FortisBC customers will see no increase to their rates in 2019. (File photo)
As of January 1, FortisBC electric customers will see no increase to rates.
FortisBC has determined that it can meet its revenue requirements for 2019 with the 2018 rates and has applied to the BC Utilities Commission (BCUC) to keep these rates in place. The BCUC has now approved that request in the interim pending a decision on permanent rates.
“This reflects our ongoing priority of keeping rates as low as possible, while still meeting our customers’ expectations for quality service,” stated Diane Roy, vice president, Regulatory Affairs, FortisBC. “Our last rate change occurred in 2017 and if our application is approved, 2019 will mark the third year these rates have been in place.”
Each year, FortisBC must submit its revenue requirements for the following year to the BCUC for approval and that determines the rates it must charge its customers. One of the key reasons FortisBC can meet its 2019 revenue requirements with existing rates is due to its focus on reducing costs while also making necessary system improvements and long-term investments in its infrastructure.
This is the sixth and final year FortisBC has had a performance-based rate structure in place. This provides an incentive for the company to reduce costs and share those savings with customers. Rate increases have trended downward since this structure came into effect in 2014 and since that time, FortisBC has shared $5 million in savings with customers.
FortisBC’s request to make the 2018 rates permanent for 2019 is under regulatory review. The BCUC is also continuing to review FortisBC’s Rate Design application that includes a request to phase out the two-tiered rate over five years. Decisions on both these applications are expected in the first quarter of 2019, which, once received, may result in bill adjustments for customers.
For more information about how rates are set and current rates, visit fortisbc.com/electricrates.
