An internal BC Hydro report rated geopolitical, cybersecurity and capital planning risks higher priorities than climate change, debt and supply chain issues.
“Ongoing geopolitical and macroeconomic conditions including the war in Ukraine, shifting global trade alliances, energy security, COVID-19 recovery, global inflation, etc. are driving uncertainty resulting in broad range of impacts to our business and our customers,” reads the document. “Senior leaders maintain oversight on addressing cybersecurity advisories resulting from the potential Russian threat against NATO countries.”
Meanwhile, the capital plan faced “significant cost pressure” due to system maintenance requirements and inflation-driven increases in construction, equipment and materials costs, and labour and supply chain shortages. The Crown corporation’s biggest project, the $16 billion Site C dam, also got a high-risk rating. The summary cited concrete production, delivery and placement, inflationary pressures, rising interest rates, and equipment and material supply constraints as risks. Mitigation measures included completing a review of the project budget to identify cost pressures and savings, and confirm that the project can be delivered within the approved amount.
Under the heading of shareholder expectations, the Crown corporation flagged the transition from former premier John Horgan to Premier David Eby in late 2022 as a high priority.