BC budget analysis shows even higher BC hydro rates than reported Tuesday – 21% increase over 3 years to pay costs of private po

VANCOUVER - An analysis of Tuesday's British Columbia budget shows that even higher BC Hydro rates are coming than reported initially yesterday - more than 21% in the next three years rather than 15% over two, says BC Citizens for Public Power.

And budget documents confirm that the significant increase in BC Hydro rates is mainly due to the high cost of new private power production, says Melissa Davis, executive director of the grassroots advocacy group.

The budget's "Material Assumptions - Revenue" section on BC Hydro states that assumed base rate increases will total 21.29% over three years, 6.56% in 2008/09; 8.21% in 2009/10; and 6.52% in 2010/11 [Page 192, Budget and Fiscal Plan], Davis points out, while BC Hydro's own Service Plan only talks about a 15.3% increase over two years [Page 20, BC Hydro Service Plan]

And Davis says the Budget and Fiscal Plan also includes this explanation: "Energy costs are also expected to increase due largely to a greater proportion of energy requirements being met by energy purchases from new sources of supply which cost more than energy from Heritage resources, and to an increase in the water rental rates paid on hydro generation." [Page 70, Budget and Fiscal Plan, emphasis added]

"BC Hydro customers are paying the price for the provincial government's disastrous decision to replace publicly-owned power with extremely expensive private power," Davis said. "The budget confirms that this is just the first of many BC Hydro rate hikes to come in the years ahead."

Davis said the budget also legitimizes earlier reports that BC Hydro rates will increase dramatically, with a Joint Industry Electricity Steering Committee study in November 2007 stating that a typical residential Hydro customer paying $715 a year for electricity now will see that rate more than double to $1,618 by 2016. That report was obtained by the Vancouver Sun.

Davis said it's unfortunate that some of the positive conservation measures in the budget such as Smart Meters and the carbon tax to reduce greenhouse gases and electricity consumption will be overshadowed by the significant rate increases.

"Incentives and penalties that move British Columbians towards energy conservation are good. But the question remains that when the government insists all new forms of power generation be ‘green,' why prohibit BC Hydro from being a leader in green energy production?"

Davis said that government policy that a full 40% of all electricity in the province come from for-profit corporations by 2020 is a costly subsidy British Columbians cannot afford.

BC Citizens for Public Power, a grassroots, non-profit advocacy organization, was formed in 2002 to fight the privatization of BC Hydro operations.

For more information: Melissa Davis at 604-681-5939 or cell 778-887-5878.