BC Hydro

When thieves hold keys to the public vault

Must reading from The Common Sense Canadian by economist Erik Andersen:

Sinister Financial Vectors at BC Hydro

  • From 2007 to 2010, there has been a $628 million reversal of net operating income.
  • The total volume of domestic (inside BC) sales went from 52,440 GWhs in 2006 to 50,233 units by 2010.
  • Debt-to-equity ratio has typically hovered around 70/30 but now is 89/11.
  • In fiscal 2007 about $236,000 of capital was used to produce one GWh. By 2010 it took 38% more capital to get the same quantity of energy for domestic customers.
  • A December 2009 report from Price WaterhouseCoopers projects that IPP projects will deliver 35,470 GWhs by 2020. The estimated total capital deployed would be $26.144 billion. That translates into $737,074 of new capital to produce one GWh.
  • With growth in domestic demand slowing and reversing, BC Hydro embarked on aggressive contracting for energy from IPPs. 
  • Sales to outside of BC customers have collapsed, leaving only the captive domestic customers to carry the growing financial burden.

Categories: BC Hydro, BC Liberals

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