Comparing Provincial Electricity and Natural Gas Supply and Sales
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This paper reviews the supply of electricity and the GWh equivalent produced by natural gas for the 2022/23 fiscal year. It demonstrates the importance of natural gas to the province’s economy.
Replacing Natural Gas with Clean Electricity is Unrealistic
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A number of environmental groups have called on the government to end the use of natural gas in residential and commercial buildings by 2035. Clean electricity would replace the natural gas. This paper shows that such a proposition is not feasible.
BC's Haida Nation to Have Title Over All of Haida Gwaii
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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.
BC Hydro's 24/25 Budget Discounts Drought Warnings
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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.
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.
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.
Will BC Hydro Use Columbia River Treaty Power to Meet Some of the Demand for Clean Power?
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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.
BC Hydro Does Not Have Enough Electricity to Power Proposed Green Hydrogen Projects
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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
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.
Ensuring A Clean Electricity Future Will Be Difficult And Expensive
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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.
Basic Policyholders Provide $236 Million Subsidy to BC Government
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For many years BC governments have required ICBC policyholders to subsidize a variesty of governmet programs or policies, as detailed in the Commentary.
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.
Auditor General Forces BC Government to Backtrack on New Customer Deferral Accounting
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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.
Once Again Auto Insurance Premiums Become an Election Issue in Alberta
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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.
Is the Plan to Freeze Basic Insurance Rates Affordable?
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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.
New Report Shows ICBC Rates Higher Than Other No-Fault Provinces
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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.
New Bill Rebate Further Politicizes BC Hydro's Finances
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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.
Estimating the Cost of the Newly Announced BC Hydro Rebate
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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.
Manitoba Public Insurer Loses Suit Questioning Regulator's Jurisdiction.
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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?
Quantifying BC Hydro's Domestic Electricity Surplus
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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.
Accounting Rules Overstate Province's 2021/22 Revenue: On a Cash Basis the Surplus is Really a Deficit
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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.
BC Cabinet Again Restricts Independence of Regulator: Will the Auditor General React?
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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.
Plan to Collect Data and Report on Race Raises Questions
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A commentary of the proposed Anti-Racism Data Act reviews a number of issues, including the presumption of systemic racism in provincial public bodies.
Globe and Mail Incorrectly Claims BC and Saskatchewan Drivers Subsidized by Taxpayers
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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.
Linking ICBC Rebate to Offset Fuel Prices Sends Wrong Message
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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.
Government Reneges on Promise to Allow BC Hydro's Regulator Full Independence
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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?
How Much is Enough: ICBC Has Sufficient Capital to Provide Rebate to Policyholders
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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.
ICBC and BC Hydro Profits Distort Government Deficit
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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.
ICBC Policyholders Fund Enhanced Traffic Enforcement--Fine Revenue Goes to Municipalities
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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.
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.
Alberta Adopts No-Fault for Vehicle Damage: Hybrid Tort Remains for Injury Claims.
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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.
British Columbia's Greenhouse Gas Emissions 2005 to 2019.
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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.
Public Auto Insurers May Provide Additional Covid Rebates: Will ICBC Follow Suit?
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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.
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/
Operating Losses Could Add Another $5.5 Billionto the Cost of Site C.
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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.
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.