This devastating information from Erik Andersen, an economist and widely recognized expert on government and Crown Corporation financing:
You will note the unbelievable increase in BC Hydro’s debt since Christy Clark took over, due largely to payoffs to Independent Power Corporations who repay Christy’s kindness with immense political contributions.
A case can be made that there is a positive co-relationship between total energy consumed and the economic health in the country of interest.
A reduction or flat-lining of total electricity consumption in the US is an indicator of reduced economic activity and a more miserable life style for the population. Is it any wonder that Mr. Trump is attracting such a political following when he seems to be able to express a frustration that likely has been building for a decade or so.
British Columbia is no different. Domestic electricity consumption today is exactly the same as was 10 or more years ago and that has varied almost not at all across the period. What has varied, naturally, are the rates charged by BC Hydro, globally up 30% and set to go a lot higher because of the $6 billion in deferred collections and the intention to spend $9 billion building the Site C dam.
Looking at just BC Hydro’s formal debt , the increase since 2005 has been a staggering 130%. If the contractual obligations to the Independent Power Producers is added in, the total as of a year ago was $13.2 billion plus about $50 billion for a total of nearly $70 billion. when the $6 billion of deferred collections is added in as well.
So here is the Government’s and BC Hydro’s brilliance. The customers of BC Hydro have not needed any additional electricity for more than a decade yet all the while customer rates increased by 30% and the debt to run the crown corporation has been increased by 1,170%, from $6 billion in 2005 to $70 billion in 2015.
Breathtaking does not begin to adequately characterize these developments.Erik Andersen