B.C. Hydro To Remain in Public Hands

Neufeld strongly denied reports the Liberal government is planning to privatize much of the Crown corporation and move toward market-based pricing, which could raise power rates 30 to 60 per cent for homeowners and businesses.

"There are those out there who want to fear monger," he said. "For whatever reason they want to continue to scare British Columbians."

The task force on energy policy, appointed in August 2001 to draft an energy policy framework for the province, will release its final report within three weeks, said Neufeld.

"B.C. Hydro will look a little bit different, but it will still be owned by the public," he said. "We have said we will not sell the core assets of B.C. Hydro."

Hydro's core assets are its transmission lines, generating facilities and dams.

Neufeld said later that a separate company, with a separate board of directors, will be set up to handle Hydro's transmission business, however, it will still be a Crown corporation and will be owned by B.C. Hydro.

This will allow independent power producers "fair and equitable access to a transmission line," he said.

Neufeld could not guarantee that British Columbians will continue to enjoy the lowest electricity rates in North America after March 2003 when a rate freeze is lifted.

"We're not going to market rates, but we will re-regulate B.C. Hydro under the B.C. Utilities Commission," he said.

The commission will then be entitled to hold public hearings on power rates, Neufeld said.

"For me to say that rates could go up or not is not for me to say," he said.

The task force's interim report released last December envisioned a complete deregulation of the B.C. energy sector with market prices the order of the day, meaning almost immediate 30 per cent increases for homeowners and 60 per cent hikes for some industrial users.

Concern by industry about energy price increases hurting company revenues prompted Neufeld to delay the report's release and call for further public input.

The interim report recommended restructuring B.C. Hydro into three separate and independent entities to deal with power generation, transmission and distribution.

Neufeld said the government wants to encourage private investment in the electricity industry.

Hydro CEO Larry Bell said the Crown corporation is planning for the future, but those plans do not include privatization.

A coalition of union members and private individuals filed a class-action lawsuit last September seeking an injunction against the provincial and Hydro to prevent the sale or transfer of assets.

The group, B.C. Citizens for Public Power, said the lawsuit will claim the government is breaking a trust with British Columbians by breaking up Hydro and privatizing key functions.