Nelson Hydro has set its annual urban and rural rate increases for 2025.
Nelson city councillors approved the first three readings of the rate increases on Tuesday, both of which will come into effect on January 1, 2025.
An increase of 7.54 per cent has been set for rural Nelson Hydro customers, while urban customers will see a 5 per cent increase.
Nelson Hydro submitted its rural rate increase application to the BC Utilities Commission on October 31 for approval. However, it also applied for interim approval to ensure the rural rate takes effect on January 1, alongside the urban rate.
Rural Rates
This year’s rural increase is slightly higher than the 6.2 per cent increase implemented for 2024.
A civic document states that the 2025 increase is largely attributed to the 5.3 per cent general rate increase sought by FortisBC, Nelson Hydro’s power supplier, and was calculated using the BCUC-approved Cost of Service Analysis (COSA) with the utility’s budget.
Beyond that, Nelson Hydro’s capital renewal plans are also a significant contributor to the rate pressure.
Nelson Hydro reports that staff scrutinized the utility’s annual budget to reduce rate pressure where possible to help moderate the impact on customers.
Urban Rates
The 5 per cent rate increase for urban customers is also largely attributed to FortisBC’s 5.2 per cent general rate increase.
Nelson Hydro’s capital renewal plans added rate pressure as well, with the utility’s rate document indicating that controllable costs (operations and maintenance) account for only a small portion of the rate increase.
The increase also ensures Nelson Hydro’s capital reserves stay within a target range of $4 million to $9 million over the next several years, which are funded strictly through urban rates.
Nelson Hydro will host its annual open house sometime in November or early December, where ratepayers can discuss relevant topics, including the annual general rate increase and the reasons behind it.
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