On March 5, the BC Utilities Commission (BCUC) approved important updates to BC Hydro’s Distribution Extension Policy that support the construction of new housing developments and businesses in growing communities by advancing changes to streamline upgrades and reducing the cost of new customer connections to BC Hydro’s distribution system.
On June 27, 2024, BC Hydro filed an application with the BCUC to modernize its Distribution Extension Policy to meet growing demand, as BC Hydro has seen customer connection requests increase by more than one-third in recent years. The policy, which has not been updated since 2008, sets out how costs are allocated between new and existing non-industrial customers for new or upgraded connections to BC Hydro’s system. In recent years, municipalities, home builders and other stakeholders have been advocating for changes that would reduce costs and improve predictability. Under the current policy, new or upgraded connections that require system upgrades must be completely paid for upfront by the initial customer that makes the request.
Under the approved updated policy, BC Hydro will eliminate system improvement costs for all new customers – except in extraordinary circumstances – and increase BC Hydro’s maximum contribution to offsetting extension costs. These improvements will lower the cost of connections for many customers, speed up connection timelines, and better balance cost sharing when initial customer infrastructure investments enable others to connect at a later date. Most importantly, it will provide greater cost certainty for developers and help to support investments in affordable housing, including larger multi-unit developments, as well as electrification of homes and businesses.
The BCUC also approved changes that will reduce barriers to electrification in Non-Integrated Area communities. Through the updated policy, these communities will have the same extension policies as other areas, as part of a broader shift to have Non-Integrated Area customers pay the same rates as integrated area customers.
Updating the Distribution Extension Policy is one of many important actions BC Hydro is taking to make connections easier and more affordable, including significant capital investments, scaling planning resources to keep up with the demand and actively collaborating with municipalities to speed up timelines and coordinate major construction projects to minimize disruption and costs. The changes to the policy will take effect July 5, 2025, and BC Hydro must provide an evaluation report on the new Distribution Extension Policy by Dec. 5, 2028.
Contact:
BC Hydro Media Relations
Email: media@bchydro.com
Phone: 604 928 6468