NL Hydro wants rate hike

By CBC News


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Newfoundland and Labrador Hydro wants to hike its electricity rates this summer.

The company has applied to the provinces Public Utilities Board to raise rates for people across Newfoundland and most of Labrador starting in July.

Hydro is looking for an increase under the provinces rate stabilization plan. Its set up to smooth out price swings caused by fluctuating oil prices throughout the year.

The price of oil required for electricity generation at the Holyrood Thermal Generating Station is forecast to be higher than over the last 12 months, said Jim Haynes, Hydros vice president of regulated operations in a recent news release.

If Hydro gets its way, most of its customers will pay about two per cent more for electricity.

The Public Utilities Board is still considering Hydros application.

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Sen. Cortez Masto Leads Colleagues in Urging Congress to Support Clean Energy Industry in Economic Relief Packages

Clean Energy Industry Support includes tax credits, refundability, safe harbor extensions, EV incentives, and stimulus measures to stabilize renewable energy projects, protect the workforce, and ensure financing continuity during economic recovery.

 

Key Points

Policies and funding to stabilize renewables, protect jobs, and extend tax incentives for workforce continuity.

✅ Extend PTC/ITC and remove phase-outs to sustain projects

✅ Enable direct pay or refundability to unlock financing

✅ Preserve safe harbor timelines disrupted by supply chains

 

U.S. Senator Catherine Cortez Masto (D-Nev.) led 17 Senate colleagues, as the Senate moves to modernize public-land renewables, in sending a letter calling on Congress to include support for the United States' clean energy industry and workforce in any economic aid packages.

"As Congress takes steps to ensure that our nation's workforce is prepared to emerge stronger from the coronavirus health and economic crisis, we must act to shore up clean energy businesses and workers who are uniquely impacted by the crisis, echoing a power-sector call for action from industry groups," said the senators. "This action, which has precedent in prior financial recovery efforts, could take several forms, including tax credit extensions or removal of the current phase-out schedule, direct payment or refundability, or extensions of safe harbor continuity."

"We need to make sure that any package protects workers and helps families stay afloat in these challenging times. Providing support to the clean energy industry will give much-needed certainty and confidence, as the sector targets a market majority, for those workers that they will be able to keep their paychecks and their jobs in this critical industry," the senators also said.

In addition to Senator Cortez Masto, the letter was also signed by Senators Ed Markey (D-Mass.), Martin Heinrich (D-N.M), Sheldon Whitehouse (D-R.I.), Debbie Stabenow (D-Mich.), Tina Smith (D-Minn.), Jack Reed (D-R.I.), Cory Booker (D-N.J.), Richard Blumenthal (D-Conn.), Amy Klobuchar (D-Minn.), Chris Van Hollen (D-Md.), Dianne Feinstein (D-Calif.), Jacky Rosen (D-Nev.), Tammy Duckworth (D-Ill.), Chris Coons (D-Del.), Mazie Hirono (D-Hawaii), Dick Durbin (D-Ill.), and Kyrsten Sinema (D-Ariz.).

Dear Leader McConnell, Leader Schumer, Chairman Grassley, Ranking Member Wyden:

As Congress takes steps to ensure that our nation's workforce is prepared to emerge stronger from the coronavirus health and economic crisis, we must act to shore up clean energy businesses and workers who are uniquely impacted by the crisis, with wind investments at risk amid the pandemic. This action, which has precedent in prior financial recovery efforts, could take several forms, including tax credit extensions or removal of the current phase-out schedule, direct payment or refundability, or extensions of safe harbor continuity.

First and foremost, we need to take care of workers' health and immediate needs to stay in their homes and provide for their families, and the Families First Coronavirus Response Act is a critical down payment. Now, we must make sure the workforce has jobs to return to and that employers remain able to pay for critical benefits like paid sick and family leave, healthcare, and Unemployment Insurance.

The renewable energy industry employs over 800,000 people across every state in the United States. This industry and its workers could suffer significant harms as a result of the coronavirus emergency and resulting financial impact. Renewable energy businesses are already seeing project cancellations or delays, as the Covid-19 crisis hits solar and wind across the sector, with the solar industry reporting delays of 30 percent. Likewise, the energy efficiency sector is susceptible to similar impacts. As the coronavirus pandemic intensifies in the United States, that rate of delay or cancellations will only continue to skyrocket. Global and domestic supply chains are already facing chaotic changes, with equipment delays of three to four months for parts of the industry. A major collapse in financing is all but certain as investment firms' profits turn to losses and capital is suddenly unavailable for large labor-intensive investments.

To ensure that we do not lose years of progress on clean energy and the source of employment for tens of thousands of renewable energy workers, Congress should look to previous relief packages as an example for how to support this sector and the broader American economy. The American Recovery and Reinvestment Act of 2009 (also known as the Recovery Act or ARRA) provided over $90 billion in funding for clean energy and grid modernization, along with emergency relief programs. Specifically, ARRA provided immediate funding streams like the 1603 Cash Grant program for renewables and the 30 percent clean energy manufacturing tax credit to give immediate relief for the clean energy industry. As Congress develops this new package, it should consider these immediate relief programs for the renewable and clean energy industry, especially as analyses suggest green energy could drive Covid-19 recovery at scale. This could include direct payment or refundability, extensions of safe harbor continuity, tax credit extensions, electric vehicle credit expansion, or removal of the current phase-out schedules for the clean energy industry.

We need to make sure that any package protects workers and helps families stay afloat in these challenging times. Providing support to the clean energy industry will give much-needed certainty and confidence for those workers that they will be able to keep their paychecks and their jobs in this critical industry.

These strategies to provide assistance to the clean energy industry must be included in any financial recovery discussions, particularly if the Trump Administration continues its push to aid the oil industry, even as some advocate a total fossil fuel lockdown to accelerate climate action. We appreciate your consideration and collaboration as we do everything in our power to quickly recover from this health and economic emergency.

 

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How Ukraine Unplugged from Russia and Joined Europe's Power Grid with Unprecedented Speed

Ukraine-ENTSO-E Grid Synchronization links Ukraine and Moldova to the European grid via secure interconnection, matching frequency for stability, resilience, and energy security, enabling cross-border support, islanding recovery, and coordinated load balancing during wartime disruptions.

 

Key Points

Rapid alignment of Ukraine and Moldova into the European grid to enable secure interconnection and system stability.

✅ Matches 50 Hz frequency across interconnected systems

✅ Enables cross-border support and electricity trading

✅ Improves resilience, stability, and energy security

 

On February 24 Ukraine’s electric grid operator disconnected the country’s power system from the larger Russian-operated network to which it had always been linked. The long-planned disconnection was meant to be a 72-hour trial proving that Ukraine could operate on its own and to protect electricity supply before winter as contingencies were tested. The test was a requirement for eventually linking with the European grid, which Ukraine had been working toward since 2017. But four hours after the exercise started, Russia invaded.

Ukraine’s connection to Europe—which was not supposed to occur until 2023—became urgent, and engineers aimed to safely achieve it in just a matter of weeks. On March 16 they reached the key milestone of synchronizing the two systems. It was “a year’s work in two weeks,” according to a statement by Kadri Simson, the European Union commissioner for energy. That is unusual in this field. “For [power grid operators] to move this quickly and with such agility is unprecedented,” says Paul Deane, an energy policy researcher at the University College Cork in Ireland. “No power system has ever synchronized this quickly before.”

Ukraine initiated the process of joining Europe’s grid in 2005 and began working toward that goal in earnest in 2017, as did Moldova. It was part of an ongoing effort to align with Europe, as seen in the Baltic states’ disconnection from the Russian grid, and decrease reliance on Russia, which had repeatedly threatened Ukraine’s sovereignty. “Ukraine simply wanted to decouple from Russian dominance in every sense of the word, and the grid is part of that,” says Suriya Jayanti, an Eastern European policy expert and former U.S. diplomat who served as energy chief at the U.S. embassy in Kyiv from 2018 to 2020.

After the late February trial period, Ukrenergo, the Ukrainian grid operator, had intended to temporarily rejoin the system that powers Russia and Belarus. But the Russian invasion made that untenable. “That left Ukraine in isolation mode, which would be incredibly dangerous from a power supply perspective,” Jayanti says. “It means that there’s nowhere for Ukraine to import electricity from. It’s an orphan.” That was a particularly precarious situation given Russian attacks on key energy infrastructure such as the Zaporizhzhia nuclear power plant and ongoing strikes on Ukraine’s power grid that posed continuing risks. (According to Jayanti, Ukraine’s grid was ultimately able to run alone for as long as it did because power demand dropped by about a third as Ukrainians fled the country.)

Three days after the invasion, Ukrenergo sent a letter to the European Network of Transmission System Operators for Electricity (ENTSO-E) requesting authorization to connect to the European grid early. Moldelectrica, the Moldovan operator, made the same request the following day. While European operators wanted to support Ukraine, they had to protect their own grids, amid renewed focus on protecting the U.S. power grid from Russian hacking, so the emergency connection process had to be done carefully. “Utilities and system operators are notoriously risk-averse because the job is to keep the lights on, to keep everyone safe,” says Laura Mehigan, an energy researcher at University College Cork.

An electric grid is a network of power-generating sources and transmission infrastructure that produces electricity and carries it from places such as power plants, wind farms and solar arrays to houses, hospitals and public transit systems. “You can’t just experiment with a power system and hope that it works,” Deane says. Getting power where it is it needed when it is needed is an intricate process, and there is little room for error, as incidents involving Russian hackers targeting U.S. utilities have highlighted for operators worldwide.

Crucial to this mission is grid interconnection. Linked systems can share electricity across vast areas, often using HVDC technology, so that a surplus of energy generated in one location can meet demand in another. “More interconnection means we can move power around more quickly, more efficiently, more cost effectively and take advantage of low-carbon or zero-carbon power sources,” says James Glynn, a senior research scholar at the Center on Global Energy Policy at Columbia University. But connecting these massive networks with many moving parts is no small order.

One of the primary challenges of interconnecting grids is synchronizing them, which is what Ukrenergo, Moldelectrica and ENTSO-E accomplished last week. Synchronization is essential for sharing electricity. The task involves aligning the frequencies of every energy-generation facility in the connecting systems. Frequency is like the heartbeat of the electric grid. Across Europe, energy-generating turbines spin 50 times per second in near-perfect unison, and when disputes disrupt that balance, slow clocks across Europe can result, reminding operators of the stakes. For Ukraine and Moldova to join in, their systems had to be adjusted to match that rhythm. “We can’t stop the power system for an hour and then try to synchronize,” Deane says. “This has to be done while the system is operating.” It is like jumping onto a moving train or a spinning ride at the playground: the train or ride is not stopping, so you had better time the jump perfectly.

 

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Pickering NGS life extensions steer Ontario towards zero carbon horizon

OPG Pickering Nuclear Refurbishment extends four CANDU reactors to bolster Ontario clean energy, grid reliability, and decarbonization goals, leveraging Darlington lessons, mature supply chains, and AtkinsRealis OEM expertise for cost effective life extension.

 

Key Points

Modernizing four Pickering CANDU units to extend life, add clean power, and enhance Ontario grid reliability.

✅ Extends four 515 MW CANDU reactors by 30 years

✅ Supports clean, reliable baseload and decarbonization

✅ Leverages Darlington playbook and AtkinsRealis OEM supply chain

 

In a pivotal shift last month, Ontario Power Generation (OPG) revised its strategy for the Pickering Nuclear Power Station, scrapping plans to decommission its six remaining reactors. Instead, OPG has opted to modernize four reactors (Pickering B Units 5-8) starting in 2027, while Units 1 and 4 are slated for closure by the end of the current year.

This revision ensures the continued operation of the four 515 MW Canada Deuterium Uranium (CANDU) reactors—originally constructed in the 1970s and 1980s—extending their service life by at least 30 more years amid an extension request deadline for Pickering.

Todd Smith, Ontario's Energy Minister, underscored the significance of nuclear power in maintaining Ontario's status as a region with one of the cleanest and most reliable electricity grids globally. He emphasized the integral role of nuclear facilities, particularly the Pickering station, in the provincial energy strategy during the announcement supporting continued operations, which was made in the presence of union workers at the plant.

The Pickering station has demonstrated remarkable efficiency and reliability, notably achieving its second-highest output in 2023 and setting a record in 2022 for continuous operation. Extending the lifespan of nuclear plants like Pickering is deemed the most cost-effective method for sustaining low-carbon electricity, according to research conducted by the International Energy Agency (IEA) and the OECD Nuclear Energy Agency (NEA) across 243 plants in 24 countries.

The refurbishment project is poised to significantly boost Ontario's economy, projected to add CAN$19.4 billion to the GDP over 11 years and generate approximately 11,000 jobs annually. The Independent Electricity System Operator (IESO) has indicated that to meet the province's future electrification and decarbonization goals, as it faces a growing electricity supply gap, Ontario will need to double its nuclear capacity by 2050, requiring an addition of 17.8 GW of nuclear power.

Subo Sinnathamby, OPG's Senior Vice President of Nuclear Refurbishment, emphasized the necessity of nuclear energy in reducing reliance on natural gas. Sinnathamby, who is leading the refurbishment efforts at OPG's Darlington nuclear power station, where SMR plans are also underway, highlighted the positive impact of the Darlington and Bruce Power projects on the nuclear power supply chain and workforce.

The procurement strategy employed for Darlington, which involved placing orders early to ensure readiness among suppliers, is set to be replicated for the Pickering refurbishment. This approach aims to facilitate a seamless transition of skilled workers and resources from Darlington to Pickering refurbishment, leveraging a matured supply chain and experienced vendors.

AtkinsRealis, the original equipment manufacturer (OEM) for CANDU reactors, has a track record of successfully refurbishing CANDU plants worldwide. The CANDU reactor design, known for its refurbishment capabilities, allows for individual replacement of pressure tubes and access to fuel channels without decommissioning the reactor. Gary Rose, Executive Vice-President of Nuclear at AtkinsRealis, highlighted the economic benefits and environmental benefits of refurbishing reactors, stating it as a viable and swift solution to maximize fossil-free energy.

Looking forward, AtkinsRealis is exploring the potential for multiple refurbishments of CANDU reactors, which could extend their operational life beyond 100 years, addressing local energy needs and economic factors in the decision-making process. This innovative approach underscores the role of nuclear refurbishment in meeting global energy demands sustainably and economically.

 

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Altmaier's new electricity forecast: the main driver is e-mobility

Germany 2030 Electricity Demand Forecast projects 658 TWh, driven by e-mobility, heat pumps, and green hydrogen. BMWi and BDEW see higher renewables, onshore wind, photovoltaics, and faster grid expansion to meet climate targets.

 

Key Points

A BMWi outlook to 658 TWh by 2030, led by e-mobility, plus demand from heat pumps, green hydrogen, and industry.

✅ Transport adds ~70 TWh; cars take 44 TWh by 2030

✅ Heat pumps add 35 TWh; green hydrogen needs ~20 TWh

✅ BDEW urges 70% renewables and faster grid expansion

 

Gross electricity consumption in Germany will increase from 595 terawatt hours (TWh) in 2018 to 658 TWh in 2030. That is an increase of eleven percent. This emerges from the detailed analysis of the development of electricity demand that the Federal Ministry of Economics (BMWi) published on Tuesday. The main driver of the increase is therefore the transport sector. According to the paper, increased electric mobility in particular contributes 68 TWh to the increase, in line with rising EV power demand trends across markets. Around 44 TWh of this should be for cars, 7 TWh for light commercial vehicles and 17 TWh for heavy trucks. If the electricity consumption for buses and two-wheelers is added, this results in electricity consumption for e-mobility of around 70 TWh.

The number of purely battery-powered vehicles is increasing according to the investigation by the BMWi to 16 million by 2030, reflecting the global electric car market momentum, plus 2.2 million plug-in hybrids. In 2018 there were only around 100,000 electric cars, the associated electricity consumption was an estimated 0.3 TWh, and plug-in mileage in 2021 highlighted the rapid uptake elsewhere. For heat pumps, the researchers predict an increase in demand by 35 TWh to around 42 TWh. They estimate the electricity consumption for the production of around 12.5 TWh of green hydrogen in 2030 to be just under 20 TWh. The demand at battery factories and data centers will increase by 13 TWh compared to 2018 by this point in time. In the data centers, there is no higher consumption due to more efficient hardware despite advancing digitization.

The updated figures are based on ongoing scenario calculations by Prognos, in which the market researchers took into account the goals of the Climate Protection Act for 2030 and the wider European electrification push for decarbonization. In the preliminary estimate presented by Federal Economics Minister Peter Altmaier (CDU) in July, a range of 645 to 665 TWh was determined for gross electricity consumption in 2030. Previously, Altmaier officially said that electricity demand in this country would remain constant for the next ten years. In June, Chancellor Angela Merkel (CDU) called for an expanded forecast that would have to include trends in e-mobility adoption within a decade and the Internet of Things, for example.

Higher electricity demand
The Federal Association of Energy and Water Management (BDEW) is assuming an even higher electricity demand of around 700 TWh in nine years. In any case, a higher share of renewable energies in electricity generation of 70 percent by 2030 is necessary in order to be able to achieve the climate targets and to address electricity price volatility risks. The expansion paths urgently need to be increased and obstacles removed. This could mean around 100 gigawatts (GW) for onshore wind turbines, 11 GW for biomass and at least 150 GW for photovoltaics by 2030. Faster network expansion and renovation will also become even more urgent, as electric cars challenge grids in many regions.
 

 

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Is this the start of an aviation revolution?

Harbour Air Electric Seaplanes pioneer sustainable aviation with battery-electric propulsion, zero-emission operations, and retrofitted de Havilland Beavers using magniX motors for regional commuter routes, cutting fuel burn, maintenance, and carbon footprints across British Columbia.

 

Key Points

Retrofitted floatplanes using magniX battery-electric motors to provide zero-emission, short-haul regional flights.

✅ Battery-electric magniX motors retrofit de Havilland DHC-2 Beavers

✅ Zero-emission, low-noise operations on short regional routes

✅ Lower maintenance and operating costs vs combustion engines

 

Aviation is one of the fastest rising sources of carbon emissions from transport, but can a small Canadian airline show the industry a way of flying that is better for the planet?

As air journeys go, it was just a short hop into the early morning sky before the de Havilland seaplane splashed back down on the Fraser River in Richmond, British Columbia. Four minutes earlier it had taken off from the same patch of water. But despite its brief duration, the flight may have marked the start of an aviation revolution.

Those keen of hearing at the riverside on that cold December morning might have been able to pick up something different amid the rumble of the propellers and whoosh of water as the six-passenger de Havilland DHC-2 Beaver took off and landed. What was missing was the throaty growl of the aircraft’s nine-cylinder radial engine.

In its place was an all-electric propulsion engine built by the technology firm magniX that had been installed in the aircraft over the course of several months. The four-minute test flight (the plane was restricted to flying in clear skies, so with fog and rain closing in the team opted for a short trip) was the first time an all-electric commercial passenger aircraft had taken to the skies.

The retrofitted de Havilland DHC-2 Beaver took off from the Fraser River in the early morning light for a four minute test flight (Credit: Diane Selkirk)

“It was the first shot of the electric aviation revolution,” says Roei Ganzarski, chief executive of magniX, which worked with Canadian airline Harbour Air Seaplanes to convert one of the aircraft in their fleet of seaplanes so it could run on battery power rather than fossil fuels.

For Greg McDougall, founder of Harbour Air and pilot during the test flight, it marked the culmination of years of trying to put the environment at the forefront of its operations, backed by research investment across the program.

Harbour Air, which has a fleet of some 40 commuter floatplanes serving the coastal regions around Vancouver, Victoria and Seattle, was the first airline in North America to become carbon-neutral through offsets in 2007. A one-acre green roof on their new Victoria airline terminal followed. Then in 2017, 50 solar panels and four beehives housing 10,000 honeybees were added, but for McDougall, a Tesla owner with an interest in disruptive technology, the big goal was to electrify the fleet, with 2023 electric passenger flights as an early target for service.

McDougall searched for alternative motor options for a couple of years and had put the plan on the backburner when Ganzarski first approached him in February 2019. “He said, ‘We’ve got a motor we want to get certified and we want to fly it before the end of the year,’” McDougall recalls.

The two companies found their environmental values and teams were a good match and quickly formed a partnership. Eleven months later, the modest Canadian airline got what McDougall refers to as their “e-plane” off the ground, pulling ahead of other electric flight projects, including those by big-name companies Airbus, Boeing and Rolls-Royce, and startups such as Eviation that later stumbled.

The test flight was followed years of work by Greg McDougall to make his airline more environmentally friendly (Credit: Diane Selkirk)

The project came together in record time considering how risk-adverse the aviation industry is, says McDougall. “Someone had to take the lead,” he says. “The reason I live in British Columbia is because of the outdoors: protecting it is in our DNA. When it came to getting the benefits from electric flight it made sense for us to step in and pioneer the next step.”

As the threat posed by the climate crisis deepens, there has been renewed interest in developing electric passenger aircraft as a way of reducing emissions
Electric flight has been around since the 1970s, but it’s remained limited to light-weight experimental planes flying short distances and solar-powered aircraft with enormous wingspans yet incapable of carrying passengers. But as the threat posed by the climate crisis deepens, there has been renewed interest in developing electric passenger aircraft as a way of reducing emissions and airline operating costs, aligning with broader Canada-U.S. collaboration on electrification across transport.

Currently there are about 170 electric aircraft projects underway internationally –up by 50% since April 2018, according to the consulting firm Roland Berger. Many of the projects are futuristic designs aimed at developing urban air taxis, private planes or aircraft for package delivery. But major firms such as Airbus have also announced plans to electrify their own aircraft. It plans to send its E-Fan X hybrid prototype of a commercial passenger jet on its maiden flight by 2021. But only one of the aircraft’s four jet engines will be replaced with a 2MW electric motor powered by an onboard battery.

This makes Harbour Air something of an outlier. As a coastal commuter airline, it operates smaller floatplanes that tend to make short trips up and down the coastline of British Columbia and Washington State, which means its aircraft can regularly recharge their batteries after a point-to-point electric flight along these routes. The company sees itself in a position to retrofit its entire fleet of floatplanes and make air travel in the region as green as possible.

This could bring some advantages. The efficiency of a typical combustion engine for a plane like this is fairly low – a large proportion of the energy from the fuel is lost as waste heat as it turns the propeller that drives the aircraft forward. Electrical motors have fewer moving parts, meaning there’s less maintenance and less maintenance cost, and comparable benefits are emerging for electric ships operating on the B.C. coast as well.

Electrical motors have fewer moving parts, meaning there’s less maintenance and less maintenance cost
Erika Holtz, Harbour Air’s engineering and quality manager, sees the move to electric as the next major aviation advancement, but warns that one stumbling block has been the perception of safety. “Mechanical systems are much better known and trusted,” she says. In contrast people see electrical systems as a bit unknown – think of your home computer. “Turning it off and on again isn’t an option in aviation,” she adds.

But it’s the possibility of spurring lasting change in aviation that’s made working on the Harbour Air/magniX project so exciting for Holtz. Aviation technology has stagnated over the past decades, she says. “Although there have been incremental improvements in certain technologies, there hasn't been a major development change in aviation in 50 years.”

 

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B.C. Hydro misled regulator: report

BC Hydro SAP Oversight Report assesses B.C. Utilities Commission findings on misleading testimony, governance failures, public funds oversight, IT project risk, compliance gaps, audit controls, ratepayer impacts, and regulatory accountability in major enterprise software decisions.

 

Key Points

A summary of BCUC findings on BC Hydro's SAP IT project oversight, governance lapses, and regulatory compliance.

✅ BCUC probed testimony, cost overruns, and governance failures

✅ Project split to avoid scrutiny; incomplete records and late corrections

✅ Reforms pledged: stronger business cases, compliance, audit controls

 

B.C. Hydro misled the province’s independent regulator about an expensive technology program, thereby avoiding scrutiny on how it spent millions of dollars in public money, according to a report by the B.C. Utilities Commission.

The Crown power corporation gave inaccurate testimony to regulators about the software it had chosen, called SAP, for an information technology project that has cost $197 million, said the report.

“The way the SAP decision was made prevented its appropriate scrutiny by B.C. Hydro’s board of directors and the BCUC, reflecting governance risks seen in Manitoba Hydro board changes in other jurisdictions,” the commission found.

“B.C. Hydro’s CEO and CFO and its (audit and risk management board committee) members did not exhibit good business judgment when reviewing and approving the SAP decision without an expenditure approval or business case, highlighting how board upheaval at Hydro One can carry market consequences.”

The report was the result of a complaint made in 2016 by then-opposition NDP MLA Adrian Dix, who alleged B.C. Hydro lied to the regulatory commission to try to get approval for a risky IT project in 2008 that then went over budget and resulted in the firing of Hydro’s chief information officer.

The commission spent two years investigating. Its report outlined how B.C. Hydro split the IT project into smaller components to avoid scrutiny, failed to produce the proper planning document when asked, didn’t disclose cost increases of up to $38 million, reflecting pressures seen at Manitoba Hydro's debt across the sector, gave incomplete testimony and did not quickly correct the record when it realized the mistakes.

“Essentially all of the things I asserted were substantiated, and so I’m pleased,” Dix, who is now minister of health, said on Monday. “I think ratepayers can be pleased with it, because even though it was an elaborate process, it involves hundreds of millions of spending by a public utility and it clearly required oversight.”

The BCUC stopped short of agreeing with Dix’s allegation that the errors were deliberate. Instead it pointed toward a culture at B.C. Hydro of confusion, misunderstanding and fear of dealing with the independent regulatory process.

“Therefore, the panel finds that there was a culture of reticence to inform the BCUC when there was doubt about something, even among individuals that understood or should have understood the role of the BCUC, a pattern that can fuel Hydro One investor concerns in comparable markets,” read the report.

“Because of this doubt and uncertainty among B.C. Hydro staff, the panel finds no evidence to support a finding that the BCUC was intentionally misled. The panel finds B.C. Hydro’s culture of reticence to be inappropriate.”

By law, B.C. Hydro is supposed to get approval by the commission for rate changes and major expenditures. Its officials are often put under oath when providing information.

B.C. Hydro apologized for its conduct in 2016. The Crown corporation said Monday it supports the commission’s findings and has made improvements to management of IT projects, including more rigorous business case analyses.

“We participated fully in the commission’s process and acknowledged throughout the inquiry that we could have performed better during the regulatory hearings in 2008,” said spokesperson Tanya Fish.

“Since then, we have taken steps to ensure we meet the highest standards of openness and transparency during regulatory proceedings, including implementing a (thorough) awareness program to support staff in providing transparent and accurate testimony at all times during a regulatory process.”

The Ministry of Energy, which is responsible for B.C. Hydro, said in a statement it accepts all of the BCUC recommendations and will include the findings as part of a review it is conducting into Hydro’s operations and finances, including its deferred operating costs for context, and regulatory oversight.

Dix, who is now grappling with complex IT project management in his Health Ministry, said the lessons learned by B.C. Hydro and outlined in the report are important.

“I think the report is useful reading on all those scores,” he said. “It’s a case study in what shouldn’t happen in a major IT project.”

 

 

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