No dissent as Nelson Hydro bumps urban rates by five per cent

Photo: File photo

The city-owned utility will be increasing hydro rates for 2025 by five per cent.

There was no debate around the city council table as Nelson Hydro pays it forward when it comes to urban electrical rates next year.

The city-owned utility was given city council’s seal of approval on a bylaw to adjust the Hydro Services Bylaw (urban rates) by five per cent, beginning Jan. 1, 2025.

The five per cent annual general rate increase is largely attributable to the 5.3 per cent general rate increase sought by Nelson Hydro’s power supplier, FortisBC, which also seeks an effective date of Jan. 1, 2025.

“Beyond that, the utility’s capital renewal plans add some rate pressure as well,” said Hydro general manager Scott Spencer in his report to council. “The utility’s controllable costs — operations and maintenance — account for only a small portion of the rate increase.”

The five per cent urban rate increase is required to ensure the utility’s capital reserves — which is funded by urban rates only — stays in the target zone (between $4 to $9 million) over the next several years, Spencer explained.

“Additionally, with a five per cent rate increase, urban rates will remain competitive when compared to those of both FortisBC and BC Hydro,” he added.

Now that the rate increase has been adopted by council — and prior to Jan. 1, 2025 — there will be announcements of the general rate increase in the media, the city and Nelson Hydro Facebook and Instagram pages, and the city website.