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.
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?
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.
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.
Manitoba Government Arbitrarily Raises Manitoba Hydro Rates by 2.5 Per Cent
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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.
Government Blocks Possible Reduction in BC Hydro's Excessive Profits
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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.
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?
BC Utilities Commission Bankrolls New Intervener Group While Increasing Its Own Staff
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In a new twist the BC Utilities Commission is creating and funding an intervener group to represent Residential ratepayers, at a time when its own analysticl staff has greatly ncreased. This paper reviews these developments, and suggests that the BCUC should improve its own accountability.
Government Should Release the Half Year Results of BC Hydro and ICBC
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The government has delayed the release of its second quarter financial report, including the reports for BC Hydro and ICBC. As the reports are for actual revenue and expenditure information the government should allow these public corporations to publicly file their reports.
Another Perspective on the Government's Budget Surplus
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Excluding the net income (or loss) from BC Hydro and ICBC from the government's revenue results in a significant difference in the budgeted and planned surpluses for 2020/21 and the next two years.
Should Ratepayers Subsidize the Electrification of Oil and Gas Production?
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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.
Auditor General Removes Qualification on B.C. Hydro Accounting.
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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.
Ontario Legislative Committee Report Calls for More Transparency.
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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.
Government Extracts $70 Million from Hard-Pressed ICBC Policyholders.
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This commentary explores how the government receives $70 million annually in driver license fees while ICBC's Basic policyholders must pay the cost as part of their annual insurance. The provincial fee scheme appears contrary to a 1998 Supreme Court of Canada decision respecting fees versus taxes. The government should correct this double payment.
New B.C. Hydro Financing Plan and More Authority for the BCUC Announced.
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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.
Government Requires Money-Losing ICBC to Fund More Traffic Enforcement
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The government has directed ICBC to fund more traffic enforcement, but its more of a restoration. And why is the government not funding more police traffic enforcement instead of asking over-burdened policyholders to do it?
Ontario Seeks to Improve Financial Transparency and Accountability.
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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?
Senior Officials Review of BC Hydro Rate Options: Will New or Old Thinking Prevail?
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This paper explores the options available to the senior official committee appointed to develop recommendations for a new rates plan for B.C. Hydro. Will the committee adopt the new approach of restoring integrity to financial management, or continue with the old practice of abusing the deferral accounts?
Ontario Government Agrees that Hydro Deferral Accounting Inappropriate. September 21, 2018.
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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.
NDP Perpetuates Liberal Practices Regarding ICBC: Keeps Watchdog Confined. September 4, 2018.
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This paper discusses the fact that the NDP government is using cabinet orders to control ICBC's finances and keep the B.C. Utilities Commission confined. These were the tactics used by the previous government to avoid public oversight.
Goverment Begins Restoring Financial Integrity: What's Next for B.C. Hydro's Books? August 31, 2018
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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.
Commentary: Populist Promises and the Cost of Electrictiy. May 18, 2018
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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.
Commentary on Matthew McClearn Article on Hydro Accounting in Ontario. April 22, 2018.
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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.
Subsidizing Seniors: ICBC and BC Ferries. April 9, 2018.
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The recent announcement of an increase in the fare subsidy for seniors on the BC Ferries prompted me to review an earlier estimate on the cost of the 25% seniors' subsidy at ICBC's Basic insurance. If the government funded the sudsidy it would relieve some of the pressure on Basic rates.
Inappropriate Regulatory Accounting: Ontario and BC Discussion of Auditors' Opposition. March 30, 2018
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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.
Accounting Treatment of ICBC's Net Loss Complicates Provincial Budget. February 17, 2018.
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The national public sector accounting rules require that ICBC's net income or loss be counted in the government's revenue. The increase in the net loss reduces revenue, but there is no change in the actual cash being transferred (which is nil). This accounting anomoly requires further review.
Alberta Caps Auto Insurance Increase at 5 Percent. December 19, 2017.
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The Alberta government has limited the 2017/18 increase in the private vehicle insurance rates to 5%. It stated that the previously allowed 10% maximum increase was not inline with its affordability priority. Background and implications are provided.
BC Auditor General Finds BC Hydro's 'Prescribed' Accounting Unacceptable. October 26, 2017.
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The Auditor General has added a new reason to qualify her opinion of the government's 2016/17 financial statements; the fact that the 'prescribed' accounting standards do not conform to the public sector accounting standards. Read more in Occasional Paper No. 44.
What Would Ontario's Auditor General Make Of BC Hydro's 'Prescribed' Accounting Standard? October 22, 2017.
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In a special report the Ontario Auditor General severely criticised that government's new regulatory deferal scheme; what would she make of the accounting practiced at BC Hydro to surpress the true cost of electricity?
Ernst Young Options to Increase Auto Insurance Affordability. August 6, 2017.
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This paper reviews the Ernst Young report's options to increase the affordability of auto insurance. It questions some of the proposed cost savings and recoomends the adoption of Saskatchewan's dual Basic model.
What impact will the Site C project, whether it proceeds or is cancelled, have on BC Hydro's operating budget, and what are the options to pay for it? Occasional Paper No. 33 provides a high-level look at these questions.
Ontario Electricity Rate Suppression Plan. May 27, 2017.
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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.
Fact Check - Government Admits Major Rate Increases Coming for BC Hydro and ICBC. April 20, 2017.
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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.
ICBC's Worsening Finances Require Government Action. March 24, 2017.
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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.
Government Uses BC Hydro and ICBC to Lower Direct Debt. February 19, 2017.
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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.
Government Creates Unique Accounting System for BC Hydro. January 30, 2017.
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This paper describes how an obscure 2011 cabinet directive allows BC Hydro to apply regulatory accounting without the fundamental componet -- an independent regulator.
Is The BC Utilities Commission Independent? (Revised) December 16, 2020.
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A summary of how the BC government has stripped the BC Utilities Commission of its authority to set rates for BC Hydro and compulsory auto insurance. Directives last revised 25 March 2022.
Accounting Rules Over-state Government Revenue on Actual Cash Basis 21 September 2016
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Canadian public sector accounting rules treat the net income of self-supporting Crown corporations provincial revenue, even though the actual cash transferred can be significantly less, or zero. 21 September 2016
"Politics and Public Automobile Insurance in BC 1970-2010." BC Studies, Summer 2013.
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This article, published by BC Studies in 2013, focuses on the political and financial relationship between the publicly-owned ICBC and the provincial government from 1970 to 2010.