BC Hydro Announces Rates for Service to LNG Facilities; Signs Electricity Supply Agreement with LNG Canada
BC Hydro announced that its rates for electricity service to LNG facilities for 2014 have been set at a combined energy and demand charge of $83.02 per MWh, before taxes. This new charge is an increase from the average rate of $54.34/MWh (before taxes) paid in 2014 by other industrial customers in British Columbia. LNG customers also will also be required to contribute the full cost of connecting to the BC Hydro system, as well as transmission system upgrades required to serve their facilities.
Separately, BC Hydro and LNG Canada announced that they have signed an agreement for BC Hydro to supply electricity to LNG Canada’s proposed LNG export terminal at Kitimat, British Columbia. An article in the Globe and Mail states that BC Hydro would provide 20% of the facility’s electricity needs. The agreement provides that LNG Canada will fund the cost of new interconnection infrastructure to be built by BC Hydro.