If you’ve wondered what the “rate rider” on your utility bill is all about, you’re not alone.
In response to a recent article about the city’s electrical rates, the Record received an email from a local resident inquiring what the rate rider on City of New Westminster utility bills is all about.
We took his question to Harji Varn, the city’s director of finance. Here’s what she had to say:
What is the rate rider?
The city charges the 2.5% rate rider in order to meet its financial requirements and obligations by keeping its electrical reserves at appropriate level of its asset value and to mitigate against risk and uncertainty around unforeseen inflation or infrastructure losses.
Rate rider definition: “Collection of funds to meet financial requirements and obligations by keeping its electrical reserves at an appropriate level of its asset value and to mitigate against risk and uncertainty around unforeseen inflation or infrastructure losses.”
Has the rate rider amount changed in recent years?
Current rate rider is 2.5% and has been the same since 2020. Prior to year 2020, the rate rider was 5%, until the city council declared a climate emergency and adopted the Seven Bold Steps for Climate Action. Staff were directed to reduce the rate rider to support the new climate levy.
What is the climate action levy cited on utility bills all about?
In response to council’s climate emergency declaration in 2019, the city has committed to implementation of the Seven Bold Steps towards climate action and directs funds for accelerating public projects towards energy efficiency and reduction of GHG emissions with the goal of moving New Westminster towards a zero carbon future by 2050.
The climate action levy helps finance carbon-reduction projects and initiatives that align with the city’s environmental strategies and goals.
Funds from the climate action levy have been allocated towards civic projects for the implementation of the city’s corporate energy and emissions reduction strategy 2020 (CEERS). Through similar climate and resiliency focused initiatives, the city aims to expedite strategies including electrification so more community members are able to transition to using low carbon vehicles and towards a fossil fuel free future.
Additionally, the city is in the process of updating the community energy and emissions plan (CEEP) to achieve our GHG emissions targets through programs and policies designed specifically to improve the energy efficiency of residential homes and businesses in New Westminster.
More information about our ongoing strategies can be found on other Be Heard pages.
Do you have a question specific question for city hall that you’d like answered? The Record’s city hall reporter Theresa McManus will do her best to get you an answer. Send questions to [email protected].
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