BCUC approves BC Hydro’s 2023 to 2025 rates application

VANCOUVER, B.C. — The British Columbia Utilities Commission (BCUC) approved the application of BC Hydro’s fiscal 2023 to fiscal 2025 revenue requirements.

The rates were approved following a public review process but may change as the BCUC reviews two outstanding issues.

The below rates may change after the BCUC reviews BC Hydro’s finance charges and the request to transfer funds back into the Trade Income Deferral Account.

Effective Date	General Rate Change	Deferral Account Rate Rider Change
April 1st, 2022	0.62%	-2%
April 1st, 2023	0.97%	-1%
April 1st, 2024	2.18%	Amount not yet determined

According to the BCUC, the general rate changes are due to increases in BC Hydros’ finance charges, operating costs, taxes and Site C beginning operation.

BC Hydro is expected to recover costs from the new Site C dam in December 2024.

The BCUC reportedly directed a different treatment if there are disallowed costs related to Site C from future BCUC reviews.

The BCUC approved changes to the Open Access Transmission Tariff rates and the Deferral Account Rate Rider. The Deferral Account Rate Rider recovers or refunds differences between BC Hydro’s expected and actual energy costs.

BC Hydro must reapply to the BCUC for the Deferral Account Rate Rider rate for April 1st, 2024.

The commission directed BC Hydro to create a new Trade Income Rate Rider starting April 1st, 2024.

According to the BCUC, the Trade Income Rate Rider will refund or recover the net income BC Hydro received from its subsidiary Powerex, as Powerex’s activities are not directly related to BC Hydro’s regulated operations. 

The forecasted income from Powerex was previously incorporated into BC Hydro’s general rate calculation.

The Trade Income Rate Rider has yet to be determined, and BC Hydro must apply to approve the Trade Income Rate Rider rate.

The BCUC also reportedly made directions on BC Hydro’s depreciation rates and regulatory accounts. 

The BCUC directed the electric services company to provide future reporting requirements for its electrification plan, load forecasting, energy studies models and other programs.

For more information, visit the BCUC page on BC Hydro’s Fiscal 2023 to 2025 Revenue Requirements.