Blog

Manitoba Hydro Planning a Five-Year 46% Rate Increase -- Lessons for BC? June 2, 2017.

In May, Manitoba Hydro requested a rate increase of 7.9% for 2017 and 2018, with an indication of the same increase for the following three years. The publicly owned power utility is facing a major deterioration inits finances due to major capital projects and a flat demand. What lessons may a new government in BC learn from the Manitoba experience?

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Ontario Electricity Rate Suppression Plan. May 27, 2017.

This paper reviews the recent report of the Ontario Financial Accountability Office on that government's plan to use a deferral account to surpress electricity rates. A comparison to the revenue deferral practiced by BC Hydro is also provided.

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Fact Check - Bill Bennett Responds to My Tyee Article. May 4, 2017.

A Fact Check on Hon. Bill Bennett's comments on the Jon McComd (CKNW) show, commenting on rate increases and BC Hydro's debt.

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New Review of Auto Insurance System in Ontario. April 23, 2017.

A report by David Marshall recommends an over-haul of the Ontario system to focus on the management of injury claims to improve the efficieny and effectiveness of the auto insurance system. Useful, but the cross Canada premium comparisons are questionable. http://www.fin.gov.on.ca/en/autoinsurance/fair-benefits.pdf and https://news.ontario.ca/mof/en/2017/04/ontario-releases-report-on-auto-insurance.html

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Fact Check - Government Admits Major Rate Increases Coming for BC Hydro and ICBC. April 20, 2017.

On April 19th finance minister de Jong stated that the coming four-year rate increase requirement for BC Hydro is 28%, and close to 70% for ICBC's Basic program. The government's rate suppression policy has postponed the financial reckoning.

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New Study Recommends Suspension of Site C. April 19, 2017.

On April 19, 2017, the UBC Program on Water Governance released a comphrensive report on the economics of the Site C dam project;http://watergovernance.ca/projects/sitec/

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Party Platforms Impact on BC Hydro and ICBC. April 14, 2016.

This paper attempts to summarize the election platforms of the three main parties, and what they say or imply about BC Hydro and ICBC.

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ICBC Capital Depletion and Claims Backlog. April 9, 2017.

This paper reviews the last four years capital depletion and the growth in the claims backlog at ICBC.

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ICBC Gets Tough on Bad Drivers, and Tougher on Good Drivers. March 5, 2017

ICBC announced a toughing of its Basic insurance discounts for 2018, which will result in higher insurance for at-fault drivers; good drivers will be big losers.

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New Government Must Fix ICBC's Finances Soon. March 30, 2017.

A detailed review of ICBC's three-year forecast shows alarming loss of capital; immediate and longer-term initiatives are suggested to restore ICBC's finances to a healthy condition. 

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ICBC's Worsening Finances Require Government Action. March 24, 2017.

The new provincial government must make the restoration of ICBC's financial health a priority, as capital reserves are now below the regulatory minimums,and rake shock looms.

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Cold and Snowy Winter Helps BC Hydro - Hammers ICBC. March 19, 2017.

A review of the financial impacts of the cold and snowy winter on the finances of BC Hydro and ICBC.

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BC Hydro's Aggressive Revenue Tactics. March 15, 2017.

Big banks have been pursuing questionable tactics to enhance revenue and profits, but BC Hydro has a unique way to achieve its revenue targets.

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How Realistic is BC Hydro's 10-Year Plan? March 12, 2017.

This paper suggests that BC Hydro's annual target rate increase of 2.6% is optimistic, as is the 10-year financial plan.

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ICBC Fact Check Fraud Costing $600 million? March 9, 2017.

This Fact Check concludes that ICBC's claim that fraud is costing $600 million annually is significantly exggerated. 

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ICBC's Steve Crombie Interview Fact Check. March 9, 2017.

This paper reviews Mr. Crombie's comments in a recent interview as reported by Keith Baldrey in the Burnaby News of March 6, 2017.

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How BC Hydro Produces Record profits Despite Flat Demand. March 2, 2017.

This paper explores BC Hydro's flat domestic sales and its high profits during the last five years, and suggests that the recording of future ubapproved and unbilled revenue helps explain the healthy bottom line.

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ICBC Deficits-Question Period February 22, 2017. February 26, 2017.

Minister Stone attempts to defend ICBC's deficit forecasts during Question Period on February 22, 2017.

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ICBC's Forecasts for 2016/17 and 2017/18 Show Worsening Outlook. February 22, 2017.

ICBC's 3rd Quarter 2016/17 forecast, and the 2017/18 forecast show a worsening financial picture. No relief in the government's 2017/18 budget.

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Government Uses BC Hydro and ICBC to Lower Direct Debt. February 19, 2017.

In the last five years, the government has taken some $1.95 billion in dividends from BC Hydro, or "excess' capital from ICBC, to reduce its direct operating debt requirement. Occasional Paper No. 22 explains how this happened.

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Government Creates Unique Accounting System for BC Hydro. January 30, 2017.

This paper describes how an obscure 2011 cabinet directive allows BC Hydro to apply regulatory accounting without the fundamental componet -- an independent regulator.

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Submission to the BC Utilities Commission re ICBC Review. January 24, 2017.

My submission recommends that the BC Utilities Commission set expectations for ICBC's 2017 rate request, and includes data on forecasted rate requirements and comparisons of Basic rate increases with Saskatchewan and Manitoba.

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BC Hydro's Growing Pension Liability. January 14, 2017.

Richard McCandless wonders why BC Hydro has a large and growing pension liability; deferral accounting may provide a reason.

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Under-Reported BC Hydro Financial Stories from 2016. January 9, 2017.

Richard McCandless posts Occasional Paper No. 19 on some 2016 stories about BC Hydro's finances that were either under-reported, or recieved no media coverage.

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BC Hydro Quietly Posts Disappointing Q2 Results

My summary of BC Hydro's 2016 Q2 rseults, and a forecast to year-end.

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ICBC 2016 Basic Rate Request-Final Argument. December 20, 2016.

"A foolish consistency is the hobgoblin of little minds...."; Richard McCandless submits comments and recommendations to the BC Utilities Commission respecting ICBC's 4.9% Basic rate increase for 2016.

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Understanding Regulation in the United Kingdom 2016. December 18, 2016.

Martin Stanley's compendium of issues relating to regulation of public utilities in the UK; http://www.regulation.org.uk/

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ICBC Basic Claims Costs 2012 to 2015. 12 December 2016.

This Occasional Paper (No. 18) reviews ICBC claims data from 2012 to 2015 to attempt to identify cost drivers. The outlook for the medium term is as discussed.

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BC Hydro Defends Recording of Future Unapproved Revenue. 2 December 2016.

Recently, the BC Utilities Commission asked BC Hydro whether its recording of future unapproved revenue conformed to accepted accounting principles. I forwarded BC Hydro's answer, together with my comments, to Auditor General Carol Bellringer.

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Premier Clark Wants 4.9% Rate Increase for 2016. 22 November 2016.

News 1130 story says Premier Clark fighting for affordable auto insurance rates.

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BC Hydro GWh Domestic Sales. 29 November 2016.

BC Hydro data on domestic sales 2006/07 to 2015/16 and three year forecast.

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Thoughts on Recent ICBC Events. 27 November 2016.

My thoughts and comments on recent events concerning ICBC's rates and financial condition.

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ICBC's Five Year Basic Forecast of 23 November 2016. 24 November 2016.

My preliminary impressions of ICBC's Basic forecast filed on 23 November 2016.

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Rate Suppression and Capital Destruction: ICBC Rate Shock Lurking. 17 November 2016.

This paper describes how the government's rate suppression policy has used ICBC's capital reserves to subsidize lower than required Basic program rates. In essence, the government is using policyholders' savings to keep the required rate increases from becoming an issue of public concern. Soon the capital reserve will be at minimum levels, and policyholders will be faced with the deferred bill.

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Revenue Recognition -- Fraud and Reporting Risk.

An article by D. Barry Jay Epstein reviewing revenue recognition fraud in the US.

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Does BC Hydro's Rate Smoothing Conform to Accounting Standards? 8 June 2016.

On 8 June 2016 Adrian Dix MLA requested Auditor General Carol Bellringer's opinion as to whether the government-imposed recording of future revenue at BC Hyro conforms to generally accepted accounting principles. 

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How Ontario and BC Subsidize Electricity Rates. 13 September 2016.

A comparison of how the governments of Ontario and BC subsidize electricity rates.

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