Press Release

Print This Page

May 25, 2006

BC Hydro submits revenue requirements application to BCUC

VANCOUVER – BC Hydro today filed its revenue requirements application with the British Columbia Utilities Commission (BCUC). This application proposes an increase in BC Hydro's rates of 4.65% in 2006, and 2.71% in 2007. This is only the second application made by BC Hydro in ten years. The first application filed in 2004 resulted in a 4.85% rate increase that year.

"Our economy is growing, many of our customers are expanding their business and that translates into greater demand for electricity," said BC Hydro Senior Vice President of Distribution, Bev Van Ruyven. "This rate increase will allow BC Hydro to upgrade the province's existing generation assets and to purchase the additional power required to ensure we continue to meet our customers' needs for reliable power in the years ahead."

Van Ruyven added: "While we recognize any increase has impacts for our customers, we are heartened by the fact that, even with the proposed increase in place, BC Hydro customers will still enjoy the third lowest average electricity rates in North America."

B.C.'s electricity rates have remained very stable over time, unlike some energy and other utility costs. Other provinces in Canada are currently experiencing double-digit increases, ranging from 11.6% requested in New Brunswick to 10.5% in Ontario. This proposed increase is in line with the rate of inflation in B.C. since the last increase in 2004.

The proposed rate increase will require the approval of the BCUC and will be the subject of a public hearing process. If approved, the average household in B.C. will pay approximately $67.10 per month, compared to $79.40 (CDN) per month in Seattle $89.40 per month in Edmonton or $118.10 in Toronto. As always, residential, business and industrial customers have the opportunity to offset the impact on their hydro bill by participating in Power Smart and conservation programs.

The BCUC will determine the timing and next steps for the review of the revenue requirements application. Should the BCUC approve of the interim rate increase request of 4.65%, it is expected to take effect in July. The final rate will be determined after a public hearing and is expected by late 2006. If the final rate is less than the interim rate, customers will receive a credit with interest on their bills for the difference between the interim and final rate.

Contact:

BC Hydro's 2006 Revenue Requirements Application

• A revenue requirement is the forecast cost of doing business for a period of time and must be approved by the British Columbia Utilities Commission. BC Hydro can collect its required revenue through tariffs (the rate it charges its customers). The last revenue requirements review was in 2004 and resulted in a 4.85% increase. Previously BC Hydro had not submitted a revenue requirement or request for a change to its rates since 1993.
• B.C.'s economy is growing, many customers are expanding their business and that translates into greater demand for electricity. This rate increase will allow BC Hydro to upgrade the province's existing generation assets and to purchase the additional power required to ensure we continue to meet our customers' needs for reliable power in the years ahead.
• Even with the proposed increase of 4.65%, British Columbians will continue to enjoy the third lowest electricity rates in North America.
• B.C.'s electricity rates have remained very stable over time, unlike some energy and other utility costs. If the proposed rate increase is approved, the average household in B.C. will pay approximately $67.10 per month, compared to $79.40 (CDN) per month in Seattle, $89.40 per month in Edmonton or $118.10 in Toronto.
• Other provinces in Canada are currently experiencing double-digit increases, ranging from 11.6% requested in New Brunswick to 10.5% in Ontario. This proposed increase is in line with the rate of inflation in B.C. since the last increase in 2004.
• BC Hydro recognizes that any rate increase can be a challenge to customers. Fortunately, its Power Smart programs can help mitigate and even offset the impacts of the increase.
  • By participating in the Refrigerator Buy-Back program to get rid of a second fridge, customers can save about 10% a year. Operating an older, energy-guzzling second fridge can cost up to $100 a year.
  • Shutting a computer off when it's not being used can save about 6 to 10% of the total home electricity bill, compared with a computer that is not set to go into standby mode. Turning off associated printers, modems and monitors will increase the savings even more.
  • Business customers can save about $460 a year by replacing 100 four-foot two-lamp T12 fixtures with T8 lamps with electronic ballasts – and also receive $1,200 through the Product Incentive Program.
  • Companies that install power management software on 1,000 computer workstations can save $16,000 per year (depending on hours of operation), and also receive $3 product incentive per workstation licence.