Statement on Comprehensive Review Phase 1 report
BC Hydro is committed to working with our customers, Indigenous peoples, stakeholders, the B.C. Utilities Commission and government as we build on the work of phase 1 of the comprehensive review.
The measures that we will be taking as a result of the review will help keep rates affordable and enhance financial and regulatory oversight of BC Hydro, while maintaining BC Hydro’s long-term fiscal sustainability to ensure we can continue to provide clean, safe and reliable electricity to our customers.
These measures include:
- implementing a new five-year rates forecast, which will result in cumulative bill increases that are close to 40 per cent less than our previous rates plan, including an increase of 1.8 per cent effective April 1, 2019 and 0.7 per cent effective April 1, 2020.
- writing off the balance of the rate smoothing regulatory account to zero in 2018/19 and stopping the use of the account;
- reducing the amount of future energy purchases from independent power producers by indefinitely suspending the Standing Offer Program and implementing a biomass energy program that acquires less volume than has historically been delivered, in aggregate, at a lower price than current biomass contracts;
- reducing additions in our 10-year capital plan by $2.7 billion; and,
- limiting base operating cost increases below the forecast rate of provincial inflation.
We look forward to continuing to work with government as it undertakes phase 2 of the comprehensive review, which will focus on ensuring BC Hydro is well positioned to maximize opportunities that result from changes in the energy sector and the Province’s CleanBC plan.
BC Hydro Media Relations
p. 604 928 6468