams Lake’s long-term debt sits at $8,324,241, down from… Continue reading

Lakers Car Club members Paul Christianson (from left), Jake Derksen and Frank Ruyter stand alongside a 1977 Rolls Royce the club will be auctioning off in lieu of the annual Spring Roundup. (Photo submitted)
Lakers Car Club raffling 1977 Rolls Royce in lieu of annual Spring Roundup

The Lakers would like to the thank the residents and businesses of Williams Lake for their support

FILE – Pharmacist Barbara Violo shows off a vile of the Oxford-AstraZeneca COVID-19 vaccine at the Junction Chemist, an independent pharmacy in Toronto, Friday, March 12, 2021. THE CANADIAN PRESS/Nathan Denette
Looking for the nearest COVID shot? Tech entrepreneur creates texting software in B.C

Zain Manji says app took just one or two hours to create

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A woman wears a face mask and shield to curb the spread of COVID-19 while walking in North Vancouver, B.C., on Wednesday, January 6, 2021. THE CANADIAN PRESS/Darryl Dyck
B.C. CDC updates info, acknowledging small respiratory droplets can spread COVID-19

Large droplets, not aerosols had been fixture of public health messaging for many months

A picture of Shirley Ann Soosay was rendered from a postmortem photographer and circulated on social media. (DDP graphic)
B.C. genealogist key to naming murder victim in decades-old California cold case

In July 1980, Shirley Ann Soosay was raped and stabbed to death

Mary Kitagawa was born on Salt Spring Island and was seven years old when she was interned along with 22,000 B.C. residents in 1942. (B.C. government video)
B.C. funds health services for survivors of Japanese internment

Seniors describe legacy of World War II displacement

Meghan Gilley, a 35-year-old emergency room doctor and new mom was vaccinated from COVID-19 in January, while she was pregnant. She’s encouraging others to do the same. (Submitted)
‘The best decision’: B.C. mom encourages other pregnant women to get COVID-19 shot

Meghan Gilley, 35, delivered a healthy baby after being vaccinated against the virus while pregnant

Former Vernon Panthers football standout Ben Hladik of the UBC Thunderbirds (top, in a game against the Manitoba Bisons, <ins>making one of his 38 Canada West solo tackles in 2019</ins>), was chosen in Tuesday’s 2021 Canadian Football League draft. (Rich Lam - UBC Thunderbirds photo)
B.C. Lions call on Vernon standout in CFL draft

Canadian Football League club selects former VSS Panthers star Ben Hladik in third round of league draft

“Skeena,” by John Hudson and Paul Hanslow is one of five fonts in the running to become the default for Microsoft systems and Office programs. (Black Press Media File Photo)
Font named after B.C. river could become the next Microsoft default

One of the five new fonts will replace Calibri, which has been Microsoft’s default since 2007

Commissioner Austin Cullen, lawyer Brock Martland, and former cabinet minister and Langley East MLA Rich Coleman, as Coleman testified before the money laundering commission on Wednesday, April 28. Coleman has been recalled for May 14. (Screengrab)
Langley’s Coleman returns for second round of testimony at money laundering hearings

The former longtime Liberal MLA and cabinet minister will testify May 14.

Most Read