FortisBC announces electricity rate hike, cites growing demand

Ready to ring in the new year? With higher electricity rates?

On Thursday, FortisBC announced that its customers will soon see a rate hike in their electric bills.

The increase, which will start on Jan. 1 and was given the green light by the B.C. Utilities Commission, is pegged at 6.74 per cent.

According to FortisBC, the average residential user will see an extra $11.26 added to their bill per month, though charges will vary based on use.

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“A significant driver for the rate change is the increased cost of purchasing electricity,” said FortisBC, adding the cost of electricity has risen recently as coal plants are phased out and fewer hydroelectric dams are being built.

The company also said it’s seeing increasing demand for electricity along with a sharp rise in regional population growth — specifically the Central Okanagan.

Part of the electricity demand includes a greater reliance on electric vehicles. In Kelowna, for example, the city has five public EV charging stations.

FortisBC also said it invested $23 million in a substation in Kelowna to ensure reliable service during peak demand.

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“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, the vice-president of energy supply and resource development for FortisBC.

The company says its power supply comes from four hydroelectricity facilities plus long-term contracts with BC Hydro and other producers.

FortisBC claims that it’s continually monitoring power prices and needs, and that it sometimes sells power back to the market.

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Still, FortisBC says it expects electricity prices to rise by more than six per cent next year.

“We understand that energy costs are an important consideration in household budgets and rising costs may be a concern for some customers,” said 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.”