More governments are requiring some form of Indigenous ownership as a condition of approval for new energy projects. While providing a solid revenue stream for these marginalized communities is useful, it is not without risk.
Occasional Paper 94 provides a series of key operational and performance indicators from BC Hydo. This report encompasses the fiscal years 2018/19 to 2023/24.
This paper summaries the key financial items in BC Hydro’s 2023/24 annual report. The prolonged drought had a major affect on its revenues and costs, with a significant hit to the bottom line. Deferral accounting transfers these losses to the ratepayers in future years, allowing the government to mandate a rebate that reduces current year bills but is funded from the prior year “surplus.”
ICBC’s recently published annual report summarizes how the public auto insurer achieved a $1.4 billion net income for 2023/24. This Commentary provides a number of perspectives and suggests that the government should direct ICBC to reduce the Basic program’s high capital reserve.
The “modified equity” accounting system distorts the government’s revenue, and surplus/deficit position, by assuming revenue from ICBC is available to the government. This can cause a major distortion as occurred for 2023/24.
BC Hydro has announced a doubling of its energy conservation and efficiency programs, in keeping with the government’s CleanBC priorities. This commentary has a closer look.
This Commentary explores the looming collision between the government and the auditor general over BC Hydro’s accounting.
Richard Mason, a former appointed member of the BC Utilities Commission has published an article questioning the Commission’s independence respecting BC Hydro. It is reproduced here for information.
Last week Fortescue Metals of Australia announced a major retrenchment in the development of green hydrogen projects. One must suppose that this includes the proposed facility planned for Prince George.
A very large windfarm is being planned to supply renewable electricity to a proposed green hydrogen facility in Nova Scotia. Many questions are being raised about the economics of such a project.
The Manitoba public auto insurer is seeking a three per cent increase in Basic rates for 2025/26 after suffering large claims losses last year.
In recent years BC Hydro has been adding more regulatory/deferral accounts. This Commentary suggests that the predominant reason is to insulate the government-mandated profit target.
The $5.5 billion Cedar LNG export project is proceeding. Can the Haisla Nation afford its share of the cost?
It appears that the government has “negotiated” a profitable deal for purchase of ICBC’s headquarters building. Is this another example of politicizing our public insurer?
Are the government’s objectives of dramatically reduced emissions, economic development and affordable electricity rates irreconcilable? Will the provincial government be forced to ration the supply of clean electricity? These questions are raised in the attached Commentary.
The Quebec government has decided that large new wind farm energy projects will be owned by Hydro-Quebec, rather than private power producers. Will BC follow suit?
The BC government has been championing the production of green hydrogen as a method to achieve its CleanBC emission targets. Given the technical problems with this process, this promotion is unwarranted.
This paper reviews certain aspects of the latest Basic insurance rebate ordered by the government.
The Alberta government recently issued new consultation documents designed to focus the public discussion on affordable auto insurance. The lowest cost option, a public monopoly modeled on ICBC, was quickly denounced by the Insurance Bureau of Canada.
The government of Ontario is proposing to reduce mandatory Basic injury coverage in an attempt to provide more choice—read less coverage. This follows the plan to reduce vehicle damage coverage begun this year.
The attached reproduces an interesting survey of the effects of the drought on the energy supply in the US Pacific northwest. Are there lessons for BC?
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.
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.
Links to media interviews.
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.
The paper reviews the current year forecast and the budget plan for 2024/25. The third quarter 2023/24 results are also examined.
A review of Auditor General Michael Pickup's recent warning to the BC government respecting the independence of the BC Utilities Commission.
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.
This paper has a closer look at the government's recent signal to the BC Utilities Commission respecting BC Hydro rates and future approvals.
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.
An article that questions the rush to produce green hydrogen to reduce CO2 emissions.
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.
Drought conditions are having a major impact on BC Hydro's finances, as well as forcing the importation of fossil fuel generated electricity.
Manitoba Hydro and Hydro Quebec have seen their export revenues curtailed due to low water conditions thsi year.
ICBC's resultsf for the first six months of 2023/24 were encouraging, as reviewed in the attached commentary.
Serious drought effects have had a profound effect on BC Hydro's first half financial results.
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.
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.
This paper reviews comeof the cost and other implications if BC Hydro purchases electricity powered by wind. See also https://biv.com/article/2023/11/calculating-cost-new-power-generation-bc
This is the first in-depth look at ICBC's Optional claims information.
The Alberta government replaced the auto insurance rate freeze with a cap pending a review of options to reduce longer-term costs.
A drier and warmer future poses significant risk for BC Hydro's generating capacity to meet future needs with clean and affordable electricity.
On 30 Septemebr 2023, Vughn Palmer of the Vancouver Sun commented on the firing of the chair of the BC Utilities Commission: https://vancouversun.com/opinion/columnists/vaughn-palmer-bc-utilities-commission-firing-shows-eby-ready-to-interfere-to-achieve-ndp-goals
Occasional Paper No. 92 provides the key multiyear financial and operational data to 2022.23.
Recent comments by the IBC may signal how the Alberta government will restructure its auto insurance liability model. See also https://www.canadianunderwriter.ca/legal/whats-contributing-to-rising-auto-premiums-in-alberta-1004238314/
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
Occasional Paper No, 91 provides a five-year review of certain BC Hydro key indicators and is intended for reference purposes.
BC Hydro achieved a strong financial performance in 2022/23, led by majpr gains in Trade income and lower energy costs.
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.
This report provides a summary at the corporate level of the 2022/23 financail results.
This report shows ICBC claims information to 31 March 2023, provided through the FOI process.
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.
Ths paper examins certain highlights of the MPI annual report.
Affordable auto insurance rates continues to be a pressing matter for the Alberta government. This paper reviews some recent developments.
BC Hydro has advanced the timeline to acquire new clean electricity. This paper has a closer look and the possible implicatons.
New accounting rules that took effect on April 1, 2023, will aggregrate revenue and expenditure information making analysis much more difficult.
The Manitoba government has joined the trend of provincial governments to politicize the pricing of auto insurance rates. Four examples are presented.
Occasional Paper No. 88 is the most recent compilation of financail and operating statistics to 2021/22.
ICBC has forecast significant net income over the next two years using inflated investment income.
Ontario continues to experience high auto insurance premiums. A new initiative could see lower rates but result in much less protedtion.
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.
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.
This Commentary summarizes the status of the main challenges to the hybrid tort and no-fault liability model.
Will the lack of clean electricity to meet the government's net zero target doom the new LNG projects that are queing for approval?
BC Hydro reported a strong nine months primarily due to the effect of interest rate increases nd a jump in Trade income.
This paper reviews ICBC's latest service plan forecast for 2022/23, and its third quarter financial summary.
Hydro Quebec reported record sales and profits in calendar year 2022, mainly driven by high export prices and a cold winter.
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.
This paper examins the early data available to asses how well the change to the no-fault model has achieved the government's objectives.
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.
Nelson Bennett's 28 December 2022 article in Business in Vancouver.
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.
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.
This paper raises some questions about ICBC's forecast operating loss based on the second quarter financial summary.
Finance Minister Selina Robinson mixed fiscal years and conflated taxpayers and ratepayers in explaining the funding of new measures.
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.
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?
The report highlights the weaknesses in planning, project management and accountability. There are many parrallels to the Site C project.
Occasional Paper No. 85 provides six years of various ICBC financial and operational data to fiscal yrar 2021/22.
A five-year statistical summary of BC Hydro's finances.
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.
Occasional Paper 83 summarizes the key aspects of BC Hydro's 2021/22 annual report, which was released some three weeks ago.
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.
FY 2021/22 was historic for our public auto insurer, both for the shift to no-fault and the historic combined operating profit.
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 Hydro has extended the IPP contract for 4.5 years to maintain grid reliability.
Three recent media comments or articles concerning the attempt to gain public financial support for a bid to host the 2030 Winter Olympics. See also
June 29: Olympics bid inspection trio revealed
May 7: Vancouver 2030 bid team big on hopes, vague on specifics
March 26: Vancouver mayoral candidate proposes 2030 Olympic bid plebiscite
Dec. 12: Analysis: Vancouver 2030 Olympics bid — Who really wants it?
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.
This Commentary discusses the new Royal BC Museum in light of Dr. Robin Fisher's distinction between history and historical memory. Related see
A new report shows that private Canadian Property and Casualty insurers make record profits in 2021. This paper has a closer look.
The Ontario NDP has promised a major reduction in auto insurance as part of its election platform. This paper has a closer look.
A commentary of the proposed Anti-Racism Data Act reviews a number of issues, including the presumption of systemic racism in provincial public bodies.
Occasional Paper 82 provides a more detailed analysis of ICBC financial rebound during the past two years.
Occasional Paper No. 81 provides a multi-year compilation of actual key financial and operating measures to 2020/21.
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.
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.
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?