The British Columbia Utilities Commission (BCUC) has given final approval to Nelson Hydro’s electricity rates for rural customers for 2026 and 2027.
The approved increases are 15.98 per cent for 2026 and 1.95 per cent for 2027. Nelson Hydro originally proposed a 3.77 per cent increase for 2027, but revised the request to 1.95 per cent during the BCUC review after identifying an error in its calculations.
The 2026 rates have been in effect on an interim basis since Jan. 1 while the BCUC completed its review. Because the rates were approved as proposed, rural customers will not see any adjustments or credits on their bills.
According to Nelson Hydro, the 2026 increase is largely the result of a provincewide BCUC review that updated how financing costs are calculated for smaller utilities such as Nelson Hydro.
The utility said some of those costs had been deferred while the review was underway and are now being recovered through the approved rates.
“The 2027 increase reflects the ongoing cost of providing electricity to rural customers,” said Nelson Hydro in a press release.
“This includes buying power, maintaining and replacing aging electrical infrastructure, and continuing to provide safe and reliable service.”
The utility said multi-year rate approvals provide customers with more certainty about future electricity costs while reducing the time and expense associated with annual regulatory applications. It said the approach also allows for longer-term infrastructure planning.
The commission also rejected calls to spread the 2026 increase over multiple years. Its decision said doing so would increase financing costs and lead to a much larger rate hike in 2027.
The BCUC regulates electricity rates for Nelson Hydro customers living outside Nelson city limits. Electricity rates for customers within the City of Nelson are approved separately by Nelson City Council.
More information on how Nelson Hydro rates are set can be found here.
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