B.C. Hydro customers will have to pay off $5.5 billion in operating debt that has been pushed into the future to keep rates from spiking, and it91裸聊视频檚 not yet clear how the NDP government is going to tackle that.
Energy Minister Michelle Mungall91裸聊视频檚 initial effort to freeze rates was blocked by regulators, requiring a 3.5 per cent increase in 2017. Last year91裸聊视频檚 increase was another three per cent, similar to what the B.C. Liberal government had scheduled in its 10-year rate plan.
RELATED:
RELATED:
In June of 2018, Mungall announced separate reviews of Hydro91裸聊视频檚 capital and operating debt, with outside experts to find a way forward, after the NDP government reluctantly decided to complete the $10 billion Site C project.
A key goal for Mungall is to return rate-setting to the B.C. Utilities Commission, after a series of directives from the previous government that drew accusations of political interference to make B.C. Hydro91裸聊视频檚 financial picture look better than it is.
On Wednesday, B.C. Auditor General Carol Bellringer released on B.C. Hydro91裸聊视频檚 deferred operating debt, which is separate from the billions in capital debt racked up for project such as Site C on the Peace River, the John Hart Dam reconstruction on Vancouver Island and the Ruskin dam and powerhouse rebuild in the Fraser Valley.
Deferral accounts are used to "smooth" rate hikes from major weather events and other operational costs
91裸聊视频� Tom Fletcher (@tomfletcherbc)
Deferring the bills of major storms and other unexpected spikes in operating costs is normal practice for utilities, Bellringer says. But B.C. Hydro91裸聊视频檚 network of 29 accounts is unusually complicated, with 91裸聊视频渞ate smoothing91裸聊视频� effects on future rates unclear.
In their response to Bellringer91裸聊视频檚 report, the ministry and B.C. Hydro emphasize that current customer rates are already on track to pay off 25 of the 29 deferral accounts.
Three that are not are the 91裸聊视频渃ustomer crisis fund91裸聊视频� account, the 91裸聊视频淪ite C regulatory account91裸聊视频� and the 91裸聊视频渞ate smoothing regulatory account.91裸聊视频�
tfletcher@blackpress.ca
Like us on and follow us on .
