Revenue Requirements Application

For Fiscal 2009/10

BCUC decision on BC Hydro's Revenue Requirements Application for F2009-F2010

On March 27, BC Hydro issued a compliance filing with the British Columbia Utilities Commission (BCUC) in response to the commission’s March 13 decision on BC Hydro’s two-year Revenue Requirements Application [PDF, 2.5 MB] for fiscal 2009 and 2010.

The Revenue Requirements Application reflects the expenditures BC Hydro requires to operate in fiscal years 2009 and 2010. The application was originally filed with the commission in February of 2008.

  • Based on the BCUC decision, BC Hydro has calculated that rates will increase by 2.34 per cent in fiscal 2009 (ending March 31, 2009) and by 8.74 per cent in fiscal 2010 (starting April 1, 2009).
  • As a result, and given the interim rate increase of 6.56 per cent that has been in effect since April 1, 2008, residential customers with an average consumption of 11,000 kilowatt hours (kWh) per year, for example, can expect a credit refund of approximately $30 for fiscal 2009. Customers can expect to receive their refund in the form of a credit to their bill during the June billing cycle.
  • For the average residential customer, BC Hydro estimates the bill impact to be $2-4 more per month, effective April 1, 2009. This bill impact takes into account an increase in the rate rider from 0.5 per cent to 1.0 per cent, also effective 1 April, 2009.

Residential Conservation Rate

As a result of the BCUC decision, the residential two-step Conservation Rate will be adjusted as follows, effective April 1, 2009:

  1 Apr 09  Old
Step 1 (cents/kWh): 5.91 5.98
Step 2 (cents/kWh): 8.27 7.21


Bill impact on April 1, 2009

The following provides an example of the monthly bill impact to various residential customers based on their annual consumption:

5,000 kWh/year: $0.10 less per month
8,100 kWh/year:  $0.70 more per month
11,000 kWh/year: $2.50 more per month (average consumption in B.C.)
22,000 kWh/year: $13 more per month


Please see our Hot Topics section for more information about rates. The full BCUC decision is available here [PDF, 2.5 MB].

 

For many years we have relied on the firm, reliable power generated from our heritage hydroelectric assets. But these dams and infrastructure, built in the 1950s, '60s and '70s, require significant reinvestment. And we need to add new sources of clean, renewable power to our system to meet demand for reliable power.

In fact, BC Hydro forecasts that the demand for electricity in British Columbia will grow between 20 and 35 per cent over the next 20 years.

For an explanation of this rate increase and how it might affect you, visit our Residential Rates page.

What's new

BC Hydro filed its fiscal 2009 and 2010 Revenue Requirements Application (RRA) with the British Columbia Utilities Commission (BCUC) in February 2008. The RRA reflects the operating costs we will require over the next two years. The F2009-10 Revenue Requirements Application [PDF, 13.3 MB] included a rate increase for all customer classes – residential, commercial and industrial – that reflects the operating costs we require in fiscal years 2009 and 2010.

BC Hydro's rates remain among the lowest in Canada.

Who will be affected by rate changes

All customer classes will be affected equally by the general rate increase from the Revenue Requirements Application.

Why rates are increasing

BC Hydro requires additional revenue to:

  • Reinvest in our existing electricity generating assets and ensure they continue to produce power well into the future. This means replacing, updating and upgrading components, systems, and structures within our generating facilities.
  • Invest in transmission and distribution systems to ensure the electricity generated in our facilities reaches homes and businesses when it is needed.
  • Acquire additional clean energy to ensure we continue to meet the growing demand for electricity.

Planning for the future: BC Hydro's long-term forecasting indicates that in two decades our province will require as much as 35 per cent more electricity than we have today.

Aging facilities and infrastructure: Aging infrastructure has a profound effect on the ability of the electric system to be secure, safe and reliable. Many of BC Hydro's large generation facilities were built in the 1950s, '60s and '70s. Many of the mechanical and electrical components are near the end of their life. Today's investments will extend the life of our facilities.

For example, BC Hydro is making significant investments to renew several dams and generating facilities, including: Seven Mile Dam, Peace Canyon Generating Station, G.M. Shrum Generating Station (WAC Bennett Dam), Aberfeldie Generating Station, and the Coquitlam Dam.

BC Hydro is also expanding electricity generation at the Revelstoke Generating Station by adding a fifth 500-megawatt turbine (with the potential to add a sixth turbine), and is considering the addition of two new turbines at the Mica Generating Station.

Increased energy costs: Historically, BC Hydro has been able to use the surpluses created by investments in the 1950s, '60s and '70s to meet growing demand. By 2001, BC Hydro was no longer in a surplus position and became a net importer of electricity.

To meet this growing demand for electricity, BC Hydro is acquiring additional clean and renewable energy from independent power producers, as well as continuing to purchase from the market.

The rate application process

As a Crown corporation, BC Hydro is regulated by the British Columbia Utilities Commission (BCUC), an independent agency of the provincial government. The BCUC oversees our electricity generation and distribution operations, electricity plans, services and revenues, including the electricity rates we charge our customers.