BC Hydro rates going up 28% over five years

The first of a series of BC Hydro rate increases takes effect in April 2014, adding $8 a month to the average residential power bill

Energy Minister Bill Bennett and BC Hydro CEO Charles Reid outline 10-year plan for BC Hydro in Victoria Monday.

VICTORIA – The first of a series of BC Hydro rate increases takes effect in April 2014, adding $8 a month to the average residential power bill.

Rate increases of nine per cent next year and six per cent in 2015 are the highest of a series of increases over five years announced Monday by Energy Minister Bill Bennett. The B.C. Utilities Commission will be directed to set rate increases that total up to 28 per cent over the next five years, then determine what rates are needed for the following five years, Bennett said.

Commercial rates are going up the same amount.

Bennett acknowledged that rate increases are being kept low by using a “rate smoothing” account that defers more than $1 billion of the utility’s debt. That account won’t begin to be paid down until after 2020.

BC Hydro CEO Charles Reid said the latest rate increases are driven mainly by a large increase in capital spending, including seismic refits of old dams at Campbell River and Ruskin, turbine expansions at two Kootenay power dams and other upgrades. BC Hydro’s “big build” era of 1973 to 1982 produced rate increases totalling 113 per cent.

BC Hydro cited an annual survey by Hydro Quebec that shows BC Hydro customers currently pay the third lowest rates in North America. Montreal and Winnipeg customers pay less, and Seattle and Miami residents pay slightly more.

NDP energy critic John Horgan said Bennett avoided the impact of private power purchases on BC Hydro’s rate increases.

“We’re going to have increased debt for the next five years,” Horgan said. “They’re going to continue to take a dividend from a company that can’t afford to pay one, and the consequences for people are going to be higher costs.”

Bennett said the 10-year plan calls for the government to “wean itself off” dividends from the utility, but the five years of reductions don’t start until 2018.

The government has instructed BC Hydro to shut down the gas-fired Burrard Thermal generating station in Port Moody by 2016, saving an estimated $14 million a year. The forecast electricity surplus over the 10-year plan allows that, but the facility will continue to be staffed for its grid stability function, Reid said.


Just Posted

Teenager target of indecent exposure at Willows Beach in Oak Bay

Suspect exposed his genitals to a teenage girl Saturday

Guests don’t lament, Celtic song, Irish dinner

A sea of green shamrocks shone on the Monterey Centre’s Saint Patrick’s… Continue reading

Tonight: Committee of the Whole meeting

Municipal Finance Authority, Cadboro Bay Road Bike Lanes, Asset Management

Two puppies snatched from East Sooke home

Anyone with information asked to contact Sooke RCMP

Saanich teen helps save three people from the Gorge

53-year-old male who was submerged is expected to recover

Ottawa proposes restricted pot labels, packages

Packaging will include red stop sign with marijuana leaf and ‘THC’

Women’s Expo seeks to empower women this weekend

Victoria Women’s Expo set for Saturday and Sunday at Pearkes Recreation Centre

America’s Musical Journey premieres at the IMAX

Enter to win tickets to an invite only concert at your community newspaper’s Facebook page

Comox Valley Valley lotto ticket worth $2 million

Someone who purchased a lottery ticket in the Comox Valley was chanelling… Continue reading

Pro-Trump protest sign with F-word is OK, court rules

Judges say Ontario man can protest publicly, even using vulgar language

VIDEO: Police officer looking for distracted drivers gets hit by truck

Road safety investigator clipped by trailer while patrolling busy intersection

YVR wants you to help name three new puppies

Say hello to the Vancouver Airport’s new assistance pups

Man dies in crash on Island Highway

Man thrown from his vehicle, alcohol believed to be a factor in accident near Parksville

Suspect who attacked autistic man in Ontario could be from B.C.’s south coast: police

29-year-old man was sent to hospital with serious injuries

Most Read