The British Columbia government has launched a two-phase review of BC Hydro, it announced June 11.
The purpose of the review is to control costs and contain rate increases, the province said in a press release.
BC Hydro rates have increased by 25% in the past five years, the government said, and in March, the B.C. Utilities Commission turned down the Crown corporation’s request for a rate freeze, instead opting for a 3% rate increase. Even with this increase, the province said, BC Hydro is not making enough money to fund its revenue requirements for the year.
The first phase of the review will be conducted by an advisory group consisting of representatives from the Ministry of Energy, Mines and Petroleum Resources, the Ministry of Finance and BC Hydro itself. The purpose of this phase will be to look for cost savings, new streams of reviews and efficiencies with the goal of keeping rates “low and predictable,” the government said.
Recommendations from phase one are scheduled to be presented this summer, and they will be used to draw up a new rates plan. A full report on phase one is due this fall. The recommendations will be used to help BC Hydro prepare its next rates application that is scheduled to be filed with the BCUC in February 2019, the province said.
Phase two is scheduled to start “in late 2018.” This will involve the creation of an expert panel that will provide recommendations to “maximize opportunities flowing from shifts taking place in the global and regional energy sectors, technological change and climate action.”
Specific terms of phase two will be drawn up after the completion of phase one. Recommendations will be presented to the government in summer or fall of 2019, the province said.
@EmmaHampelBIV
