Revenue Requirements Application

For F2005/06 revenue requirements application

On October 29, 2004, the BC Utilities Commission (BCUC) issued its direction on BC Hydro's 2005/06 Revenue Requirements application [PDF, 282 KB]. As part of the application, BC Hydro requested an 8.9% rate increase for fiscal year 2005, and 0% for fiscal year 2006.

BCUC's decision indicates "BC Hydro has established that a one-time significant increase in revenue requirements is needed in order to earn its allowed rate of return."

On November 15, 2004 BC Hydro provided the BCUC with its updated financial schedules [PDF, 910 KB] including a revised rate increase of 4.85% for fiscal 2005. On November 24, 2004 the BCUC confirmed the revised rate [PDF, 101 KB] of 4.85%.

The permanent increase of 4.85% is effective retroactively as of April 1, 2004 and will appear as the new rate on customers bills December 3, 2004. This increase differs from the interim rate of 7.23% charged since April 1, 2004 awaiting the BCUC decision on the final rate. The difference between the two rates will be refunded to customers as a credit with interest on their bills after January 16, 2005.