BCUC gives go ahead to 7% hydro rate increase
The BC Utilities Commission (BCUC) issued a decision on Feb. 15 regarding BC Hydro’s rate application which confirms an interim 3.91 per cent rate increase for the next fiscal year as applied for by BC Hydro.
The decision also orders an interim increase to BC Hydro’s current rate rider of 2.5 per cent to 5 per cent.
With compounding, the net annual bill impact for customers is a 7.07 per cent increase.
These changes will be reflected on bills effective April 1, 2012.
For the average residential customer, BCUC’s decision on the rate rider translates into an overall increase of about $5 per month on the current rate, compared to an overall increase of $3 per month on the current rate requested by BC Hydro.
These decisions are part of the ongoing review process that will ultimately determine BC Hydro’s rates for the three fiscal years from 2012 to 2014.
About the BC Hydro rate rider: The rate rider is included on every customer’s bill. The funds collected are used to reduce BC Hydro’s energy deferral accounts. BC Hydro uses deferral accounts to prevent sudden rate fluctuations that could result, for example, from higher-than-forecast market prices for energy or unexpectedly low water levels in reservoirs.
About the Updated Application: BC Hydro filed an amended application with the BCUC on Nov. 24, 2011. The application confirmed a 50 per cent reduction to the cumulative rate increase filed with the BCUC in March 2011. The 50 per cent reduction was announced in August following a full government review of the Crown utility to help reduce future rate increases.
Based on the government review’s recommendations, BC Hydro proposed an amended rate increase of 8 per cent (which is currently in place to March 31, 2012), followed by a 3.91 per cent increase for each of the next two years.