Utilities commission mulls government’s request for rate freeze by B.C. Hydro
B.C.’s independent utilities commission will meet next week to begin considering the NDP government’s request for a freeze on electricity rates, a move that further illustrates how the rate cut is far from a done deal.
The B.C. Utilities Commission will hold a “procedural conference” next Thursday with officials from B.C. Hydro and various intervener groups, to decide whether to hold oral hearings, conduct written information requests, gather final arguments or proceed directly to a decision.
The commission could then decide to accept, reject or alter the government’s request to cancel a planned three per cent Hydro rate increase set for April 1, 2018.
The one-year rate freeze was an NDP election promise.
However, Energy Minister Michelle Mungall attracted heavy criticism last week for announcing the freeze as if it were already approved, before the government had applied to the commission for permission.
“They told the public one thing and that wasn’t factual,” Liberal critic Mike Bernier said Thursday.
Green Leader Andrew Weaver has accused Mungall of issuing a misleading press release and called on her to publicly correct the record that no rate freeze has been approved.
Weaver told the Postmedia editorial board recently he intends to continue questioning Mungall over her handling of the issue when the legislature resumes on Monday.
“We are respecting the proper process while following through on our commitment to freeze Hydro rates and make life more affordable for people,” Mungall, who was not available for an interview, said in a statement Thursday.
“Our government is committed to delivering on our promise to British Columbians to freeze Hydro rates next year.”
The NDP government has also faced criticism for campaigning on a promise to respect the independence of the commission, while now appearing to try to influence the outcome of the regulator’s decision. The government could pass a cabinet order that would force the commission to comply, but has not given any indication whether it is considering that option.
“There’s been no direction to the B.C. Utilities Commission,” Mungall told the legislature last week. “Should they disagree with the rate freeze, we’ll deal with that when the time comes.”
The rate freeze would cost B.C. Hydro almost $150 million in forgone revenue, which the Crown power corporation is being forced to push into deferral accounts for future repayment.
The government has said it will conduct a review of Hydro operations to try to find savings after next month’s decision on whether to continue or cancel the $8.3-billion Site C dam project.