WHEREAS the current economic crisis has caused financial hardship for many taxpayers; AND WHEREAS many local governments are making every effort to reduce expenditure and ease the tax burden on citizens by keeping increases at a minimum; AND WHEREAS utilities are a significant cost item for residential owners and businesses; AND WHEREAS Fortis has recently announced rate increases in excess of 11 per annum: THEREFORE BE IT RESOLVED that UBCM call on the provincial government to review utility rate increases considered by the BCUC with a view to limiting the financial impact on consumers.
Ministry of Energy Mines The review of BC Hydro did not extend to FortisBC and other investor-owned or municipal utilities as these are not Crown Corporations. BC Hydro filed a revised three year rate application with the BC Utilities Commission on November 24, 2011 with the intention of reducing the rate increase BC Hydro had previously applied for by one-half. This proposed rate reduction is designed to strike a balance between keeping rates down and affordable for BC families, but also letting BC Hydro invest in its future infrastructure needs for both families and businesses. The BC Utilities Commission will review both BC Hydros and FortisBCs applications to ensure that the applied for increases are appropriate and in the public interest.
FortisBC I would like to clarify a point brought forward in the UBCM Resolution B68 regarding our electric rates which states: Fortis has recently announced rate increases in excess of 11 per annum and calls on the provincial government to review utility rate increases by the BCUC with a view to limiting the financial impact on consumers. In fact, in 2011 FortisBC applied rate increases for 2012 of 4 and for 2013 of 6.9. Due to cost saving measures that were identified throughout the year, in November 2011 we applied for an update to our original filing; amending rate increases for 2012 to 1.5 and for 2013 to 6.5. These rate increases enable us to make safety and reliability investments in the electric system and build infrastructure to meet the future needs of customers. Furthermore, changes to these rates include estimated BC Hydro rate increases, which flow through to FortisBC electric customers. FortisBC operates regulated gas and electric utilities with oversight from the BC Utilities Commission which is guided by provincial government legislation. The BCUC reviews both electricity and gas rates through an extensive and transparent public process that looks at the costs of providing electricity and gas to customers. This process also includes an opportunity for public input form stakeholders and customer groups, of which municipalities can and do participate.