When unexpected cost overruns were made public last week about the Northwest Transmission Line, one local union was quick to say it was due to the government's "mismanagement" of B.C. Hydro.
The Canadian Office and Professional Employees Union Local 378 said the cost overruns are due to the government under-collecting costs from mining corporations and other major users. The union represents about 1,850 B.C. Hydro workers.
"This government has now gone more than a decade without taking the actions necessary to deal with real cost drivers and address debt at B.C. Hydro," said union president David Black in a media release.
The union said it warned the utilities commission the rates were far too low for users when the project cost was at $561 million.
"At that time, the union estimated the subsidy to be worth about $150 million to mining companies and other corporate interests," the release states. "The price tag has since ballooned to $700 million but the contribution asked of mining corporations and other major users has stayed the same."
The union also predicts B.C. Hydro ratepayers should prepare for a substantial "rate shock" within the year.
"They keep doubling down on their mistakes," Black said about the government. "The Northwest Transmission Line cost is only one in a long list of bad decisions. You can count backwards from last year's stunning choice to push off a smaller rate increase until after the election, to the debt hidden in deferral accounts, and to subsidizing expensive and damaging private power projects."
The union has asked to meet with B.C. Minister of Energy and Mines Bill Bennett to discuss this issue.
In an interview with the NOW, Bennett said it's easy for unions to attack corporations - as "that's what they like to do."
"They forget where their jobs come from," he said in a phone interview. "If corporations don't make the decision to invest (and) build projects then all of a sudden members don't have a job."
Over the next 20 to 30 years, the companies who use the power line will be the ones who pay for it, according to the minister.
"Frankly, we've very unhappy about it," he said. "We'll take (B.C. Hydro) to task to ensure it doesn't happen again."
Bennett said the line is going to access 25 to 30 per cent of the province that currently does not have electricity, but relies on "dirty diesel fuel."
"Most of the major mining discoveries are in this region, and (there's) clean energy project potential in this area."
Although Bennett said it is unfortunate the project had a cost overrun already, it will bring millions of dollars worth of investments, hundreds of jobs and revenue to the province.
