Government is taking action to implement the recommendations of the independent task force appointed to review the British Columbia Utilities Commission (BCUC) so that the commission can resume its role of setting BC Hydro rates by the third year of government’s 10-Year Rates Plan for BC Hydro.

The review was launched in April 2014 in response to concerns raised by customer groups and utilities about the BCUC's ability to deliver clear and timely decisions. Government appointed an independent task force to review the commission with the goal of improving its effectiveness and efficiency. The changes recommended by the task force will lead to a stronger and more efficient regulatory process.

Among its key findings the task force concludes:

• It is the provincial government’s prerogative to set provincial energy policy, define the BCUC’s mandate, and direct the BCUC on specific matters.
• Recognizing the unique and specialized skills and experience required of commissioners, the BCUC should be strengthened by shifting towards more full-time commissioners relative to part-time commissioners, reviewing compensation levels to attract and retain both commissioners and staff, and appointing an executive director.
• The BCUC’s internal processes should be improved by better defining the scope of issues to be dealt with in hearing processes, vetting who has standing to appear, and reviewing the relevance of information requests.

The task force report contains 35 recommendations to improve the governance, processes and performance at the BCUC. Government will work with the BCUC to implement recommendations in the review by:

• Developing a memorandum of understanding that will ensure there are clear roles and responsibilities assigned between the Province and the BCUC.
• Requiring the BCUC to prepare a publicly available implementation plan detailing actions and timelines to address recommendations to improve its internal processes and performance.
• Engaging the chair and chief executive officer of the BCUC in the recruitment of more full-time commissioners.
• Considering, when appropriate, the use of section 5 of the Utilities Commission Act to send projects or plans to BCUC for review and recommendations only.
• Considering updates to both the 2007 Energy Plan and the 2010 Clean Energy Act as part of the Spring 2016 legislative session.

The BCUC is an independent regulatory agency of the provincial government that operates under and administers the Utilities Commission Act. Its primary responsibility is the regulation of British Columbia’s natural gas and electricity utilities. It also regulates intra-provincial pipelines, many district heating systems, and universal compulsory auto insurance.

Quotes:

Bill Bennett, Minister of Energy and Mines and Responsible for Core Review -

“The independent task force provided valuable insight and recommendations that will improve the BCUC’s effectiveness and efficiency and restore confidence for ratepayers and utilities. We will work with the BCUC to implement the recommendations and strengthen the commission so it can resume its role in setting BC Hydro rates.”

David Craig, executive director, Commercial Energy Consumers Association of B.C. -

“In energy policy and regulation there is a balance required between political and deliberative direction decision making. The BCUC review by the task force comprised of highly credentialed individuals was conducted in an open and transparent process. The BCUC has been very important for ratepayers and government and strengthening of the BCUC is welcome improvement. I particularly like the innovative approach to use of Section 5 inquiries. The review has struck an important balance between the political direction and deliberative decision making increasing the value of the BCUC tremendously.”

Janet Fraser, chief regulatory officer, BC Hydro -

“BC Hydro participated fully in the review process. The B.C. Utilities Commission is an important and necessary regulatory body. These changes will improve the operations of the commission and also allow BC Hydro to better serve its customers. These changes announced today will, ultimately, benefit the people of B.C.”

Roger Dall’Antonia, executive vice-president, customer service and regulatory affairs, FortisBC -

“FortisBC is supportive of government’s recommendations for implementing the task force’s findings in the BCUC review. Historically, the B.C. regulatory environment has been reasonable and progressive and the recommendations made by the task force and government will further strengthen the BCUC in supporting B.C.’s continually evolving business and energy environment.

Learn More:

Independent Review of the British Columbia Utilities Commission Final Report: http://www.empr.gov.bc.ca/EPD/Electricity/BCUC_Review/Documents/BCUC%20Review%20Final%20Report%20-%20Nov%2014%20-%20FINAL.PDF

A backgrounder follows.

Media Contacts:

Jake Jacobs
Media Relations
Ministry of Energy and Mines
250 952-0628

BACKGROUNDER

Government accepts recommendations to strengthen BCUC

In April 2014, Bill Bennett, Minister of Energy and Mines appointed a three-member task force to conduct an independent review of the British Columbia Utilities Commission (BCUC). The members of the task force have extensive experience in electricity policy and utility operations.

• Peter Ostergaard (chair) was previously assistant-deputy minister of Electricity and Alternative Energy in the Ministry of Energy, Mines and Petroleum Resources. He also served six years as chair and CEO of the BCUC.
• Michael Costello is retired from BC Hydro and BC Transmission Corporation, where he served as president and CEO. Prior to this he held the position of deputy minister of Finance and secretary to Treasury Board in British Columbia.
• R. Brian Wallace, Q.C. has been practising law in the energy and environmental area for over 30 years. He has represented clients before the National Energy Board, the BCUC and the Alberta Utilities Commission.

The task force held over 40 meetings and conference calls with representatives from energy utilities, First Nations, customer and industry groups, and received written submissions. Task force members also met with current and former BCUC staff and commissioners, and engaged with utility regulators in other jurisdictions including the Alberta Utilities Commission, the Ontario Energy Board, the National Energy Board, and the Washington Utilities and Transportation Commission.

The task force delivered its final report to government on time on Nov. 17, 2014.

The report contains 35 recommendations to improve the effectiveness and efficiency of the BCUC. Government accepts the recommendations and will work with BCUC to implement them.

To view the recommendations and government response visit: http://www.empr.gov.bc.ca/EPD/Electricity/BCUC_Review/Documents/BCUC%20Recommendations%20and%20Government%20Response.pdf

Media Contacts:

Jake Jacobs
Media Relations
Ministry of Energy and Mines
250 952-0628