Long-Run Marginal Cost of Firm Energy

BC Hydro sets a reference price for energy as a benchmark to represent the long-run marginal cost (LRMC) of acquiring firm energy from clean or renewable resources in British Columba, which is updated every few years. The LRMC of firm energy is based on the weighted average price paid to independent clean energy developers through a competitive call for power process. The price reflects the cost of acquiring, integrating and delivering firm energy to BC Hydro's load centre in the Lower Mainland.

BC Hydro's LRMC of firm energy is referenced in the Province's demand-side measures regulation. The LRMC of firm energy is a key input into several of BC Hydro's planning processes including designing customer rates that reflect the cost of supplying additional electrical load and determining the cost-effectiveness of conservation or efficiency programs.

Additional information is available: