BC Hydro has put forth a proposal to raise its rates by 9.26% this year, as it looks forward to meet its needs in the energy projects in the upcoming years.

The rate hike is proposed by Hydro's Crown Corporation. If the B. C. Utilities Commission accepts it, the hike in the rate will raise average customer's monthly payments by about $7.

The residential rates for Hydro have climbed by 17% from 2000 to 2009.

"However this competitive advantage is under pressure both in the short term -- because of the combination of a low water year and impacts from the current economic downturn -- and in the long term because we are part way through a plan of modernizing and refurbishing the electricity system in British Columbia", says the service plan.

Hydro suffered a reduction in demands for export power from the U. S.

Powerex, Hydro's electricity trading subsidiary, has predicted a loss of $50-million in fiscal 2010.

"The basic rate increase is attributable to the continuing implementation of a significant capital program to refurbish BC Hydro's aging assets, an increase in the return on equity earned by government, higher costs associated with BC Hydro's pension plan... and weaker export market conditions", the service plan says.

Hydro explained that there is a need of rate rider as the amount of water received in the reservoir in fiscal 2010 was relatively lesser.