Powerhouse construction at Site C dam on the Peace River, spring 2019. The project’s $10 billion price tag has pushed up B.C. Hydro debt. (B.C. Hydro)

B.C. Hydro applies for rare cut in electricity rates next year

Province wrote off $1.1 billion debt to help reverse rate increase

B.C. Hydro has applied for a rare rate decrease to take effect next spring, before the cost of hydroelectricity to B.C. consumers is forecast to climb again.

Documents released Friday by B.C. Hydro project a rate decrease of just under one per cent, an abrupt change from an upward trend in recent years driven by debt piling up to upgrade aging facilities and build the Site C dam on the Peace River.

The rate decrease is subject to approval by the B.C. Utilities Commission, and would take effect April 1, 2020. It would be followed by a 3.5 per cent rate increase a year later, according to the latest rates forecast.

B.C. Hydro CEO Chris O’Riley cited lower that forecast debt costs, stronger income from Powerex, the utility’s power trading subsidiary, and reduced costs from purchasing independent power.

The B.C. NDP government tried to freeze rates in 2018, but the BCUC rejected its application. Since then it has suspended independent power contract purchases and in Finance Minister Carole James’ latest budget, wrote off $1.1 billion of B.C. Hydro’s deferred debt by transferring it to the provincial debt.

“I’m thrilled that B.C. Hydro is now able to apply for a rate reduction for the first time in decades,” said Energy Minister Michelle Mungall, whose term got off to a rocky start when she promised a rate freeze and couldn’t deliver.

The NDP government moved to suspend B.C. Hydro’s “standing offer program” for independent power projects, after years of characterizing independent power as a key driver in rising costs. Exceptions would be made for Indigenous partnerships to develop power in remote regions that are off the B.C. Hydro grid, Mungall said at the time.

The NDP government produced a controversial report in February, entitled “Zapped,” that said former premier Gordon Campbell’s 2002 push into contracted run-of-river, wind and biomass power will cost B.C. Hydro $16 billion over the next 20 years.

RELATED: NDP’s consultant points finger at private power costs

RELATED: B.C. budget for 2019-20 bails out B.C. Hydro, ICBC

B.C. Liberal energy critic Greg Kyllo said the NDP’s “assault on clean energy producers” was a move to protect the unionized monopoly of B.C. Hydro production.

“British Columbia has been a leader in green tech and clean energy, and the advances we have seen over the past decade have been thanks to entrpreneurs, private businesses and First Nations investing in the future, certainly not government bureaucrats,” Kyllo said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘We’re not going to fail you’: Chilliwack trustee sends assuring message to students

Trustee Barry Neufeld says he knows the pain of online learning, and tells kids to ‘hang in there’

Council meetings now closed to the public in Chilliwack

Changes comply with provincial orders for no public gatherings and help development applications

Chilliwack elementary schools roll parades through their neighbourhoods, past students’ homes

Unsworth and Central are two of many schools trying to connect teachers with students in fun way

Kinneman appointed CAO of the Fraser Valley Regional District

Her ‘experience and connection with the staff and FVRD partners was unparalleled’ says board chair

Chilliwack school district rolls out next year’s budget, expects COVID-19 costs to change things

Public is being encouraged to connect with the district with any questions about 2020/2021 budget

UPDATE: Canadians awake to extra COVID-19 emergency benefit money, feds clarify changes

The CRA and federal officials are working to clarify the confusion around payments

Controls can keep Canadian COVID-19 deaths under 22,000, health agency says

With poor containment measures, the death toll could be much, much higher, the agency says

People needing addictions services feel ‘abandoned’ during pandemic, B.C.’s ex-top doctor says

Widespread job losses and more homelessness due to physical distancing at shelters have added hurdles

Canada lost 1,011,000 jobs in March, unemployment rate up to 7.8%: StatCan

Unemployment rate hits levels not seen since 2010

COVID-19 world update: 6.6 million U.S. jobless claims; alcohol sales banned in Bangkok

Comprehensive digest of coronavirus news items from around the world

B.C. sorting medical equipment sales, donation offers for COVID-19

Supply hub has call out for masks, gowns, coronavirus swabs

B.C. records five more deaths due to COVID-19, 45 new cases

A total of 838 people have recovered from the virus

Major crimes investigating sudden death of North Okanagan child

The 8 year old was flown to Kelowna General Hospital and died hours later

BC institution has highest number of positive results for COVID-19

11 inmates in Mission test positive for coronavirus, more than any other federal prison in Canada

Most Read