Announced Thursday, Energy and Mines Minister Rich Coleman with BC Hydro CEO Dave Cobb stated that the Crown corporation intends to file a 50 per cent reduction on proposed rate increases over the next three years.
“I would like to thank the panel for the report and recommendations. It provides a good starting point for both the Province and BC Hydro to move forward. By making suggested changes and prudently investing in our electricity infrastructure, we can keep electricity rates low for B.C. families,” said Rich Coleman, Minister of Energy and Mines.
Created in collaboration with BC Utilities Commission, the reduction strikes a balance between low energy rates and BC Hydro’s need to invest in its future infrastructure needs.
The agreement between BC Hydro and the province means the annual rate increase will be lowered to 9.73 per cent a year for three years and then 3.9 per cent increase for the two years following.
Today's announcement has found the right balance between the need to invest in our electricity system - which is the backbone of our economy -- with the need to keep rates affordable for families and businesses,” said Dave Cobb, BC Hydro CEO.
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To continue operations, BC Hydro will use cost cutting strategies in operations which include implementing cost saving initiatives, downsizing its workforce and more. This will save BC Hydro an estimated $800 million over the next three years.
Additionally, the Province and BC Hydro plan to evaluate alternatives to the government’s self-sufficiency policy, where BC Hydro is expected to obtain sufficient electricity supply from British Colombia based sources by 2016.