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December 8, 2005

Campbell's Control of BC Hydro

Why did the Campbell government suddenly order BC Hydro to cancel the scheduled Thursday release of its Integrated Electricity Plan (IEP)? Late on Wednesday, December 7, a media advisory was sent out apologizing for the cancellation. Vancouver Sun columnist Vaughn Palmer wrote that Energy and Mines Minister Richard Neufeld gave Hydro the order.

Hydro's website describes Integrated Electricity Plans:

"BC Hydro provides an IEP every two years to its regulator, the British Columbia Utilities Commission (BCUC). Each time BC Hydro undertakes a review of the plan, it may choose to update the entire plan or focus on a particular part of the plan. BC Hydro's most recent IEP was issued on March 31, 2004. The 2005 IEP will be completed by the end of 2005 (and will subsequently be completed every two years), to support business planning and regulatory processes."

Hydro's Service Plan makes 10 references to the provincial Energy Plan which, according to a November 3, 2005 announcement from Neufeld, will be finalized by the end of 2006. There appears to be confusion at best, and a power struggle at worst, between provincial officials and Hydro officials - nothing new there!

It is widely believed that the IEP which was pulled back would have included the development of Site C as a major component of the plan.

Several of the possible explanations for postponing the scheduled release of Hydro's IEP include:

1) The Campbell government was sensitive to the concerns of farmers in the Hudson's Hope;

2) The Campbell government didn't want any interference in what amounts to privatization of Hydro by stealth (giving private power producers 40% of BC's electricity needs by 2020);

3) The Campbell government may want to turn the mega-project (over $2 billion) into a colossal public-private partnership, thereby maintaining the privatization track;

4) The Campbell government, as suggested by Palmer, may believe that Site C is important and the Hydro announcement is premature if the public is to be convinced.

One thing is clear, just as the Campbell government misled the public about BC Rail, its excuses about BC Hydro are now exposed. It is not true that Hydro operates at arms-length from government and is subject only to the oversight of the BC Utility Commission. The government directly intervened on the most important decision Hydro can make. It should be honest and transparent enough to tell the public what Hydro was going to say and the reason(s) Hydro was gagged.

 

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