Residential Inclining Block (Conservation Rate)
On February 26, 2008, BC Hydro filed with the British Columbia Utilities Commission (BCUC) a Residential Inclining Block rate application. This rate, also known as the "conservation rate," is a two-step rate structure designed to encourage residential customers to conserve electricity.
The new residential rate structure requires the approval of the BCUC. BC Hydro is proposing that the two-step rate become effective on October 1, 2008. This structure would be revenue neutral to BC Hydro.
The proposed conservation rate would establish:
- a base rate for electricity consumption up to 1,600 kilowatt hours (kWh) per two-month billing period (Step-1 rate);
- a marginally higher rate for all electricity consumed over that base amount (Step-2 rate).
The 1,600 kWh threshold is slightly lower than the average consumption of residential customers.
- What will happen to rates
- Who will be affected by a rate increase
- Why BC Hydro is moving away from a flat rate structure
- How customers can reduce the impact on their bills
- Resources for more information
What will happen to rates
Under BC Hydro's proposed two-step rate structure, the rate for Step-1 will be set at 6.28 cents per kWh and the Step-2 rate will be set at 6.98 cents per kWh.
The current rate (before implementation of the April 1, 2008 Revenue Requirements Application) is 6.15 cents per kWh. As of April 1, 2008, the Revenue Requirements Application will increase this flat rate to 6.55 cents per kWh.
Who will be affected by a rate increase
Under the conservation rate, approximately 75% of residential customers (about 1.1 million) will face smaller overall bill increases with the new rate structure in place than if the proposed rate increases were applied to the existing flat rate structure.
Why BC Hydro is moving away from a flat rate structure
Conservation is one of the best ways to help meet the growing demand for electricity. BC Hydro has set targets to become electricity self-sufficient by 2016 and to acquire 50% of its incremental load through conservation by 2020. Rates, such as the two-step rate BC Hydro is introducing, are a key tool to help get us there.
How customers can reduce the impact on their bills
BC Hydro recognizes that any rate increase can be a challenge to customers. However, customers can reduce the impact of these increases by changing a few habits and conserving electricity. The following conservation actions are just some of the many possible ways for customers to conserve energy and save money on their bill:
- Replacing the five most-used incandescent light bulbs with CFLs saves approximately 250 kWh/year, or $18 every year.
- Using a dishwasher without the dry cycle saves approximately 100-200 kWh/year, or $10 every year.
- Sealing air leaks in outside walls, doors and windows saves approximately 100 kWh/year, or $7 every year.
- Washing clothes in cold water saves approximately 600 kWh/year, or $42 every year.
With our energy-saving tips tool, you can insert your housing and heating type to get a list of tips and their potential savings impacts.
Resources for more information
Learning how to become more Power Smart can help you save energy and money.
