Last week’s article INDUCED FAILURE included this paragraph:
The consumption of electricity in this province has remained stable for a dozen years. In fact, during the first half of the current fiscal year, consumption is down by 2.1%, compared to the preceding year. BC Hydro’s management uses different numbers by conflating power consumed by its end-users with power sold on the open markets. Sales outside the province that used to be reported as “trade” sales may now be included in “other” sales and the utility pretends the volumes are part of domestic consumption. They dare not be truthful because it explodes their claims of growing demand.
Since then, readers have asked me to enlarge on this information. As usual, I provide a graph based on data from BC Hydro’s operational statements. This shows how reported “other” sales are now wildly different than they’ve been throughout BC Hydro’s history.
BC Hydro’s management are using deferral accounts and accounting trickery to conceal the company’s financial conditions and prospects and they are telling outright mistruths about demand for electricity by consumers in British Columbia.
Remember, this graph shows the real use of electricity by the province’s residential, commercial, light industrial and heavy industrial power users. It plainly does not support spending $20 billion more on the electrical system.
Categories: BC Hydro
As you’ve stated in other posts, Norm, this is “buy high and sell low.” If it’s IPP power they are selling at around the $30 per megaWatt/hour range… they’ve often paid upwards of $90 per mW/h to take it off the IPP’s hands.
“We don’t need your power — but we’ll take it and sell it for a big loss, because the BC Liberals told us to.”
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It’s long past time when a decent, non partisan Attorney -General would have had a full investigation of this gang but we dom’t have suvh a person. Too bad, for then we would find out if, since 2001, BC Hydro has been run by incompetent half-wits or crooks or more likely a combination of both. So far Christy, whom you uduslly can’t shut up, has been silent on the biggest corporate train wreck by far in BC history. It’s we the people who are the half-wits if she isn’t made to answer on May 9 for this destruction of BC’s greatest fiscal heritage.
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It is tough to follow the ‘be civil’ guidelines for commenting. The Liberals have manipulated the public, ignored the opposition, twisted the laws and the regulations, and they have tried to hide the costs of the Site C turkey. Paying interest, and interest only on a 9 Billion debt, on a 70 year mortgage at a 70 year average interest rate of 7% means payments totalling more than 40 Billion dollars. And Hydro would then renegotiate the full mortgage. Of course if the construction/destruction costs balloon the interest costs would go up.
In the end the only way to correct matters at BC Hydro and with the Liberals is to get an action for fraud in a court of law that names individuals. It was almost accomplished with the BC Rail transaction.