By Darrell Stranger

Former government’s BC Hydro contracts prove costly

Feb 15, 2019 | 3:06 PM

PRINCE GEORGE- An independent report by the former B.C. Treasury Board director Ken Davidson details how the previous government manufactured a need for power while not allowing BC Hydro to produce it. This led to B.C. Hydro purchasing power from private producers at inflated prices. According to the report, the average BC Hydro resident will now have to pay roughly $4,000 over the next 20 years or $200 a year.

BC Hydro has been purchasing power from independent power producers since the mid-1980s and these agreements currently make up 25 per cent of B.C. Hydro’s electricity supply. As of January 2019, BC Hydro had over 130 electricity purchase agreements with IPP’s which represents roughly 51 billion dollars in future financial commitments.

The government will look at the recommendations of the report, some of which include making sure the prices match the market. restoring the oversight of the BC Utilities Commission and eliminating the standing offer program altogether.