BC Hydro files amended revenue requirements application with BCUC
Vancouver, BC – BC Hydro today filed an Amended Revenue Requirements Application (RRA) with the British Columbia Utilities Commission (BCUC) for fiscal years 2012-2014.
The application confirms a 50 per cent reduction to the cumulative rate increase filed with the BCUC in March 2011. The 50 per cent reduction was announced in August following a full government review of the Crown utility to help reduce future rate increases.
Based on the government review’s recommendations, BC Hydro is proposing an amended rate increase of 8 per cent (which is currently in place to March 31, 2012), followed by a 3.9 per cent increase for each of the next two years.
The application details $819 million in reductions to the rate application that will be implemented to achieve the reduced rate increase while maintaining BC Hydro’s ability to make critical investments to B.C.’s aging electricity system.
The proposed rate changes, if approved by the BCUC, will mean BC Hydro customers will continue to benefit from electricity rates that are among the lowest in North America.
For more information about the Amended F2012-F2014 Revenue Requirements Application, BC Hydro’s capital investment program, and conservation tips, visit www.bchydro.com.
Quotes:
Hon. Rich Coleman, Minister of Energy and Mines:
“The government review was a critical step in evolving BC Hydro into a leaner and more efficient company. This amended application strikes the right balance between keeping rates affordable for B.C. families and allowing BC Hydro to continue to upgrade the province’s electricity system to meet future demand.”
Charles Reid, Executive VP, Finance and Chief Financial Officer, BC Hydro:
“We recognize that even a modest rate increase has an impact on our customers, which is why we are doing everything we can to become a more efficient company and find cost savings and other reductions totalling over $800 million over the next three years. We must keep in mind, especially as we enter storm season and the colder winter months, that we have a large, aging system that needs to serve us both now and for future generations. That is why we will continue to invest to maintain and upgrade our electricity infrastructure.”
Facts:
- The 8 per cent rate increase for the current fiscal year has been applied to customers’ bills since May 2011.
- Beginning in April 2012, the majority of BC Hydro customers will see a $3 per month increase in their bills for the next two years.
- BC Hydro will continue to make critical investments to its aging electricity system to maintain safety and reliability. BC Hydro’s generating facilities and transmission and distribution system were built in the 60s, 70s and 80s; reinvestment in these facilities is required to ensure our customers continue to receive safe, reliable and cost-effective power for future generations.
- BC Hydro’s Power Smart programs and incentives can help customers partially or even fully offset rate increases. Smart meters will also provide customers and businesses with access to new tools to manage their own energy use, which helps them save money and conserve electricity.
Government Review links:
Press Release: http://www.newsroom.gov.bc.ca/2011/08/bc-hydro-to-cut-proposed-rate-increase-in-half.html
Government Review: http://www.newsroom.gov.bc.ca/downloads/bchydroreview.pdf
About BC Hydro
Fifty years ago, British Columbians turned to BC Hydro to build the clean electricity system they count on to power B.C.'s economy, create jobs in every region, and keep the lights on. Now, BC Hydro is building again for the next 50 years. B.C. continues to grow and so has the need for more electricity. That’s why BC Hydro is building and renewing electricity infrastructure, modernizing the grid with smart meter infrastructure and encouraging conservation to meet today’s needs and those of future generations. In 2011, BC Hydro is celebrating 50 years of providing power for British Columbians, and inviting them to help prepare for the next 50 years.
-30-
For more information, please contact:
BC Hydro Media Relations
Direct: 604-928-6468
Web: www.bchydro.com/media