Blog

Indigenous Partnerships in New Energy Projects

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.

 

Read More →

BC Hydro Rebrands Energy Conservation Program and Doubles the Budget

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.

Read More →

Is the Government again on a Collision Course with the Auditor General Over BC Hydro's Accounting?

This Commentary explores the looming collision between the government and the auditor general over BC Hydro’s accounting.

 

Read More →

Former Member Questions Independence of the BC Utilities Commission

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.

 

Read More →

Is The Proposed Fortescue Green Hydrogen Project For Prince George Dead?

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.

 

Read More →

BC Hydro Expands Deferral Accounts to Insulate Profit From Market Vagaries

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.

Read More →

Rationing Scarce Clean Electricity: Who Decides?

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.

 

Read More →

Hydro-Quebec Opts for Public Ownership of Large New Wind Farms

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?

Read More →

Why to Production of Green Hydrogen is a Waste of Our Limited Renewable Electricity

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.

Read More →

Drought Conditions in the Pacific Northwest Demonstrate the Benefit of a Diversified Enery Mix

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?

Read More →

Comparing Provincial Electricity and Natural Gas Supply and Sales

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.

 

Read More →

Replacing Natural Gas with Clean Electricity is Unrealistic

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.

Read More →

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.

Read More →

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.

Read More →

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.

Read More →

A Closer Look at the Rush to Hydrogen Gas

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

Read More →

Accumulated Trade Profits Moderate Future 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.

Read More →

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.

Read More →

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.

Read More →

Drought Hammers BC Hydro's Six Month Results

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

Read More →

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.

Read More →

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.

Read More →

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.

Read More →

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 

Read More →

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.

Read More →

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.

Read More →

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?

Read More →

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. 

Read More →

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.

Read More →

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.

 

Read More →

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.

Read More →

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.

Read More →

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.

Read More →

BC Hydro Extends Island Generation IPP Contract

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

Read More →

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.

Read More →

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?

Read More →

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.

Read More →

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? 

Read More →

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.

Read More →

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.

Read More →

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/ 

Read More →

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.

Read More →

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.

Read More →

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.

Read More →

Government Blocks Possible Reduction in BC Hydro's Excessive Profits

A recent cabinet order has blocked any attempt by the BC Utilities Commission to lower BC Hydro's excessive profits. This is another example of the government's manipulation of the utility and the BC Utilities Commission.

Read More →

Ontario Expands Taxpayer Subsidy of Electricity Rates

Recently, the Ontario government expanded its program of subsidizing the price of electricity for residential and smaller commercial customers to include larger commercial and industrial users. Given the likely operating losses of Site C, will the BC government also subsidize BC Hydro's rates when this project is operational?

Read More →

BC Hydro Seeks to Delay Cut to Profit

Part way into the BC Utilities Commission's review of its 2022 rate request BC Hydro has asked that any decrease to its net income be delayed. This paper reviews the situation.

Read More →

Manitoba Joins Quebec in Muzzling Hydro Regulator

The Manitoba government has sidelined the province's regulator of Manitoba Hydro, and legislated a 2.9% rate increase for the coming year. This action mirrors that of Quebec, which also "simplified" rate setting by eliminating the regulator for five years. Is there a trend?

Read More →

Has BC Hydro Ended its Ill-Conceived Gamble on Interest Rates?

A recent report suggests that BC Hydro is winding down its costly interest rate hedging program. This paper updates earlier commentaries.

Read More →

BC Hydro Quietly Releases Its Second Quarter Financial Report

This Commentary reviews the highlights of  the first six months of BC Hydro's 2020/21 fiscal year, including the effect of COVID-19 and lower interest rates.

Read More →

Should the Taxpayer Pick Up the Tab for Site C?

This paper argues that the net losses for Site C (whether it proceeds or is cancelled) should be covered by the taxpayer rether than expecting the ratepayers to pay the cost by increasing the cost of domestic power sold.

Read More →

Losses on BC Hydro's Interest Rate Hedging Gamble Now Exceed $1.0 Billion.

BC Hydro's first quarter report to June 30th shows that the losses on the hedging gamble have now reached an astonishing $1.0 billion. This paper reviews the hedging program, and how the losses will prevent ratepayers from benefiting from lower borrowing costs. See also  

https://thetyee.ca/News/2020/10/07/BC-Hydro-Bets-Interest-Rates/?utm_source=daily&utm_medium=email&utm_campaign=071020 

Read More →

Low Interest Rates Bad News for ICBC's and BC Hydro's Balance Sheets

The prospect of continuing low interest rates will place further strain on the financial statements of ICBC and BC Hydro. The poor financial health could twart government attempts to lower insurace rates or provide cheaper electricity.

Read More →

Fact Check--BC Hydro Claims Strong Finances

BC Hydro released a report that claims its strong financial position despite a dramatic drop in sales. This is not true; its has high debt and relies on deferral costs and recording unearned revenue to produce a high profit.

Read More →

Recording Unearned Revenue Inocuates BC Hydro's Profit From COVID-19.

BC Hydro's net income is protected against any reduction in revenue by the public utility's recording of unearned revenue in a deferral account. The resulting increse in debt is a liability for future generations.

Read More →

Why Not Cut BC Hydro Rates?

This paper argues that the governent should reduce BC Hydro's profit (net income) target by 50 percent to provide $350 million in direct relief to BC residents and businesses.

Read More →

Saskatchewan Reducing Reliance on Coal to Generate Electricity

The attached paper discusses the Saskatchewan government's and SaskPower's moves to reduce the dependence on coal to generate electricity. Certain financial comparisons of SaskPower and BC Hydro are also discussed.

Read More →

BC Hydro Reports Six Month Loss of $611 Million; Deferring Loss Results in a Small Surplus

On 29 November 2019, BC Hydro released disappointing results for April to September 2019. Transfers to regulatory accounts converted an initial operating loss of $611 million to a $25 million profit. Losses from hedging future interest rates remain a concern.

Read More →

B.C. Hydro Loses $560 Million in Fifteen Months on Interest Rate Hedging Gamble.

B.C. Hydro's interest rate hedging program incurred dramatic losses from April 2018 to June 2020. The shareholder was protected by a regulatory account. How did the hedging program begin and why is it failing the ratepayers?

Read More →

Quebec "Simplifies" Pricing of Electricity by Sidelining the Regulator.

The new Quebec government has significantly dminished the role of the independent body that regulated the operation and the rates of Hydro Quebec. The change is reviewed in the attached paper.

Read More →

Should Ratepayers Subsidize the Electrification of Oil and Gas Production?

This Commentary reviews the government's assumption that B.C. Hydro ratepayers will subsidize the cost of electrifying the production of oil and gas in the noeth east reagion. It is a sudsidy because the cost is greater than the anticipated revenue. The social benefit of reduced carbon emissions should be paid by the government, not the ratepayers.

Read More →

Insurance Brokers Association Exectutive Director Supports Public Auto Insurance Model

In the August edition of The Broker magazine Chuck Byrne, the exectutive director of the Insurance Brokers Association, wrote an editorial in support of the public model for the provision of compulsory insurance. Exerpts of this editorial are attached.

Read More →

B.C. Hydro's 2018/19 Annual Report: Flat Sales but Finances Now Reflect GAAP

This paper provides highlights of B.C. Hydro's 2018/19 annual report. The finances are now based on public sector GAAP and reflect the one-time loss caused by the windup of the revenue deferral account.

Read More →

Auditor General Removes Qualification on B.C. Hydro Accounting.

Auditor General Carol Bellringer has accepted the government's pledge to fully restore the B.C. Utilities Commission's authority to regulate B.C. Hydro and removed that part of her qualification on the government's 2018/19 financial statements.

Read More →

B.C. Hydro Maintains That The B.C. Utilities Commission is Independent.

Despite the clear opinion of the province's auditor general to the contrary B.C. Hydro asserts that the B.C. Utilities Commission is independent. This paper looks at the issue.

Read More →

Manitoba Plans for Electricity Rate Increases; B.C. Opts to Keep Rates Low.

Both Manitoba and B.C. public power utilities are facing major cost increases as large capital projects near completion. The Manitoba regulator is raising prices to smooth the transition, but the B.C. government has chosen to keep the rate increase below the increase in B.C. Hydro's costs. The NDP approach has many parallels to that of the previous government.

Read More →

Quantifying B.C. Hydro's Electricity Surplus, 2014 to 2022.

B.C. Hydro has generated or contracted for power in excess of domestic sales for a number of years, and forecasts surpluses for a number of years to come. This Commentary reviews the acquisition and sales.

Read More →

Ontario Legislative Committee Report Calls for More Transparency.

This Commentary reviews the recent report by the special committee of the Ontario legislature on financial transparency. The committee was struck to examine how the previous Liberal government ignored public sector accounting standards to lower electricity rates while still claiming to balance the 2017/18 budget.

Read More →

New B.C. Hydro Financing Plan and More Authority for the BCUC Announced.

This commentary reviews the new five-year rates plan for B.C. Hydro, as well as the government's plan to restore the B.C. Utilities Commission's authority to regulate the public utility.

Read More →

Former Premier Wynne Defends Electricity Rate Manipulation.

This paper reviews the testimoney of former Ontario Premier Wynne at the legislative committee on transparency, and compares the practice in Ontario to that practiced in B.C.

Read More →

B.C. Hydro's Q2 Results: Volume of Power Sold Falls While Debt Climbs

My comments on the results and the lack of discussion on accounting changes or future rate increases.

Read More →

Ontario Review Promises Greater Transparency and Accountability.

Commentary on certain aspects of the Ontario government's plans regarding electricity pricing and auto insurance regulation.

Read More →

Ontario Seeks to Improve Financial Transparency and Accountability.

A committee of the Ontario legislature is holding hearings into how the previous Liberal government attempted to ignore the accounting rules to make the government books appear than was the case. What lessons might the B.C. government learn from this review?

Read More →

Ontario Government Agrees that Hydro Deferral Accounting Inappropriate. September 21, 2018.

The Ontario government has moved to clean-up certain accounting practices, including the financing of the "Fair Hydro" deferrals. The accounting adjustment of the electricity deferrals increased 2018/19 expenditures by $2,4 billion.

Read More →

Some Implications of Restoring the BCUC's Independence. September 10, 2018.

This commentary paper explores in more detail some of the issues involved in fixing the accounting policies at B.C. Hydro.

Read More →

Goverment Begins Restoring Financial Integrity: What's Next for B.C. Hydro's Books? August 31, 2018

This paper provides an overview of why the government set aside $950 million for the 2017/18 fiscal year to begin to fix the financial troubles at B.C. Hydro. the restoration of proper accounting standards at the public power utility presents certain financial problems for the government.

Read More →

BCUC Approves BC Hydro's $1.2 Billion Dam Purchase

A short commentary on the regulator's 18 July 2018 approval of the purchase of Teck's interest in the Waneta Dam.

Read More →

Hon. Mungall Says BC Hydro's Finances in Good Shape--Really?

A comment on minister Mungall's statement and the staff review of BC Hydro's costs.

Read More →

Commentary: Populist Promises and the Cost of Electrictiy. May 18, 2018

The three main politic parties in Ontario are promising to reduce electricity prices, but are being vague as to what this will cost. It's time for the voters to become educated consumers. 

Read More →

Public Pension Plan Solvency: Why Is BC Hydro an Outlier?

A comment in response to Vaughn Palmer's article about the BC Investment Management Corporation and the well-funded public pension plans.

Read More →

Commentary on Matthew McClearn Article on Hydro Accounting in Ontario. April 22, 2018.

McClearn's article in the Globe and Mail provides a useful summary of many of the issues involved in the accounting dispute between the ontario auditor general and the government. Similar issues exist in British Columbia.

Read More →

Inappropriate Regulatory Accounting: Ontario and BC Discussion of Auditors' Opposition. March 30, 2018

This 'Commentary' paper reviews the Ontario and BC public accounts committee discussion of the oppositin by the two auditors general of the application of reguatory accounting, and the impact to the governments' financial statements.

Read More →

Submission to the BCUC Opposing the BC Hydro Rate Freeze. November 20, 2017

Can the BCUC approve BC Hydro's request to withdraw the 3% rate increase for 1 April 2018? I argue that it should not approve the request; includes final submission of 11 January 2018. 

Read More →

Will NDP End BC Hydro's 'Wild West' Accounting--The Tyee October 24 and 25, 2017.

The Tyee published my piece which describes the Ontario Auditor General's special report on a government scheme to subsidize electricity rates, and how electricity rates are subsidized in British Columbia; https://thetyee.ca/Opinion/2017/10/24/Will-NDPEnd-BC-Hydro-Wild-West-Accounting/?utm_source=daily&utm_medium=email&utm_campaign=241017 also Andrew MacLeod's comments from Carole James https://thetyee.ca/News/2017/10/25/Fixing-BC-Hydro-Accounting/?utm_source=daily&utm_medium=email&utm_campaign=251017

Read More →

Email to Auditor General Bellringer re BC Hydro Accounting, December 2, 2016.

This email informs Auditor General Bellringer of recent developments respecting BC Hydro's accounting for future unbilled and uncollected revenue.

Read More →

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.

Read More →

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.

Read More →

BC Hydro Quietly Posts Disappointing Q2 Results

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

Read More →

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.

Read More →