Councillor pushes to cut rates

Photo: Contributed

Coun. Helena Konanz

A Penticton councillor's efforts to rein in electrical rates have her colleagues' support.

Coun. Helena Konanz issued a notice of motion asking council to consider that staff base the 2016 budget on the wholesale power purchase level from FortisBC. The motion passed Monday by a 4-3 vote. 

Councillors who supported Konanz included Max Picton, Andre Martin and Campbell Watt.

"I feel good about the support," said Konanz. "It is a good start to addressing the issues concerning our electrical company."

Every year, the city faces increases in how much it pays for power from BC Hydro and FortisBC. Council looked at three options and voted to go with a 4.4 per cent blended rate option.

Konanz introduced the motion because she felt the 2015 budget, like many before, was based on a utility rate above the Fortis wholesale rate, with the profits made from that paying for some of the budget.

She's concerned the rate for residential customers in Penticton is higher than most communities in B.C.

"This is hard on the people of Penticton, especially those on a fixed income," she said.

But, she added, where you really see the impact is on the commercial and industrial sector.

"Customers in the industrial sector are paying an average of $7,000 more a month than anywhere else in B.C. where Fortis provides electricity," she said. "We have been talking about economic development, and this is not good for our business customers."

Coun. Judy Sentes joined Coun. Tarik Sayeed and Mayor Andrew Jakubeit in opposing the motion.

"I think we need to maintain our flexibility of how we look at these things. I will not support this," said Sentes.

Konanz was the only councillor to vote against the 2015 budget based on the utility rate increase and the hiring of seven new permanent positions in the city.

"I felt staff and council did a good job addressing the budget, but these were two major issues I could just not ignore," she said.