More costly BC Hydro work needed

Costly upgrades to old dams are not enough to prepare BC Hydro for a major earthquake, and electricity rates will continue to rise

Ruskin dam in the Fraser Valley was built more than 80 years ago

VICTORIA – Costly upgrades to old dams are not enough to prepare BC Hydro for a major earthquake, and electricity rates will continue to rise as upgrades and expansion continue.

Energy Minister Bill Bennett acknowledged Thursday that further rate increases will be needed to finance improvements to the vast hydroelectric network and pay debt on works already completed or underway.

“My job will be to restrain the increases, but there’s no way we can continue to sell power to customers, whether they’re commercial or industrial or residential, at the rates that we’re selling it right now,” Bennett told reporters at the legislature.

NDP critics focused Thursday on a disaster preparedness audit commissioned by BC Hydro last year. The PricewaterhouseCoopers audit reported in December that BC Hydro is at high risk of a prolonged power outage after a major earthquake because of a lack of coordinated emergency plans.

“BC Hydro is not adequately prepared to react, respond and recover from a widespread catastrophic event such as an earthquake as there is not a mature or integrated preparedness program,” the audit states.

Bennett said BC Hydro has enough staff to improve disaster planning, so that shouldn’t represent a big cost. On that point at least, NDP energy critic John Horgan agreed.

“What the report says is that BC Hydro is not prepared,” Horgan said. “They don’t have any continuity plan for their business to continue. It’s not about money, it’s about being ready.”

BC Hydro spokesperson Simi Heer said the corporation is responding to the audit by accelerating its province-wide emergency response strategy, improving staff training and participating in emergency exercises. Regional emergency operations centres are planned in locations including Port Alberni, Campbell River, Nanaimo, Victoria, Burnaby, Maple Ridge, Prince George and Vernon.

BC Hydro is spending about $2 billion on seismic refits of two of its oldest dams, the John Hart dam at Campbell River and the Ruskin dam on the Mission-Maple Ridge border. Its current expansion project, the Northwest Transmission Line from Terrace to Iskut, was revealed last week to be $140 million over budget.

In April 2012, the B.C. Utilities Commission imposed an extra 2.5 per cent rate increase, bringing the rate increase for the year to seven per cent. That followed a cost-cutting review of BC Hydro that eliminated 700 jobs in an effort to keep the rate increase below four per cent.

The BCUC intervened after former auditor general John Doyle found $2.2 billion of deferred debt, and forecast that would grow to $5 billion by 2017.

Doyle said one reason the utility was piling up debt was to pay an annual dividend to the B.C. government. In 2011 that dividend was $463 million.

Just Posted

Thunderstorm leaves small fire near Adams Lake in its wake

Wildfire crews in the Kamloops Fire Centre are also fighting a small blaze near Kamloops

Okanagan-Shuswap Weather: Heat, sun and a chance of thunderstorms for Father’s Day

Morning pancake breakfasts and fishing derbies across the region will see sun, showers may follow.

Dedicated Girl Guide leader recognized with Sovereign’s Medal for Volunteers

Maryann Brock has volunteered with Girl Guides for 37 years

$30,000 donation for outdoor classroom in Salmon Arm to honour beloved teacher

Funds from Armstrong Regional Co-op to go to the Shannon Sharp Learning Circle

Okanagan-Shuswap weather: Sun and heat continue Saturday

Environment Canada forecasts highs of 30 C throughout the Okanagan Saturday

10 facts about Father’s Day

Did you know that the special day for dads was first celebrated in 1910?

South Okanagan pharmacy restricted from dispensing opioid treatment drugs

B.C. College of Pharmacists alleges Sunrise Pharmacy dispensed treatment drugs against rules

Police seek two suspects and car after stabbing in Kelowna

The stabbing took place on Friday evening on Wilson Avenue. It sent one man to hospital.

Okanagan pitcher tosses second no-hitter of season

Vernon’s Jarod Leroux has two no-nos in his last three starts for the BCPBL’s Okanagan Athletics

B.C. VIEWS: When farmland protection doesn’t protect farmers

Secondary residences aren’t mansions, families tell Lana Popham

Summerland Health Care Auxiliary completes hospital donation pledge early

$1M contribution to medical equipment campaign completed half a year earlier than expected

Letter: Writer argues biosolids will damage water, soil

Turtle Valley residents lost the first battle with Nutrigrow/Arrow Transport when our… Continue reading

PacificSport and SportHealth team up to subsidize physiotherapy for members

The partnership is touted as the first of its kind in Salmon Arm

Bombers down B.C. Lions 33-23 in season opener

Former Lion Andrew Harris leads Winnipeg with 148 rushing yards

Most Read