What about the proposed rate of return? How do you benefit?

Nelson Hydro is proposing that rural rates reflect a true Cost of Service model that is standard for other regulated utilities such as FortisBC. Like all utility companies, this includes a rate of return as a way to generate revenue and a way for investors to make a return on their investment. For Nelson Hydro, the City of Nelson is the investor, as the owner of the electrical assets. Unlike a private utility, this return on investment doesn’t go into the pockets of an external investor, but rather it is re-invested in the community. It pays for things like parks, arts, the heritage street lights in the downtown, all for the benefit of everyone who lives, works or plays in and around the City.

With no industrial tax base and taxation only coming from residential and small commercial businesses, these things simply would not be provided at today’s levels if the City of Nelson was not making this return.

Show All Answers

1. What is the General Rate Increase proposed for 2021?
2. Why is the General Rate Increase done in April?
3. What is COSA and the Nelson Hydro Cost of Service and Rate Design Application?
4. What are the rural rate increases being proposed as a result of the COSA?
5. Why does electricity cost more for rural customers?
6. How would this impact my hydro bill?
7. How much will my bill be?
8. How are rates set?
9. Can I reduce my power bill?
10. How do our rates compare with our neighbours?
11. What are the benefits of a city-owned utility?
12. What about the proposed rate of return? How do you benefit?
13. How have rural rates compared to city rates over time?