North Dakota PSC candidates support winter shutoff stoppage

By Associated Press


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North Dakota's candidates for a seat on the state Public Service Commission say they support a winter moratorium on utility shutoffs because of anticipated steep increases in energy bills.

"This is North Dakota. When it gets to be 30 below, it is unethical and inhumane to turn off these systems," Brian Kalk said.

Kalk, a Republican who is a North Dakota State University professor, and Democrat Cheryl Bergian, a Fargo attorney and consultant, are competing to succeed Republican Susan Wefald on the three-member regulatory commission. Wefald is not seeking re-election.

Energy analysts are forecasting large increases in heating bills for customers nationwide this winter because of higher prices for oil and natural gas.

North Dakota restricts utilities' ability to disconnect service due to unpaid bills. But winter shutoffs are not prohibited.

During a recent debate, Bergian and Kalk agreed that they would support a winter moratorium on utility shutoffs. The commission cannot order a moratorium without permission from the North Dakota Legislature.

"It is a reality that some people are not going to be able to pay their bills," Bergian said. Lawmakers could be asked to establish a state fund that would prevent utilities and their paying customers from having to shoulder the entire financial burden of a moratorium, she said.

"We're either going to have to spread that (cost) out among more people, or figure out another way to do it," she said.

Kalk said high prices were the result of lagging energy production and insufficient conservation measures.

Separately, Bergian said she would support expanding the commission's power to regulate the placement of wind energy projects.

Under present law, a project must be capable of generating at least 100 megawatts of electricity before the PSC has jurisdiction over the siting of its wind towers and power lines.

Bergian said she believes the threshold should be lower. Developers now avoid the benchmark by initially building a project just under the limit and adding to it later, she said.

Kalk said a lower threshold may send wind energy developers to other states. The 100-megawatt standard, he said, "is appropriate."

Bergian said she believed the commission should be more aggressive in identifying locations for electric transmission lines to carry power from wind projects, to avoid situations where multiple lines are needed to serve different wind farms built near each other.

Kalk said large transmission "corridors" for electric power lines and pipelines could be developed in advance. Having corridors in place could make it easier to add more facilities later, he said.

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Chinese-built electricity poles plant inaugurated in South Sudan

Juba Power Distribution Expansion accelerates grid rehabilitation in South Sudan, adding concrete poles, medium and low voltage networks, and LED street lighting, funded by AfDB and executed by Power China for reliable, affordable electricity.

 

Key Points

A project to upgrade Juba's grid with concrete poles, MV-LV networks, and LED lighting for reliable, affordable power.

✅ 13,350 concrete poles produced locally for network rollout

✅ Medium and low voltage network rehabilitation and expansion

✅ LED street lighting and customer care improvements funded by AfDB

 

The South Sudan government has launched a factory producing concrete poles that will facilitate an ambitious project done by a Chinese company to rehabilitate and expand the Power Distribution System in Juba, its capital.

The Minister of Dams and Electricity, Dhieu Mathok, said that the factory, rented by Power China, will produce some 13,350 poles for the electricity distribution in the capital and other states.

"The main objective of this project is to increase the supply capacity and reliability of the power distribution system in Juba. Access to the grid will replace the use of generators by the population, allow supply of energy at more affordable price and, hence contribute toward economic growth and poverty eradication in South Sudan," Mathok said during the inauguration of the plant along the Yei road in Juba.

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He disclosed that it will help solve the problem associated with non-availability of concrete poles for the project and to mitigate the risk of importing poles from other countries.

"This factory will create positive impact on the construction of the national grid in South Sudan. It is owned by South Sudanese business people but currently it has been taken over by Power China for a brief period of one year," he said.

South Sudan is largely generator driven economy with continued electricity blackout, and across the continent initiatives like Cape Town's municipal power build-out illustrate alternative approaches, in the wake of the collapse of the generator power plant operated by the South Sudan Electricity Corporation (SSEC) in 2013.

Wang Cun, an official with Power China said they got the contract to build the electricity project in June 2016 and that they will continue to support South Sudanese staff with skills and knowledge, drawing on advances such as PEM green hydrogen R&D that point to future low-carbon options, and also work with the government on several major power projects.

"We have achieved much from these projects and we also suffered much from the instability and continuous conflicts all these years, but we confirm and believe the year of 2018 will be a year of peace and development in South Sudan," Wang said, adding that the company has been operating in South Sudan since 2009.

He disclosed that Power China has conducted several projects before South Sudan won independence from Sudan in 2011 such as the peace road project from Renk to Malakal, Maridi water plant and Malakal municipal road projects.

Wang said they will immediately reorganize all necessary resources to increase post-production capacity and immediately shall commence the erection of these poles to all corners of Juba city and start the distribution.

"We shall do as we did before to recruit more local technicians, engineers and laborers during the construction period, so that they are there in place for similar projects in the near future. We shall make more efforts to improve these local staffs' working environment and to realize sustainable development of Power China and Sino-hydro in South Sudan," said Wang.

Power China has been committing itself in the economic development of South Sudan and has signed eight commercial contracts with the government of South Sudan since independence like the Juba-hydro power project and the Tharjiath thermal power plant project, while in China projects such as the Lawa hydropower station demonstrate ongoing hydropower expertise that can inform regional work.

Liu Xiaodong, the Charge d'Affaires at the Chinese embassy in South Sudan, said Power China has been working very hard in the engineering and procurement in the earlier stage of the project, and as China expands energy ties such as nuclear cooperation with Cambodia that demonstrate broader engagement, also thanked the South Sudan government and the African Development Bank for their strong support.

Liu added upon completion Juba will have an upgraded power distribution system with 2,250 lighting points along the main roads in the capital and lamps will be LED ones.

The project falls under the Juba Power Distribution System Rehabilitation and Expansion Project, which was funded by the African Development Bank (AfDB) and has undertaken an AfDB review of a Senegal power plant to inform regional energy decisions.

It comprises of five different lots like Rehabilitation of Diesel plant substation, Rehabilitation and Expansion of medium voltage network, low voltage network, and Rehabilitation and Expansion of street lighting and improvement of customer care.

 

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PG&E restoring power after intentional shut-offs affect 20,500 customers

PG&E power restoration continues across Butte and Yuba counties after PSPS shut-offs from high winds and dry weather, with crews patrolling overhead lines, repairing damage, and reopening community resource centers near Lake Berryessa.

 

Key Points

PG&E power restoration safely re-energizes lines after PSPS, using inspections and repairs to restore service.

✅ Crews patrolled 800 miles of overhead lines for hazards

✅ Repairs followed wind damage; gradual re-energization

✅ Resource centers offered water, outlets, air conditioning

 

Pacific Gas and Electric Co. field crews have begun restoring power to approximately 20,500 customers in Butte and Yuba counties after the utility shut off electricity to reduce wildfire risk because of gusty winds and dry weather conditions.

More than half of the affected customers had electricity again as of 1:47 p.m. Sunday, according to PG&E, and by 4 p.m. all of Yuba County power had been restored.

The utility also cut electricity for about 1,600 customers in parts of Napa, Solano and Yolo counties, primarily in the Lake Berryessa area, in a PSPS event separate from statewide grid conservation alerts that can trigger rolling blackouts. Power to those areas was switched off at 6:15 a.m. Saturday but was restored by the evening.

As the danger subsided Sunday, utility workers, as part of PG&E's local response planning for winter storms, worked throughout Butte and Yuba counties to re-energize power lines. The shut-offs affected areas including eastern Chico, Oroville and fire-ravaged Paradise.

Technicians checked lines for damage or fire hazards, like vegetation that could interfere with live wires, Pasion said, as part of broader pandemic grid preparedness that informed utility protocols.

PG&E “patrolled approximately 800 miles of overhead power lines,” the company said in a statement. “Crews found instances of damage to de-energized equipment caused by the extreme weather event and are making necessary repairs.”

While the shut-offs inconvenienced businesses and homeowners, they also highlighted energy inequality across impacted neighborhoods, and some called 911 with emergencies and confusion.

A half hour into the shut-off Saturday night, Butte County sheriff’s dispatchers received a call from a person requesting a welfare check on an individual whose care required electricity, according to department call logs. Two calls overnight from the Magalia area requested medical assistance because residents had oxygen concerns for medically sensitive spouses.

One woman requested an ambulance because her “husband was running out of oxygen,” according to the logs.

Around 4:11 a.m. Sunday, a resident of Hidden Valley Mobile Home Park in Oroville called about a tree falling into a trailer, causing a power line to fall, but noted that the electricity was off.

In a comparable storm-related outage, Sudbury Hydro crews worked to reconnect service after severe weather in Ontario.

And there were multiple calls asking for information about the shut-off, including one caller around midnight who was “demanding PG&E turn his power back on.”

The calls led the Butte County Sheriff’s Office to tweet a reminder Sunday afternoon that 911 is reserved for emergencies and requests for information about the power shutdown should be done through PG&E.

The utility opened a community resource center at Harrison Stadium in Oroville (Butte County) on Sunday morning to provide restrooms, bottled water, power outlets and air conditioning to residents. About 40 people showed up at the center in the first few hours, officials said.

“It’s a small but steady stream,” Pasion said.

Power was being restored to parts of Oroville as of 11 a.m. Sunday.

PG&E officials said it could take up to 48 hours for power to be restored in some areas.

For perspective, during severe storms in Ontario, Hydro One crews restored power to more than 277,000 customers within days.

 

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Why Canada should invest in "macrogrids" for greener, more reliable electricity

Canadian electricity transmission enables grid resilience, long-distance power trade, and decarbonization by integrating renewables, hydroelectric storage, and HVDC links, providing backup during extreme weather and lowering costs to reach net-zero, clean energy targets.

 

Key Points

An interprovincial high-voltage grid that shares clean power to deliver reliable, low-cost decarbonization.

✅ Enables resilience by sharing power across weather zones

✅ Integrates renewables with hydro storage via HVDC links

✅ Lowers decarbonization costs through interprovincial trade

 

As the recent disaster in Texas showed, climate change requires electricity utilities to prepare for extreme events. This “global weirding” is leaving Canadian electricity grids increasingly exposed to harsh weather that leads to more intense storms, higher wind speeds, heatwaves and droughts that can threaten the performance of electricity systems.

The electricity sector must adapt to this changing climate while also playing a central role in mitigating climate change. Greenhouse gas emissions can be reduced a number of ways, but the electricity sector is expected to play a central role in decarbonization, including powering a net-zero grid by 2050 across Canada. Zero-emissions electricity can be used to electrify transportation, heating and industry and help achieve emissions reduction in these sectors.

Enhancing long-distance transmission is viewed as a cost-effective way to enable a clean and reliable power grid, and to lower the cost of meeting our climate targets. Now is the time to strengthen transmission links in Canada, with concepts like a western Canadian electricity grid gaining traction.


Insurance for climate extremes
An early lesson from the Texas power outages is that extreme conditions can lead to failures across all forms of power supply. The state lost the capacity to generate electricity from natural gas, coal, nuclear and wind simultaneously. But it also lacked cross-border transmission to other electricity systems that could have bolstered supply.

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Long-distance transmission offers the opportunity to escape the correlative clutch of extreme weather, by accessing energy and spare capacity in areas not beset by the same weather patterns. For example, while Texas was in its deep freeze, relatively balmy conditions in California meant there was a surplus of electricity generation capability in that region — but no means to get it to Texas. Building new transmission lines and connections across broader regions, including projects like a hydropower line to New York that expand access, can act as an insurance policy, providing a back-up for regions hit by the crippling effects of climate change.

A transmission tower crumpled under the weight of ice.
The 1998 Quebec ice storm left 3.5 million Quebecers and a million Ontarians, as well as thousands in in New Brunswick, without power. CP Photo/Robert Galbraith
Transmission is also vulnerable to climate disruptions, such as crippling ice storms that leave wires temporarily inoperable. This may mean using stronger poles when building transmission, or burying major high-voltage transmission links, or deploying superconducting cables to reduce losses.

In any event, more transmission links between regions can improve resilience by co-ordinating supply across larger regions. Well-connected grids that are larger than the areas disrupted by weather systems can be more resilient to climate extremes.


Lowering the cost of clean power
Adding more transmission can also play a role in mitigating climate change. Numerous studies have found that building a larger transmission grid allows for greater shares of renewables onto the grid, ultimately lowering the overall cost of electricity.

In a recent study, two of us looked at the role transmission could play in lowering greenhouse gas emissions in Canada’s electricity sector. We found the cost of reducing greenhouse gas emissions is lower when new or enhanced transmission links can be built between provinces.

Average cost increase to electricity in Canada at different levels of decarbonization, with new transmission (black) and without new transmission (red). New transmission lowers the cost of reducing greenhouse gas emissions. (Authors), Author provided
Much of the value of transmission in these scenarios comes from linking high-quality wind and solar resources with flexible zero-emission generation that can produce electricity on demand. In Canada, our system is dominated by hydroelectricity, but most of this hydro capacity is located in five provinces: British Columbia, Manitoba, Ontario, Québec and Newfoundland and Labrador.

In the west, Alberta and Saskatchewan are great locations for building low-cost wind and solar farms. Enhanced interprovincial transmission would allow Alberta and Saskatchewan to build more variable wind and solar, with the assurance that they could receive backup power from B.C. and Manitoba when the wind isn’t blowing and the sun isn’t shining.

When wind and solar are plentiful, the flow of low cost energy can reverse to allow B.C. and Manitoba the opportunity to better manage their hydro reservoir levels. Provinces can only benefit from trading with each other if we have the infrastructure to make that trade possible.

A recent working paper examined the role that new transmission links could play in decarbonizing the B.C. and Alberta electricity systems. We again found that enabling greater electricity trade between B.C. and Alberta can reduce the cost of deep cuts to greenhouse gas emissions by billions of dollars a year. Although we focused on the value of the Site C project, in the context of B.C.'s clean energy shift, the analysis showed that new transmission would offer benefits of much greater value than a single hydroelectric project.

The value of enabling new transmission links between Alberta and B.C. as greenhouse gas emissions reductions are pursued. (Authors), Author provided
Getting transmission built
With the benefits that enhanced electricity transmission links can provide, one might think new projects would be a slam dunk. But there are barriers to getting projects built.

First, electricity grids in Canada are managed at the provincial level, most often by Crown corporations. Decisions by the Crowns are influenced not simply by economics, but also by political considerations. If a transmission project enables greater imports of electricity to Saskatchewan from Manitoba, it raises a flag about lost economic development opportunity within Saskatchewan. Successful transmission agreements need to ensure a two-way flow of benefits.

Second, transmission can be expensive. On this front, the Canadian government could open up the purse strings to fund new transmission links between provinces. It has already shown a willingness to do so.

Lastly, transmission lines are long linear projects, not unlike pipelines. Siting transmission lines can be contentious, even when they are delivering zero-emissions electricity. Using infrastructure corridors, such as existing railway right of ways or the proposed Canadian Northern Corridor, could help better facilitate co-operation between regions and reduce the risks of siting transmission lines.

If Canada can address these barriers to transmission, we should find ourselves in an advantageous position, where we are more resilient to climate extremes and have achieved a lower-cost, zero-emissions electricity grid.

 

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Finland Investigates Russian Ship After Electricity Cable Damage

Finland Shadow Fleet Cable Investigation details suspected Russia-linked sabotage of Baltic Sea undersea cables, AIS dark activity, and false-flag tactics threatening critical infrastructure, prompting NATO and EU vigilance against hybrid warfare across Northern Europe.

 

Key Points

Finland probes suspected sabotage of undersea cables by a Russia-linked vessel using flag of convenience and AIS off.

✅ Undersea cable damage in Baltic Sea sparks security alerts

✅ Suspected shadow fleet ship ran AIS dark under false flag

✅ NATO and EU boost maritime surveillance, critical infrastructure

 

In December 2024, Finland launched an investigation into a ship allegedly linked to Russia’s “shadow fleet” following a series of incidents involving damage to undersea cables. The investigation has raised significant concerns in Finland and across Europe, as it suggests possible sabotage or other intentional acts related to the disruption of vital communication and energy infrastructure in the Baltic Sea region. This article explores the key details of the investigation, the role of Russia’s shadow fleet, and the broader geopolitical implications of this event.

The "Shadow Fleet" and Its Role

The term “shadow fleet” refers to a collection of ships, often disguised or operating under false flags, that are believed to be part of Russia's covert maritime operations. These vessels are typically used for activities such as smuggling, surveillance, and potentially military operations, mirroring the covert hacker infrastructure documented by researchers in related domains. In recent years, the "shadow fleet" has been under increasing scrutiny due to its involvement in various clandestine actions, especially in regions close to NATO member countries and areas with sensitive infrastructure.

Russia’s "shadow fleet" operates in the shadows of regular international shipping, often difficult to track due to the use of deceptive practices like turning off automatic identification systems (AIS). This makes it difficult for authorities to monitor their movements and assess their true purpose, raising alarm bells when one of these ships is suspected of being involved in damaging vital infrastructure like undersea cables.

The Cable Damage Incident

The investigation was sparked after damage was discovered to an undersea cable in the Baltic Sea, a vital link for communication, data transmission, and energy supply between Finland and other parts of Europe. These undersea cables are crucial for everything from internet connections to energy grid stability, with recent Nordic grid constraints underscoring their importance, and any disruption to them can have serious consequences.

Finnish authorities reported that the damage appeared to be deliberate, raising suspicions of potential sabotage. The timing of the damage coincides with a period of heightened tensions between Russia and the West, particularly following the escalation of the war in Ukraine, with recent strikes on Ukraine's power grid highlighting the stakes, and ongoing geopolitical instability. This has led many to speculate that the damage to the cables could be part of a broader strategy to undermine European security and disrupt critical infrastructure.

Upon further investigation, a vessel that had been in the vicinity at the time of the damage was identified as potentially being part of Russia’s "shadow fleet." The ship had been operating under a false flag and had disabled its AIS system, making it challenging for authorities to track its movements. The vessel’s activities raised red flags, and Finnish authorities are now working closely with international partners to ascertain its involvement in the incident.

Geopolitical Implications

The damage to undersea cables and the suspected involvement of Russia’s "shadow fleet" have broader geopolitical implications, particularly in the context of Europe’s security landscape. Undersea cables are considered critical infrastructure, akin to electric utilities where intrusions into US control rooms have been documented, and any deliberate attack on them could be seen as an act of war or an attempt to destabilize regional security.

In the wake of the investigation, there has been increased concern about the vulnerability of Europe’s energy and communication networks, which are increasingly reliant on these undersea connections, and as the Baltics pursue grid synchronization with the EU to reduce dependencies, policymakers are reassessing resilience measures. The European Union, alongside NATO, has expressed growing alarm over potential threats to this infrastructure, especially as tensions with Russia continue to escalate.

The incident also highlights the growing risks associated with hybrid warfare tactics, which combine conventional military actions with cyberattacks, including the U.S. condemnation of power grid hacking as a cautionary example, sabotage, and disinformation campaigns. The targeting of undersea cables could be part of a broader strategy by Russia to disrupt Europe’s ability to coordinate and respond effectively, particularly in the context of ongoing sanctions and diplomatic pressure.

Furthermore, the suspected involvement of a "shadow fleet" ship raises questions about the transparency and accountability of maritime activities in the region. The use of vessels operating under false flags or without identification systems complicates efforts to monitor and regulate shipping in international waters. This has led to calls for stronger maritime security measures and greater cooperation between European countries to ensure the safety and integrity of critical infrastructure.

Finland’s Response and Ongoing Investigation

In response to the cable damage incident, Finnish authorities have mobilized a comprehensive investigation, seeking to determine the extent of the damage and whether the actions were deliberate or accidental. The Finnish government has called for increased vigilance and cooperation with international partners to identify and address potential threats to undersea infrastructure, drawing on Symantec's Dragonfly research for insights into hostile capabilities.

Finland, which shares a border with Russia and has been increasingly concerned about its security in the wake of Russia's invasion of Ukraine, has ramped up its defense posture. The damage to undersea cables serves as a stark reminder of the vulnerabilities that come with an interconnected global infrastructure, and Finland’s security services are likely to scrutinize the incident as part of their broader defense strategy.

Additionally, the incident is being closely monitored by NATO and the European Union, both of which have emphasized the importance of safeguarding critical infrastructure. As an EU member and NATO partner, Finland’s response to this situation could influence how Europe addresses similar challenges in the future.

The investigation into the damage to undersea cables in the Baltic Sea, allegedly linked to Russia’s "shadow fleet," has significant implications for European security. The use of covert operations, including the deployment of ships under false flags, underscores the growing threats to vital infrastructure in the region. With tensions between Russia and the West continuing to rise, the potential for future incidents targeting critical communication and energy networks is a pressing concern.

As Finland continues its investigation, the incident highlights the need for greater international cooperation and vigilance in safeguarding undersea cables and other critical infrastructure. In a world where hybrid warfare tactics are becoming increasingly common, ensuring the security of these vital connections will be crucial for maintaining stability in Europe. The outcome of this investigation may serve as a crucial case study in the ongoing efforts to protect infrastructure from emerging and unconventional threats.

 

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UK Anticipates a 16% Decrease in Energy Bills in April

UK Energy Price Cap Cut 2024 signals relief as wholesale gas prices fall; Ofgem price cap drops per Cornwall Insight, aided by LNG supply, mild winter, despite Red Sea tensions and Ukraine conflict impacts.

 

Key Points

A forecast cut to Great Britain's Ofgem price cap as wholesale gas falls, easing typical annual household bills in 2024.

✅ Cap falls from £1,928 to £1,620 in April 2024

✅ Forecast £1,497 in July, then about £1,541 from October

✅ Drivers: lower wholesale gas, LNG supply, mild winter

 

Households in Great Britain are set to experience a significant reduction in energy costs this spring, with bills projected to drop by over £300 annually. This decrease is primarily due to a decline in wholesale gas prices, offering some respite to those grappling with the cost of living crisis.

Cornwall Insight, a well-regarded industry analyst, predicts a 16% reduction in average bills from the previous quarter, potentially reaching the lowest levels since the onset of the Ukraine conflict.

The industry’s price cap, indicative of the average annual bill for a typical household, is expected to decrease from the current £1,928, set earlier this month, to £1,620 in April – a reduction of £308 and £40 less than previously forecasted in December, as ministers consider ending the gas-electricity price link to improve market resilience.

Concerns about escalating tensions in the Red Sea, where Houthi rebels have disrupted global shipping, initially led analysts to fear an increase in wholesale oil prices and subsequent impact on household energy costs.

Contrary to these concerns, oil prices have remained relatively stable, and European gas reserves have been higher than anticipated during a mild winter, with European gas prices returning to pre-Ukraine war levels since November.

Cornwall Insight anticipates that energy prices will continue to be comparatively low through 2024. They predict a further decline to £1,497 for a typical annual bill from July, followed by a slight increase to £1,541 starting in October.

This forecast is a welcome development for Britons who have been dealing with increased expenses across various sectors, from food to utilities, amidst persistently high inflation rates, with energy-driven EU inflation hitting lower-income households hardest across member states.

Energy bills saw a steep rise in 2021, which escalated further due to the Ukraine conflict in 2022, driving up wholesale gas prices. This surge prompted government intervention to subsidize bills, with the UK price cap estimated to cost around £89bn to the public purse, capping costs to a typical household at £2,500.

Cornwall Insight noted that the supply of liquified natural gas to Europe had not been as adversely affected by the Red Sea disruptions as initially feared. Moreover, the UK has been well-supplied with gas from the US, which has become a more significant supplier since the Ukraine war, even as US electricity prices have risen to multi-decade highs. Contributing factors also include lower gas prices in Asia, mild weather, and robust gas availability.

Craig Lowrey, a principal consultant at Cornwall Insight, remarked that concerns about Red Sea events driving up energy prices have not materialized, allowing households to expect a reduction in prices.

On Monday, the next-month wholesale gas price dropped by 4% to 65p a therm.

However, Lowrey cautioned that a complete return to pre-crisis energy bill levels remains unlikely due to ongoing market impacts from shifting away from Russian energy sources and persistent geopolitical tensions, as well as policy changes such as Britain’s Energy Security Bill shaping market reforms.

Richard Neudegg, director of regulation at Uswitch, welcomed the potential further reduction of the price cap in April. However, he pointed out that this offers little solace to households currently struggling with high winter energy costs during the winter. Neudegg urged Ofgem, the energy regulator, to prompt suppliers to reintroduce more competitive and affordable fixed-price deals.

 

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Customers on the hook for $5.5 billion in deferred BC Hydro operating costs: report

BC Hydro Deferred Regulatory Assets detail $5.5 billion in costs under rate-regulated accounting, to be recovered from ratepayers, highlighting B.C. Utilities Commission oversight, audit scrutiny, financial reporting impacts, and public utility governance.

 

Key Points

BC Hydro defers costs as regulatory assets to recover from ratepayers, influencing rates and financial reporting.

✅ $5.5B in deferred costs recorded as net regulatory assets

✅ Rate impacts tied to B.C. Utilities Commission oversight

✅ Auditor General to assess accounting and governance

 

Auditor General Carol Bellringer says BC Hydro has deferred $5.5 billion in expenses that it plans to recover from ratepayers in the future, as rates to rise by 3.75% over two years.

Bellringer focuses on the deferred expenses in a report on the public utility's use of rate-regulated accounting to control electricity rates for customers.

"As of March 31, 2018, BC Hydro reported a total net regulatory asset of $5.455 billion, which is what ratepayers owe," says the report. "BC Hydro expects to recover this from ratepayers in the future. For BC Hydro, this is an asset. For ratepayers, this is a debt."

She says rate-regulated accounting is used widely across North America, but cautions that Hydro has largely overridden the role of the independent B.C. Utilities Commission to regulate rates.

"We think it's important for the people of B.C. and our members of the legislative assembly to better understand rate-regulated accounting in order to appreciate the impact it has on the bottom line for BC Hydro, for government as a whole, for ratepayers and for taxpayers, especially following a three per cent rate increase in April 2018," Bellringer said in a conference call with reporters.

Last June, the B.C. government launched a two-phase review of BC Hydro to find cost savings and look at the direction of the Crown utility, amid calls for change from advocates.

The review came shortly after a planned government rate freeze was overturned by the utilities commission, which resulted in a three per cent rate increase in April 2018.

A statement by BC Hydro and the government says a key objective of the review due this month is to enhance the regulatory oversight of the commission.

Bellringer's office will become BC Hydro's auditor next year — and will be assessing the impact of regulation on the utility's financial reporting.

"It is a complex area and confidence in the regulatory system is critical to protect the public interest," wrote Bellringer.

 

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