Electricity rates are set to rise in the new year.
Fortis BC received interim approval from the BC Utilities Commission for a 3.98 per cent general rate increase for its electric customers, effective Jan. 1, 2023.
Fortis said that for a residential electric customer with an average use of approximately 1,100 kilowatt hours per month of electricity, it will cost about $7.62 more per month. Changes to individual bills will vary based on use.
“With a growing market demand for power, we are forecasting an increased cost to purchase power in the upcoming year to serve our growing customer demand. We are also continuing to invest in our system to ensure the safe and reliable delivery of energy to our customers and to meet their growing demand,” Joe Mazza, vice-president, energy supply and resource development, FortisBC.
“We’re very conscious that any rate increase can be a concern for our customers and we’ve been able to find savings in our operations to offset some of this cost and lower the increase that would have otherwise been needed for 2023.”
As a regulated, privately owned utility, FortisBC applies to the BCUC each year to set electricity rates for the following year. This annual review and approval process ensures electric rates reflect the actual cost of providing safe, reliable service, from generating and purchasing the power through to maintaining and improving the electricity grid that delivers energy to homes and businesses.
These rates are approved on an interim, refundable basis. A final decision on permanent rates is expected later in 2023. As of 2023, all residential use will be billed at a single rate and, for the first time since 2011, customers will see only one line item on their bill for all the kilowatt hours they have used for each billing period.
In October, Fortis unveiled its largest five-year capital plan of $22.3 billion, an increase of $2.3 billion over its prior plan, and annual dividend growth guidance of four to six per cent through 2027.
“Together, our regulated growth strategy and long-term dividend growth guidance are expected to produce premium North American utility returns over the long run.”
The new five-year capital plan includes $5.9 billion of cleaner energy investments to connect renewables to the grid at ITC, transition to renewable generation in Arizona and the Caribbean, and deliver cleaner fuel solutions in British Columbia.
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