By Pete McIntyre

Hydro seeks rate decrease

Aug 23, 2019 | 12:00 PM

British Columbians could see their hydro rates go down next spring if B.C. Hydro’s request for a rate decrease is approved by the B.C. Utilities Commission (BCUC).

Hydro bills will go down 1 per cent next April, if the Crown utility gets the green light.

Hydro president and CEO Chris O’Riley says they are able to consider rate reductions due to a number of factors.

“B.C. Hydro’s application to the BCUC is based on its audited fiscal 2019 financial results and latest financial forecast that reflect, among other things, higher-than-anticipated income from its trading subsidiary Powerex, lower-than-anticipated forecast debt financing costs and lower-than-anticipated purchases from independent power producers,” said O’Riley.

The BCUC is expected make a final decision on Hydro’s 2019-20 and 2020-21 rates early in 2020.

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Energy Minster MIchelle Mungall says it’s the first time in decades Hydro has sought to lower its fees.

“For the past two years, our government has been focused on making sure BC Hydro works for people again,” said Mungal. “I am thrilled that BC Hydro is now able to apply for a rate reduction for the first time in decades. If approved by our independent regulator, lower rates would make life better and more affordable for British Columbians.”

While Hydro is seeking a one per cent drop in rates effective April 1st and another decrease of 0.3 per cent in 2022, the utility plans a 2.7 per cent increase in 2021 and a further jump of three per cent in 2023, with an overall bill increase of 6.2 per cent over the next five years.

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As part of BC Hydro’s fiscal 2020-21 revenue requirements application the BCUC has already approved an interim net bill increase of 1.8% for 2019-20, which came into effect April 1, 2019.

If approved, the net bill impacts of the new rates forecast will be:

April 2020: decrease of 1%
April 2021: increase of 2.7%
April 2022: decrease of 0.3%
April 2023: increase of 3%
If approved, the cumulative bill increase over the next five years is estimated to be 6.2%.

by Pete McIntyre

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