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Issue link: http://digital.canadawide.com/i/383533
The main thought that I have is the reinvestment that's needed in the heri- tage assets in the system that serves us in British Columbia to provide electric- ity. We're really entering into a new era in terms of BC Hydro's story. When you think about the late '60s, '70s and even early '80s, it was about the vision that built this system. It has served us really well over the decades, but we're at a point in time where that's only going to provide us with reliable, affordable clean power if we enter into a period of reinvestment in that system. What does that "new era" mean for taxpayers? Beyond the 28 per cent rate hike announced last fall, how much more catching up do we need to do with rates? There's been very careful thought that's gone into the 10-year rates plan, and ensuring that the plan is calibrated against another very important pillar for BC Hydro and for the provincial government, which is the affordability of the system. There comes a point along the trend line where the invest- ment changes in terms of its impact on pressure on customers, because of the amortization. It's not that there is a continual pressure on rates. Is the $8-billion Site C megaproject on the Peace River inevitable, given the growing need for power— LNG- driven and otherwise? We talk about Site C as a generational opportunity. It's projected that there will be a 40 per cent increase in demand over the next 20 years. We need to find the smartest way to bring that supply into the system, to add to the system in a way that keeps rates low over the long term for British Columbia. There's a lot of pieces to that. We have unused capacity in the reservoirs up north that can be drawn down that make Site C an ideal comple- ment to the system. We have a portfolio of Independent Power Producers in the system already, 20 per cent—again, Site C can enhance that by providing the ability to firm that power and contribute overall to the system. You can't flip a switch and have Site C one year from now or 20 years from now. You have to plan for it, and a lot of careful planning has been done. One of the realities of being CEO of BC Hydro, as your predecessors have learned, is that there is a cer- tain degree of political interference: on rate hikes and capital expendi- tures, with the long-planned Site C project being a prime example. How do you walk that political tightrope? BC Hydro is a Crown Corporation for a reason. It has a relationship with its shareholders through the govern- ment—it's owned by the people of British Columbia. I'm not sure that British Columbians either know that or recognize what that means, but as a publicly owned institution, I think it's appropriate—just like any Crown Cor- poration—that public policy objectives come to it through the duly elected government. It's part of our role to take those public policy objectives into account, make sure we're fully informing options and implications for the business of providing electric- ity supply to the shareholder—but at the end of the day, incorporating the public policy direction comes through the elected administration. That's the nature of a Crown Corporation. One of the criticisms of your appointment was your lack of experience in the energy sector. How do you respond to that? I have a lot of experience as the head of the B.C. public service, running the largest employer in the province. I'm very familiar with running large organizations and recognizing where the opportunities are for reaching new outcomes—and BC Hydro is a great fit for me, in that respect. As HYDRO RATES ACROSS THE CONTINENT (pER 1,000 kWH) SOURCE: BC HYDRO/ HYDRO-QUEBEC OCtOBER 2014 BCBusiness 33 BCBUSINESS.CA $138 VANCOUVER $148 SEATTLE $195 TORONTO $370 SAN FRANCISCO $435 NEW YORK $100 MONTREAL