Just and Reasonable

Promoting good governance in BC's energy sector


Category: General commentary

  • BCUC approves FortisBC Fruitvale substation project

    BCUC approves FortisBC Fruitvale substation project

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    After detailed scrutiny by the BCUC, FortisBC’s Fruitvale substation project will go ahead, despite local opposition. But are the BCUC and the government applying the same standards to BC Hydro’s projects? Background On September 4, 2024, the BCUC granted a Certificate of Public Convenience and Necessity (CPCN) to FortisBC Inc. (FBC) to construct a new…

  • BC Hydro revenues drop nearly a billion dollars in one year

    BC Hydro revenues drop nearly a billion dollars in one year

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    BC Hydro’s unaudited revenues for the 2023/24 fiscal year are reported to be $7,131 million, a reduction of $896 million compared to the previous fiscal year, according to the BC public accounts released August 22, 2024. (Editor’s note: BC Hydro has now published its fiscal 2023/24 annual report. Its revenues have in fact dropped $1.347…

  • Independent BCUC review of BC Hydro’s capital spending is at risk

    Independent BCUC review of BC Hydro’s capital spending is at risk

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    On August 2, 2024, the BC Minister of Energy, Mines and Low Carbon Innovation wrote to the BC Utilities Commission (BCUC) giving it advance approval to exempt a wide category of BC Hydro capital projects from independent review, even though the BCUC hasn’t asked for that approval. What could be wrong with that? Well, plenty.…

  • FortisBC LNG storage facility in Kelowna planned to replace rejected Okanagan pipeline

    FortisBC LNG storage facility in Kelowna planned to replace rejected Okanagan pipeline

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    FortisBC Energy Inc. (FortisBC), BC’s largest natural gas distribution company, announced it has applied to the BC Utilities Commission (BCUC) to build a liquified natural gas (LNG) storage and send-out facility in Kelowna. If approved, the facility will meet the needs of gas customers in the Okanagan when FortisBC reaches its maximum capacity in the…

  • Does the BCUC’s 2017 Site C Inquiry still measure up?

    Does the BCUC’s 2017 Site C Inquiry still measure up?

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    A lot has changed since the BC Utilities Commission (BCUC) reviewed the Site C project in 2017. How does the BCUC’s analysis look with the benefit of hindsight? Disclosure: I was one of the four commissioners on the panel in this inquiry. Background Site C is the working name of BC Hydro’s latest hydro-electric dam,…

  • How independent is the BCUC’s oversight of BC Hydro?

    How independent is the BCUC’s oversight of BC Hydro?

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    BC’s Auditor General recently warned that future government directions regarding BC Hydro’s net income are a “risk area” for the provincial accounts, which have twice been qualified as a result of the government overriding the independence of the BC Utilities Commission (BCUC). On July 15, 2024, the BC government ordered the BCUC to allow BC…

  • BCUC bypassed again as Government legislates BC Hydro’s net income

    BCUC bypassed again as Government legislates BC Hydro’s net income

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    On July 15, 2024, the BC government ordered the BC Utilities Commission (BCUC) to allow BC Hydro’s regulated net income to remain at $712 million a year for an additional two years – until March 31, 2027. The government overriding the BCUC’s ability to regulate BC Hydro is becoming all too familiar. In fact, BC’s…

  • Where is BC’s 2024 climate change accountability report?

    Where is BC’s 2024 climate change accountability report?

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    Section 7.1 of the Climate Change Accountability Act obliges the Minister of Environment and Climate Change Strategy to “make public no later than the end of June” the provincial government’s Climate Change Accountability Report. As I write this (July 13, 2024), the relevant ministry web page hasn’t been updated since November 30, 2023, and shows…

  • FortisBC expands its renewable natural gas program

    FortisBC expands its renewable natural gas program

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    FortisBC Energy Inc. (FEI) just announced that, as of July 1, 2024, it will be the “first energy utility in North America to automatically designate Renewable Natural Gas for customers.” What does this mean, and what will it cost? Is there a cheaper alternative? Introduction FEI is by far the largest natural gas distributor in…

  • BC’s electricity deficit

    BC’s electricity deficit

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    BC is fixing its near-term electricity shortage, but there is potential for a much larger deficit if we want to expand LNG and mining production and also achieve net zero GHG emissions by 2050. Unless this is addressed, the BC government will face some unwanted trade-offs between its environmental and economic goals. Introduction BC Hydro…