How many of your readers realize that 92 per cent of the 32 per cent rate increase BC Hydro was seeking prior to the recent rate review was directly related to the updating and renewal of BC Hydro’s own generating, transmission and distribution infrastructure? Not many I suspect.
Only eight per cent of BC Hydro’s rate increase was related to purchases of new energy supplies from independent private sector producers
Unfortunately, independent producers seem to be getting all the blame in the media for the entire rate increase. This is neither fair nor is it in the public interest considering that independent producers are obviously not the big cost driver behind the requested rate increase.
One needs to separate the cost of renewing BC Hydro’s own energy infrastructure (the 92 per cent) from the cost of acquiring new supplies of electricity from independent producers (the eight per cent) and then deal with each on its own merits.
When you look at the eight per cent portion of the rate increase on its own, and view it within the context of the increased energy supply we will need to power economic activity and jobs in this province over the next decade and beyond, it should be clear that acquiring new supplies of electricity from independent producers, and transferring risk, is an incredible value for BC taxpayers and BC Hydro ratepayers.