Category: General commentary
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The BCUC’s rejection of an Okanagan pipeline expansion might be a bad deal for ratepayers
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A new $50 million stop-gap measure will leave the system at capacity again by 2029. The proposal rejected by the BC Utilities Commission (BCUC) in 2023 is looking more and more like a missed opportunity. Introduction FortisBC Energy Inc. (FEI), BC’s largest gas distribution utility, has a problem. Its pipeline serving the Okanagan is close…
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It’s time for the Auditor General to examine BC Hydro’s deferral accounts (again)
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BC Hydro will defer over a billion dollars of costs in the next three years without the independent approval of the BCUC. This could cause the Auditor General to qualify the provincial accounts (again). The importance of fair public accounts Most public companies record their costs in the year the costs are incurred. That way,…
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How much will BC Hydro bills really go up on April 1?
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The claim that BC Hydro bills will increase by an “average” of 3.75 percent contains enough spin to make you dizzy. In fact, almost 80 percent of BC Hydro residential customers may experience bill increases higher than 3.75 percent on April 1. Low-income customers may fare the worst. Introduction Last week the BC government announced…
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Was the BC government’s recent Order to the BCUC legal?
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The Utilities Commission Act prevents the government from overriding a BCUC decision. It may have done just that. Introduction The BC government recently issued an Order to the BC Utilities Commission (BCUC), the most widely-publicized effect of which was to set the next two years’ rates for BC Hydro, the provincially-owned electric utility, a job…
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BC government hammers another nail in the coffin of BCUC independence
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In bypassing the regulator, the government has set rates for BC Hydro that are probably too low. This will create big problems down the road, just like it did last time. Introduction On Monday, the BC government announced that rates for BC Hydro, the provincially-owned electric utility, would rise by an average of 3.75 percent…
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BC Hydro’s plans to keep bill increases low are under pressure
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BC Hydro’s third quarter financial results are out. The promise of limiting bill increases to 2.3 percent for the next four years is looking distinctly shaky. Editor’s note: Since this article was published, the government has announced that BC Hydro’s rates will increase an average of 3.75 percent annually for two years. This article was…
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BCUC improves regulation of BC’s thermal energy systems
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The BC Utilities Commission has deregulated many thermal energy systems and strengthened consumer protection. It could have gone a bit further, though. Introduction The BC Utilities Commission (BCUC) regulates energy utilities in BC, albeit with varying degrees of enthusiasm these days. The Utilities Commission Act has a broad definition of what must be regulated, and…
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Utilities Commission rejects BC Hydro’s request to delay its next integrated resource plan
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The delay was not justified, and would have undermined recent improvements in BC Hydro’s planning process. The BCUC was right to reject the request. On February 20 BC Hydro, the province’s largest electricity utility, applied to the BC Utilities Commission (BCUC) for a one-year delay in the submission of its next integrated resource plan. I…
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Will we ever get to see BC’s 2024 climate accountability report?
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The 2024 Report was due in June last year. What could be holding it up? As I reported in July last year, the government still owes us the Climate Change Accountability Report for 2024. The Climate Change Accountability Act says that the minister “must” publish the 2024 Report by June 30, 2024. Even today, the…
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Electrification trumps affordability as BC Hydro abandons its two-tier residential rate structure
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Today’s rate design is being phased out to encourage the transition to a cleaner economy. Most BC Hydro residential customers, especially those on low incomes, will pay more as a result. Introduction Rate designs are among the most important and influential decisions made by the BCUC. They don’t happen often (BC Hydro’s last comprehensive rate…