BCUC Issues Decision on BC Hydro’s 2023 to 2025 Rates Application
VANCOUVER, British Columbia, April 21, 2023 (GLOBE NEWSWIRE) — Today, the British Columbia Utilities Commission (BCUC) issued its decision on BC Hydro’s fiscal 2023 to fiscal 2025 Revenue Requirements (Rates) Application, per Order G-91-23.
Following an open and transparent public review process, the BCUC approved the below rate changes subject to final adjustments. These rates remain interim as the BCUC continues its review of two outstanding issues: BC Hydro’s finance charges and the request to transfer funds back into the Trade Income Deferral Account. A decision is expected on these items in due course, which may further impact these interim rates.
|Effective Date||General Rate Change||Deferral Account Rate Rider Change|
|April 1, 2022||0.62%||-2%|
|April 1, 2023||0.97%||-1%|
|April 1, 2024||2.18%||Amount not yet determined|
The general rate changes are primarily due to increases in BC Hydro’s finance charges, amortization, operating costs, taxes, and Site C coming into service. In December of 2024, BC Hydro is expected to start recovering costs from the new Site C hydroelectric dam and generating station. However, the BCUC directed a different treatment if there are disallowed costs related to Site C that may result from any future BCUC review of the project.
The BCUC approved changes to the Open Access Transmission Tariff rates and the Deferral Account Rate Rider (DARR). The DARR recovers or refunds differences between BC Hydro’s forecasted and actual energy costs. BC Hydro must reapply to the BCUC for approval of the DARR rate for April 1, 2024.
To promote transparency, the BCUC directed BC Hydro to create a new Trade Income Rate Rider (TIRR), starting on April 1, 2024. The TIRR will refund or recover the net income BC Hydro receives from its subsidiary Powerex, as Powerex’s activities are not directly related to BC Hydro’s regulated operations. Previously, the forecasted income received from Powerex was incorporated into BC Hydro’s general rate calculation. The TIRR rate has not been determined; BC Hydro must apply to the BCUC for approval of the TIRR rate.
The BCUC also made various directions on BC Hydro’s depreciation rates and regulatory accounts. BC Hydro was directed to provide future reporting requirements for its electrification plan, load forecasting, energy studies models, and vegetation management strategy, among others.
For more information about BC Hydro’s application or the BCUC’s decision, please visit the proceeding page.
About the BCUC
The BCUC is a regulatory agency responsible for the oversight of energy utilities and compulsory auto insurance in British Columbia. It is the BCUC’s role to balance the interests of customers with the interests of the businesses it regulates. The BCUC carries out fair and transparent reviews of matters within its jurisdiction and considers public input where public interest is impacted.
Krissy Van Loon
Email: [email protected]
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