The government privatization of all or part of the huge provincial utility could prove very costly for taxpayers.

Rates skyrocketed in Alberta a couple of years back when that province privatized the transmission and delivery of its electricity.

Now there is confirmation that big changes are ahead for BC Hydro.

"Independent power producers need to have access to BC Hydro's transmission lines," says Energy and Mines Minister Richard Neufeld.

"So there will be a movement to maintain the transmission portion of BC Hydro out of BC Hydro's control -- but still under provincial ownership, still owned by the Crown, by the people of British Columbia."

Last year, despite a nine-year price freeze, BC Hydro still produced a $400 million profit, while charging rates one-half to one-third of those in Alberta.

The B.C. Liberals will announce their plans for the future of the utility giant in late September or early October.