B.C. VIEWS: Get ready for Hydro rate hikes

Construction and maintenance costs rising, and so is government demand for BC Hydro revenue to balance budget

Energy and Mines Minister Bill Bennett

VICTORIA – There’s a new sheriff in town for BC Hydro, and it didn’t take long for the political range war to resume.

The new sheriff, Kootenay East MLA Bill Bennett, found himself on the barricades as soon as he got the hugely complex responsibility for energy and mines. His saddlebags bulge with reports on BC Hydro’s seemingly runaway costs, along with Premier Christy Clark’s “core review” to cut $50 million a year from government operations.

NDP energy critic John Horgan highlighted the latest BC Hydro troubles in his assault on the B.C. Liberal budget. First there was a $140 million cost overrun on the Northwest Transmission Line, under construction north from Terrace to the tiny Tahltan village of Iskut and adjacent mine properties.

Then BC Hydro revealed results of an audit of its earthquake preparedness. “Condition red” was the key message. Basically, the sprawling utility has disaster plans for each of its dams or other power facilities, but no overall way to get the provincial power grid back up after a major earthquake.

Horgan recited his list of BC Hydro sins after a decade of meddling by the BC Liberals: huge deferred debt revealed by the Auditor General, enormous liabilities for private power contracts, and more rate increases that Bennett has already admitted are on the way. And now they can’t even keep us safe from the big one.

Bennett fired back. About $2 billion of that debt is for seismic upgrades for the 80-year-old Ruskin Dam in Maple Ridge, and the equally frail John Hart Dam on the Campbell River, built with wooden water pipes. Major BC Hydro works slowed down after completion of Revelstoke and Mica dams in the 1980s, and now the work is more expensive.

The Northwest Transmission Line is a partnership with Imperial Metals, which wants to power its Red Chris copper-gold-silver mine. Bennett said the company is not only paying for the last section to Iskut and the mine site, but pitching in for the main line as well. Ottawa paid $130 million to get remote communities off decades of dependence on diesel generators.

AltaGas, owner of one of those private power projects in the region, puts in $180 million to get connected to the grid. The line will open up more mining and hydro possibilities.

The cost overrun traces back mainly to the shortage of high-skill labour such as geotechnical engineering that the remote region already faces. And this is before natural gas pipelines and LNG plants gear up.

Bennett takes over from the last sheriff, Rich Coleman, who put BC Hydro through the wringer in 2011. Coleman soon abandoned his idea of putting off the Ruskin and John Hart upgrades (again) to keep rates low through the election, and saw the B.C. Utilities Commission jack up the rate increase to seven per cent to help slow the ballooning debt.

What’s ahead for rates? The utility is looking for 32 per cent in the next three years, says energy lawyer David Austin. He calculates that only 2.5 per cent is attributable to increased private power costs. Among other things, BC Hydro needs regional emergency centres capable of functioning after a Japan-sized quake, plus expansion.

Bennett came clean on another reason for rate increases – the government’s increasing dependence on taking a “dividend” as BC Hydro’s lone “shareholder.”

The newly updated budget tells us this annual “dividend” is past $500 million and rising fast: $545 million this year, $611 million next year and $684 million the year after.

Tom Fletcher is legislative reporter and columnist for Black Press and BCLocalnews.com

 

Just Posted

Ashcroft RCMP looking for witnesses after four-year-old assaulted

Boy was injured in altercation during weekend soccer tournament

Grants will help Chinook and coho get past the damaged Bonaparte fishway

Salmon will be captured and transported around fishway to get to spawning grounds

Graffiti Days 2019 a huge success

Hundreds of cars and spectators — including a History channel TV personality — turned out for the event

Bus company fears for future if another licence issued for Interior routes

Adventure Charters waiting to see if Ebus BC is approved for Prince George-Kamloops run

Sea Cadets wind up another year with Ceremonial Review

Corps is fundraising for a trip to Halifax, Nova Scotia in 2020

VIDEO: Tributes flow on 10th anniversary of Michael Jackson’s death

Jackson received a fatal dose of the anesthetic propofol on June 25, 2009. He died at age 50

Delta cat severely injured in animal trap was likely stuck for days, owner says

Blu, a three-year-old house cat, suffered severe damage to his hind leg after being stuck in trap for days

VIDEO: Killer whale steals fisherman’s catch off North Coast

Fishing duel results in eager orca snagging salmon in Prince Rupert

40 cats surrendered in apparent hoarding at B.C. home

Officers found the cats living among piles of garbage and feces, suffering from fleas

Tsilhqot’in Nation urges Taseko Mines to stop drilling plans before conflict grows

Nation said Teztan Biny area is of ‘profound cultural and spiritual importance’

Vancouver Aquarium drops cetacean ban lawsuit in new lease agreement

Ocean Wise CEO Lasse Gustavsson called the updated lease an exciting new chapter for the aquarium

Thieves steal two $40K chairs featuring gold serpents from B.C. furniture store

Chairs believed to be the only two of its kind in Canada, police said

Rising gas prices force B.C. residents to rethink summer road trips: poll

63 per cent of respondents reported gas prices are impacting their day-to-day finances

PHOTO: Moose cow and calf relax in Williams Lake flower garden

The homeowners got a surprise when they checked their most recent surveillance footage

Most Read