BC government cuts Hydro rates and limits process. Is that a bad thing?
The BC government found itself in an odd position a couple of weeks ago, when they announced the settlement of BC Hydro rates at a "mere" 17% over three years and cancelled BC Utilities Commission hearings, getting major political flak for their decision.
Unlike the NDP rate freeze in the 1990s, the 17% was not going to break the system. BC Hydro's starting position had been 30% over three years. Too high, said the government, and ordered a complete review of Hydro's operations, which was released last August.
By May of this year, the government, BC Hydro and the major customers had met and hammered out an agreement for the rates over the three years ending mid-2014. The government directed that the rates hearing were no longer needed. The critics had a field day.
What exactly was the complaint? That a lengthy publicly funded hearing was cancelled?
The real reason many wanted the BCUC hearing is because they wanted to delve into other aspects of BC Hydro's operations. Independent Power Producers and deferral accounts are both hot topics. Those may be an important policy debates, but there are plenty of other forums, including the political one, where those debates can take place.
Behind all this discussion are some fundamental differences between the BC Liberals and the BC NDP. The NDP has opposed most forms of generation and supply proposed for BC: Site "C", natural gas plants, oil pipelines, and independent power producers. They even oppose the carbon tax, a revenue neutral tax which is one of the first in the world.
Perhaps the NDP will go into the election maintaining those positions, or perhaps they will state what they in fact plan to do – because BC, an energy-rich province, needs power generation and no government can ignore that.
For more information
1. BC Hydro's letter to BCUC in regard to the rates decision: BC Hydro Submitting Comments regarding Direction No. 3 and Amendments to Heritage Special Direction No. HC2
2. BC Government review of BC Hydro, released August 2011
- post by Suzanne Anton
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BC Hydro needs to act a lot less crown and a lot more corporation.
What would be nice is if it acted like a company and tried to grow it’s operations and profits to the benefit of the BC taxpayer (the shareholders).
Unfortunately it seems one bad government style of interference begets another.
I will never understand why everyone seems to be on board with the idea of piping natural gas to the coast, liquifiying it with a huge energy influx, and then shipping it to China (where they will burn it) is A OK but even burning it at home in our existing power plant at Burrard thermal is considered an enviromental no no.
If we really wanted less carbon output we would be building power plants in BC and buring the gas here. The only thing with a lower ecological footprint would be to not tap into the gas at all.
With low gas prices forseen into the future this looks like it could be a way to generate power at low cost, whether it be for domestic use or for sale.
Those words leave little profit for the harlots of elected office. The Liberals have done all they can to bankrupt this crown asset with the hopes of giving it to their pals. Its all about profits for Coleman and his ilk, before civic duty to us all. They all know it and are hoping for diplomatic immunity from great leader stephen like gordon achieved, as long as they toe the line. Its not hard to see.
Oh brother. There’s no stripe of politician that actually lets Hydro run as the business it’s meant to be.
That the so called green agenda happened to meet the PPP frenzy at the same time and we ended up with some potentially bad contracts (though I don’t know the prices and it’s a safe bet long term they won’t be that bad) is just the icing on the cake.
There hasn’t been a power generation increase in decades and as a result were a net power importer. It’s only because of the fact we have hydro plants that can play some sweet games with the spot market (selling power at a premium during peak times and running for practially free in the off peak) that we still manage to make a profit importing energy (of all varieties, we don’t mind if it’s dirty coal, it’s all about the price).
When’s the last time a new dam or power plant was commissioned? This is a systemic problem!
Not since old W.A.C. has there been anything substantial forwarded.
Of course, we might have site C. Will your beloved NDP actually let it go through, or will they continue the proud tradition of just relying on the boldness of the past?
“Nothing substantial since WAC Bennett”!?!
The Bennett Dam was completed in 1968.
Since then:
1973 Mica Dam (2,100MW)
1976 Kootenay Canal (upgraded to 580MW in 1999)
1979 Seven Mile Dam (850MW)
1980 Peace Canyon (700MW)
1984 Revelstoke (2,000MW, upgraded to 2,500MW in 2010).
Then a raft of smaller projects, from Jordan River to Whatshan Dam to Keenleyside. Hydro hardly stopped building dams after the WAC Bennett.
Well it’s going on 30 years since the last major expansion.
My history gets a little fuzzy when it’s been THAT long.
Either way were still a net importer of power so it’s safe to say that we haven’t expanded nearly enough.
This time, Suzanne Anton is way off the mark.
1.The public hearings are rarely attended by people other than official intervenors and Hydro staff even so,
2. Public hearings ensure that decisions are not made in secret. BCUC is the oversight body and has to be transparent and reports out
3.The BCUC was set up to regulate the energy and insurance sectors and save the government from being responsible. Time and time again, provincial governments have not been able to resist interfering but have instead used both BC Hydro & ICBC as cash cows
It would be interesting to see what happens if the provincial government were to let the regulator to its work without imposing “energy policy” which practically neutered BCUC etc. etc.
@Ms. Anton:
You need to speak with the mining industry and see the stumbling blocks they place in front of the exploration. One of the biggest compaints and hold-ups in mining is BC Hydro.
There are millions of dollars ‘wasted’ while waiting.
As for the NDP – did you know that at one point they were trying to tax resources still in the ground – those not even harvested?
And people wonder why the industry hit the skids in BC, yet thrived every where else.
I really hope the Conservatives lead us Canadians out of the UN, like they are suggesting. We can join North Korea and China and Burma in our own Cognac leader sipping ideology to the motherland of modern day slave ownership.
Hey Jim Pattison managed to prosper and that is an understatement.
Since the Liberals have taken over, everything has become exponentially more expensive. Sure the GDP has grown, and sadly the number of care card to resident ratio has too, but, very few have benefitted from that. It is fair to say that the standard of living for the average BC citizen has dropped. Property values have doubled and tripled yet average incomes have grown little. Hydro should be here for all of us BC citizens first. Not here for IPP’s to gouge us for rate agreements that favour Liberal friends. Deferring debt is not aligned with generally accepted accounting principals. Especially not to benefit corporations with massive tax cuts. Robbing every BC residents assets portfolio so business’s can pay less to make more on all of our backs, is quite frankly disgusting. Being a resource rich province, like BC is, should mean that we all pay little for resources like fuel, and then every business would have a competitive advantage. That was until our assets were given to multinational corporations responsible to shareholders who live offshore. Energy costs are some of the biggest costs to any person or business in BC. Blaming taxes on energy for its high cost is also pathetic, resource companies make huge profits in every country on this earth. Does anyone remember the serfs fighting for their feudal lords? Ever? Or even once? Nope.
What’s the point of being a resource rich province if you can’t even use the resources?
Mine for coal? Fine and dandy!
Actually use the coal! No way, that hurts the enviroment and contributes to global warming! (As if shipping it across the sea to be burned in China does not!)
Tap natural gas? Fine and dandy! Heck, let’s pipe it across to the sea, use a lot of energy to liquify it, and then send it to China to burn in there plants! Profit!
Actually use the natural gas? No way, that hurts the enviroment and contribute to global warming! No way we should even be using Burrard thermal, even when it’s a plant already built, a pipeline already there, and even when it’s the middle of summer and power is at it’s premium! (As if the extra energy to ship it to China or relying on the coal power we import from the states does not count. We are a net energy importer which everyone seems to forget!)
Nevermind the contracts for the run of river and wind power. They might be good, they might be bad, but it’s not even the full story. The story is that we could be generating most of our power throught high effeciencty gas and coal plants (and while were at it toss the garbage in instead of shipping it to Cache Creek or the states) like they do in some of the european plants. Go ahead, steal their ideas!
The hydro plants, being green, and being on demand, if used purely to sell to others, would generate so much money it would dwarf a lot of things. Put a business proffesional with a mind to grown the power export business and we could be making money hand over fist.
If you oppose this then oppose natural gas and coal mining. You bring it out the ground, it’s getting burned. Why not burn it here when it would have the least amount of distance to go and where we could ensure it’s built in modern plants that minimise emissions?
Na, too crazy. Never mind I brought it up.
Yes!!! I remember the feudal system and thank you for mentioning that as I feel in Vancouver we are moving towards that with the everyone MUST live in expensive condos, houses are not sustainable.. unless you are wealthy, and not complaining about the drastic, stupid, harmful property values and all the soul being sucked out of the city by constant judgment and terminal uptightness…everyone feels trampled on in some way. so, yes, I have had the same thoughts recently. The lords vs the serfs. Serfification. Sustainable serfs, justifying their apathy by coloring critical thinking as negative ranting. you get what I mean, right?
Oh also, was the npa always BC liberal lite or do I just read this blog too much? I honestly don’t know how anyone can defend these jerks, and I HATE that they seep into these civic discussions masquerading objectivity.