Whereas BC Hydro is utilizing a two-tier monthly pricing structure on their electrical utilities being consumed by their customers; And whereas smaller Northern communities have limited affordable options for their heating needs, therefore relying heavily on electricity for heating; And whereas this dependency results in Northern citizens reaching the second-tier pricing significantly sooner each month than other geographical locations creating inequitable heating costs for those who live in rural Northern communities: Therefore be it resolved that UBCM support lobbying the provincial government to make the necessary changes to BC Hydro to restructure their two-tier pricing model for Northern regions of the Province of BC and create an equitable pricing structure for all BC citizens.
Ministry of Energy, Mines and Petroleum Resources Changes to rate structures, both for BC Hydro and FortisBC, are made through public processes before the British Columbia Utilities Commission BCUC, the provinces independent energy regulator, in order to ensure that all ratepayers interests are considered. A number of British Columbians feel that tiered rates can be unfair for households in parts of our province where alternative fuels are not readily available to meet their space and water heating needs. In its decision on FortisBCs 2017 Rate Design Application, the BCUC did approve FortisBCs plan to phase out its tiered billing rate over five years. This was done with the support of most of FortisBCs customer groups and following significant input from the public, including antipoverty organizations. BC Hydro continues to evaluate the impact and effectiveness of its current Residential Inclining Block rate, and is examining alternative approaches to meeting evolving customer needs. As part of the second phase of the Comprehensive Review of BC Hydro, government is also working with BC Hydro to look at options to ensure that rate structures do not discourage customers from using clean electricity rather than other energy sources. In its next rate design application, BC Hydro will likely bring several of these alternatives forward to the BCUC. Communities and members of the public will be able to participate in this proceeding, as they did in the FortisBC proceeding.
BC Hydro Rates are reviewed and set by BC Hydros regulator, the BC Utilities Commission. On August 22, 2019 we filed an update to our Fiscal 2020 and Fiscal 2021 Revenue Requirements Application with the BC Utilities Commission and have requested a rate decrease of 0.99 starting April 1, 2020. Changes to rate structures, such as moving away from the Residential Inclining Block Rate, are made through public processes before the BC Utilities Commission to ensure that ratepayers interests are considered. BC Hydro has heard from a number of customers about their concerns with the Residential Inclining Block Rate and we are starting to examine different options, especially in light of governments CleanBC goals. If this advances further, there will be many opportunities for customers and stakeholders, including communities, to participate in consultation and provide submissions on potential new designs.