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

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

Area A Director Ali Grieve (right), Village of Fruitvale Mayor Steve Morissette (front), and Village of Montrose Mayor Mike Walsh (left) held a congratulatory ceremony for Beaver Valley students who are part of the Class of 2021 graduates of J. L. Crowe Secondary at Beaver Creek Park on Thursday. Photo: Jim Bailey
Beaver Valley Grads of 2021

Beaver Valley mayors, RDKB Area A director celebrate their 2021 graduates with gift ceremony

Adrian Moyls is the Selkirk College Class of 2021 valedictorian and graduate of the School of Health and Human Services. Photo: Submitted
Selkirk College valedictorian proves mettle in accomplishment

Adrian Moyls is a graduate of the School of Health and Human Services

Selkirk College has begun its search in earnest for a leader to replace president Angus Graeme who is set to retire from his position in May 2022. Photo: Submitted
Selkirk College seeks community input for president search

Current president Angus Graeme retires next year

A report shows nine West Kootenay communities are have more low-income persons than the provincial average. File photo
Study casts new light on poverty in the West Kootenay

Nine communities in region have more low-income residents than provincial average

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Over 5K jabbed at Interior Health mobile COVID-19 vaccine clinics

The clinics have made stops in more than 40 communities since launching last week

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
‘Springsteen on Broadway’ clears way for AstraZeneca recipients to attend show

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

New research suggests wolves can be steered away from the endangered caribou herds they prey on by making the man-made trails they use to hunt harder to move along. THE CANADIAN PRESS/Nathan Denette
Culling cutlines, not B.C. wolves, key to preserving caribou herds: researcher

The government has turned to killing hundreds of wolves in an effort to keep caribou around

Gary Abbott (left) and Louis De Jaeger were two of the organizers for the 2014 Spirit of the People Powwow in Chilliwack. Monday, June 21, 2021 is Indigenous Peoples Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of June 20 to 26

Indigenous Peoples Day, Take Your Dog to Work Day, Onion Rings Day all coming up this week

Gwen Spencer Hethey with her uncle and mentor Major Frederick Richardson. (Courtesy of Greater Victoria Sports Hall of Fame)
‘She was a killer’: The B.C. woman who pioneered female sharpshooting

Gwen Spencer Hethey made military men ‘look like turkeys’ says her son

Central Okanagan Grade 12 grads are set to get $500 each after a more than $1 million donation from a Kelowna couple. (File photo)
B.C. couple donating $500 to every Grade 12 student in the Okanagan

Anonymous donors identified as Kelowna entrepreneurs Lance and Tammy Torgerson

Rita Coolidge played the main stage at Vancouver Island Musicfest in 2017. (Black Press file photo)
This year’s Vancouver Island MusicFest to virtually showcase beauty of Comox Valley

Returning July 9 through 11 with more than 25 hours of music performances

British Columbia’s premier says he’s received a second dose of the Oxford-AstraZeneca COVID-19 vaccine. (Twitter/John Horgan)
B.C. premier gets 2nd dose of AstraZeneca COVID-19 vaccine

John Horgan shared a photo of himself on social media Friday afternoon holding a completed vaccination card

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Most Read