Lonsdale Energy Corporation (LEC) is seeking approval from the City of North Vancouver to adjust its energy rates beginning November 1, 2025, as part of its annual rate review, according to a report submitted to City Council by LEC. The proposed changes include moderate increases to existing rates and the introduction of a new optional low-carbon energy rate for customers who wish to reduce their greenhouse gas (GHG) emissions.
The energy utility is proposing a 1.8% inflationary adjustment to the Meter, Capacity, and Connection rates, as well as an additional 2.6% increase to the Capacity Charge to address higher operating costs.
The proposed adjustments are expected to increase the total cost to customers by about 3.5%, or roughly $2 per month for a 750-square-foot residential unit.
Sean Wood, Manager of Finance at LEC said in the report that the rate modifications are necessary to “cover the higher cost of commercial lending and to begin phased adjustments for the operation of the Urban Heat Recovery Centre,” a major facility under construction that will supply low-carbon energy to the community.
Low-carbon energy rate introduced
Lonsdale Energy is introducing an optional Low-Carbon Energy Commodity Rate. Customers who opt in would receive energy generated from low-carbon sources such as renewable natural gas (RNG) and electric boilers, with pricing linked to FortisBC’s RNG rate. The low-carbon rate is estimated at $135–$150/MWh, below the company’s established rate ceiling of $154/MWh.
The new rate gives customers the option to directly account for the GHG benefits of cleaner energy sources, preparing the company for future developments such as the BC Zero Carbon Step Code.
“Certain customers have inquired about a low-carbon energy rate that would provide the full GHG accounting benefits of low-carbon energy,” the report said.
Meeting financial obligations and operating costs
The company’s financial modeling indicates it can remain profitable through 2026, but rising costs require rate adjustments. Lonsdale Energy has shifted from relying solely on City of North Vancouver shareholder loans to a mix of City and commercial bank financing, which carries higher interest rates. The company’s weighted interest rate rose from 3.51% to 4.11% between 2023 and 2025. According to the report, 0.6% of the rate adjustment accounts for increased cost of commercial lending.
The Urban Heat Recovery Centre, scheduled to begin full operation in 2028, will require about $2 million annually to operate, including debt servicing and staffing. To avoid “rate shock” from a large single increase, Lonsdale Energy plans three years of incremental 2% capacity rate increases to gradually meet the future costs.
Supporting a transition to net-zero emissions
The utility serves roughly one-quarter of city residents and has steadily expanded its use of low-carbon technologies. The company has set a target to provide 40% of its energy from low-carbon sources by 2027 and 60% by 2030, aligning with the City’s goal of net-zero emissions by 2050.
“Lonsdale Energy’s goals align with Council’s Resilient City Priority that leads the way in climate action and acts as a steward of the environment for future generations,” the report stated.
Public input invited
The City of North Vancouver, as Lonsdale Energy’s regulator, will consider the proposed bylaw amendment following public input. A public meeting will be held on Monday, October 6, 2025, at 6:00 p.m. at City Hall, with both in-person and virtual participation available.
Residents can view the proposed bylaw at cnv.org/PublicMeetings and submit written comments online or by mail before noon on the day of the meeting.
If approved, the new rates and bylaw amendments would take effect November 1, 2025.
Lonsdale Energy is a ripoff.