The BC Government has announced that the BC Utilities Commission will no longer have jurisdiction over electricity projects the government deems to be for export. This is to block the Commission from ruling on the run-away private hydro projects that the government has embraced in a desperate bid to bring some investment activity to the province.

This is irrational public policy. There is only one electrical system. The Commission’s mandate is to ensure that BC consumers are not burdened with costs not needed to supply power to BC homes, businesses and industry. The reason the government doesn’t want the Commission to rule on them is because the projects require BC electricity consumers to subsidize the export of power from them. The government has insisted that BC Hydro buy the power from these projects on a subsidized basis. The subsidy comes from BC Hydro, which in turn must get it from the rates it charges.

This is something the Utilities Commission could never agree to. It amounts to imposing a loss on BC consumers to line the pockets of the owners to the private projects. That is not smart regulation. We should support de-regulation if it is smart policy. When it is not, it should be opposed. This is clearly such a case.

As some may have noticed I have not posted anything here for some time. I have been busy with other writing, supervising graduate students and marking papers. However, I am back and will try to be a little more regular with postings.