Skip to main content

“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

Something hinky’s going on with Hydro’s application to the Utilities Commission. Despite the claim by Michelle Mungall there’s going to be a ‘rate reduction for the first time in decades’, that is in fact a fallacy


So today, our provincial NDP government has announced that we will be paying ...  less for electricity next spring if the BC Utilities Commission (BCUC) approves BC Hydro’s request for a decrease in rates.

“For the past two years, our government has been focused on making sure BC Hydro works for people again,” said Michelle Mungall, Minister of Energy, Mines and Petroleum Resources. “I am thrilled that BC Hydro is now able to apply for a rate reduction for the first time in decades. If approved by our independent regulator, lower rates would make life better and more affordable for British Columbians.”

Here’s the thing though -- that decrease, if approved by the BC Utilities Commission, will be 1% beginning in 2021 ... but it will be followed by an INCREASE of two point seven percent (2.7%) in 2021

Then in 2022 Hydro has requested to reduce our rates, this time by by POINT three percent (0.3%) ... which will again be followed by another INCREASE of three percent (3%) in 2023

WHAT’S THE BOTTOM LINE?

We have is a total decrease in our BC Hydro bill, if approved by the BC Utilities Commission of 1.3% over the next four years ... which will be wiped out 5.7% increase during the same time period.

Getting back to the BC Government News media release, it states that:

BC Hydro’s application to the BCUC is based on its audited fiscal 2019 financial results and latest financial forecast that reflect, among other things, higher-than-anticipated income from its trading subsidiary Powerex, lower-than-anticipated forecast debt financing costs and lower-than-anticipated purchases from independent power producers (IPPs).

“As a result of our updated financial forecast, we’re in the unique position to apply for a rate decrease for our customers that would start on April 1, 2020, if approved by the BC Utilities Commission,” said Chris O’Riley, president and chief operating officer, BC Hydro.

“We’re committed to continue to work with government and the B.C. Utilities Commission to keep rates affordable while ensuring we continue to provide safe, reliable power to the province.”

BC Auditor General Carol Bellringer
BUT ... hold on a minute Chris.  What did CBC News have to say less than six months ago?

"Customers on the hook for $5.5 billion in deferred BC Hydro operating costs: report"

Auditor General Carol Bellringer says BC Hydro has deferred $5.5 billion in expenses that it plans to recover from ratepayers in the future.

Bellringer focuses on the deferred expenses in a report on the public utility's use of rate-regulated accounting to control the prices it charges customers.

"As of March 31, 2018, BC Hydro reported a total net regulatory asset of $5.455 billion, which is what ratepayers owe," says the report. "BC Hydro expects to recover this from ratepayers in the future. For BC Hydro, this is an asset. For ratepayers, this is a debt."

She says rate-regulated accounting is used widely across North America, but cautions that Hydro has largely overridden the role of the independent B.C. Utilities Commission to regulate rates.

There’s something hinky going on with BC Hydro’s application to the Utilities Commission. Despite the claim by Minister of Energy Michelle Mungall that there is going to be a ‘rate reduction for the first time in decades’, that is in fact a fallacy.

Increasing rates by 5.7%, while decreasing them by 1.3% is not a rate reduction that computes for me ...

... and I defy any mathematician to prove otherwise!

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

FORSETH -- If having three un-happy MLA’s leave the party, is what it takes to have unity within caucus, then I say, “Fine; let it be so”

Regrettably, in recent days, issues within the Conservative Party of BC have come to the surface resulting in one member being removed from Caucus (Dallas Brodie) and the party, and two others (Tara Armstrong and Jordan Kealy) leaving of their own accord. As of this morning (Saturday March 8th) all three are now sitting as independents in the BC legislature. So, what does that mean? In the last twenty-four hours social media feeds have lit up with support for leader John Rustad, while others have been negative, accusing the party, and Rustad, of being bullies and not standing up for conservative values. Ryan Painter, who has personally worked with John Rustad, had this to say: Since the beginning, he's had one target: the BC NDP. He knows that British Columbians deserve a government that works for them, delivers on their promises, and doesn't tax them into poverty. He believes in his team and the power of a focused opposition. He knows who the enemy is. He knows BC deserves ...
Post a Comment
Read more

WARD STAMER: “Hopefully he’s actually listening to what people have to say, and not just showing up for a photo op”

In his latest travels across the province, BC Forest Minister Ravi Parmar touched down in the Okanagan. A trip essentially, he said, to be on the ground meeting industry people. I read what he had to say, and about how he has been tasked with getting more timber to market. Let me start by saying, “ He hasn’t been tasked. He and Premier Eby guaranteed 45 million cubic metres of available wood fibre – they guaranteed that .” BC Timber Sales is a government agency within the provincial forest’s ministry, which is responsible for managing a portion of the province's Crown timber; specifically, 20 percent of the province's annual allowable cut. Unfortunately, BC Timber Sales did not provide anywhere near that amount last year, it was just 12.2 percent. Three years ago, BC mills cut 52 million metres of wood, bringing in nearly $2 billion dollars to the provincial treasury. That figure doesn’t include the taxes from 55,700 people directly employed in the industry, nor from the tens o...
Post a Comment
Read more

Conservative Opposition demonstrates focused and policy-oriented approach in first four weeks of the legislative session

In the first four weeks of the legislative session, the Conservative Official Opposition has scored significant policy wins as it proves every day that the Conservative team has fresh ideas and real-world experience to bring to the table. At the same time, the NDP government has been listless, struggling to find a policy agenda that addresses the problems that British Columbians are facing. “This NDP government led by David Eby has tried to do everything under the sun to distract from their disastrous fiscal record and the fact that they are utterly out of ideas,” said Conservative Opposition Leader John Rustad. “They’ve tried to use the U.S. President to deflect from their eye-popping $11 billion deficit, the worst business confidence in the country, and the fact that they’ve created almost zero private sector jobs. This is no way to run a province or an economy.” Since the legislative session started on February 18th with the Throne Speech, the opposition...
Post a Comment
Read more

Labels

Show more