Province plunders Hydro’s finances for general revenue

Re: Public should brace for hike in hydro rates: Bennett, and To Bennett falls the punishing task of defending galloping Hydro expenditures, Column, July 5

Jonathan Fowlie and Vaughn Palmer once again point out the financial predicament BC Hydro finds itself. Faced with billions of dollars in deferred debt and costs for current and coming projects, Hydro is, effectively, broke. How on earth did Hydro get there, and how will it dig itself out of all that debt?

In part, Hydro has suffered from self- inflicted wounds at the direction of the B. C. government. The government has required Hydro to pay an annual dividend, $ 600 million in 2013, to the government. Hydro does not have that money at hand. Hydro is forced, in effect, to hide financial liabilities in deferred accounts to create a phoney profit from which it pays the government its dividend. Hydro has paid the government far more than $ 1 billion dollars in recent dividends, yet it consistently lacks the funds to run its business properly.

The government needs to immediately stop enforcing this ridiculous accounting practice at BC Hydro and allow the corporation to use all of the appropriated dividends to fund the business of providing electricity to the citizens of BC Hydro is not in the business of helping Victoria balance the government’s books. IAN KENNETT Surrey