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Canada: California’s electricity crisis has British Columbia giant on defensive

By  |  February 22, 2013

A massive legal case concerning money made by British Columbia more than 10 years ago at the expense of California’s energy crisis has BC and an electricity giant on the defensive. A US Federal Energy Regulatory Commission judge ruled earlier this month that the state of California could potentially collect $1.6 billion from power companies – including BC Hydro’s subsidiary Powerex – as a result of energy price hikes between 2000 and 2001. Energy costs jumped up to 900 percent at the time, leading to price-fixing allegations and specifically accusing companies of selling BC Hydro’s energy when prices were high, then selling energy to Canada when prices dropped, according to the court ruling. British Columbia’s Energy Minister Rich Coleman has denied any wrongdoing and said BC will continue to fight the allegations. Powerex says it expects another five years of court fighting in a case that has already lasted 12.

 

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