VANCOUVER — B.C. Hydro is not ready for a widespread disaster such as an earthquake because it does not have a proper disaster preparedness program, an internal audit says.
The December 2012 PricewaterhouseCoopers audit concluded B.C. Hydro does not have adequate management oversight of its disaster planning, has no effective process for assessing risks and has no comprehensive and integrated disaster plans.
The audit singled out the potential for damage to facilities and power lines in the Lower Mainland and Vancouver Island. The audit’s scope included other significant disastrous events such as a dam breach and widespread flood or fire, but not windstorms that bring down power lines.
Among the issues the audit highlighted:
• Only about 40 of 140 plans had been completed to prepare for specific effects throughout Hydro of a major disaster. But even these plans are not tied together in a meaningful way.
• Hydro’s insurance — a total of $2.25 billion to cover for general liability and loss to property, boilers and machinery — is not enough to cover a major disaster.
• Some emergency preparedness staff did not have the required capabilities and experience.
B.C. Hydro officials said Wednesday they were acting on the audit’s recommendations.
“It clearly outlined some deficiencies, took a critical look at our operations and helped us identify areas where we can improve. That’s what we have [audits] for, and now we are about to respond,” said Hydro spokeswoman Simi Heer.
Hydro has given itself three years to improve its major-disaster plan to industry’s best standards.
The audit’s finding came as a surprise to disaster management expert Paul Kovacs, particularly since the risk of a catastrophic earthquake in B.C. has been known for decades.
“My reaction is I am certainly shocked,” said Kovacs, executive director of the Toronto-based think-tank Institute for Catastrophic Loss Reduction and an adjunct professor at the University of Western Ontario.
He said particularly concerning to him was the report’s findings the Crown corporation may not be meeting regulatory requirements.
The B.C. Emergency Program Act requires Crown corporations to have a plan and procedures to describe how essential services will be provided in an emergency or disaster.
No overall plan exists for Hydro, but the audit said it was unclear whether the B.C. Hydro Act would exempt the Crown corporation from this requirement.
Kovacs said he would have liked to have seen the audit also assess how Hydro intended to mitigate the effects of a disaster, including the ability of dams to withstand earthquakes.
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