FortisBC has applied to the BC Utilities Commission (BCUC) with the recommendation to return to single, flat residential rates instead of its current two-tiered rate structure.
If approved by the BCUC, the rate would be phased in with increases over the next five years.
"What we do know is by phasing this in over five years, customers who are affected will see no more than 3.5% increases because of this change," explained Nicole Bogdanovic, corporate communications advisor for FortisBC, to KelownaNow.
FortisBC started the review in June 2017 and sent a Cost of Service Analysis and Rate Design application to the BCUC on Dec. 22, 2017.
"Right now under the two-tiered system, customers pay a lower amount for the first 800 kilowatt hours that they use and they pay a higher amount for any kilowatt hours per month above that," said Bogdanovic.
According to Bodgdanovic, the breaking point is about 1250 kilowatt hours - and any electricity use above that tends to create higher bills.
"What we're seeing is about 30% of residential customers receive higher bills under this than they would under a flat rate."
The two-tiered system was meant to encourage energy-saving strategies. FortisBC found that customers who have the ability to conserve energy, have saved energy.
Alternately, the remainder of customers showed high energy use, but weren't able to save energy for various reasons, according to Bogdanovic.
"So we do want to make sure that our rates are fair to all of our customers, so that's why we are now recommending a return to a flat rate."
FortisBC is also reintroducing the time of use rate.
"I know customers still are looking for opportunities to reduce their electricity bills and so we will be providing that option for customers who want to find an alternative way to save."
The time of use rate allows customers to shift their high-consumption activities to off-peak hours. It would come into effect in 2019.
FortisBC hopes to have a decision on its electric rate design by the end of 2018, with the new structure implemented by 2019.
FortisBC’s last rate design application was submitted in 2009.
For more information about the rate design consultation process and the options that were considered, visit FortisBC.
To follow the proceedings, go to BCUC.
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