Redesign of the Large General Service Rate
In the third quarter, MABC continued its work with the Association of Major Power Customers (AMPC) in considering the redesign of BC Hydro’s Large General Service (LGS) rate, which would affect some MABC coal and industrial mineral operations.
As part of its 2015 Rate Design Application, BC Hydro is proposing to replace the existing LGS tiered conservation rate with a flat rate, which would be easier to administer but remove the benefits of a baseline and rolling three-year average. Under the current system, in some cases credit is given for reduced loads associated with a reduction in production within the three year rolling average, although rates rise again once a new baseline is created and production ramps up. The new proposed flat rate would not give this credit for reduced load. BC Hydro held hearings on the latest version of this proposal at a workshop on July 30.
In response, MABC and AMPC have proposed the creation of a new tiered rate, similar to that which exists for Transmission Service customers (most metal mines) for all customers with larger than 2MW connections. MABC and AMPC will continue to work on the design of such a rate, which will be discussed with BC Hydro in the fall of 2015.