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

B.C. premier says Greyhound replacement news could come shortly

Province is working with the private sector to find a solution, says premier

Now hiring: cannabis consultants in Penticton

The BC Liquor Distribution Branch fair is on July 2 at the Penticton Lakeside Resort and Conference

Okanagan-Shuswap weather: mix of sun and clouds

Environment Canada is calling for a chance of rain and risk of thunderstorms across the Okanagan tonight

Mellalieu running for Greens again in Central-Okanagan-Similkameen-Nicola

Robert Mellalieu ran for federal Green Party in 2015 election and provincial Greens in 2017

Short notice for Keremeos residents for Highway 3 paving

The Village of Keremeos is advising residents today because of the short notice

VIDEO: Killer whale steals fisherman’s catch off North Coast

Fishing duel results in eager orca snagging salmon in Prince Rupert

UPDATED: Highway 97 near Penticton reopened after serious crash

Accident closes highway in both directions

Kelowna Rocket invited to Hockey Canada National Under-17 Development Camp

The 16-year-old was selected by the Rockets 18th overall at the 2018 WHL Bantam Draft

Fate of accused in Canadian couple’s 1987 killings in jury’s hands

William Talbott’s lawyer says DNA doesn’t prove murder

Okanagan RCMP serve up slices and support for Special Olympics B.C.

Last years inaugural campaign raised more than $12,000

Car window smashed with a bike in Kelowna

A staffer working in the area on the incident says vandalism is a reoccurring problem

Kelowna Mayor’s walking tour of Rutland cancelled

Growing issues surrounding supportive housing leads to rescheduled meeting with concerned resident

Hergott: Moral obligations and your will

Lawyer Paul Hergott discusses wills and moral obligation

Shots fired at metal sign in Central Okanagan

A road sign was shot at and damaged, but nobody was hurt

Most Read