Hydro rate increases to be cut back

BC Hydro should reduce its proposed rate increases by half and prune back a corporation that has become overstaffed and micromanaged, according to a review panel appointed by the B.C. government.

BC Hydro CEO Dave Cobb says he can meet the government's cost-cutting targets by eliminating 600 jobs.

VICTORIA – BC Hydro should reduce its proposed rate increases by half and prune back a corporation that has become overstaffed and micromanaged, according to a review panel appointed by the B.C. government.

Energy Minister Rich Coleman said Thursday he accepts the recommendations of a report by the three deputy ministers he appointed in April. They include reducing BC Hydro’s rate application to the eight per cent interim increase already being charged this year, followed by rate hikes of 3.9 per cent in each of the next two years.

The B.C. Utilities Commission must approve any rate increases. The rate proposal currently before the commission is for increases of nearly 10 per cent this year, next year and 2013. With an aggressive reconstruction and expansion of the power grid underway, BC Hydro had been planning to raise rates by about 50 per cent in the next five years.

Rolling back the increases requires BC Hydro to cut costs by $800 million over three years. The review panel estimates that would mean a reduction of up to 1,000 of the corporation’s 6,000 employees.

BC Hydro CEO Dave Cobb said the corporation has already identified 250 positions that can be eliminated, and is working on efficiency measures that will cut another 350 jobs. That should be sufficient to meet the government’s target of easing the impact of hydro bills on B.C. ratepayers, Cobb said.

NDP energy critic John Horgan focused on the panel’s recommendation that the government rethink its 2016 deadline for BC Hydro to become self-sufficient in electricity. That target was imposed by former premier Gordon Campbell to spawn a costly private power industry, and it should be scrapped altogether, Horgan said.

The review panel found that BC Hydro’s staff grew by 41 per cent between 2006 and 2010. That was before it reabsorbed BC Transmission Corp., spun off as a separate entity in 2002. BC Hydro currently employs 650 engineers, which the panel noted is six times the number working for the transportation ministry, administering a construction program of about the same size.

Coleman and Cobb stressed that BC Hydro would not compromise safety or reliability to achieve the savings. Deferred projects would be things like building upgrades, while major dam refits and preparation for the Site C dam on the Peace River will continue.

Coleman said the transportation ministry used to engineer each new bridge down to the last bolt before calling for bids to construct it. Now it sets performance and cost benchmarks and lets private sector bidders find the most efficient way to meet them. He said BC Hydro needs to do the same.

Just Posted

Men accused in Michael Bonin’s murder knew him: IHIT

20-year-old’s body found on a rural service road North of Hope in April

Union files human rights complaint over Chilliwack school trustee’s LGBTQ comments

Board and trustee Barry Neufled facing $50,000 tribunal charge over alleged ‘unsafe work environment’

Drone photos show Hope from above

Chris Barker captures a new perspective of Hope

Smokers will soon have fewer places to light up, smoke hookah and vape in Hope

New Hope district bylaw to expand definition of smoking and add more banned areas

Highway 9 reopens after early morning crash

Accident on the Agassiz Overhead

VIDEO: Drone race in Chilliwack kicks off west coast league in new year

Indoor course starts 2018 for B.C.-wide group at Heritage Park

More places in Hope to pick up Naloxone

Hope and Area Transition Society opens doors for people seeking overdose antidote

Pipeline routing through Chilliwack subject of NEB hearing Monday

City of Chilliwack, WaterWealth Project and local Sto:lo intervenors in the hearing

Senior randomly stabbed in B.C. mall food court

Woman arrested after victim, 71, suffers serious injuries

VIDEO: Southern schemes on stage in Langley

The farce of “The Foreigner”

B.C. Liberal hopefuls begin final leadership push

Five MLAs, one outsider pitch policies to party members

Vancouver Island marijuana producer bought by Aphria in $230M deal

Aphria’s annual production forecast increases to 230,000 kgs

UPDATED: ‘Young, innocent’ teen hit during Vancouver shootout dies

15-year-old Coquitlam boy was in a car driving by the scene

Fraser Valley truck driver killed in Alberta semi truck crash

Young driver was adjusting load on side of highway to Fort McMurray

Most Read