B.C. VIEWS: Bills come due at BC Hydro

Decades of political interference and deferred maintenance, not private power contracts, are behind the push for big rate increases

Reconstruction of Ruskin Dam is underway

VICTORIA – When Christy Clark became premier in 2011, one of her first priorities was to delay steep increases in BC Hydro rates.

BC Hydro was heading to the B.C. Utilities Commission to apply for rate increases totalling 32 per cent over three years. This, obviously, was a problem for an unelected premier whose single message was that she was good for families, and who faced an election in two years.

The government’s Mr. Fix-It, Rich Coleman, first tried to delay a couple of expensive seismic upgrades, adding to the long history of political fiddles that pushed off expensive problems. BC Hydro’s engineers soon convinced him that if the creaky old Ruskin and Campbell River dams were to bust in a quake, it wouldn’t be good for families downstream.

Coleman scraped up some internal savings in the vast utility and met Clark’s pre-determined target of keeping rate increases below four per cent in the pre-election period. Mission accomplished, as George W. Bush might have said.

Then last week, an August working paper on the need for BC Hydro rate hikes was leaked. It showed BC Hydro making a case for new increases totaling 26 per cent over two years. The leak came via the Canadian Office and Professional Employees local 378, the BC Hydro inside staff union that has a history of mostly juvenile attacks on the B.C. Liberal government.

Bill Bennett, the current energy minister, spent the next couple of days repeating to anyone who would listen that this initial proposal had already been rejected, and that work was well along to make the rate increase more palatable. Perhaps it’s back to where it was in 2011.

COPE 378 and the NDP played their rehearsed roles. Both tried to blame the situation on private power contracts. The union and its political front are less concerned about rising power bills than they are about holding onto the state monopoly on electricity generation.

Energy industry lawyer David Austin calculates that of the proposed 26.4-per-cent increase, about 3.5 per cent can be attributed to BC Hydro buying power from private sources, at prices competitive with new public power sources such as the Site C dam. Most of it comes from the overdue repairs to those old dams, other costly projects including the addition of turbines to two Columbia River dams, and deferred debt from previous political meddling.

In August I reported that as many as 20 of BC Hydro’s existing private power purchase contracts will be cancelled or deferred. This was also seized upon to portray private power as the root of all evil, both financially and environmentally.

In fact the attrition rate on these projects has always been about one out of three. This is what happens when the risks of expanding the provincial electrical grid are shared with private investors.

These run-of-river and wind projects were promoted to maximize clean energy sources, as well as to spread the grid to remote areas. This was Gordon Campbell’s climate change strategy.

Then came the gas boom. Clark seized upon liquefied natural gas exports as the key to future prosperity, and the government soon declared burning gas “clean” as long as it facilitates LNG production.

Bennett now acknowledges that gas-fired power plants are an option for the future. They are cheaper than hydro, small or large.

Bennett’s two tasks are to supply industry with cheap power and get consumer rates under control. It looks as if the gas is being turned up, and Site C is moving to the back burner.

Tom Fletcher is legislature reporter and columnist for Black Press and BCLocalNews.com

 

Just Posted

Strong winds up to 100 km/h for parts of Vancouver Island

Wind warning in effect for north, east and west Vancouver Island into Saturday morning

Two of Chemainus photographer Marston’s images picked among National Geographic’s 2018 elite

Rare double honour from the 36 best Your Shots out of nearly 19,000 photos

Police officer recounts wild car chase through downtown Ladysmith and Duncan

B.C. Supreme Court trial of Armaan Singh Chandi hears of pursuit following Nanaimo drive-by shooting

Ladysmith a stride closer to fitness trail

Work could get underway on initial groundwork this spring

Small external fire extinguished quickly at Catalyst’s Crofton pulp mill

Fire department called Monday afternoon as part of protocol, but services not needed

VIDEO: U.S. Congress to probe whether Trump told lawyer Cohen to lie

At issue is a BuzzFeed News report that about negotiations over a Moscow real estate project

Explosion sends B.C. firefighter to hospital

Kelowna fire crews responded to a blaze at Pope’sGallery of BC Art & Photography on Friday

Ex-Mountie investigating ‘Surrey six’ murders pleads guilty to obstruction

Derek Brassington entered his plea in B.C. Supreme Court on Friday

Rare ‘super blood wolf moon’ takes to the skies this Sunday

Celestial event happens only three times this century

Arrest made after historic B.C. church hit by arson

The fire at the 150-year-old Murray United Church in Merritt was considered a possible hate crime

Overworked and understaffed: More than 300 vacancies in Vancouver Island nursing

Tentative deal with province includes ‘working short premium’ to encourage hiring

Minor mattress fire could have killed, Nanaimo Fire Rescue warns

Public fire safety warnings issued following potentially deadly fire on Victoria Road

B.C. dangerous offender in court for violating no-contact order, sends letter to victim

Wayne Belleville was shocked to see a letter addressed to him from his shooter, Ronald Teneycke

Wind, tides could combine for 7-metre Long Beach waves Saturday

Extreme wave hazard warning at the Pacific Rim National Park Reserve.

Most Read