Minister’s statement on BC Hydro deferral accounts audit concerns

Carole James, Minister of Finance, has issued the following statement on BC Hydro deferral accounts audit concerns:

“From the housing crisis to ICBC to money laundering, the last government left a legacy of fiscal mismanagement. Our government has been working hard throughout our first year in office to tackle these problems while protecting the services people rely on. I’m proud we are delivering on our commitments while maintaining a balanced budget.

“As early as 2009, auditors general have had concerns about the misuse of deferral accounts. The previous government’s repeated inappropriate interference with the BC Utilities Commission led to unsustainable growth in BC Hydro’s deferral accounts. This has serious consequences for the long-term sustainability of one of our most important Crown corporations.

“It is clear that the previous government’s focus was on pushing costs into future years as a way of creating the illusion of better bottom-line results. Our government is now stepping up to address these issues.

“We are making an adjustment of $950 million in our Public Accounts to reduce BC Hydro’s deferral accounts and work to fix the previous government’s short-sighted decision to misuse these accounts. Through the $950-million adjustment and the ongoing comprehensive review, we are working on solutions that will keep rates affordable and make BC Hydro work for people again.”