Electricity Rates
As B.C.'s economy and population grow, BC Hydro faces an increased demand for electricity.
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BC Hydro's capital projects [PDF, 575 Kb] |
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.
To accomplish these and other important objectives, BC Hydro has applied for rate increases over the next two years with the British Columbia Utilities Commission (BCUC).
For an explanation of these rate increases and how it might affect you, visit our Residential Rates page.
How BC Hydro's rates are set
The BCUC sets BC Hydro's residential and business electricity rates. BC Hydro serves all of its customers in accordance with the Electric Tariff, which includes terms, conditions, and rate schedules.
BC Hydro's rates are set assuming "normal" or average water years. As a result, BC Hydro sometimes earns less than the "allowed rate of return" and other times earns considerably more. The BCUC then adjusts rates so that the utility will be able to achieve the targeted rate of return. This rate of return, however, is not guaranteed. In fact, it is unlikely that any utility in any year will achieve its revenue targets precisely.
Cost of energy
BC Hydro's rates reflect the generation, transmission, distribution and customer service costs of providing electricity to our various customers.
Generation costs
Generation costs are the direct and allocated costs incurred to generate or procure electricity for use in B.C. These include water rental fees, energy purchases, natural gas fuel (for thermal plants) and other costs required to operate BC Hydro's generation system.
Transmission costs
Transmission costs are the direct and allocated costs incurred to transmit electricity on the high-voltage transmission system, from the point of generation or purchase, to the electricity delivery point or the low-voltage distribution system. These include metering, transformation costs and other costs related to BC Hydro's transmission system.
Distribution costs
Distribution costs are the direct and allocated costs incurred to transmit electricity on the low-voltage distribution system to the end user or customer. These include metering, transformation costs and other costs related to BC Hydro's distribution system.
