BC Hydro powerhouse and generators.
BC Hydro is projecting a 30-per-cent boost in hydro rates over the coming three years, but says the good news is that the province continues to be one of the lowest-cost jurisdictions for power on the continent.
President and CEO Dave Cobb said B.C. Hydro is proposing an average bill increase of about $7 a month, for each of the next three years, or about 10 to 11 per cent a year.
But Mr. Cobb emphasized on Thursday that B.C. power is third-cheapest in North America behind Manitoba and Quebec.
"Our determination, despite some pressure on rates, is we will stay in that small group of lowest-cost utilities, but there is upward pressure on rates related to capital investment projections of $2-billion per year for each of the next three years," Mr. Cobb said in an interview.
The hikes, he said, are necessary to cover programs to upgrade aging infrastructure. "We have to invest in our assets." He added: "These funds have to be recovered from taxpayers. That's where the pressure on rates is coming from."
Mr. Cobb noted the rate increases are only estimates and subject to further review by BC Hydro and the BC Utilities Commission. Indeed, he said it may be possible to trim them back down to single digits.
Ian Bailey