Two tiered rate proposed for Fortis residential power customers

  • Apr. 5, 2011 7:00 p.m.

FortisBC announced last Friday that  it has filed with the British Columbia Utilities Commission (BCUC) an application for Residential Inclining Block (RIB) rate, which is a two-level rate structure designed to encourage energy conservation. This filing is in compliance with a BCUC order related to the utility’s earlier cost of service analysis (COSA) and rate design application, in which the utility was directed to develop a plan for introducing residential inclining block rates.

The proposed conservation rate would establish a two level rate structure that offers a lower rate for the first amount of electricity used by residential customers, and a higher rate for use that exceeds the level one threshold. The application proposes that the level one threshold be lower than the average consumption of residential customers and the rate at this level be lower than the current flat rate, in order to incent customers to keep their consumption within this range.

The new residential rate structure requires the approval of the BCUC, and will not result in any new revenue for FortisBC. The utility is proposing that the two-level rate become effective six to nine months after a BCUC decision.


FortisBC also offers energy efficiency programs through its PowerSense program to help customers manage their electricity consumption. Since inception in 1989, the PowerSense programs have helped customers save nearly 380 million kilowatt hours (KWhs), enough energy to power nearly 30,000 homes each year.

Fortis press release