On July 5, 2025, BC Hydro implemented a major policy change that will reduce the cost of connecting new or upgraded electrical service. This is great news for residential, commercial, and mixed-use developments across Cowichan.
Historically, developers and property owners faced steep system improvement costs when trying to electrify new builds or retrofit existing buildings. Under the new Distribution Extension Policy, BC Hydro will now cover:
- Up to $1 million in system improvement costs for connections under 1 megavolt-ampere (MVA)
- Up to $10 million for connections over 1 MVA
This change could result in hundreds of thousands of dollars in savings, depending on the size and type of development. For example, a mixed-use development that might previously have faced over $2 million in system upgrade costs could now pay as little as $30,000.
Other key updates include:
- A new Uneconomic Extension Assistance Fund, designed to help offset connection costs for rural homes located far from existing power lines.
- A requirement for individual metering in multi-unit residential buildings, removing the need for third-party or bulk sub-metering.
These improvements align with BC’s electrification and climate goals while making it more financially viable to build and grow sustainably in the Cowichan region.
Learn more about the policy from BC Hydro or read the Province’s news release.
For local developers and property owners, this marks a pivotal shift that strengthens the business case for choosing electric over gas and supports Cowichan’s transition toward a low-carbon future.
