Power rates to rise

Summerland passes on Fortis electric utility rate increase.

by John Arendt

Summerlanders will pay more for electrical power in 2013 as the municipality passes on a rate increase from FortisBC.

On Tuesday evening, council voted to increase the rates by 4.2 per cent, the same amount as the FortisBC increase.

Initially, the application from FortisBC, filed on June 30, called for an increase of 6.5 per cent, but after a review by the B.C. Utilities Commission and some adjustments, the increase was reduced.

Municipal treasurer Ken Ostraat said power purchase costs are the single biggest cost of the municipality’s electrical utility.

The increase by FortisBC will increase the municipality’s costs by roughly $280,000.

There are also additional costs for the municipality with two per cent increase in labour rates and increased materials costs.

The reintroduction of the Provincial Sales Tax and the elimination of the Harmonized Sales Tax will increase the total costs of materials by seven per cent, since municipalities can no longer receive a rebate of the full amount of sales tax paid.

For an electrical customer using 1,100 kilowatts a month, the cost of electricity will increase from $106.47 in 2012 to $110.94 beginning in January.

The increase will bring in around $350,000 in additional revenues, which will offset the increased power purchase costs and additional labour and materials costs, Ostraat said.

Despite the increase, Ostraat said Summerland electrical customers are receiving a better deal than they would get if they dealt directly with Fortis for their electrical needs.

“If we look at the typical residential customer in Summerland and compare the rates from FortisBC, our customer would pay $110.94 for one month’s consumption in 2013 whereas they would pay $120.06 if they were a Fortis customer,” he said.

 

 

Just Posted

Budding tennis stars learn the ropes

Students at local elementary schools get some lessons in tennis

Lawsuit claims medication mishandling at Penticton’s hospital

The claimant says her doctor ramped up her bipolar medication before cutting her off

Indigenous grad rates make big strides in SD67

Educators are praising major efforts toward inclusivity for the recent improvements

Mamas for Mamas founder survives with new lease on life

Kelowna’s Shannon Christensen escaped a dangerous situation and lived to tell about it

Valley First Endowment grant helps OSNS in 2017

The grant for the OSNS teaching kitchen just one of the ways First West helps communities.

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Philadelphia Eagles headed to Super Bowl

After routing the Minnesota Vikings 38-7, they will face Tom Brady and the New England Patriots

Heavy snowfall closes Mount Washington on Vancouver Island

Road to ski resort deemed unsafe, vehicles buried under more than three feet of snow

VIDEO: Dramatic video shows return of rescued B.C. snowboarders

Two snowboarders were rescued near Rossland, B.C. on Sunday after being lost overnight.

Tom Brady leads Patriots back to Super Bowl, top Jaguars 24-20

New England to face winner of Sunday night’s game between Minnesota and Philadelphia on Feb. 4

Lawsuit claims medication mishandling at Penticton’s hospital

The claimant says her doctor ramped up her bipolar medication before cutting her off

Coquihalla drivers prepare for snow

Wintry conditions persist, with snow warnings for Coquihalla

Tychonik continues scoring run

Vees chalk up another win with Pink in the Rink

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Most Read