Future of BC Hydro CEO in question as Horgan takes control

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The days of BC Hydro's current president and CEO appear to be numbered following the NDP government's appointment of a new board chair, amid plans for a review of the controversial $8.8-billion Site C hydroelectric project in northeastern B.C.

Finance Minister Carole James was non-committal about the future of Jessica McDonald, the current leader of BC Hydro. She has held various public-service positions under both NDP and Liberal governments and was a former deputy minister to ex-premier Gordon Campbell.

"Those are discussions that the board chair will be having with the board about how to make sure that Hydro is focused on the public of British Columbia," Ms. James said in an interview. "We'll be looking at all the options that the board chair makes recommendations on on how to get the corporation back on track. I am not going to prejudge that."

Asked about Ms. McDonald's professional future, BC Hydro referred questions to the new NDP government, which was sworn in earlier this week.

The BC NDP and BC Greens, who are supporting the NDP so they can govern, want a review of Site C's viability by the BC Utilities Commission. The NDP also campaigned on a commitment to freeze hydro rates.

The new BC Hydro chair is Kenneth Peterson, whose 40-year career in the electricity industry has seen a decade's work as CEO of Powerex, the marketing and trading subsidiary of BC Hydro.

The appointment was among several announced Thursday, including former NDP minister Joy MacPhail as chair of Insurance Corporation of B.C., the province's publicly owned vehicle-insurance agency.

Ms. James suggested both BC Hydro and ICBC have moved away from serving the public, who benefit from affordable electricity and auto insurance rates. She said the new board chairs will move in that direction.

She touted Mr. Peterson as a good hire, noting he has had a 40-year career in the electricity industry, with the last 10 years at the hydro subsidiary Powerex.

"I have full confidence that we have the right person in there as board chair."He replaces Brad Bennett – the grandson of former B.C. premier W.A.C. Bennett and son of ex-premier Bill Bennett – who learned Thursday that he was out as hydro chair after five years when someone sent him a text flagging the media release about Mr. Peterson's appointment.

Mr. Bennett said he is well-aware about how politics works , referring to the arrival of a new government, but some heads-up warning of the change would have been appreciated. "I have been around politics my whole life. None of this was unexpected, but there is a classy way to do things. They chose the unclassy path."

He said Ms. McDonald has been an "outstanding" CEO. "As much as they would perceive her as being political, she is not. She actually comes from the bureaucracy and was appointed into BC Hydro because of her capabilities in that regard."

However, he said the larger issue is the fate of Site C, the focus of about $2.5-billion in committed project contracts. Killing the project, he said, would have "tremendous" financial consequences.

Mr. Bennett, who travelled with BC Liberal Leader Christy Clark during the spring election campaign, said moving Site C to approval and construction was one of the accomplishments he was most proud of.

Both the NDP and the Greens are working together to draft the terms of reference for the utilities commission review. On Thursday, Ms. James said this is a top-priority issue for the government. "We're working on that as quickly as possible," she said. "This is day two, really a day and a half in the new government. We're moving as quickly as we can."

While the government goes through that process, more than 2,000 workers are working on Site C.

Adam Olsen, one of three Green MLAs, said the NDP was only sworn in 48 hours ago, and both parties are working on the issue. "I am hoping we can get [the terms of reference] in as quickly as possible and the process moving as quickly as possible because work is going on on the project."

Former BC Liberal deputy premier Rich Coleman, now in opposition, said workers on Site C come from ridings across the province – including Ms. James's. "These people's jobs are at Site C. The first question I ask is, 'Are you going to tell them all they are losing their jobs?'"

He said there are hundreds of millions of dollars committed to the project now – estimates suggest at least $2-billion – justifying its completion.

Mr. Bennett said the uncertainty puts cost pressures on the project as well as "unfair pressure" on all workers involved with the project. "We leave the project on budget and on schedule. The decisions they make from this point going forward could have a negative effect on the schedule and budget of the project."

However, he said he doubted the NDP and the Greens will hold off on proceeding with the review.

"It's all politics," he said, "and frankly, it's disruptive politics."