To contain rate increases, control costs, and position BC Hydro for future success, the B.C. government has launched a comprehensive, two-phased review of BC Hydro.
The first phase of the review is now complete.
Government has worked with BC Hydro to identify cost savings, efficiencies, new revenue streams and other changes to keep electricity rates low, while ensuring sound regulatory and financial oversight of BC Hydro and enabling implementation of government policy priorities.
The key outcomes of the review are:
- A new five-year (April 1, 2019 – March 31, 2024) rates forecast that reflects cost and revenue strategies to keep rates affordable; and
- A regulatory framework that enhances the BC Utilities Commission’s (BCUC) oversight of BC Hydro.
For further information on the outcomes, please read the Comprehensive Review of BC Hydro: Phase 1 Final Report (PDF, 828 KB).
Among other things, the Phase 1 Final Report has informed BC Hydro’s April 1, 2019 – March 31, 2021 rates application, which will be filed with the BCUC by the end of February 2019.
Indigenous Engagement on the Standing Offer Program
As a result of Phase 1, BC Hydro’s Standing Offer Program (SOP) will be indefinitely suspended. The Province understands that a significant number of Indigenous nations in British Columbia have expressed interest in developing or partnering on clean energy projects under this program. The Province is seeking to engage with Indigenous nations and organizations to explore how the indefinite suspension of the SOP may affect the economic interests of individual Indigenous nations, and to explore alternate opportunities to meet those interests, where they exist.
Independent Report on BC Hydro’s Purchase of Power from Private Power Producers
Through a separate process, the Minister of Energy, Mines and Petroleum Resources contracted with an independent consultant, Ken Davidson, to examine the factors that have influenced BC Hydro’s purchases of electricity from private power producers. The report also looks at the impact these purchases have had on BC Hydro costs and rates.
The second phase of the review, starting in 2019, will explore global energy sector shifts including emerging trends and changing technology that could transform the way BC Hydro does business. The objective of Phase 2 is to develop recommendations to ensure BC Hydro’s sustainability in the future for the benefit of all British Columbians. Phase 2 will consider the potential impacts of North American energy and market trends, the needs of current and future BC Hydro customers, and how BC Hydro will support implementation the CleanBC plan. The recommendations from the Phase 2 Review will also be used to inform BC Hydro’s Integrated Resource Plan that will be filed with the BCUC by February 2021.