WHEREAS BC Hydro is proposing a seven percent increase in electricity rates effective April 1, 2004 and a further two percent increase to be effective in 2005; AND WHEREAS resource dependent communities are facing economic hardship: THEREFORE BE IT RESOLVED that the Union of BC Municipalities object to BC Hydros proposed increase in electricity rates.
MINISTRY OF ENERGY AND MINES The New Era platform and the British Columbia Governments Energy Plan commit to allowing the BCUC to again regulate BC Hydros rates. BCUCs review of BC Hydros revenue requirements application is the appropriate forum for addressing concerns about rates. This is the first time in a decade that BC Hydros costs and proposed rates have been reviewed. BCUCs open and transparent process should ensure that rates are kept as low as possible. Even with the proposed increase, BC still has the third lowest electricity rates in North America.
BC HYDRO With regard to resolution B87, Increased Electricity Rates, you will be aware that the rate increase is BC Hydros first in ten years. Like all organizations, we have faced increasing cost pressures over this period and applied for a rate increase to allow us to acquire the additional electricity to meet customers growing demands and enable us to upgrade our system to ensure it can continue to provide the electricity in a reliable manner. The rate application was the subject of extensive public review through the BC Utilities Commission which ultimately commented in its decision that BC Hydro has established a one-time significant rate increase in revenue requirements is needed.