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British Columbians who have electricity through FortisBC can expect a 3.98% increase in rates next year.
The utility company announced today that they have received interim approval from the BC Utilities Commission (BCUS) for the increase.
In a news release, FortisBC says residential customers with an average use of about 1,100 kilowatt hours per month can expect a $7.62 increase on their monthly bills.
“With a growing market demand for power, we are forecasting an increased cost to purchase power in the upcoming year to serve our growing customer demand,” said Joe Mazza, vice-president, energy supply and resource development, FortisBC.
“We’re very conscious that any rate increase can be a concern for our customers and we’ve been able to find savings in our operations to offset some of this cost and lower the increase that would have otherwise been needed for 2023.”
FortisBC says the rates also reflect what the company must charge to execute on its plan for 2023 and meet the growing demand.
This includes ongoing investments the company is making to build new substations and power lines and replace aging equipment.
The company is also working on upgrades to its hydroelectric infrastructure.
In the news release, FortisBC explains that these rates have been approved on an interim, refundable basis and a final decision on permanent rates is expected later in 2023.
Next year marks the first time since 2011 that customers will be billed at a single rate. This means customers will see only one line item on their bill for all the kilowatt hours they have used.
The phasing out of two-tiered rates, or different rates for different levels of use, has been ongoing since 2019.
As a regulated, privately owned utility, Fortis must apply to the BCUC each year to set electricity rates for the following year.
The annual review and approval process is needed to ensure that electric rates reflect the actual cost of providing safe, reliable service.
For more information on electric rates and how they are set, click here.
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