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.@michellemungall says she’s “very disappointed” in bcuc decision to reject her rate freeze. Says too late now for cabinet to direct bcuc once it has made its decision. Calls hydro finances a mess. pic.twitter.com/WjJvrQR393 — Rob Shaw (@robshaw_vansun) March 1, 2018

“The panel acknowledges the issue of affordability caused by real rate increases,” the BCUC wrote in its decision.

“We further agree that freezing the rate for one year increases the affordability of electricity for that year, thereby reducing the hardship that may otherwise be faced by some customers.

“However, under the current legislative and regulatory framework, the panel is unable to consider the economic circumstances of individual ratepayers. Simply stated, a utility is entitled to recovery of its prudently incurred expenditures and utility owners are entitled to a fair return on its invested capital.

“These costs should be reflected in rates to customers who benefit in that period and must not be deferred to future periods in the absence of a statutory or regulatory justification. We note that if a utility owner is willing to forego some or all of their return on investment, rates could potentially be reduced accordingly.”

Hydro insisted the commission give strong weight to Premier John Horgan’s public comments, and mandate letter to the energy minister, that Hydro freeze rates this coming year. Hydro argued to the BCUC that Horgan’s assertions were “substantive regulatory justification for the rate freeze.”

But Hydro’s arguments were undermined by the fact it had already spent months, and submitted hundreds of pages of written documents, arguing why it needed at least a three per cent rate increase to cover its costs. It also had no answers to commission queries about how it would cover the cost of the rate freeze, or how it would affect the 10-year rate plan the Liberals set for Hydro and the NDP are now revising.