BC Hydro is encouraging customers to reduce power usage during the colder months as unprecedented drought conditions put pressure on power production, prompting the utility to bring in electricity from outside the province.
This means customers will see electricity prices rise in 2024.
Spokesman Kevin Aquino said BC Hydro has imported 10,000 gigawatt hours of electricity through 2023, accounting for about one-fifth of the province’s energy needs at a cost of about $450 million.
“Historically, the numbers are pretty high. The last time we did this was over 10 years ago,” he told CBC News western radio station Monday hosted by Sarah Penton.
“While this year has been challenging, we are proactively taking steps to address this historic drought.”
According to the B.C. Drought Information Portal, precipitation in central B.C. will be about 60% of normal in 2023.
According to BC Hydro, the drought has resulted in lower reservoir levels, meaning less water flows through the dams, reducing power generation. This makes it difficult for hydro facilities to keep up with demand.
Aquino said the cost of purchasing additional energy from Alberta and neighboring U.S. states won’t immediately raise utility bills, but the crunch occurs when power demand peaks.
“Heating is the largest energy consumer in B.C. in the fall and winter,” he said. Customers’ energy bills increased by “more than 50 per cent,” or about 5 per cent by turning the thermostat up one degree.
Joanne Dally is one of many rural residents who rely on well water. She said a well on her property near Prince George, B.C., is now dry for the first time since she moved there a decade ago as a drought continues into winter.
Aquino advises residential customers to design their homes to be draftproof and switch to LED light bulbs and energy-saving appliances when possible.
Aquino said as an incentive, those who reduce their home energy use by 10 per cent in 2024 compared to 2023 will be eligible to receive a $100 BC Hydro credit under the Team Power Smart Energy Savings Challenge, which is in addition to incentives previously offered. double.
Electricity prices rise
FortisBC, which provides power to parts of the province, said the rising cost of purchasing power from outside the province was a key reason for raising its electricity prices.
The utility said that starting on January 1, electricity prices will increase by 6.74%, increasing the average customer’s monthly electric bill by approximately $11.26.
However, FortisBC said its natural gas prices will drop slightly in 2024, saving the average customer about $1 per month.
Aquino said the energy purchases will not have an “immediate” impact on BC Hydro customers’ bills, but the utility has applied to the BC Utilities Commission for a 2.3 per cent rate increase that will take effect on April 1, 2024.
If approved, the average residential customer’s electricity bill would increase by about $2 per month, according to an October statement from BC Hydro and the Ministry of Energy, Mining and Low Carbon Innovation.
The utility is also launching a new pricing option to help British Columbians cope with rising prices amid rising costs of living and stabilizing inflation.
From as early as June 2024, residential customers will be able to choose time-of-use pricing, designed to encourage people to use energy outside of peak times.
The BC Utilities Commission, which regulates rates for BC Hydro, FortisBC, ICBC and other private utilities in the province, approved the plan on Dec. 12.
Residents who choose this option will receive a 5-cent discount for each kilowatt-hour used during the night between 11 p.m. and 7 a.m., and an additional 5 cents for each kilowatt-hour used during peak hours between 4 p.m. and 9 p.m.
There will be no rate changes during the off-peak hours of 7 a.m. to 4 p.m. and 9 to 11 p.m., according to the utility.
Aquino said BC Hydro is working to ensure it can meet the energy needs of B.C.’s growing population as rising costs and climate change impact its ability to generate electricity.
“We’re lucky that we have a hydroelectric system that can increase power generation when demand is high and reduce power generation when it’s not needed,” he said.
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