Drought is causing B.C. utilities to import more power — and that will affect your bills in 2024
FortisBC is raising its electricity rates Jan. 1 and B.C. Hydro will do so in April
B.C. Hydro is encouraging customers to reduce their power use during colder months as unprecedented drought conditions strain electricity production, prompting the utility to bring in power from out of province.
It means customers will see electricity rates go up in 2024.
B.C. Hydro has imported 10,000 gigawatt hours so far in 2023 — about a fifth of the province's energy needs — at a cost of about $450 million, according to spokesperson Kevin Aquino.
"Historically speaking, this is quite high. The last time we did this was over a decade ago," he told CBC Radio West host Sarah Penton on Monday.
"While this year is challenging, we are actively taking steps to manage this historic drought."
Central B.C. has had about 60 per cent of its usual precipitation in 2023, according to B.C.'s Drought Information Portal.
Low reservoir levels caused by the drought mean less water is moving through dams, reducing the energy generated, according to B.C. Hydro. That's made it difficult for hydro facilities to keep up with demand.
Aquino says the cost of purchasing extra energy from Alberta and neighbouring U.S. states won't immediately increase hydro rates, but the crunch comes around peak demand for power.
"Heating is the biggest use of energy in B.C. during the fall and winter months," he said, with customers spending "upwards of 50 per cent more on energy bills" — or about five per cent for every degree they increase the thermostat.
Aquino recommends residential customers draft-proof their homes, and transition to LED light bulbs and energy-efficient appliances when possible.
As an incentive, those who reduce their household's energy use by 10 per cent in 2024 compared to 2023 are eligible for a $100 B.C. Hydro credit under the Team Power Smart conservation challenge — double the reward previously offered, said Aquino.
Electricity rate hikes
FortisBC, which provides power to some areas of the province, says the rising cost of buying out-of-province electricity is a key reason why it's increasing its electricity rates.
The utility says electricity rates will rise by 6.74 per cent starting Jan. 1, costing the average customer about $11.26 more per month.
However, FortisBC says its natural gas prices will decline slightly in 2024, saving the average customer about $1 per month.
Aquino says the energy purchase will not have an "immediate" impact on B.C. Hydro customers' bills, but the utility has applied to the B.C. Utilities Commission for a 2.3 per cent rate hike that would take effect on April 1, 2024.
If approved, it would increase the average residential customer's bill by about $2 per month, according to an October statement from B.C. Hydro and the Ministry of Energy, Mines and Low Carbon Innovation.
The utility is also introducing a new pricing option to help British Columbians weather the increases amid rising costs of living and steady inflation.
Starting as early as June 2024, residential customers will be able to opt into time-of-day pricing aimed at encouraging people to use energy outside peak hours.
The B.C. Utilities Commission, which regulates B.C. Hydro, FortisBC, ICBC and other private utility rates in the province, approved the plan on Dec. 12.
Residents who choose this option will get a five-cent discount on every kilowatt hour they use overnight from 11 p.m. to 7 a.m., and pay five cents more for every kilowatt hour used during peak hours from 4 p.m. to 9 p.m.
Neither rate change would apply during off-peak hours from 7 a.m. to 4 p.m. and 9 p.m. to 11 p.m., according to the utility.
Aquino says B.C. Hydro is working to ensure it can meet energy demands from B.C.'s growing population as rising costs and climate change affect its capacity.
"We're fortunate that we have a hydroelectric system where we can ramp up when demand is high and scale back when it's not needed," he said.
With files from CBC's Radio West