Fortis BC eyes rate structure changes

On December 22, Fortis BC submitted its Cost of Service Analysis and Rate Design Application to the BC Utilities Commission and in it, recommended returning to a single, flat residential rate and re-establishing a time-of-use rate as an option for residential customers.

“We’re committed to ensuring all our customers are billed fairly for the energy they consume and in a way that meets their needs while providing opportunities to encourage conservation,” said Diane Roy, vice-president of regulatory affairs, “These recommendations reflect a comprehensive review of FortisBC’s current rate structure and make sure
rates paid fairly reflect the cost of providing service.”

All utilities review cost of service allocation and rate design periodically to make sure that rates reflect the fair and equitable allocation of costs. Through the rate design process over the last year, FortisBC looked at the cost of providing service to each rate class and reviewed several options for rate design. During this review process, Fortis BC also encouraged input and feedback from the public.

“FortisBC understands that electricity rates and bills matter to our customers and consulting with our customers and various stakeholders was an important part of this rate design process,” said Roy. “We heard from many participants with concerns about the two-tiered rate, particularly those with high energy needs and limited conservation options.”

If approved, the return to a single, flat rate for residential customers will be phased in over five years by reducing the difference between the two tiers of the residential rate and increasing the customer charge that was frozen for a period of time under the residential conservation structure. This phased-in approach is intended to mitigate annual rate impacts for lower consumption customers.

By re-establishing time-of-use rates, residential customers still have an option to reduce their energy costs by shifting their high consumption activities to off-peak hours. This time-of-use option is one of the benefits made possible by advanced meters which now provide accurate hourly consumption data. FortisBC’s application recommends a redesign of this rate option for all other customer classes as well.

Overall, changes from a rate design review are revenue-neutral for FortisBC. FortisBC’s last rate design application was submitted in 2009. For more information about the rate design consultation process and the options that were considered, visit fortisbc.com/electricratedesign.

As a regulated utility, FortisBC sets its rate structure through a rigorous and transparent process with the BCUC.

FortisBC expects a decision on its electric rate design by the end of 2018 with the new structure coming into effect in

2019. Customers are encouraged to follow the proceedings at bcuc.com.

Continue Reading

chnv Now playing play

ckkc Now playing play

- Advertisement -

Related Articles

- Advertisement -

Latest News

Support local seniors through Kootenay Seniors’ 50/50 Raffle

Win up to $10,000 while helping seniors get where they need to go.

B.C. adds 5k jobs in June, led by gains in part-time work

British Columbia added 5,000 jobs in June but saw a dip in full-time employment, according to the latest jobs report from Statistics Canada. 

B.C. maintains decision to end drug coverage for girl with rare, fatal disease

B.C. is standing by the decision not to continue drug coverage for a Vancouver Island girl with a rare, fatal disease. 

Measles cases reported in B.C. this year top 100

B.C.’s health officials have said 102 cases of measles have been reported across B.C. so far this year, with most of those in the Northern Health region.

Puck drop date set for KIJHL season

The puck will drop on the 2025-26 KIJHL regular season on Friday, September 19, when the league’s 21 teams each embark on a 44-game schedule.
- Advertisement -