Hydro cost analysis no simple matter

Accountant sets the record straight on Hydro comments

Re: Hydro complaints off the mark (Letters, Dec. 13)

As for Joe Sawchuk’s letter on Ms. McFadyen’s “shooting from the hip” with her comments on B.C. Hydro’s rate increase, I would suggest this might be a case of the pot calling the kettle black.

To get a meaningful understanding of the validity of rate increases, one would need to do an in-depth financial analysis of costs over a number of years, compare this with other jurisdictions and see what corrective action could be taken.

It’s not enough to simply state that we have the third-lowest costs in the country and should therefore be thankful.

As a cost and management accountant, if I established that costs in my corporation were 41 per cent and 23 per cent higher than two seemingly comparable companies, as he states is the case with B.C. Hydro over Quebec and Manitoba, and that a nine-per-cent price increase was being planned when inflation is running at 2.4 per cent, I would want meaningful answers from management.

I would also inquire as to the practice of reserve accumulation for funding development to avoid or minimize this being met by price hikes, which should be limited to covering inflation and minimized by aggressive cost-reduction programs.

James McMillan

Victoria

Just Posted

Murdered and missing honoured at Stolen Sisters Memorial March in Victoria

‘We come together to make change within the systems in our society’

Public packs Victoria mosque during B.C.’s Open Mosque Day

‘The best way to deal with fear is to educate. That’s what we are trying to do here’

Vancouver Island First Nations Youth Ambassadors deliver message to the United Nations

The delegation appeared at an event celebrating ‘the rich tapestry of global cultural diversity’

Turning pro on the Island

Pacific FC’s Brad Norris-Jones talks about his journey to pro sports in Victoria

Fitness and health programming drew more than 12,000 participants in Saanich

New report also finds a gender split in programming

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

B.C. VIEWS: Power politics wins over rational energy policy

B.C Hydro continues to face interference on rates

PR firm suspends contract with former B.C. premier amid groping accusation

Edelman says in a statement that Campbell has served as a special adviser to the firm since last July

James says B.C. budget puts priorities on NDP’s poverty, environment plans

She said she expected the government’s poverty reduction and climate change strategies to be priorities in the budget

PHOTOS: Day 1 of the 2019 Canada Winter Games in Red Deer

Games kicked off in Red Deer this week

Ammonia leak shuts down curling club in Nelson

It’s not yet clear when the leak was detected

Pavelski’s 31st goal helps Sharks top Canucks 3-2

Vancouver one point out of second NHL wild-card spot

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Most Read