Distribution Extension Policy changes

• We'll increase our investment so that most projects will no longer be required to contribute to system improvement costs.
• This change will eliminate system improvement costs for more customers and provide a simpler cost model for customers, except in rare cases where system improvement costs are very high relative to the corresponding customer load/benefits.
• This will help to remove investment uncertainty for developers to help developments be completed faster.
   

• We'll increase our maximum contribution allowance towards extension costs and allow contributions to offset service connection costs to further reduce new customers' costs.
• We updated the maximum contribution allowance calculation to improve alignment with the revenue BC Hydro expects to receive from a new connection.
• Our contribution will be updated annually by the approved general rate increase.

• The extension fee refund provides a framework for the first customer that paid for a new distribution extension to recuperate costs if subsequent customer(s) connect to that same extension.
• The new extension fee refund process will improve equity and streamline the process for customers.
• Changes include: refund eligibility criteria, automatic reviews by BC Hydro, and tiered refund windows by extension fee.

For all extension projects greater than $25,000 and after the extension has been energized, we'll automatically review and provide refunds (if eligible) back to the initial customer as follows:

• We provide financial assistance to residential customers and farms connecting to our distribution system where a distribution extension is required.
• Assistance will be expanded to include three-phase overhead distribution and non-residential services that provide benefits to a community, such as band offices, community centres, and water treatment plants.
   

• Standard charges are what we charge for standard connections, metering and alterations to our distribution system.
• New standard charges will come into effect when the new policy launches on July 5.

• We've removed separate standard charges for non-integrated areas.
• Customers in these areas will be charged the same as the integrated system.

Starting July 5, invoices for customer projects will follow the new distribution extension policy. If your project is invoiced between April 22 and July 4, you’ll have the option to wait for a re-issued invoice under the new policy. 

Your BC Hydro design representative will explain any potential cost savings if you wait, as well as the likelihood for delays due to the expected backlog of projects due to customers waiting for the new policy to take effect.

If you choose to wait, notify your BC Hydro design representative of your decision, and request a new invoice under the updated policy after July 5. Please note that there may be delays in getting the new invoice to you as we’re expecting an influx of new invoice requests at this time, which could lead to further project delays. 

You have two options if your project has already been invoiced:

1. Pay the current invoice: If you pay before July 5, your project will fall under the current policy and move to construction as per normal procedure, reducing the risk of delays. 
2. Don’t pay and wait until the new policy takes effect on July 5: Notify your BC Hydro design representative that you’d like to delay your project until after July 5 and request a new invoice under the updated policy. This option could save you money, but it comes with a significant risk of project delays. It’s up to you to decide what’s more important—cost or timing.

We expect that many customers are likely to wait and request new invoices under the updated policy when it comes into effect on July 5, creating a backlog. 

Customers that opt to delay their project until the new policy takes effect should be aware that doing so will impact their project schedule due to the backlog causing delays in re-invoicing projects, payment processing, and BC Hydro starting work.

Unfortunately, we won’t be able to fast-track invoice updates, material orders, or construction for customers who decide to wait as we must maintain equity when applying the new policy to customer projects and abide by the project queue.

No, you’ll need to contact your BC Hydro design representative to request an updated invoice that reflects the new policy.

No, we’re not able to issue invoices under the new policy until it takes effect on July 5.

No, if your project has been invoiced under the current policy and you pay that invoice – even after July 5 – you won’t qualify for a refund or reissue under the updated policy. This is because the invoice date reflects the extension policy in effect at that date. Invoices are valid for 90 days and once paid, the project is governed by the policy it was invoiced under.

For example, if we issue an invoice before July 5, and you pay the invoice after July 5 (but within the 90 days of validity), the project will proceed under the policy that was in effect at the invoice date (not the payment date). By making payment, you become ineligible for a new invoice under the new (post-July 5) policy.

Invoices expire 90 days after the invoice date. If your invoice expires, you’ll need to request a new invoice from your BC Hydro design representative.

No, only projects invoiced after July 5 are eligible under the new extension fee refund policy.