The average homeowner in the City of Penticton will pay roughly $23 a month more in electricity, sewer, water and storm water in 2025 than they did this year.
This breaks down to $12 more per month for electricity, $5 more for sewer services, $4 more for water and a tooney more for storm water in 2025.
The monthly bill for electricity, sewer, water and storm water will increase from $132 per month in 2024 to $144 – or $12 a month, an increase of just under nine per cent.
During a presentation to city council Tuesday, Amber Coates, a financial analyst with the City, told council the anticipated revenue increase resulting from utility fee increases in 2025 will generate an additional $3.45 million in electricity charges, $1 million in sewer charges, $922,000 in water charges and $453,000 in storm water charges.
The electricity cost increases for business owners using 5,000 kilowatt hours monthly are estimated to increase by $37 to $724 a month in 2025, up from $688 in 2024.
The increase for businesses in relation to sewer charges will increase by $50 per month from $415 in 2024 to $465 in 2025.
The average water account for a business is expected to increase by $35 from $325 per month in 2024 to $360 per month in 2025.
The average storm water business account is expected to increase only $6 from $21 in 2024 to $27 per month in 2025.
The four monthly charges are estimated to increase $128 from $1,448 per month in 2024 to $1,576 in 2025.
The combined anticipated revenue for the proposed rate changes is $5.8 million, she said.
As provided in the Community Charter, fees and charges are used to recover the cost of services provided by the city wherever possible as an alternative to property taxation, said Coates.
Staff considered inflation and contractual changes, changes that bring the city’s fees in line with other communities of the same size, changes intended to bring the city closer to full cost recovery and other factors, she said.
As the forecasted 2024 utility revenues are currently on track to meet 2024 requirements, it is proposed that the 2025 utility fee rates be incorporated to align with the long-term strategies of all four utilities, she said.
“These rates are a key component of developing the budgets for each of the utilities, as they will directly impact revenues within those funds,” she said.
The combined 2025 revenues across all four funds is estimated to be $76 million, with the anticipated revenue increases reaching $5.8 million, she said.
The rate increases are determined by customer classes determined by the rate of providing services to that sector, without one class subsidizing the other, she said.
Each customer may experience a different rate of increase based on customer class, she said.
The average residential account will increase by 7.1 per cent over the four utility classes, she said.
To keep increases reasonable, staff has adopted a policy of drawing from reserves from all four utilities.
The forecasted draw from electricity reserves for 2025 will be $3 million, said Coates.
As of Tuesday, there is no final decision on what kind of rate increase Fortis BC will be approved for from provincial authorities, but staff has been informed they are seeking a 5.3 rate increase, she said.
“As the cost of energy from Fortis represents 87 per cent of the expenses to operate the utility, these increases have a direct and significant impact to our overall operating expenses,” she said.
The average utility fee increases keep Penticton “mid range” amongst other Okanagan communities, with similar increases in towns like Osoyoos and Oliver, but lower than proposed increases in Kelowna.
“Considering all jurisdictions are likely to experience property tax increases, it is expected that Penticton will remain competitive,” she said.
Staff recommend that council pass a motion giving first three readings to the utility charges amendment bylaw. These increases will be finalized during upcoming 2025 budget deliberations by council.