Work continues in the riverbed for the Site C dam on the Peace River. (B.C. Hydro)

B.C. Hydro rates to rise another 8.1 per cent in next five years

$1.1 billion bailout by NDP government keeps rate hikes low for next two years

B.C. Hydro’s electricity rates are expected to increase 1.8 per cent on April 1 and another 0.7 per cent in 2020, part of a five-year program that will see rates rise by 8.1 per cent in the next five years.

The lower rates for the next two years are made possible by a $1.1 billion write-off of one of the utilities deferred debt accounts.

Energy Minister Michelle Mungall announced the new rate plan Thursday, emphasizing the impact has also been reduced by a cost-cutting review of the utility. That includes scaling back B.C. Hydro’s capital plan by more than $2 billion, while carrying on with necessary upgrades to aging dams and infrastructure around the province.

The rate increases are subject to approval by the B.C. Utilities Commission, which Mungall said will not be interfered with as it has in the past. If approved, the 2019 increase would cost the average customer who pays $1,000 a year for electricity another $18.

The plan includes suspending B.C. Hydro’s “standing offer program” for independent power producers and renegotiating existing power contracts, which the NDP government paused when it formed government in August, 2017. Some projects in the works have Indigenous partners in remote communities, and a consultation will be held to measure impacts.

B.C. Hydro currently has power purchase agreements with 19 wood waste generators, burning waste fibre from sawmills and pulp mills to generate steam and electricity. Those are to be kept going to help the mills manage their wood waste, while technology to convert wood fibre to biofuels is explored, Mungall said.

The plan includes suspending B.C. Hydro’s “standing offer program” for independent power producers and renegotiating existing power contracts, which the NDP government paused when it formed government in August, 2017.

RELATED: B.C. Hydro’s private power costs weigh utility down

The NDP’s long-standing warnings about cumulative costs of long-term private power contracts were reinforced this week with a report commissioned by the ministry showing the contracts forced B.C. Hydro to buy power it did not need at above-market rates. That report estimated that the costs of private power will cost the average customer an extra $200 per year over the next 20 years.

Earlier demand forecasts showed B.C. Hydro would need more power than it projects today. Some mills and industrial operations have shut down, including the recent announcement that Mount Polley Mine near Quesnel is suspending operations due to low copper prices.

B.C. Liberal energy critic Greg Kyllo defended the previous government’s decision to seek energy self-sufficiency, even in the lowest water years, to reduce or eliminate the power being imported from other jurisdictions, most of which used coal or gas for at least some of their generation.

Kyllo questioned the fairness of the independent report by former B.C. Treasury Board director Ken Davidson, entitled “Zapped.” Davidson was a staffer in the previous NDP government who was brought in to provide the government with the conclusions it wanted, Kyllo said.


@tomfletcherbc
tfletcher@blackpress.ca

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

PHOTOS: One injured in shooting on South Surrey-Langley border

Shots reported near 194 Street and 34 Avenue, burned-out vehicle found in 18100-block of 12 Avenue

Mother-daughter charged in 2017 torched-SUV killing in South Surrey now allowed contact

Judge grants Manjit Kaur Deo permission to connect with Inderdeep Kaur Deo through a lawyer

White Rock acupuncturist suspended for ‘scare tactics, excessive fees’

30-day suspension for Jun Hua (Davy) Hua issued Aug. 18

Man sought in connection with ‘suspicious occurrence’ in South Surrey

Police asking the public’s help to identify man who may have information on Aug. 4 incident

Surrey school district student enrolment down from projections

‘That’s not something I can say in my time in Surrey, I have ever said at the board table’: superintendent

3 new deaths due to COVID-19 in B.C., 139 new cases

B.C. confirms 40 ‘historic cases,’ as well

Supreme Court Justice Ruth Bader Ginsburg dies at 87

The court’s second female justice, died Friday at her home in Washington

Emaciated grizzly found dead on central B.C. coast as low salmon count sparks concern

Grizzly was found on Gwa’sala-‘Nakwaxda’xw territory in Smith Inlet, 60K north of Port Hardy

VIDEO: B.C. to launch mouth-rinse COVID-19 test for kids

Test involves swishing and gargling saline in mouth and no deep-nasal swab

Young Canadians have curtailed vaping during pandemic, survey finds

The survey funded by Heart & Stroke also found the decrease in vaping frequency is most notable in British Columbia and Ontario

B.C. teachers file Labour Relations Board application over COVID-19 classroom concerns

The application comes as B.C.’s second week of the new school year comes to a close

CHARTS: Beyond Metro Vancouver, COVID-19 cases in B.C. haven’t increased much recently

COVID-19 case counts outside of Metro Vancouver have been level since July

70-year-old punched in the head in dispute over disability parking space in Nanaimo

Senior’s turban knocked off in incident at mall parking lot

Machine pistol among 14 firearms seized from Alaska man at B.C. border crossing

Corey Scott Kettering faces charges of smuggling and prohibited firearm possession

Most Read