How BC Hydro is regulated
BC Hydro is regulated by the B.C. Utilities Commission (BCUC). Under the Utilities Commission Act, the BCUC is responsible for ensuring that:
- Customers receive safe, reliable and non-discriminatory energy services at fair rates from the utilities it regulates.
- Shareholders of these utilities are afforded a reasonable opportunity to earn a fair return on their invested capital.
- Competitive interests of B.C. businesses are not frustrated.
As part of its regulation by the BCUC, BC Hydro files periodic Revenue Requirements Applications seeking various approvals.
What's a Revenue Requirements Application?
An application includes various approvals sought by BC Hydro from the BCUC. In addition to a request for approval of rates, a Revenue Requirements Application may also include, but is not limited to:
- Revisions to or requests for new regulatory accounts
- The setting of depreciation rates
- Approval of expenditure schedules such as for Demand Side Management expenditures, which include investments in customer conservation programs.
F2023-F2025 Revenue Requirements Application
In September 2021 BC Hydro filed a three-year Revenue Requirements Application for Fiscal 2023-2025 with the BCUC, requesting an annual average bill increase of 1.1% for the next three years
Factors and considerations in Revenue Requirements Applications
Revenue Requirements Applications must take into consideration a variety of factors, including:
- Long-term forecasting that indicates B.C.’s growing population and a shift to electrification – switching from fossil fuel power to electricity – will require significantly more electricity over the next two decades.
- Acquisition of additional clean energy to ensure we continue to meet the growing demand for electricity, as well as the sales of excess energy.
- Ongoing operating costs.
- System resilience against threats including more extreme weather caused by climate change, and cyberattacks.
- Reinvestment in our existing hydroelectric power stations and other electricity generating assets, most of which were built in the 1950s, 1960s and 1970s.
- Investment in new power generation, including the Site C Clean Energy Project, a third dam and hydroelectric power station on the Peace River.
Earlier Revenue Requirements Applications
- F2022 Revenue Requirements Application at bcuc.com
- F2020-F2021 Revenue Requirements Application at bcuc.com
- F2017-F2019 Revenue Requirements Application at bcuc.com
- F2015-F2016 Revenue Requirements Application at bcuc.com
- F2012-F2014 Revenue Requirements Application at bcuc.com
- F2011 Revenue Requirements Application at bcuc.com
- F2009-2010 Revenue Requirements Application at bcuc.com
- F2007-F2008 Revenue Requirements Application at bcuc.com
- F2004-F2005 and F2005-F2006 Revenue Requirements Applications at bcuc.com