A leaked internal document shows BC Hydro is considering hiking up its rates.
The document was released by the Canadian Office and Professional Employees Union, Local 378 (COPE 378) and is from an August 23 presentation to the Rates Working Group.
On its website, BC Hydro says since its formation in 2007, the group “has provided critical feedback to help BC Hydro understand how rates – when used as a conservation tool – can impact customer interests.”
The leaked document says a rate hike of 26.4 per cent is likely by the year 2016, and up to a cumulative 41.5 per cent by the year 2020.
In a release, COPE 378’s Legal Director Jim Quail blamed BC Liberals for mismanaging BC Hydro.
But, Global BC Legislative bureau chief Keith Baldrey says the hikes were inevitable.
“We’ve been talking about this for months now. The BC Liberals had artificially suppressed the increase before the election, not wanting to take political heat. But the chickens have come home to roost. And now we are going to pay potentially big time,” says Baldrey.
Energy Minister Bill Bennett told Global News he does not think the hikes are going to be as big as the documents show, but they will be substantive.
“I have been very clear since I started in my job as an energy minister that the rates will have to go up. But, my job is to make sure that they do not go up anymore than is absolutely possible,” say Bennett.
Baldrey says BC Hydro’s big capital program that replaces and maintains infrastructure is a major cost.
Another contributing factor, according to Baldrey, is BC Hydro’s contractual obligation to buy power from private power producers at a cost that is higher than the market.
“Plus some of the concerns with how they do their accounting, pushing off and deferring debts to later years. That has to be paid as well,” says Baldrey.
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