Blog

BC's Haida Nation to Have Title Over All of Haida Gwaii

Reproduction of an article by Nelson Bennett in Business in Vancouver respecting the provincial government's plan to transfer the lands of Haida Gwaii to the Haida first nation.

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ICBC Forecasts Modest Improvement in its Finances but Key Analysis and Assumptions Lacking

The paper reviews the current year forecast and the budget plan for 2024/25. The third quarter 2023/24 results are also examined.

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Auditor General Warns BC Government Concerning BC Hydro Accounting

A review of Auditor General Michael Pickup's recent warning to the BC government respecting the independence of the BC Utilities Commission.

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BC Hydro's 24/25 Budget Discounts Drought Warnings

This paper reviews BC Hydro's financail forecast for the current year-end, as well as the key budget assumptions for the coming year. The water inflows and revenues for 2024/25 may be optimistic.

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Government Again Politicizes BC Hydro's Finances

The latest rebate ordered by the BC government again politicizes BC Hydro's finances. Note; I subsequently was informed that the government will fund $30 million of the $370 million cost to cover those customers who do not receive power indirectly from BC Hydro via their own utility.

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BC Government Sends Signal to BC Utilities Commission BC Hydro Priorities.

This paper has a closer look at the government's recent signal to the BC Utilities Commission respecting BC Hydro rates and future approvals.

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Manitoba Government Fires Hydro CEO

The NDP government fired the CEO of Manitoba Hydro over the question of the utility's power procurement. Many similaris facing the future power demand in Manitoba also confront the BC government.

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A Closer Look at the Rush to Hydrogen Gas

An article that questions the rush to produce green hydrogen to reduce CO2 emissions.

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Accumulated Trade Profits Moderate Large BC Hydro Rate Increases.

BC Hydro intends to use its accumulated Trade surplus to moderate rate volatiltity during the next few years buy smoothing at 2.3 per cent.

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Imported Electricity Negatively Affects BC Hydro's Finances and Lowers Ratio of Clean Power

Drought conditions are having a major impact on BC Hydro's finances, as well as forcing the importation of fossil fuel generated electricity.

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Low Water Has Had a Negative Impact on Crown Hydroelectric Utilities

Manitoba Hydro and Hydro Quebec have seen their export revenues curtailed due to low water conditions thsi year.

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ICBC Releases Second Quarter Financial Summary

ICBC's resultsf for the first six months of 2023/24 were encouraging, as reviewed in the attached commentary.

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Drought Hammers BC Hydro's Six Month Results

Serious drought effects have had a profound effect on BC Hydro's first half financial results.

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Pre-Election Posturing: Will the Carbon Tax Subsidize BC Hydro Rates?

Recently, Premier Eby said that the 2024/25 budget may include a carbon tax rebate funded through BC Hydro. This paper has a closer look.

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Will BC Hydro Use Columbia River Treaty Power to Meet Some of the Demand for Clean Power?

This paper reviews the possible use of some of the Canadian Entitlement under the Columbia River Treaty to address some of the growing demand for clean electricity. Note: The BC government sells the CRT benefits to Powerex, which then resells to the Americans (Bonneville Power), with profits being reported via BC Hydro.

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A Four-Year Review of ICBC's Optional Claims

This is the first in-depth look at ICBC's Optional claims information.

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Alberta Relaxes Insurance Rate Freeze Pending Plan to Reduce Costs

The Alberta government replaced the auto insurance rate freeze with a cap pending a review of options to reduce longer-term costs.

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Low Water Inflows Could Add Significant Cost to BC Hydro's Plans to Expand its Clean Grid

A drier and warmer future poses significant risk for BC Hydro's generating capacity to meet future needs with clean and affordable electricity.

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ICBC Multi-Year Key Statistics to 2022/23

Occasional Paper No. 92 provides the key multiyear financial and operational data to 2022.23.

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BC Hydro Does Not Have Enough Electricity to Power Proposed Green Hydrogen Projects

Recent announcements of large planned green hydrogen production plants near Prince George depend on hydroelectricity that BC Hydro does not have. See also https://biv.com/article/2023/09/mines-power-fossil-fuels-major-balancing-act-energy-minister 

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BC Hydro Selected Five-Year Statistics 2017/18 to 2022/23.

Occasional Paper No, 91 provides a five-year review of certain BC Hydro key indicators and is intended for reference purposes.

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BC Hydro's Positive 2022/23 Results Powered by Trade Income and Lower Energy Costs

BC Hydro achieved a strong financial performance in 2022/23, led by majpr gains in Trade income and lower energy costs.

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ICBC Reports Major Loss in its Optional Program

This paper has a more detailed review of ICBC's 2022/23 financial results by major program. Of note is the rise in materail damage costs and tort injury pressures.

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ICBC's Weak Investment Income and Higher Claims Costs Result in a $195 Million Loss for 2022/23

This report provides a summary at the corporate level of the 2022/23 financail results.

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First Full Year of No_fault Claims Show Mixed Results

This report shows ICBC claims information to 31 March 2023, provided through the FOI process.

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Ensuring A Clean Electricity Future Will Be Difficult And Expensive

Some commentors and environmental advocates have suggested that BC has almost achieved the target of a clean electrical grid. The attached paper suggests that meeting future demand for a clean power grid will be difficult and expensive.

 

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Highlights of the Manitoba Public Insurance 2022/23 Annual Report

Ths paper examins certain highlights of the MPI annual report.

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Alberta Government Resumes Quest for Affordable Auto Rates

Affordable auto insurance rates continues to be a pressing matter for the Alberta government. This paper reviews some recent developments.

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BC Hydro's New Resource Plan Forecast

BC Hydro has advanced the timeline to acquire new clean electricity. This paper has a closer look and the possible implicatons.

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New Accounting Rules Reduce ICBC's Transparency and Accountability

New accounting rules that took effect on April 1, 2023, will aggregrate revenue and expenditure information making analysis much more difficult.

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The Growing Trend of Governments to Politicize Auto Insurance Pricing

The Manitoba government has joined the trend of provincial governments to politicize the pricing of auto insurance rates. Four examples are presented.

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ICBC Multi-Year Operating Statistics to 2021/22

Occasional Paper No. 88 is the most recent compilation of financail and operating statistics to 2021/22.

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Castles in the Sky: ICBC's Two-Year Rate Freeze Request

ICBC has forecast significant net income over the next two years using inflated investment income.

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Will Ontario Auto Insurance Rate Surge Result in Less Protection?

Ontario continues to experience high auto insurance premiums. A new initiative could see lower rates but result in much less protedtion.

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Basic Policyholders Provide $236 Million Subsidy to BC Government

For many years BC governments have required ICBC policyholders to subsidize a variesty of governmet programs or policies, as detailed in the Commentary.

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Regulator Fast Tracks ICBC Basic Rate Review

This paper reviews the BCUC decision to advance the rate request review for the next two years, and discusses ICBC's distorted approach to forecasting the investment income.

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Auditor General Forces BC Government to Backtrack on New Customer Deferral Accounting

Recent comments by Auditor General Michael Pickup suggest that the government cannot continue to freely issue directives to the BC Utilites Commission respecting BC Hydro's finances.

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Court Challenges to BC's No-Fault Auto Insurance

This Commentary summarizes the status of the main challenges to the hybrid tort and no-fault liability model.

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Will Recent LNG Proposals Wither for Lack of Clean Electricity?

Will the lack of clean electricity to meet the government's net zero target doom the new LNG projects that are queing for approval?

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BC Hydro's Positive Third Quarter Results

BC Hydro reported a strong nine months primarily due to the effect of interest rate increases nd a jump in Trade income. 

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A Closer Look at ICBC's Forecast Loss for 2022/23

This paper reviews ICBC's latest service plan forecast for 2022/23, and its third quarter financial summary.

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Hydro Quebec Reports Record 2022 Sales and Profits

Hydro Quebec reported record sales and profits in calendar year 2022, mainly driven by high export prices and a cold winter.

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Once Again Auto Insurance Premiums Become an Election Issue in Alberta

The cost of auto insurance has again become an election issue in Alberta. This paper provides context for the government decision to freeze fates for the balance of 2023.

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Has the No-Fault Liability Model Achieved the Intended Objectives?

This paper examins the early data available to asses how well the change to the no-fault model has achieved the government's objectives.

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Is the Plan to Freeze Basic Insurance Rates Affordable?

Can ICBC afford the two-year rate freeze ordered by the government? This paper reviews its new rate request to the Utilities Commission and finds it fundamentally flawed because ICBC management failed to address this important question.

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Nelson Bennett Government Use of ICBC and BC Hydro Funds

Nelson Bennett's 28 December 2022 article in Business in Vancouver.

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New Report Shows ICBC Rates Higher Than Other No-Fault Provinces

As a result of the change to a no-fault model ICBC rates comare favourably with those with hybrid-tort models, but are higer than Saskatchewan and Manitoba. See also Derrick Penner Vancouver Sun December 14, 2022.

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New Bill Rebate Further Politicizes BC Hydro's Finances

By ordering the Utilities Commission to approve BC Hydro’s new rebate regulatory account the government continues to substitute political imperatives for the economic-based rate setting oversight provided by the once independent regulator.

 

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Media Interviews by Richard McCandless as of December 2023

Media interviews to 14 Decemder 2022.

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ICBC Releases Q2 Report and Forecasts a Year-End Loss

This paper raises some questions about ICBC's forecast operating loss based on the second quarter financial summary.

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Finance Minister Confuses Expaination of Cost-of-Living Measures

Finance Minister Selina Robinson mixed fiscal years and conflated taxpayers and ratepayers in explaining the funding of new measures.

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Estimating the Cost of the Newly Announced BC Hydro Rebate

Premier Eby announced a credit/rebate but no total cost or funding plan was make public. This paper provides an estimate, and discusses two funding approaches.

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Manitoba Public Insurer Loses Suit Questioning Regulator's Jurisdiction.

In a recent decision the Manitoba Court of Appeal declined to hear an appeal by the MPI public auto insurer concerning a decision by its refulator. Perhaps Manitoba will adopt the more directive approach used by the government in this province?

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Some Aspects of the Brad Wall Review of Biopole III and Keeyask

The report highlights the weaknesses in planning, project management and accountability. There are many parrallels to the Site C project.

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Six Years of ICBC Operational Data to 2021/22.

Occasional Paper No. 85 provides six years of various ICBC financial and operational data to fiscal yrar 2021/22.

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BC Hydro Five-Year Statistics 2016/17 to 2021/22

A five-year statistical summary of BC Hydro's finances.

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Quantifying BC Hydro's Domestic Electricity Surplus

BC Hydro no longer reports its Domestic electricity surplus or deficit, but it is possble to determine the annual totals from the service data in its annual reports. The over capacity in generation has costs for ratepayers.

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BC Hydro's 2021/22 Annual Report.

Occasional Paper 83 summarizes the key aspects of BC Hydro's 2021/22 annual report, which was released some three weeks ago.

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ICBC Reports Major Profit Increases in Both Basic and Optional Programs.

This report has a closer look at ICBC's 2021/22 financial results at the program level compared to the results of the prior year.

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ICBC Records Historic Profit for Fiscal Year 2021/22

FY 2021/22 was historic for our public auto insurer, both for the shift to no-fault and the historic combined operating profit.

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Accounting Rules Overstate Province's 2021/22 Revenue: On a Cash Basis the Surplus is Really a Deficit

National public sector accountig rules require that profits or losses from self-supporting Crown corporations be caunted as government revenue, even if no cash is transferred. The net income from BC Hydro and ICBC is not transferred and distorts the true cash picture of the government's finances.

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BC Hydro Extends Island Generation IPP Contract

BC Hydro has extended the IPP contract for 4.5 years to maintain grid reliability.

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BC Cabinet Again Restricts Independence of Regulator: Will the Auditor General React?

A new directive reinforces the government's unwillingness to fulfill its 2018 promise to enhance the independence of the BC Utilities Commission regardsin BC Hydro's finances and rates.

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Private Insurers Report Banner Profits for 2021

A new report shows that private Canadian Property and Casualty insurers make record profits in 2021. This paper has a closer look.

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Auto Insurance Again a Factor in the Ontario Election

The Ontario NDP has promised a major reduction in auto insurance as part of its election platform. This paper has a closer look.

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Plan to Collect Data and Report on Race Raises Questions

A commentary of the proposed Anti-Racism Data Act reviews a number of issues, including the presumption of systemic racism in provincial public bodies.

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A Closer Look at ICBC's Remarkable Financial Turnaround.

Occasional Paper 82 provides a more detailed analysis of ICBC financial rebound during the past two years.

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WorkSafe BC Statistics for 2020

WorkSafe BC claim statistics 

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ICBC Multi-Year Operating Statistics to 2020/21

Occasional Paper No. 81 provides a multi-year compilation of actual key financial and operating measures to 2020/21.

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Globe and Mail Incorrectly Claims BC and Saskatchewan Drivers Subsidized by Taxpayers

A recent Globe and Mail editorial cantained factual errors about the recently announced insurance rebates in BC and Saskatchewan. Taxpayers are not subsidizing drivers in these provinces.

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Linking ICBC Rebate to Offset Fuel Prices Sends Wrong Message

The decision to proceed with a rebate signifies the adoption of more realistic capital reserve targets. Linking the rebate to offsetting high fuel costs has clouded a positive picture.

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Government Reneges on Promise to Allow BC Hydro's Regulator Full Independence

A new cabinet order negates the previous commitment to restore full independence to the BC Utilities Commission to regulate BC Hydro. Will the auditor general again qualify the government's financial statements?

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How Much is Enough: ICBC Has Sufficient Capital to Provide Rebate to Policyholders

President Jimenez says rebuilding the capital reserve will take time, but the latest forecast suggests that ICBC has sufficient capital to provide a rebate now.

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ICBC Forecasts Record Profits: Strong Investment Returns Power Results.

ICBC has forecast a record profit of $1.9 billion for the current year. This Commentary reviews the forecast and the Q3 report.

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ICBC and BC Hydro Profits Distort Government Deficit

National accounting standards require that the net income of ICBC and BC Hydro be reported as government revenue. As no actual cash is transferred from thes two Crowns this distorts understates the size of the government's planned operating deficits for the current and next three years.

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ICBC Policyholders Fund Enhanced Traffic Enforcement--Fine Revenue Goes to Municipalities

Each year Basic policyholders contribute close to $30 million to fund traffic enforcement through additional police resources and through intersection radar cameras. This paper has a closer look.

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Ontario Government Hints That Taxpayers May Subsidize Drivers.

The Ontario government may eliminate the $120 vehicle registration fee in the run-up to the June election resulting in a taxpayer subsidy to drivers. 

Update https://nationalpost.com/news/canada/ontario-legislators-return-for-pre-election-session-today 

https://globalnews.ca/news/8636625/ontario-licence-plate-sticker-renewal-cancelled-refunds/ 

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BC Hydro Watchdog Voluntarily Muzzels Itself.

In a recent decision the BC Utilities Commission gave notice that it will regulate BC Hydro rates using an incentive sytem. This despite the warnings of BC Hydro and most of the consumer groups that such a system would not be effective for the Crown utility, and would reduce public accountability.

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Alberta Adopts No-Fault for Vehicle Damage: Hybrid Tort Remains for Injury Claims.

Starting January 1, 2022, the basoc mandatory auto insurance for vehicle damage claims converted to a n-fault model. Injury claims remain in the hybrid tort model, where pain and suffering awards for minor claims are capped.

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BC Hydro Revives Speculation on Future Interest Rates

In light of anticipated higher interest rates BC Hydro has re-instituted its hedging program. Better luck this time? 

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ICBC Multi-Year Statistics to 2020/21

Occasional Paper No. 79 refreshes previous financial and service measures wih the actuals to 2020/21.

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Claims of Systemic Racism in Policing and Health Care: A Review of the Evidence.

The sponsors of two reports have claimed that the reports justify claims of systemic racism, but is this true?

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BC Hydro's Second Quarter Report Reflects Strengthening Economy.

After six months BC Hydro's finances show improvements from the prior year, partly due to improved economic activity.

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ICBC's Half-Year Results for 2021/22.

ICBC's minimalist half-yer summary report shows improved financial health, but lack of service measue data make detailed analysis impossible.

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British Columbia's Greenhouse Gas Emissions 2005 to 2019.

Occasional Paper No.78 takes a closer look at the growth of provincial GHG emisssions in the context of other larger provinces, population growth and economic growth.

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BC Utilities Commission Approves ICBC's Basic Program Rate Reduction

This commentary summarizes the key issues in the BC Utilities Commission's recent decision.

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Will the Old Growth Logging Restriction Result in Higher Cost Electricity?

The government's plan to restrict old growth logging could have a significant effect on BC Hydro's sales and rates.

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Public Auto Insurers May Provide Additional Covid Rebates: Will ICBC Follow Suit?

The public auto insurers in Saskatchewan and Manitoba have reported claims costs tracking below the budget forecasts due to the continuing effects of the measures to supress the pandemic. This may result in more rebates to policyholders. 

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Ontario's Electricity Subsidies

New reports by Ontario's Financial Accountability Office provide a useful overview of the effect of the taxpayer subsidies on the price of electricity in that province. Update with Globe and Mail editorial https://www.theglobeandmail.com/opinion/editorials/article-the-hydro-subsidy-washing-machine-keeps-spinning-in-ontario/ 

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Operating Losses Could Add Another $5.5 Billionto the Cost of Site C.

To date, most of the discussion of the cost of the Site C project has focussed on the total cost. Occasional Paper No. 77 estimates the operating losses over the first fifteen years could total $5.5 billion. Some funding options are also discussed.

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Providing BC Hydro's Regulator with Broader Discretion in Pricing Electricity is Highly Problematic.

Should the BC Utilities Commission be broadened to address social policy issues? This paper says this would be highly problematic.

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Cost of the Site C Dam Project Slowly Emerging

In a recent filing with the regulator, BC Hydro is slowly disclosing details on the cost of the Site C dam project. The impact on customer rates has yet to be disclosed.

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Do ICBC's Q1 Results Suggest Another Pandemic Rebate?

This paper provides a general review of ICBC's positive first quarter financial reults.

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Manitoba Government Arbitrarily Raises Manitoba Hydro Rates by 2.5 Per Cent

The government of Manitoba has decided to increase Manitoba Hydro rates by 2.5% per year for the next three years. This has resulted in less transparency and accountibility.

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