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
[email protected]

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

Interior Health appoints administrator at Summerland Seniors Village

Numerous concerns raised about private seniors care facility

Summerland Steam end regular season in third place

Three Junior B hockey games held over past week

Summerland Steam and Princeton Posse to face off in division semifinals

Junior B hockey teams begin best of seven series on Feb. 28 in Princeton

Education urged to prepare for climate change

Knowledge of coming changes is essential, speaker tells Regional District of Okanagan Similkameen

Snowfall warning in effect for the Coquihalla Highway

An unstable airmass is producing heavy flurries over parts of the southern highway passes

Okanagan rescue team comes back home from Australian mission

Brad Pattison’s team spent 33 days rescuing wildlife

Kelowna mayor to request RCMP’s ‘unfounded’ sexual assault report

RCMP said the report was completed over a month ago but have yet to release it or make a statement

Criminality not suspected in Ellison trailer fire death

The body was discovered after crews responded to reports of a house fire

VIDEO: B.C.’s seventh coronavirus patient at home in Fraser Health region

Canada in ‘containment’ as COVID-19 spreads in other countries

Kelowna youth accused of killing 16-year-old released

The young woman was arrested on Feb. 21 and is facing one charge of manslaughter

Man arrested following suspicious trailer fire in Kelowna

Reports came in about the fire at approximately 11:45 a.m. on Monday morning

Body discovered following vehicle fire on Kelowna property

Firefighters discovered a body in a home on Anderson Road

‘Please be quiet,’ Kelowna Mayor tells sexual assault survivor protesting in council chambers

Forty per cent of sexual assaults reported to Kelowna RCMP in 2019 were deemed ‘unfounded’

Salmon Arm boy is only Para-Nordic athlete at BC Winter games

Thirteen-year-old Kaden Baum competed in three races on his sit-ski at the games.

Most Read