FortisBC raising electricity rates by more than 6% next year
FortisBC is increasing its electricity rates by more than six percent for all its clients in the new year.
As of Jan. 1, 2024, clients of FortisBC will be paying an extra 6.74% as approved by the BC Utilities Commission, according to a FortisBC media release issued today, Dec. 14. For the average residential customer, this represents a $11.26 increase per month or $135.12 per year.
“As we continue to transition to a cleaner energy future, FortisBC is also mindful of ensuring the continued reliability and resiliency of B.C.'s energy systems,” Joe Mazza, vice president, energy supply and resource development of Fortis BC, said in the release. “This adjustment in electric rates will help ensure FortisBC can purchase sufficient electricity to meet our customers’ growing needs as well as make investments in maintenance and upgrades for its continued safe and reliable delivery to homes and businesses.”
The increased rate is due to the increased cost of electricity this is due to coal plants being phased out, the generation of hydroelectricity being lowered, the demand for electricity increasing at a greater rate than anticipated and the electrification of new parts of the economy such as a greater reliance on electric vehicles.
FortisBC gets its power from its four hydroelectric facilities, its contract with BC Hydro as well as other producers and the wholesale market. It also sells power back to the market which has allowed FortisBC some flexibility to offset rising costs but prices are still expected to rise by more than six percent next year.
The growing electricity demand comes with the fast-growing populations in areas such as Kelowna, Canada’s fastest-growing community. In 2023, the company invested $23 million in an expansion to its Kelowna FA Lee Terminal Substation to accommodate rising demand and to ensure reliable services.
FortisBC applies to the BC Utilities Commission yearly to set electricity rates for the next year. This ensures that the increased electricity rates reflect the cost of providing safe, reliable service as well as the cost of generating and purchasing electricity and improving the electricity grid that delivers power to homes and businesses.
“We understand that energy costs are an important consideration in household budgets and rising costs may be a concern for some customers. We encourage any customer who has questions about their bill to reach out. Our customer service team can provide information about energy conservation tips, answer billing inquiries and offer solutions that fit your personal needs,” said Mazza.
FortisBC provides electricity directly to customers in Kelowna, the South Okanagan and the Boundary-West Kootenay region, and indirectly to customers in Summerland and Penticton. You can have a look at a map of the company's service area here.
For those wanting more information on rates and how to find help to lower their electricity bills, visit the FortisBC website here.
To contact a reporter for this story, email Gabrielle Adams or call (438) 830-1211 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.
We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above. SUBSCRIBE to our awesome newsletter here.
