BC Liberals claim to be the “free enterprise” party of British Columbia but scams in play at BC Hydro are not examples of free enterprise. These are old fashion economic frauds committed by amoral thieves who have been enabled and protected by docile and dishonest politicians.
There have been a number of scenarios, here is one example.
Group X had no expertise in constructing and operating power facilities, nor money to fund any projects. However, they did have political influence with provincial policy makers who ensured open doors at BC Hydro. A few dollars spent on consultants to prepare attractive presentations led to assurances that British Columbia would allow access to public waterways and the provincial utility would sign long term contracts to buy all power produced at rates high enough to ensure profitability. Those commitments in hand attracted the large energy players who could provide construction funds and bring the generating stations to life. The politically savvy deal-makers converted their arrangements into cash and shares worth millions and walked away.
There was little financial exposure for the arrangers and no risk to the operating enterprises; they had guaranteed sales at prices that ensured profitability.
The deal makers bet on a sure thing because the results were rigged. Once Gordon Campbell was on board, it was merely a case of dividing the spoils. Media that has been wilfully blind allowed shifty operators to do deals with BC Hydro worth tens of billions of dollars. That may sound like hyperbole; unfortunately, it is not.
Now, BC Hydro is shutting down publicly owned generators because it is forced to acquire and distribute very high priced private power. This is kleptocracy operating with great efficiency. Thank you BC Liberals. Thank you Postmedia. Thanks also to the Shaw Family at Corus Radio and Global TV.
Hydro awash in private power, Scott Simpson, Vancouver Sun
“After a bumper year for precipitation in the Pacific Northwest, BC Hydro stations around British Columbia are sitting idle while independent power producers run flat out.
“There’s so much water available for hydroelectric power that a Washington-Oregon utility, which runs full-time to protect salmon and trout, is paying other utilities to take electricity off its hands.
“That means bargain-priced import electricity is available to BC Hydro from the Bonneville Power Authority, but it’s a bittersweet opportunity…”
“Overall, according to Hydro’s 2011-12 annual report, IPPs earned $676 million from Hydro in the 12-month period ending March 31…”
Had BC Hydro purchased that same quantity of power at recent spot prices, the savings to BC power consumers would have been as much as $500 million.