The facts about BC Hydro rates
- In March 2011, BC Hydro requested a rate increase of 32 per cent over three years. At that time, BC Hydro projected a five-year rate increase of more than 50 per cent between 2011 and 2015.
- The Province appointed a panel of senior officials to review BC Hydro and develop options to reduce the impact of electricity rate increases on B.C. families in April 2011.
- In August 2011, the Province released a comprehensive review of BC Hydro, which would reduce the proposed rate increases by 50 per cent.
- On Nov. 24, 2011, BC Hydro requested that BCUC confirm the reduction.
- The following spring, the BCUC concluded that more discussion would be required before making a decision on final rates. As a result, this conclusion would not come until two years into a three-year rate period. This process had already generated 24,000 pages of evidence and responses to 4,200 information requests - costing BC Hydro ratepayers $1.3 million. It was expected to generate another $2.1 million in legal fees and other costs.
- On May 22, 2012, the Province directed BCUC to implement the 50 per cent reduction in BC Hydro's proposed rates over three years. This means a total increase of about 17 per cent, including a 1.44 per cent increase next year.
- This ensures that B.C. families will continue to pay among the lowest electricity rates in North America.
- Under the rate structure imposed by the Province, it is estimated the existing regulatory account balances will be reduced by $250 million by March 31, 2014.
- As recommended in government's BC Hydro review, BC Hydro will work with the Province to perform a more in-depth analysis of the growth of regulatory accounts and the use of these accounts over the longer term.
Ministry of Energy and Mines