What is COSA and the Nelson Hydro Cost of Service and Rate Design Application?

The COSA (Cost of Service Analysis) study is an intensive review to ensure that each customer class both urban and rural is paying its share of each service provided. This review looked at the hydro rates and services in detail and recommended an adjustment to rural rates in order to cover the additional costs incurred to provide service to these areas.  Based on the 2019 data, Nelson Hydro collects $1.5 million less from rural customers than it costs to service the rural areas. 

Nelson Hydro has also filed a Cost of Service Analysis (COSA) and Rate Design Application with the BC Utilities Commission (BCUC) requesting, among other items, approval to increase rural residential rates. You can find the report submitted here.

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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?