by Tom Hackney and Bill Andrews

14 April 2025

In March 2025, the BC government ordered the BC Utilities Commission to approve BC Hydro’s rates and demand-side management expenditures for Fiscal 2026 to Fiscal 2027, thereby precluding a transparent public review. BCSEA had been looking forward to intervening in the BCUC review in order to push for the clean energy transition.

In July 2024, BC Hydro began consulting with stakeholders (including BCSEA) about its upcoming application rates and DSM spending for F2026 – F2027. The application would also address Hydro’s 10-year capital spending plan, which, critically, includes infrastructure upgrades for the electrification called for in BC’s CleanBC Roadmap to 2030.

BC Hydro’s DSM spending in F2026 – F2027 is important for BC’s clean energy transition, as the Roadmap relies on significant increases in energy conservation and efficiency. Increased investment in demand side management can actually reduce electricity bills for customers, improving the affordability of the energy transition.

BC Hydro’s F2026 – F2027 DSM spending includes $5,000 incentives for residential customers to install PV panels and $5,000 incentives to install battery storage systems. The cost of these incentives is included in the rates paid by all customers. The government’s intervention has the effect of precluding the BCUC from disallowing these incentives as a cross-subsidy.

The BC government is legally empowered to override the BCUC’s authority over BC Hydro’s rates and DSM spending. BCSEA generally supports the elected BC government mandating policies to support the clean energy transition, and the BCUC providing economic regulation of BC’s energy utilities. In this case, the government cited “rising costs and economic and trade uncertainty.” However, BCSEA is not convinced the government’s interference was justified here. BCSEA believes that the recent large increase in BC Hydro’s capital spending plan should be subjected to public review.