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Ministry of Energy, Mines, and Petroleum Resources.Pdf \ \ \ (.....,[<:;-':.,--..". \1 <J C···· ./~---......., ...-.. - . BRITISH COLUMBIA The Best Place on Earth JUN 2 5 2007 Mr. Peter Milobar Chair Thompson-Nicola Regional District 300 - 465 Victoria Street Kamloops, BC V2C 2A9 Dear Mr. Milobar: Honourable Gordon Campbell, Premier, has requested I respond on his behalf to your recent letter regarding the proposed changes tb BC Hydro's Electric Plus (E-Pli.Js)rate. BC Hydro is currently under direction from the British Columbia Utilities Commission (BCUC) to review its rate structure as a whole, including E-Plus. This will be the first update to BC Hydrb's rate structure since 1991. As a regwated utility, BC Hydro is required to ensure its rates are equitable for all customer classes and meet the needs of to day's ratepayers. It is also reviewing rates to be consistent with the principles of simplicity and energy conservation. The E-Plus rate was offered from 1987 to 1990, when there was a surplus of energy. At that time, it provided an opportunity to offer that surplus energy to BC Hydro customers, especially those without access to an alternative such as natural gas, at a substantial discount on electricity. However, the surplus energy conditions that led to the original offer no longer exist. As well, BC Hydro has no practical way of interrupting E-Plus customers in a way that would be required to respond to the short-term shortages of electricity that they may experience during peak periods. As discussed abbve, the circumstances that prevailed 20 years ago no lbnger exist. In fact, BC Hydro has been a net importer of electricity since 2001, and there is an emerging gap between supply and demand that must be addressed to ensure future electricity needs are met. ... 2 BatD Ministry of Office of the Mailing Address: g~Jt.lrl!-;;uull'1,'c9- Energy. Mines and Minister PO Box 9060 Stn Prov Govt Parliament Buil ings p. ";:;"..J Petroleum Resources Vi¢roria BC V8W 9E2 Victoria l,vrG Telephone: 250 387-5896 website: www.empr.gov.bc.ca FaC$irnile: 250 356-2965 -2- BC Hydro fully understands the impact that a change oithis nature has on its customers. However, it must balance the needs of customers, now and into the future, and ensure that there is fairness and consistency among all rate classes. BC Hydro incorporated the feedback from its customers when it submitted the E-Plus proposal, with significant changes, to the BCVC, as follows: • Changes to E-Plus rates will not begin until April 2007, and 10 years' notice will be given to BC Hydro customers that the E-Plus rate will be completely eliminated by 2018. • E-Plus rates will be raised from 54.5 percent to 67 percent of the standard rate paid by customers on ResidentiallGeneral Service rates, over a five year period to April I, 2012. • BC Hydro will not be interrupting power to E-Plus customers, and this will eliminate the need to continue to invest in maintaining a back-up heating system. • It is proposed that, when a home with an existing E-Plus account changes hands, the rate will no longer be transferred. The BCUC's decision, depending on its review process, will take appT,j?ximatelythree to six months, and BC Hydro will provide further information to E-Plus customers once the decision is made. The BCUC has established a public process for reviewing the application via their website at www.bcuc.com. Thank you, again, for writing. Sincerely, Richard Neufeld Minister pc: Honourable Gordon Campbell Premier Honourable Claude Richmond, MLA Kamloops Honourable Kevin Krueger, MLA Kamloops-North Thompson.
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