(File Photo)

For the first time in decades, BC Hydro has applied for approximately a 1% rate reduction to go into effect in April 2020.

The application was filed with the BC Utilities Commission on August 22nd as part of an overall five-year rate hike.

See also: New report shows BC Hydro contracts will cost customers billions

If approved, an estimated forecast of net bill changes over the next four years are as follows:

  • April 2020: decrease of 0.99 per cent
  • April 2021: increase of 2.7 per cent
  • April 2022: decrease of 0.3 per cent
  • April 2023: increase of 3 per cent

The net increase at the end of five years is estimated to be 6.2%, rather than the 8% originally announced price hike originally announced by the province in February.

BC Hydro’s application to the BCUC is based on its audited fiscal 2019 financial results and latest financial forecast that reflect higher-than-anticipated income from its trading subsidiary Powerex, lower-than-anticipated forecast debt financing costs, and lower-than-anticipated purchases from independent power producers (IPPs).

The BCUC is expected to make their decision in early 2020.

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