Hydro proposes 9.11 per cent rate hike
Utility plans $1-billion one-year increase in capital spending on aging dams, generating stations
BC Hydro is proposing to increase electricity rates by a total of 9.11 per cent this year.
The Crown corporation says in its 2010-2011 service plan that it seeks a basic rate increase of 6.11 per cent to cover costs to upgrade its system, as well as increase the profit the provincial government collects from Hydro operations.
Hydro also proposes to increase its so-called "rate rider," which is used to smooth out the turbulence in its year-to-year revenue and expenses, to 4.0 per cent from one per cent.
Total impact of the increase on an average residential customer is $7 a month, or $84 a year. Customers using more than an average amount of electricity would pay more.
Hydro is expected to file on Wednesday an application for the increase to the British Columbia Utilities Commission. If the application is approved, the new rate will be effective April 1.
Typically the commission grants interim approval, and may scale the rate back after a public review.
The service plan shows that Hydro plans a massive one-year increase in capital spending on its aging dams and generating stations: $1.6 billion in the upcoming fiscal year compared to $566 million in 2010.
Hydro's residential rates have gone up by a total of 17 per cent from 2000 to 2009, compared to an average increase in U.S. electricity rates of 41 per cent in the same period of time.
