The Need for Fundamental Change in BC Hydro Planning and Rate Design
Since it was established in the early 1960’s to develop BC’s hydroelectric resources and to extend the provincial grid, BC Hydro has served its customers well. The cost of electricity has been escalating in recent years; nevertheless, the rates British Columbia households and industry pay for largely emission-free, reliable electric service are among the lowest in North America. And those rates would be even lower if not for some very costly policies imposed by the provincial government, most notably the series of government directives that the Campbell government issued forcing BC Hydro to make investments that were not justified and to buy high cost, low value power it did not need. A major factor underlying the success BC Hydro has had was the development of the generating stations and reservoirs on the Peace and Columbia river systems in the 60’s and 70’s. The willingness of the government to assume the risks those large investments entailed, and the access BC Hydro had to go