The Site C Dam location along the Peace River in Fort St. John in April 2017. (THE CANADIAN PRESS/Jonathan Hayward)

BC Hydro forced to misspend billions on private energy contracts, report says

Previous government pressured it to buy too much of the wrong energy at inflated prices, report says

The province’s previous government forced BC Hydro to sign long-term contracts with independent power producers, causing it to buy too much energy for too high a price, in a move that will cost taxpayers billions, a new report says.

The report, written by former B.C. Treasury Board director Ken Davidson, says the Christy Clark government fabricated an urgent need for electricity, but would not allow the utility to produce it, and forcing it to buy the wrong type of power from private producers at much higher prices.

READ MORE: BC Hydro’s $5.5 billion in deferred debt puts pressure on rates

“Government directed BC Hydro to purchase 8,500 GWh/year of Firm energy BC Hydro did not need,” the report says, costing a “conservative” estimate of about $16 billion over 20 years, or $200 a year for the average residential customer.

Davidson makes a number of recommendations, including restoring the oversight of the BC Utilities Commission and ensuring all power is purchased and priced at market rates.

He had been tasked to independently review what influenced BC Hydro’s purchases of electricity from private power producers, and how those purchases affected hydro rates.

His report is separate from the two-phase review into controlling costs at BC Hydro – the results of which are to be released on Thursday. The NDP launched the review last June following its decision to proceed with the controversial $10-billion Site C megadam in the Peace region.

READ MORE: Site C dam goes ahead, cost estimate now up to $10.7 billion

“British Columbians are paying more on their hydro bills because of the previous government’s choices,” said Energy Minister Michelle Mungall in a release Wednesday evening.

“Professional staff within government and BC Hydro warned them against that course of action, but that government refused to listen.”

Read the full report here.

Like us on Facebook and follow us on Twitter

Just Posted

Hundreds turn out for Singh, NDP candidate rally in Penticton

The messaging was clear, NDP “chooses you”

Warning issued after several overdoses in Castlegar

Interior Health says the overdoses appear to be the result of cocaine contaminated with fentanyl.

Kootenay-Columbia candidates attend Creston Valley Chamber of Commerce 2019 election forum

About 120 people attended the Creston Valley Chamber of Commerce 2019 election forum on Oct. 16 at the Prince Charles Theatre.

How local candidates are using Facebook to advertise directly to you

Liberal campaign is the biggest spender on Facebook ads in South Okanangan–West Kootenay

Green and NDP candidates talk strategic voting at Nelson public meeting

Wayne Stetski and Abra Brynne traded ideas but made no concessions for this election

ELECTION 2019: It’s so close, it could come down to who turns out to vote

Black Press Media’s polling analyst on the origins of predictive seat modelling in Canada

Jack’s Devils beat Quinn’s Canucks 1-0 in NHL brother battle

New Jersey youngster scores first career goal against Vancouver

Two charged after owner’s wild ride through Kamloops in his stolen truck

Crystal Rae Dorrington, 37, and Derrick Ronald Pearson, 32, facing multiple charges

Judge orders credit union’s bank records for Kelowna social worker facing theft allegations

The man is accused of negligence, breach of contract, fraud and a conspiracy with Interior Savings

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

The federal election campaign has reached a crescendo

Allegations of racism lead to ministry investigation at Vancouver private school

St. George’s School was contacted over what the school describes as ‘deeply offensive behaviour online’

Not a political question: Thunberg calls for climate action in Alberta

Edmonton police estimated the size of the crowd at about 4,000

Zantac, the over-the-counter heartburn drug, pulled in Canada, U.S.

Health Canada also investigates possible carcinogen in some ranitidine drugs

B.C. public safety minister says cannabis edibles not in stores til January

Mike Farnworth says he wants regional issues considered when it comes to licensing

Most Read