This letter republished with permission of the BC Hydro Ratepayers Association
March 21, 2018,
Dear Premier Horgan, Minister Mungall, Attorney General Eby and Auditor General Bellringer,
The citizens of BC, and especially those who elected the new government, deserve to know the financial implications of BC Hydro’s various regulatory and deferral accounts, the capital expenditures planned over the next ten years, the effect of IPP contracts for power, including the effect on rates of the now forecast almost $12 Billion Site C project.
BC Ratepayers have not had an accurate number put on rate increases necessary to reduce the accumulated debt, including Site C and other obligations. Under various guises, the government has stated “no rate increase”, while the BCUC has been directed to provide 4%, 3.5% and 3% increases in the recent past. BCUC recently stated that there was no justification for “zero rate increase” and denied it.
Power users are confused by these conflicting signals and statements. What Ratepayers need and deserve to know is “what must be done to put BC Hydro back on a solid financial footing”?
This should be a simple task, but why have the BCUC, BC Hydro and the BC government not performed this analysis?
Are they paralyzed by the prospect of a devastating rate increase? Are they refusing to provide an essential planning tool for homeowners and renters, for businesses and industry? We cannot make long term plans without knowing accurately what the future will hold!
Will BC Hydro continue to offer “sweetheart deals” to businesses like Woodfibre LNG, where the price paid for power from Woodfibre is ridiculously high, and now there is an offer to subsidize a transmission line, and power rates to encourage Woodfibre to waste electricity liquefying natural gas? Does BC Hydro intend to offer subsidized Site C power which will cost over $100/MWh to LNG users, at roughly half the cost?
Will BC Hydro and BCUC please independently provide a ten year rate plan, with a 20 year extension beyond that so that business and residents can plan accordingly, and which will fully account for the Site C project and various deferral and regulatory account retirements over such a 30 year time, or longer, if required?
While a formal written response would be preferred, however an electronic email response is acceptable.
Roger Bryenton, P. Eng (former), MBA
Director, Pacific Electricity Ratepayers Association, dba BC Hydro Ratepayers Association
An alternative version of Deputy Minister Don Wright’s justification of Site C.
Categories: BC Hydro