VANCOUVER – BC Hydro is proceeding on the premise its $930 million plan to install so-called smart electricity meters for its 1.5 million customers will pay for itself through cost savings and not a rate increase, according to its business plan.
BC Hydro released its business case for implementing the promised smart-meter program Tuesday, which estimates cost savings will pay for the meters then generate a net contribution of $520 million to the utility by 2033.
Smart meters are to be installed for all customers by the end of 2012 and savings are expected to come from the elimination of manual meter reading, reduction in electricity theft and more efficient usage.
“The electricity system is the backbone of our economy and smart meters are essential to keeping our system affordable, safe and reliable,” Energy Minister Steve Thomson, the minister responsible for BC Hydro, said in introducing the plan.
About 80 per cent of the payback to Hydro will come from its own operational efficiencies. That’s enough to justify the cost of the program according to the study, even if consumers do not install in-home devices, the study said.
The meters are digital devices that allow two-way communication between a customer’s meter and BC Hydro through a secure connection.
Hydro expects the devices will boost the efficiency of its power distribution system, reduce operating costs and streamline the system in a way that reduces overall electricity consumption.