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Laneway Housing Update

Helen O’Toole is back with another update for us on the evermore complex world of Laneway Housing construction in Vancouver. The latest twist, as many of you know, is that BC Hydro is gouging folks with a laneway hook-up. What once was to cost a few hundred dollars is now being quoted at up to an astound $20,000 which makes the whole thing downright laughable. Where will this all end up?

Laneway House Industry Workshop meeting on Tuesday 22nd September

The Greater Vancouver Home Builders Association and The City of Vancouver invite you to learn more about laneway housing. What is the intent behind the new bylaws? What properties are suitable for a new Laneway House? What forms can a Laneway House take? How will the City Process applications?

I intend to ask for clarification with regard to BC Hydro’s proposal to charge between $8000 to $20000 for a new underground hydro electricity connection for each Laneway House. This added cost is prohibitive, especially as most houses only need to upgrade their existing electric panel to facilitate a small Laneway House on their property.

Where: Arbutus Room. Plaza Hotel. 500 West 12th Avenue, Vancouver.

When: 7.30 am to 9.30 am

Registration was due by noon and Wednesday 16th Sept. I only received the invite today. I have requested a late registration. Email Amy Spencer at amy@gvhba.org

Update: September 24, 2009 from Helen O’Toole:

The BC Hydro Issue – Connection charges for Laneway Houses will vary

Here is the current information from BC Hydro. To find out the exact cost for connecting your Laneway House you should apply and get BC Hydro to give you an estimate.

To apply for service:

  1. Call 1 877 520 1355; or
  1. Log in or register and complete the online application; or
  2. Download and fax your completed application to BC Hydro at 1 866 266 6366

Info on Laneway House Connections for BC Hydro

http://www.bchydro.com/youraccount/content/residential_connections.jsp

How to apply for a connection upgrade

To help us meet your construction schedule, this request should be initiated in the planning stages of construction

http://www.bchydro.com/youraccount/content/apply_for_connection.jsp

Standard Charges

http://www.bchydro.com/youraccount/content/standard_charges.jsp

BC Hydro power and laneway houses

If a customer wants to build a laneway house and get a new connection, should they contact BC Hydro?
Yes. We always advise customers to get a connection estimate first so that they know the cost. Fill out the application for a “New Connection/Upgrade”.

What is the cost of connecting new laneway homes to the BC Hydro grid?
Costs vary for individual customers. The cost of the connection is dependant on a number of factors, such as whether an extension and additional equipment are required and whether existing infrastructure must be relocated.

Due to the many variables, there is a large range of potential cost for this undergrounding work. Connection costs are calculated in accordance with the Electric Tariff.

Recent media reports have suggested that the cost of doing the connections can be up to $20,000. Why is the cost so high?
Connection costs vary depending on the specific situation. In situations where new infrastructure and equipment are required, the cost can be in the thousands (as high as $20,000, but that is extreme).

New additional infrastructure required for laneway housing in Vancouver must go underground as the City of Vancouver’s Utilities Department’s position is that it will not allow additional overhead infrastructure in Vancouver’s lanes. As well, BC Hydro’s experts have indicated that in most cases in Vancouver overhead distribution lines at a secondary voltage are at full capacity and BC Hydro must design for underground services to laneway homes.

What kind of work is required by BC Hydro? Why do you have to go underground?
BC Hydro’s experts have indicated that in most cases in Vancouver overhead distribution lines at a secondary voltage are at full capacity and BC Hydro must design for underground services to laneway homes. This involves adding underground distribution systems to the lanes of Vancouver.

New additional infrastructure required for laneway housing must go underground as the City of Vancouver’s Utilities Department states that BC Hydro cannot add any additional overhead infrastructure to Vancouver’s lanes.

Why are these costs being passed on to individual customers and developers?
The Electric Tariff requires that BC Hydro recover the costs associated with hooking up new customers from the customer requesting the connection. This ensures BC Hydro ratepayers province-wide are not required to absorb the cost.

Connection costs are calculated in accordance with the Electric Tariff.

How much does a BC Hydro connection cost for regular homes?
The type of a new customer’s home is irrelevant: what matters is the type of connection needed for that particular home.

In areas where the overhead lines are at capacity, we must go underground.
The service connection fee for an underground service is up to $1,700. That assumes that construction of an extension is not required. Where an extension is required the costs will be higher to cover the cost of constructing that extension.

What do you mean when you say the distribution lines are “at capacity”?
Vancouver is densely populated and in some areas, it is no longer technically possible to add more physical infrastructure to the existing poles and the lines. For example, BC Hydro often cannot connect a 200 Amperage service (which is what is most often requested by customers) mid-span which is the only physical option. The reason is that the service connection (conductor) is too heavy to be supported by the secondary line and would violate safety requirements.

There also may be no way of servicing buildings with an overhead line because the laneway house is high enough or too close to other buildings that BC Hydro can’t meet safety clearance requirements.

Also, in a situation in which a municipality allows developers to build houses up to the lot line, there is not enough room for BC Hydro to meet its safety clearance requirements. For example, we need a metre of clearance between the meter and any other structure otherwise we wouldn’t be able to physically get in and install the meter. In this situation, the meter can only be located in a limited number of locations which then define where BC Hydro can put the line.

3 Responses to “Laneway Housing Update”

  1. jesse says:

    I really wonder if the City talked to BC Hydro before OKing the laneway proposal. The truth will likely put some or most of the blame on the City.

    I am against laneway housing because it breeds a city of landlord fiefdoms. People shouldn’t be spending their time inward-facing by being landlords; they should be spending their time making the city a better community. I believe subdividing into row houses, not strata-based multiplexes, is a far better option. You and I have discussed before and is being done in other LM municipalities successfully. I highly doubt Vancouver will see such schemes in the next while so those who choose to live in the city must either pay through the nose for non-strata without suites or forgo their time being amateur landlords.

    • Helen has updated us on the whole BC Hydro business. Most people that I have spoken to on this have heard very reasonable amounts from Hydro on the hook-ups. The most common comment on the media report is that “that’s the media for you”. They report the extremes (the highest, the lowest, but not the inbetweens).

      Not to say anything about being an amateur landlord, I think it will be interesting to see just how many actually take advantage of the program. Strathcona has had the infill housing rights for a very long time (don’t know when it started) and I have yet to see the whole neighbourhood be converted to laneway homes. I do, however, see tremendous attraction to build one for those who are older and wanting to downsize but not sell their family homes. Imagine being able to gift your home to your kids and move into a laneway, thereby maintaining some independence in your twilight years while staying close to family. Or being able to have your college-aged kids live off-campus for a fraction of the cost (no rent, residency), having independence, and still being able to keep somewhat of an eye on them, almost a weening into full adulthood.

      Of course, only time will tell what happens and how these property rights are applied.

  2. Felipe says:

    Interesting topics about hydro fees.
    Take a look at this interesting lane housing designs:
    They have different options for lane housing there:

    http://www.westlane.ca/

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