BC Hydro is revising its Distribution Extension Policy to address challenges raised by local governments and developers about how costs are shared for new or upgraded connections to British Columbia’s electricity grid. These changes, which take effect July 5, 2025, are intended to lower connection costs, improve cost predictability, and support more equitable growth across the province.
The policy introduces several updates aimed at easing the financial burden on customers and promoting coordinated infrastructure development.
- BC Hydro taking on a greater share of system improvement costs.
- Increasing the contribution allowances for various customer classes.
- Introducing a new automatic refund process that will return a portion of extension costs when others connect to shared infrastructure.
- Applying the same policy framework to customers in areas of the province that are not integrated into the electricity grid.
- Updating standard charges for connections, metering, and alterations.
These changes are intended to reduce barriers to electrification, particularly for fully electric buildings, and make it easier for local governments to plan for growth. A transition period beginning April 22, 2025, offers some flexibility by allowing projects to proceed under the current or the revised policy.
More information about these changes can be found through BC Hydro’s online FAQs, or by emailing BC Hydro directly at DistributionExtensionPolicy2025@bchydro.com.