I am writing to express my very strong resentment about the recent residential rate increases and rate rebalancing changes approved by BCUC for customers of Fortis BC.
(NB For all cost comparisons which follow, I have naturally left all taxes out of the calculations.)
I compared costs for 2011 and 2012, using the rates in effect in 2012 (i.e. prior to the interim 2012 increases, I believe, and prior to the 4.6% approved for 2013). These cost differences resulted only from the rate rebalancing, without any rate increases, with the following results:
For 2011, for a total of 20,479 kWh, my annual cost would have increased from $2,115 to $2,239, an increase of $124, or 5.9%. For 2012, for a total of 18,566 kWh, my annual cost would have increased from $1,934 to $2,014, an increase of $80, or 4.1%
We are being greatly impacted by the rate rebalancing not because we are wasteful consumers of electricity, but simply because we have electric heat (and natural gas would not be an option without costly service delivery and heating system change-over costs). It seems that the rate rebalancing does not distinguish between those who may use electricity irresponsibly, and those who have are committing the apparent “crime” of needing to use electric heat.
This effect can be seen clearly by looking at a two-month period when heating is required.
For my most recent bill, for the 59 day period Nov 19 2012 to Jan 17 2013, we used 4,859 kWh.
Before any rate increases, under the previous structure, my bill would have been $489. Based upon the re-balanced rates, and prior to any increases, the bill would have been $543, an increase of $54, just for one 2-month period. This is an astonishing increase of 11%, just from rate rebalancing!
Of course, the real effect on residential electricity users also includes the rate increases approved by BCUC, which is additional to the rebalancing effects discussed above.
For my most recent two-month bill, referred to above, my cost went from the $489 without rebalancing or rate increases to $564. However, the full rates were only in effect for 17 of the 59 days in this billing period.
If the rates were fully in effect, as they will be for future bills, of course, the cost would have been $593. This increase of $104, or 21.3% for just one billing period, including the effect of the rate increases and the rebalancing, is outrageous, in my opinion!
From the electricity rates section of the Fortis website, it appears that BCUC has also ordered further “future rate rebalancing adjustments for the period of 2012-2015” which will likely add to this unfair shift of the cost burden to residential users who happen to need electric heat.
I also observed there that under the current structure, small commercial users pay a slightly higher customer charge, and then a flat rate of 8.870 per kWh. Residential users pay a very slightly lower rate of 8.803 for the first 1600 kWh, and then a much higher rate of 12.952 for everything above that. If such a rate structure is needed for residential users, presumably to encourage lower usage, why is this not also being applied to other users such as small commercial services? I suspect such unfairness is also present for large commercial services as well, but I am not able to determine this without more information with regard to demand charges.
In summary, the effect of the recent rate increases and rebalancing changes on residential users, particularly those using electric heat, is very unreasonable and very unfair, and I strongly urge BCUC to reconsider and make changes to redistribute the cost burden more equitably.
Terry Killough
Oliver BC
This letter sent some weeks ago. Terry has received a reply which states nothing other than
the ruling of the Commission on Fortis rates.