Billion dollar blunder at BC Hydro means families will pay the price

Posted in: ,

meter-96512_960_720VICTORIA— Families will face massive hydro rate hikes after the Christy Clark government secretly added more than $1 billion dollars to BC Hydro’s debt last year.

“Just after the last election, Premier Christy Clark surprised families across B.C. with a staggering 28 per cent hydro rate hike,” said New Democrat Leader John Horgan. “By missing their debt reduction plan by more than $1 billion dollars, BC Hydro and the Christy Clark government could saddle ratepayers with another $500 hike each right after the next election.”

According to BC Hydro’s latest annual report, the crown corporation was $1.1 billion off target for a major debt, primarily due to a huge overestimation of domestic revenue for power.

“The current rate hikes were based on a plan that didn’t expect that extra billion dollars in debt, which means that there is an inevitable day of reckoning to come,” said New Democrat spokesperson on BC Hydro Adrian Dix. “That billion dollar blunder breaks down to an extra $500 for every ratepayer in B.C. Those are families and businesses across the province that will be on the hook.

“Even worse, Christy Clark and her energy minister seem completely unconcerned. They are pretending this $1.1 billion mistake doesn’t exist, when British Columbians know it exists, and it’s going to show up as an increase in their hydro bill.”

The annual report can be found here: 2015/16 Annual Service Plan Report

Page 29 and 58 of the report can be read here. The 10-year plan vs actual comparison which shows the $1.1 billion gap can be read here.