From BC Hydro’s quarterly report for the period ended September 30, 2012:
“As a result of the high inflows, the Company sold a significant volume of surplus energy in the six months ended September 30, 2012, an increase of over 4,000 GWh as compared to surplus energy sales in the first six months of fiscal 2012. The high inflows also resulted in both the Williston and Kinbasket reservoirs spilling substantial volumes of surplus water in the summer of 2012… (emphasis added)”
In the six months ended September 2012, BC Hydro purchased 5,589 GWh of electricity from private power producers for $383 million, an average cost of $68,527 per GWh. BC Hydro didn’t need private power since it was generating more than it could sell domestically, despite dumping stored water without running it through generators.
Surplus electricity sold through trade markets returned $24,580 per GWh while BC Hydro paid almost three times that unit value for private power. One could calculate an apparent loss of $246 million between BC Hydro’s purchase price and its selling price for private power. However, the loss is even higher because potential power, not generated when water was spilled from dams unused, could have been had for little more than zero marginal cost.
The loss noted above is for six months only. The “fiscally prudent” Liberals are costing electricity consumers more than half a billion a year. That affects residents and light industrial/commercial clients but also puts heavy industry at a disadvantage.
Kind of at odds with government advertising currently costing taxpayers millions of dollars.