B.C. Utilities Commission gives FortisBC green light to implement new residential inclining block rate
By Contributor
FortisBC recently received a decision from the B.C. Utilities Commission (BCUC) to implement a residential inclining block rate for electricity customers.
This new rate structure, which does not include Nelson Hydro customers in the greater Nelson area, comes into effect on July 1, 2012 and applies to FortisBC residential electricity customers.
The residential inclining block rate is revenue neutral to FortisBC and establishes a two level rate structure that offers a lower rate for the first amount of electricity used by residential customers, and a higher rate for use that exceeds the level one threshold.
“FortisBC was requested by the B.C. Utilities Commission to file a residential inclining block rate application last March,” said Tom Loski, vice president, customer service, FortisBC.
“This is because a residential inclining block rate is designed to encourage reduced electricity use.”
Under FortisBC’s residential inclining block rate, the first 1,600 kWh of electricity in a billing period will be charged at a lower rate than the current FortisBC flat rate.
All electricity used above the threshold will be charged at a higher rate. Rates for commercial, wholesale, lighting and irrigation customers will remain the same.
The average FortisBC electricity customer uses approximately 2,100 kWh every two months, and should see no significant changes to their monthly cost of electricity under the residential inclining block rate.
Customers using less than 2,100 kWh every two months will realize savings, and customers using less than 1,600 kWh every two months will see even greater savings.
The current flat rate is approximately 9.5 cents per kWh.
The company’s new structure will charge about 8.25 cents for the first 1,600 kWh of electricity billed and 12 cents for anything over and above.
FortisBC is currently going through a regulatory process regarding its revenue requirements application, which means the final number for the block rates are not set yet.
FortisBC offers energy efficiency programs through its PowerSense program to help customers manage their electricity consumption.
Customers looking to find out more ways to save energy or receive rebates can visit fortisbc.com/powersense.
FortisBC also offers an equal payment plan, which allows customers to avoid seasonal fluctuations on their bill by paying an equal amount every month.
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