By Don Urquhart
As Canadians continue to struggle with inflationary costs and high interest rates, FortisBC electricity customers are set for higher electricity bills as the company rings in the new year with a 6.74 per cent rate increase to its electricity rates.
FortisBC gas customers on the other hand will see a marginal decrease in their billing with an overall decrease of about one per cent or $1 per month, depending on consumption. Gas customers pay for the actual cost of the gas with no markup along with the costs of delivery, storage and transport.
For residential electricity customers with an average use of approximately 1,100 kilowatt hours per month of electricity, this equates to about $11.26 more per month, according to FortisBC.
“We understand that energy costs are an important consideration in household budgets and rising costs may be a concern for some customers,” said Joe Mazza, vice president, energy supply and resource development, FortisBC. Mazza encouraged customers who have questions around the increase to contact the company’s customer service department.
The general rate increase for electricity was approved by the BC Utilities Commission (BCUC) which regulates BC’s energy utilities, the Insurance Corporation of BC’s basic automobile insurance rates, common carrier pipeline operations and rates, and the reliability of the electrical transmission grid.
BC Hydro also applied to the BCUC for a rate hike but smaller at 2.3 per cent which, if approved, would take effect on April 1, 2024 adding about $2 per month to the average residential customer’s bill.
FortisBC said the “significant driver” for its rate change is the increased cost of purchasing electricity.
It went on to explain that the cost of electricity has risen in recent years with the “phasing out of coal plants, lower hydroelectricity generation and greater than anticipated demand for electricity with population growth in the region and increasing electrification of parts of the economy.”
The company said it is experiencing growing demand for electricity, particularly in Kelowna, Canada’s fastest growing community. To cater to this demand it said “necessary system upgrades” have been undertaken including the $23 million expansion to its Kelowna FA Lee Terminal Substation in 2023. It also pointed to the growth of electric vehicle use as another factor.
“As we continue to transition to a cleaner energy future, FortisBC is also mindful of ensuring the continued reliability and resiliency of BC’s energy systems,” Mazza said.
“This adjustment in electric rates will help ensure FortisBC can purchase sufficient electricity to meet our customers’ growing needs as well as make investments in maintenance and upgrades for its continued safe and reliable delivery to homes and businesses.”
FortisBC is a wholly owned subsidiary of St. Johns, Newfoundland-based, investor-owned Fortis Inc. which posted net earnings of $394 million for the third quarter of 2023, up from $326 million in the previous year’s quarter.
Meanwhile FortisBC residential and commercial customers will receive a one-time cost-of-living credit on their electricity bills on behalf of the Province of BC.
Customers can expect to receive a $100 credit on their electricity bill over the next three months depending on the billing schedule for each individual customer. There is one credit available per residential customer, regardless of the number of accounts each customer holds.
Commercial customers will receive a credit in the first half of 2023. The precise amount is based on their electricity consumption between October 1, 2021 and September 30, 2022 and is expected to average around $500.
For more information about the one-time cost-of-living credit is available at strongerbc.gov.bc.ca/cost-of-living.
