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

Concern over vaping grows in Parksville Qualicum Beach schools

Health officer says parents have ample reason to be concerned

Coombs Family Day Celebration cancelled

The large snowfall that hit Vancouver Island recently has led to the… Continue reading

Parksville Qualicum Beach residents advised to prepare for changing weather

Rising temperatures on Friday will produce snow, changing to rain with increasing snow melt

No specifics given for termination of Parksville CAO

Comis believes the decision was political

VIDEO: Canada’s flag turns 54 today

The maple leaf design by George Stanley made its first appearance Feb. 15, 1965

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Plecas won’t run in next election if B.C. legislature oversight reforms pass

B.C. Speaker and Abbotsford South MLA says he feels ‘great sympathy’ for Jody Wilson-Raybould

Strangers save life of hiker in Cowichan

Hike up Cobble Hill Mountain turns into ambulance ride, surgery

Battling the dirty little secret of Vancouver Island’s Pacific Rim

Illegal dumping the bane on Ucluelet and Tofino area backroads

Snow days prove costly for many workers

Employment Standards Act doesn’t cover businesses closed due to weather

Workshop with ‘accent reduction’ training cancelled at UBC

The workshop was cancelled the same day as an email was sent out to international students

Former B.C. premier Gordon Campbell accused of sexual touching

Accuser went to police, interviewed by Britian’s Daily Telegraph

Man in Vancouver Island hotel shooting pleads guilty to second-degree murder

Brandon Tyler Woody, from Victoria, to be sentenced in late March in B.C. Supreme Court

Most Read