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 wrote last week that the delay was not justified, and speculated that the BCUC would approve the request anyway, as it has acceded to many requests from BC Hydro in the last year. Well, I was wrong.
Bucking the recent trend, the BCUC rejected BC Hydro’s request; the next integrated resource plan will still be due by October 31. Rather gratifyingly, it seems the BCUC even shares my view of why BC Hydro’s reasons for requesting the delay were fatuous (OK, they didn’t actually use that word).
The BCUC also said it is “disappointed” that, the very first time after suggesting a shorter planning cycle, BC Hydro felt the need to “deviate from its own stated intent.” One can sympathize with the BCUC’s disappointment. It is rather embarrassing for them that after approving BC Hydro’s last integrated resource plan despite its many failings, the utility then turns around and undermines the logic used to approve it.
I would like to think of this as a turning point for the BCUC. BC Hydro should be regulated on the same principled basis as any other utility, unless the government specifically legislates something different (as it often does). The BCUC’s reputation as an independent regulator suffers when it appears to give the state-owned utility an easy ride. The BCUC’s unprecedented approval of four decisions last year to reverse previous regulatory decisions in BC Hydro’s favour was particularly egregious.
I am happy to have been proven wrong, and applaud the BCUC’s decision to stand up to BC Hydro. Let’s hope this is the start of a more even-handed approach to regulating our utilities in BC.