KELOWNA, BC – July 24, 2009: FortisBC Inc. is hosting a series of open houses next
week to provide information and gather public feedback as the utility completes a review of
its cost of service and rate design to make sure rates charged to customers are fair and
equitable.
“We are completing a review of how existing electricity rates are structured for all
customers—residential, commercial, industrial, wholesale, lighting and irrigation—which will
help determine what updates to rate structures are needed,“ said Michael Mulcahy,
FortisBC’s Vice President of Customer and Corporate Services. “Public input into this review
is an important part of the process and will provide us with valuable information on what
factors are important to our customers.”
All utilities review cost of service and rate design periodically to make sure that rates reflect
the fair and equitable allocation of costs. A cost of service analysis determines the cost of
providing electrical service by customer class. In May, open houses and customer meetings
were held throughout the region to invite public input into the Company’s 2009 cost of
service analysis (COSA). Following these open houses, FortisBC filed a draft COSA report
with the British Columba Utilities Commission (BCUC).
The next step for the Company is the rate design review currently underway to evaluate
various rate structures, and determine if changes are needed to the Company’s basic
customer charge and/or its energy charges. Essentially, rate structures determine how
customers are billed for their electricity use.
Some examples of possible conservation based rate design options for residential
customers include inclining block rates and time of use rates, among others.
Overall, changes resulting from a COSA and rate design review do not generate more
revenue for a utility. Any changes proposed as a result of FortisBC’s 2009 COSA and rate
design review would be aimed at rebalancing and restructuring rates paid by customers,
making sure rates paid by a given customer reflect the cost of providing service to that
customer, and that classes of customers are not unduly subsidizing each other.
The upcoming open houses will be held in the following communities and will start with
presentations at 6 pm:
Creston
Monday, July 27 | 6-8 p.m;
Rotocrest Hall, 230B 19th Avenue
Castlegar
Tuesday, July 28 | 6-8 p.m.
Sandman Hotel, 1944 Columbia Avenue
Kelowna
Wednesday, July 29 | 6-8 p.m.
Manteo Resort, 3762 Lakeshore Road
Osoyoos
Thursday, July 30 | 6-8 pm
Sonora Community Centre, 8505 68th Avenue.
All feedback received will be considered, along with technical and financial information, as
FortisBC prepares a rate design application for submission to the BCUC by September 30,
2009. Once the COSA and rate design applications have been filed, the BCUC manages the
regulatory process and will make the final decision regarding cost of service analysis and
rate design(s) to be implemented.
Individuals interested in more information about rate design and these open houses are
encouraged to visit www.fortisbc.com or call 1-866-4FORTIS (1-866-436-7847).
About FortisBC Inc.
FortisBC Inc. is an integrated regulated electric utility based in Kelowna, British Columbia.
Focused on the safe delivery of reliable and cost-effective electricity, FortisBC serves
approximately 158,000 customers directly and indirectly through wholesale utilities in the
southern interior of B.C. FortisBC owns and operates four regulated hydroelectric generating
plants and approximately 7,000 kilometres of transmission and distribution power lines.
FortisBC employs over 500 people in British Columbia and is an indirect wholly owned
subsidiary of Fortis Inc., the largest investor-owned distribution utility in Canada. Fortis Inc.
shares are listed on the Toronto Stock Exchange and trade under the symbol FTS.
Additional information can be accessed at www.fortisinc.com or www.sedar.com .
For further information contact:
Jodie Foster Sexsmith
Communications and Media Relations Advisor
FortisBC Inc.
Tel: (250) 469-8007, Media Tel: (250) 718-1718
www.fortisbc.com
