BC Hydro rates to increase 4 per cent starting April 1

BC Hydro is filing for an interim one-year rate increase of four per cent for fiscal 2017, effective on April 1.

The company says this works out to about four dollars per customer a month.

Jessica McDonald, president and CEO of BC Hydro, says this rate hike is still consistent with the B.C. government’s 10-Year Rates Plan. This capped increases at four per cent for fiscal 2017, 3.5 per cent for fiscal 2018 and three per cent for fiscal 2019.

The BC Utilities Commission will then determine the rate increases for the final five years of the plan.

WATCH: Keith Baldrey on BC Hydro rate hikes

3:08 BC Hydro applies for rate increase

In a press conference, McDonald said they expect population in the province to grow by one million people over the next 20 years and demand for power will grow by almost 40 per cent.

“We want to ensure the revenue requirement proceedings with the BC Utilities Commission are conducted on the basis of the best information possible and we will be taking the time to update the Load-Resource Balance to consider how recent economic events impact our forecasts,” said McDonald in a release. “We are on-track to deliver the 10-Year Plan which provides certainty for British Columbians and ensures rates remain as low as possible while BC Hydro invests in the electricity system.”

BC Hydro says it must invest, on average, $2.4 billion a year into the province’s aging electricity system as most facilities were built in the 1960s, 70s and 80s.

WATCH: Jessica McDonald from BC Hydro announces the rate hike at a press conference 

2:04 BC Hydro announces one-year rate hike

Update: A previous version of this story said “McDonald says the recent slowing down of the mining and LNG sectors have led to the company filing this interim rate application.” This was an erroneous paraphrasing of her comments, and has been removed.