Hydro rates increase 25.5% over 5 yrs.

by Wayne Moore - Kelowna -Castant Nov 26, 2013 / 9:44 am

British Columbians will have to dig deeper into their collective wallets to keep the home fires burning. Bill Bennett, Minister of Energy and Mines announced Tuesday morning BC Hydro rates will increase by 25.5 per cent over the first five years of a 10 years plan. Under the plan, BC Hydro rates will rise by nine per cent in the first year and six per cent in the second. The BC Utilities Commission will set increases for years three through five with caps at four per cent, 3.5 per cent and three per cent. During the final five years, rates are to be set by the BCUC and actions by government. BC Hydro will ensure increases remain low and predictable. New measures in the 10-year plan will reduce the amount of money government takes from the utility, free up additional cash to support investments in infrastructure and lower BC Hydro's operating costs. In making the announcement Tuesday, Bennett says the 10-year plan will keep electricity rates as low as possible while the utility invests in aging assets and new infrastructure to support the provinces growing population. It was also announced that, in an effort to help industrial customers and those customers on low incomes reduce their bills, BC Hydro will invest $1.6B in Power Smart programs as part of the 10-year plan. A rate design review will also be launched to look at ways to provide industrial customers with more options to reduce electricity costs. "This is a balanced and responsible plan that keeps rates as low as possible while funding infrastructure investments to support our growing economy and population," Bennett stated while making the announcement.