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

‘His kids were No. 1’: Wife remembers man shot dead in Kamloops

Wife of Kamloops shooting victim describes him as loving, hardworking family man

Summerland to host fourth annual Grand Sommelier Express

Wine event will be held on Kettle Valley Steam Railway’s historic train

Okanagan OneWorld Festival brings cultures together

The annual SOICS event returns Feb. 23 to the Lakeside Resort

Penticton woman captures footage of bobcat feasting on bird in backyard

‘Kim Ken Oszinski’ posted photos and videos of the bobcat from just a few feet away

Okanagan Shuswap weather: Glimpses of sun expected on another wintry day

The sun will be peeking out from behind the clouds for the next few days

5 Events to check out at local ski hills

Check out this new column from Okanagan events guru Christina Ferreira

New report calls for regulated heroin sales to curb B.C.’s overdose problem

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

Millennial men least likely to have a family doctor: Statistics Canada

Report found more women have primary care physicians, compared with men

Okanagan man fined $600 for twenty-third illegal driving conviction

Judge says another offense could result in jail time

Snowplow accident leads to power surge, small claims decision

Tribunal rules Shuswap resident not entitled to additional compensation

70% of Canadians agree with mandatory vaccines for children: poll

The debate for pro and anti vaccinations has heated up after a measles outbreak in Vancouver

VIDEO: Woman, off-duty cop in serious condition after stabbing outside B.C. elementary school

The officer was interceding in an alleged assault when he and the woman were stabbed

Most Read