Starting Januray 1, 2013, FortisBC residential electricity customers will see a 4.2 per cent increase on their electricity bills from the recent BC Utilities Commission revenue requirements decision, along with a 2.3 per cent increase from rate rebalancing.
The cumulative rate adjustment for residential customers will mean an increase of 6.6 per cent. For the average residential customer using 1,050 kWh per month, the change is an increase of approximately $7.07 per month.
“FortisBC works to provide our customers with safe, reliable electricity at the lowest reasonable cost,” said Tom Loski, FortisBC vice president of customer service, “but changes in the external environment are causing pressure on our rates such as financing system maintenance and improvements, along with increased purchases of power.”
The BC Utilities Commission approved the 4.2 per cent increase for FortisBC electricity customers as part of the utility’s 2012/2013 revenue requirements. Further adjustments to electricity rates are because of rate rebalancing. Last year, FortisBC announced rate rebalancing which ensures that each customer group pays their share of the costs required to serve them, but does not generate extra revenue for FortisBC.
“This is the final phase of rate rebalancing for our residential customers that came as a result of our cost of service analysis. This analysis is done periodically to ensure rates are fair and equitable between customer groups and that no one customer class is subsidizing another,” said Loski.
Therefore, the cumulative rate adjustment starting Jan. 1 for other FortisBC electricity customers will see small business customers receiving a 5.5 per cent reduction; lighting customers will see a 6.8 per cent increase; wholesale customers will see a 5.9 per cent increase and Nelson wholesale will also see an increase of 4.6 per cent.