The provincial government is launching a review of BC Hydro in a bid to reel in rate increases, control costs and to “position” the utility for “future success.”
In the first of two phases, the review will work with BC Hydro to identify cost savings, efficiencies and new revenue streams to keep electricity rates low and predictable over the long-term.
BC Hydro rates have gone up by 25 per cent since 2013, and by more than 70 per cent since 2001.
An advisory group, consisting of staff from the Ministry of Energy, Mines and Petroleum Resources, the Ministry of Finance and BC Hydro, will carry out the first phase of the review.
Government expects recommendations from the first phase of the review this summer to “inform a refreshed rates plan, and assist BC Hydro in preparing its next rates application,” which will be filed with the B.C. Utilities Commission (BCUC) in February 2019.
A report on the first phase of the review, and government's response, will be released in the fall of 2018.
In the second phase of the review - starting in late 2018 - the province will establish an expert panel, to provide recommendations to ensure BC Hydro is “well positioned to maximize opportunities flowing from shifts taking place in the global and regional energy sectors, technological change and climate action.”
The second phase of the review will be informed by new government strategies, including an energy roadmap for the future of B.C. energy and a new climate action strategy.
Terms of reference for this second phase, including the makeup of the expert panel, will be finalized after the first phase of the review has been completed.
It is anticipated that the panel will deliver its recommendations to government by summer or fall of 2019.
On March 1, the BCUC rejected BC Hydro's request for a rate freeze, effective April 1, 2018.
Instead, it approved an increase of 3 per cent, noting that even with the rate increase, BC Hydro is not able to fully recover its revenue requirements in that fiscal year.
BC Hydro has set up a Customer Crisis Fund pilot program for residential customers to avoid disconnection of their service when they are facing a temporary financial crisis, such as loss of employment or benefit income, unanticipated medical expenses or pending eviction. The three-year pilot will run until 2021.
To view the terms of reference for the BC Hydro review, visit: www2.gov.bc.ca/gov/content/industry/electricity-alternative-energy/electricity/bc-hydro-review
