This is from a graphic story by the Los Angeles Times newspaper:
In the same period, BC Hydro’s per KWh price for sales to residential, commercial and industrial customers rose 63%.
With more than a decade of flat demand and huge power supplies coming from generating assets constructed many years ago, BC Hydro should have kept rate increases to a minimum, as have utilities throughout North America.
It is not hard to determine why prices increases in BC have been 5x the percentage in California. Three letters explain: IPP.
We’ve already paid the private producers about $10 billion for electricity that could have been available on the open market for around $3 billion.
Additionally, BC Hydro spent close to $1 billion of public funds on the NW powerline and associated infrastructure. These costly-to-maintain facilities primarily serve AltaGas and Red Chris Mines (like Mount Polley, controlled by billionaire Murray Edwards‘ Imperial Metals).
Operating on 60-year inflation protected supply contracts, AltaGas delivers overpriced power while Red Chris consumes electricity but defers payment of 100% of its electricity bills. One could not construct a more disastrous set of business transactions. They are so bad, BC Hydro’s underlying motivations must be questioned.
Remember, BC has been selling Americans its Canadian entitlement under the Columbia River Treaty. The prices received are 1/3 or less of what Site C power will cost. The new dam’s capacity is roughly equivalent to our entitlement.
So, why do we choose the most expensive, harmful option? Again, question the political motivation. The largest contractors on Site C have a record of involvement in corrupting public officials.
Categories: BC Hydro