BCUC decision on BC Hydro's Revenue Requirements Application for F2009-F2010 On March 27, BC Hydro issued a compliance filing with the British Columbia Utilities Commission (BCUC) in response to the commission's March 13 decision on BC Hydro's two-year Revenue Requirements Application [PDF, 2.5 Mb] for fiscal 2009 and 2010. The Revenue Requirements Application reflects the expenditures BC Hydro requires to operate in fiscal years 2009 and 2010. The application was originally filed with the commission in February of 2008. Based on the BCUC decision, BC Hydro has calculated that rates will increase by 2.34 per cent in fiscal 2009 (ending March 31, 2009) and by 8.74 per cent in fiscal 2010 (starting April 1, 2009). As a result, and given the interim rate increase of 6.56 per cent that has been in effect since April 1, 2008, residential customers with an average consumption of 11,000 kilowatt hours (kWh) per year, for example, can expect a credit refund of approximately $30 for fiscal 2009. Customers can expect to receive their refund in the form of a credit to their bill during the June billing cycle. For the average residential customer, BC Hydro estimates the bill impact to be $2-4 more per month, effective April 1, 2009. This bill impact takes into account an increase in the rate rider from 0.5 per cent to 1.0 per cent, also effective 1 April, 2009. Residential Conservation Rate As a result of the BCUC decision, the residential two-step Conservation Rate will be adjusted as follows, effective April 1, 2009:   1 Apr 09 Old Step 1 (cents/kWh): 5.91 5.98 Step 2 (cents/kWh): 8.27 7.21 Bill impact on April 1, 2009 The following provides an example of the monthly bill impact to various residential customers based on their annual consumption: 5,000 kWh/year: $0.10 less per month 8,100 kWh/year: $0.70 more per month 11,000 kWh/year: $2.50 more per month (average consumption in B.C.) 22,000 kWh/year: $13 more per month Please see our Hot Topics section for more information about rates. The full BCUC decision is available here [PDF, 2.5 Mb].

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.

In fact, BC Hydro forecasts that the demand for electricity in British Columbia will grow between 20 and 35 per cent over the next 20 years.

To accomplish our objectives, BC Hydro applied for rate increases over fiscal years 2009 and 2010 with the British Columbia Utilities Commission (BCUC).

• What's happening to rates
• Why rates are increasing
• How you can conserve more and save money
• Resources for more information

What's happening to rates

The British Columbia Utilities Commission (BCUC) also recently approved [PDF, 141 Kb] a new, two-step Conservation Rate for BC Hydro's residential customers. This new rate structure took effect October 1, 2008.

See the Conservation Rate page for details, including how the rate works and how it impacts customers' bills.

BC Hydro customers will continue to pay among the lowest rates for electricity in all of North America [PDF, 180 Kb].

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.

Planning for the future: BC Hydro's long-term forecasting indicates that in two decades our province will require as much as 35% more electricity than we have today.

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 you can conserve more and save money

All customers can take action to reduce their electricity consumption and lower their bills.

If customers reduce their consumption by just 1,000 kWh over the course of a year – or about 10 per cent of the average user's annual consumption – they will save up to $82 per year. The following table presents numerous examples of energy-saving measures that can significantly lower electricity bills.

Conservation tip	Savings – kWh/yr (approximate)	Cost to implement	Annual Savings @ 8.27 cents/ kWh (approximate)
Electronics
Turn off computer when not in use	170	$0	$14
Turn off TV when not in use	170	$0	$14
Turn off a TV for 1 hour/day	50	$0	$4
Turn off video game console when not in use	200	$0	$16.50
Electrical Appliances
Hang clothes to dry 50 per cent of the time	520	$0	$43
Wash clothes in cold water	480	$0	$40
Don't use heat dry feature on the dishwasher	110	$0	$9
Adjust fridge temperature to 4°C if set at 3°C	40	$0	$3.50
Remove second fridge and get $30.00 incentive	1,200	$0	$100
Lighting
Turn off 4 60W lights for 1 hour/day	90	$0	$7.50
Turn off 2 60W lights for 1 hour/day	45	$0	$3.50
Install 5 CFLs in high-use locations	250	$25	$21
Install 10 strings of LED holiday light	190	$70	$16
Heating/whole home
Turn heat down 1 degree C	800	$0	$65
Install a programmable thermostat and turn the heat down 4-5 degrees overnight and when you're not at home	240	$50	$20
Install water heater blanket	150	$25	$12
Upgrade attic insulation to R40	500	$700	$41
LiveSmart BC Efficiency Incentive Program	2,500	$1,700*	$200

*Estimated net cost after incentives

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.