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VANCOUVER – The BC Utilities Commission has approved BC Hydro's Revenue Requirements Application resulting in a 1% decrease in BC Hydro rates on February 1, 2007 and a one-time $50 million refund to customers.

"With these rates, our customers will continue to enjoy among the lowest rates in North America while providing us with the resources needed to maintain and upgrade our existing electricity generation assets" said BC Hydro Executive Vice-President and Chief Financial Officer, Alister Cowan. "BC's energy needs are continuing to grow and BC Hydro is committed to providing its customers with reliable power, at low cost, for generations."

Included in the new rates will be a 2% rate rider that will be in effect for the period February 1, 2007 to March 31, 2008 and will appear as a separate line item on customer bills. Revenue generated by the rider will be allocated to recovering additional energy costs that resulted from low water inflows and higher than forecast market prices in Fiscal 2005 and Fiscal 2006. Deferral accounts are used by BC Hydro to defer unexpected costs so that customers do not face sudden rate fluctuations.

BC Hydro filed its Fiscal 2007 and 2008 Revenue Requirements Application with the BCUC on May 25, 2006 and an interim rate increase of 4.65% has been in place since July 2006, pending the BCUC's final ruling. BC Hydro entered into a Negotiated Settlement Process with stakeholder representatives which concluded with an agreement earlier this month.

As the final approved rate increase for Fiscal 2007 is lower than the interim rate increase, BC Hydro customers will receive a one-time refund on their bills during the March/April 2007 billing cycle. The total amount of the refund will be approximately $50 million. The Revenue Requirements Application was only the second made by BC Hydro in the last 10 years. The first application filed in 2004 resulted in a 4.85% rate increase that year.