Residential 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 is applying for rate increases over the next two years with the British Columbia Utilities Commission (BCUC).
- What's happening to rates
- How will the rate changes affect me?
- When the new rates will go into effect
- Who will be affected by a rate increase
- Why rates are increasing
- How customers can reduce the impact on their bills
- Resources for more information
What's happening to rates
Two applications: The Revenue Requirements Application includes a rate increase for all customers – effective April 1, 2008 – that reflects the operating costs we will require over the next two years. The increase will be 6.56 % in the first year and 8.21 % in the second year.
BC Hydro has also filed a Residential Inclining Block rate application, also known as the "conservation rate", which is a two-step rate structure designed to encourage residential customers to conserve electricity. This structure will be revenue neutral to BC Hydro.
The proposed conservation rate will establish a base rate for electricity consumption up to 1,600 kilowatt hours (kWh) per two-month billing period (Step-1 rate), and 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.
See the Residential Inclining Block rate page for details on the application.
Rate impact: For the majority of BC Hydro residential customers – whose average monthly bill is currently in the range of $60 or less (excluding all taxes and levies) – the average rate increase [PDF, 182 Kb] will be $5 or less per month in each year.
Rates remain low: Even with these changes, our rates are projected to remain the third lowest [PDF, 180 Kb] in all of North America.
How will the rate changes affect me?
With the Revenue Requirements Application in effect, the majority of residential customers will see a monthly increase of $5 or less in each year.
To determine what you might pay once the revenue application takes effect, check your two-month bill amounts in the following table. We recommend trying several bill amounts from different times of the year to more accurately reflect what your bill could look like in each season.
For BC Hydro customers using the Equal Payment Plan, check your actual monthly consumption on your bill and double the corresponding billing amount to determine an actual two-month cost.
When the new rates will go into effect
BC Hydro will be asking the British Columbia Utilities Commission (BCUC) for an interim rate increase across all customer classes to be effective April 1, 2008. The second year of the rate increase would be applied on April 1, 2009. BC Hydro has proposed that the new Residential Inclining Block rate will become effective on October 1, 2008.
After public hearings over the course of the spring and summer, we expect to receive a decision from the BCUC regarding both applications later in the fall.
If the BCUC does not approve our proposed rate increase as filed, customers will receive a credit on their bill.
Who will be affected by a rate increase
All customer classes will be affected equally by the general rate increase from the Revenue Requirements Application. The Residential Inclining Block rate structure will only apply to residential customers.
Why rates are increasing
BC Hydro requires additional revenue to:
- Reinvest in our existing electricity generating assets and ensure they continue to produce power well into the future. This means replacing, updating and upgrading components, systems, and structures within our generating facilities.
- Invest in transmission and distribution systems to ensure the electricity generated in our facilities reaches homes and businesses when it is needed.
- Acquire additional clean energy to ensure we continue to meet the growing demand for electricity.
Specifically, BC Hydro's main cost drivers include:
Economic and population growth: Economic growth in British Columbia is expected to remain strong for the next three years leading up to and beyond the 2010 Olympics. This translates into high electricity demand growth.
Beyond this, BC Hydro's long-term forecasting indicates that in two decades our province will require as much as 45% more electricity than we have today.
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BC Hydro's capital projects [PDF, 575 Kb] |
Aging facilities and infrastructure: Aging infrastructure has a profound effect on the ability of the electric system to be secure, safe and reliable. Many of BC Hydro's large generation facilities were built in the 1950s, '60s and '70s. Many of the mechanical and electrical components are near the end of their life. Today's investments will extend the life of our facilities.
For example, BC Hydro is making significant investments to renew several generating facilities, including: Seven Mile Dam, Peace Canyon Generating Station, G.M. Shrum Generating Station (WAC Bennett Dam), Aberfeldie Generating Station, and the Coquitlam Dam.
BC Hydro is also expanding electricity generation at the Revelstoke Generating Station by adding a fifth 500-megawatt turbine (with the potential to add a sixth turbine), and is considering the addition of two new turbines at the Mica Generating Station.
Increased energy costs: Historically, BC Hydro has been able to use the surpluses created by investments in the 1950s, '60s and '70s to meet growing demand. By 2001, BC Hydro was no longer in a surplus position and became a net importer of electricity.
To meet this growing demand for electricity, BC Hydro is acquiring additional clean and renewable energy from independent power producers, as well as continuing to purchase from the market.
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.
See our list of 50-plus tips & to-dos
Resources for more information
Learning how to become more Power Smart can help you save energy and money.
