While final reading was given to bylaws increasing user fees for water and sewer at Monday’s council meeting, a bylaw (1915) to increase electrical utility rates was defeated.
According to a summary, the City of Grand Forks was advised that FortisBC could increase the wholesale electrical rate by six per cent in April – Fortis had already increased electrical rates by 6.6 per cent in January.
It was recommended that rate increases be implemented for this year’s second billing period from mid-February to mid-April in order to balance the increased cost of purchasing power by the city and also ensure that the rates that the city charges for electrical use are comparable to FortisBC’s.
The city said that the increase now would lessen the cost for electricity in peak months of December, January and February
Coun. Gene Robert expressed concern that utility bill user fees were becoming excessive.
“This is only one half of the bill,” Robert said
“On the other half of the bill, we have customer, fixed and capital charges. I’m thinking of the citizen that’s on a disability income.”
He said that the city was pricing itself out of the market.
Coun. Christine Thompson was in favour of the bylaw and said that if it didn’t pass, the financial plan could be affected.
“If this bylaw fails, then our whole financial plan for the electrical utility is at risk and that causes me grave concern,” Thompson said.
“Those rate increases being passed on by Fortis to the city have to be paid from somewhere and regrettably it has to come from our users. In my opinion, we’re still competitive and still under the rates that Fortis is charging their customers.”
She encouraged council to support Bylaw 1915 and Mayor Brian Taylor echoed her sentiments.
“I share Coun. Thompson’s concerns that if we allow this to slide, even for a month or two, that we’re going to end up with larger increases when we do have to make those changes and we do have to make them to keep the utility healthy.”
The bylaw failed at second reading.
In other council meeting-related news, the Regional District of the Kootenay Boundary has requested that the option of a regional fire and rescue service for the area serviced by Grand Forks Fire and Rescue be explored.
As well, the City of Grand Forks and Roxul Inc. will be swapping land.
The municipal roadway between Roxul and the property formerly owned by CanPar will be closed and exchanged with the city for a section on Roxul’s property on the corner of 2nd Street and 68th Avenue.