BC – The British Columbia Utilities Commission (BCUC) has issued a decision on Module 1 of BC Hydro‘s Rate Design Application. Key proposals on residential, commercial and industrial rates were approved, following extensive stakeholder and customer feedback.
The application was made in September 2015, and received a decision from the BCUC on January 20.
Highlights from the decision include:
- Residential rate structure will remain the same. Residential customers are charged one rate for electricity up to a certain threshold in each billing period, and a higher rate for electricity use beyond that threshold. BC Hydro found that this stepped rate is delivering conservation benefits and is well understood by our customers. The BCUC agreed. In Module 2 of the Rate Design Application (taking place this year), we will be exploring optional rates to help facilitate customer choices that reduce GHG emissions, like electric vehicles.
- Small General Service rate structure will remain flat.
- Medium and Large General Service customers will move to a flat rate. BC Hydro proposed this revenue neutral change because it was identified that the two-tiered structure was not well understood and it was not leading to conservation. The BCUC agreed.
- Transmission rate structure will remain the same. BC Hydro proposed to continue with the conservation rate for industrial customers taking service at transmission voltage. There was strong customer support for this rate.
- Approved amendments to the Electric Tariff. The BCUC approved changes to BC Hydro’s standard charges to address increases in the costs of delivery and the reality of how we now deliver certain services. For example, the Minimum Reconnection Charge has decreased from $125 to $30, since smart meters have increased the efficiency and cost-effectiveness of reconnections.
Any changes will take effect on Apr. 1, 2017.
Additional information on the decision is available at the following link.
