Just one day after announcing a slight decrease in gas prices, FortisBC has announced that electric rates will be going up next month.
On Thursday, the utility provider said the BC Utilities Commission (BCUC) approved a 6.74% general rate increase, which works out to about $11.26 per month, though charges will vary based on usage.
The new rates go into effect on Jan. 1.
According to a release, a significant driver for the rate change is the increased cost of purchasing electricity, adding that the cost of electricity has risen in recent years with the phasing out of coal plants and lower hydroelectricity generation.
Another driver is greater than anticipated demand for electricity due to population growth and an increase in electrification of parts of the economy as seen in a greater reliance on electric vehicles.
This growing demand for electricity is seen in Kelowna.
FortisBC says a $23 million expansion to its Kelowna substation was necessary this summer to ensure reliable service during peak demand.
“This adjustment in electric rates will help ensure FortisBC can purchase sufficient electricity to meet our customers’ growing needs as well as make investments in maintenance and upgrades for its continued safe and reliable delivery to homes and businesses,” said Joe Mazza, vice president, energy supply and resource development, FortisBC.
The company’s power supply comes from its four hydroelectricity facilities, long-term contracts with BC Hydro and other producers as well as the wholesale market. Sometimes it also sells power back to the market.
Although this allows Fortis some flexibility to offset rising costs, it expects prices to rise by more than 6% next year.
“We understand that energy costs are an important consideration in household budgets and rising costs may be a concern for some customers,” added Mazza.
“We encourage any customer who has questions about their bill to reach out. Our customer service team can provide information about energy conservation tips, answer billing inquiries and offer solutions that fit your personal needs.”
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