BC Hydro looks to change the way it charges for power

BC Hydro is looking at changing the way its residential customers pay for electricity, and it could mean a break for those who charge electric vehicles at home.

The utility has applied to bring in “time of use” rates as an option for people who can shift some of their electricity use to off-peak times.

In effect, BC Hydro would charge five cents less per kilowatt-hour for any power used in the overnight hours — 11 p.m. to 7 a.m. — and five cents more for what is used during peak hours — from 4 p.m. to 9 p.m.

The idea is to take the peak strain off the power grid, take advantage of cheaper times to produce and transmit electricity, and allow customers who are able to charge their car or use appliances like a dishwasher or laundry overnight to save money.

BC Hydro claims someone with an electric vehicle, for example, could save an average of $40 and up to $250 per year by enrolling at the proposed rate and charging their electric vehicle during overnight hours.

“Time of use is a way to encourage a shift of electricity demand to times when it’s much cheaper for Hydro to generate and distribute energy,” explained Karen Tam Wu, a climate and energy policy advisor and former regional director of the Pembina Institute. She adds that programs like this have been used for years in places like California.

Related Articles:

• Buntzen Lake free parking reservations returning

• For want of a pipeline: Canadian LNG should power low-carbon revolution, report says

“It’s actually a very useful tool that the utilities have to both incentivize conservation as much as possible and shift demand of electricity to times when it’s cheaper for utilities and overall, that would mean cheaper rates for customers.”

Wu says at a time when jurisdictions want more people and businesses to move away from fossil fuels and choose cleaner energy options, it’s important to try to make those choices more attractive.

“Right now in British Columbia, electricity is more expensive than natural gas and so we also want to think, over the longer term, how to shift consumer behaviour to choose an electric vehicle over an internal combustion engine, or choose an electric heat pump over a natural gas furnace. So, we need to think about how to change the overall rate structure that BC Hydro customers have.”

Since 2008, BC Hydro has had a two-tiered rate system, originally brought in to encourage conservation, that charges customers a higher rate once they pass a certain threshold of power usage but a lot has changed since then, including the explosion of smart technologies in homes and an increase in EV ownership.

“One thing that has been identified as needing to change is flattening that rate structure so that we are not penalized for having an electric vehicle or heating our homes with electricity. We need to start looking at ways to make electricity a more compelling choice.”

Wu believes the government could also do more to offer clean energy incentives — especially for low-income families and renters — and ensure people know those incentives are available.

“And BC Hydro also needs to look at how it can procure clean electricity at rates that are affordable in the long term,” she adds. “Site C is going to be the last large hydroelectric dam that BC Hydro is building, but we know we need more electricity in order to meet our climate targets and move away from fossil fuels.

“We need to think about how much electricity we need and how to plan for that infrastructure in the long term in a way that is going to be affordable for the province and for British Columbians.”

The BC Utilities Commission (BCUC) is now reviewing BC Hydro’s rate application, which was submitted at the end of February after a public engagement process involving feedback from 35,000 customers and stakeholders.

According to the application, BC Hydro would still bill customers for total electricity use in a billing period at the existing two-tier residential rate.

There would be a credit of five cents per kilowatt hour (kWh) for electricity used overnight and an additional five cents per kWh charge for electricity used during the on-peak evening period.

No credit or additional charge would be applied to usage from 7 a.m. to 4 p.m. and from 9 p.m. to 11 p.m.

It’s anticipated the BCUC review process will take about one year to complete.