The first five thoughts on the BC Hydro review

Five early thoughts on the BC Hydro review.

1) Where were the board, ministers responsible and government as BC Hydro, apparently, was mismanaged and staff soared 20 per cent over the levels needed over a period of years?

2) The government now should explain the huge amounts of money wasted by its discredited policy directives that BC Hydro use IPP purchases in pursuit of a foolish goal of electricity self-sufficiency.

3) The government has to explain its decision to use BC Hydro rates as a vehicle for tax increases. The review found, for example, that the government charges Hydro excessive rates for water rights, which are passed on to customers in the former of higher electricity bills. That's a regressive tax, and potentially destructive to industry in the province, encouraging investment elsewhere.

4) The review read much like something that would be done after a new party was elected to government and set out about fixing - and highlighting - the errors of the previous administration. Christy Clark deserves credit for the hard look (although there are political advantages to distancing herself from Gordon Campbell). But not all Liberals might agree - Bill Bennett and Blair Lekstrom, for example, were briefly energy ministers during the problem years. Half the B.C. Hydro board have been in place for more than two years, and the report raises serious questions about their effectiveness.

5) The report suggests failures of government policy and management. It is good to bring them into the light, but does raise questions about other areas of government.

Full post to come.