[Editor's Note: This article was updated on February 27 to add comments from FortisBC.]
In what can only be described as a shocking letter, the Urban Development Institute said this week that development in Kelowna may come to a standstill as a result of insufficient electrical infrastructure.
"Kelowna's real estate development industry is facing significant uncertainty as FortisBC has indicated it cannot guarantee power availability for new projects over the next several years," the Okanagan chapter of the UDI, which represents the development industry, said in the letter. "In recent weeks, several developers have been informed that power cannot be assured for projects until 2027 to 2029."
FortisBC serves as the regional electricity provider for the Southern Interior region of British Columbia. In Fall 2024, FortisBC said that it plans to spend $157 million towards electrical infrastructure in the region over the next three years, but that is still pending approval from the British Columbia Utilities Commission (BCUC), the Province's regulatory agency for utilities, and UDI Okanagan said the investment was "neither sufficient nor timely to accommodate Kelowna's rapid population growth."
"Without a reliable electricity supply, development in the region is at risk of stalling, with some projects potentially being abandoned altogether," they said. "This has the potential to disrupt the City of Kelowna's ability to meet its provincial housing targets."
"In addition, this lack of certainty regarding power availability poses a serious financial risk," the UDI added. "Developers cannot proceed with confidence if there is no guarantee that buildings will have access to electricity upon completion. [...] This uncertainty has shaken confidence in Kelowna’s development community."
In a statement posted on LinkedIn commenting on the UDI Okanagan letter, Jeremy Dawn, Founder & CEO of SNFLWR Corporation, a Kelowna-based developer, voiced concern, but not surprise.
"Kelowna's worst-kept secret is finally out," said Dawn. "Power supply constraints have been a simmering issue in our development community for years, and now, with FortisBC confirming it cannot guarantee power for new projects until as late as 2029, the reality is hitting hard."
"City of Kelowna's Official Community Plan has been guiding responsible growth, but the disconnect between municipal planning and provincial infrastructure delivery is glaring. Add in aggressive electrification mandates such as EV requirements, building code changes, and net-zero targets, and demand is only going up but the supply of power isn't keeping pace."
"This isn't just a developer problem," addded Dawn. "It's a business problem. It's a resident problem. It's a government problem. We need urgent, coordinated action between the province, FortisBC, and municipalities to ensure infrastructure investments align with Kelowna's growth, and not lag years behind it."
On this front, UDI Okanagan said in its letter that it will be meeting with officials from the Province to "advocate for urgent intervention and a clear path forward."
FortisBC
"We understand the concerns expressed by developers regarding the current delays experienced with connecting to power supply," said FortisBC Senior Advisor of Corporate Communications Gary Toft in a statement provided to STOREYS. "We take these issues very seriously and are committed to addressing them as quickly as possible."
Toft also outlined some of the challenges that FortisBC has been facing.
"As power providers across North America are expanding their electricity systems, FortisBC is seeing an increase in the amount of time it takes to receive important equipment and supplies, such as transformers, breakers, specialized equipment and new technology. For example, a transformer for a substation that once took one year could now be seeing up to three years for delivery. FortisBC has taken action to help mitigate delays wherever possible, including purchasing and pre-ordering these key materials and equipment."
FortisBC says that over the past five years, it has added 10,000 new customers and 6,000 more families in multi-unit residences and businesses in Kelowna, as well as approved 8,000 multi-unit homes and businesses to be connected in the future. They add that FortisBC has also been upgrading existing substations around the region and has also invested $68 million in electricity conservation initiatives.
"FortisBC continues to work closely with the City of Kelowna and the development community on requests for large buildings with significant and concentrated electricity demand to ensure they can be connected as quickly as possible."
