Statement on Auditor General Office’s rate regulated accounting report
BC Hydro accepts the recommendation in the Auditor General’s report on our rate regulated accounting practices.
Government has already taken action to address the recommendation by amending the accounting rules BC Hydro is required to follow. Starting in fiscal 2019, BC Hydro’s annual financial statements will apply Canadian generally accepted accounting principles, without modification.
Rate regulated accounting is a common practice amongst North American utilities. Regulatory accounts can be used, for example, to match costs with benefits to customers or to capture differences between forecasted and actual costs, typically related to uncontrollable factors, such as storm restoration costs.
We have been working to recover the balance in our regulatory accounts and are recovering most in rates today. The amount in these accounts has decreased by $1.1 billion since April 2016.
The first phase of the government’s comprehensive review of BC Hydro will determine the approach to our regulatory accounts and the role of the BC Utilities Commission, which will help address other concerns raised by the Auditor General and ensure we continue to provide affordable power to our customers.
We look forward to continuing to work with the Office of the Auditor General on our rate regulated accounting and financial reporting as the Auditor General assumes the role of BC Hydro’s external auditor on April 1, 2019.
Contact:
BC Hydro Media Relations
604 928 6468