BC Hydro

Circular flow of income

Dr. Eoin Finn, an expert in international business and a leading Woodfibre LNG opponent, spoke to the independent Coast Clarion and said, “The fight is nearly over.”

This was a project that Christy Clark’s Liberals hoped to promote in the May election as proof their LNG strategy was not constructed with glitter glue and puffballs. Postmedia, a partner of the Canadian Association of Petroleum Producers, reported Premier Clark’s words:

This is the first of 20 projects that are in the pipeline somewhere to go forward so far, and I’m just delighted to say that LNG in British Columbia is finally becoming a reality.

clark in Howe SoundIts convenient proximity to the city, ensured that any Woodfibre photo op attracted city-bound media along with a host of Liberal MLAs and nameless party apparatchiks. But, there may have been darker reasons that explain how a convicted, big league tax avoider and destroyer of tropical jungles gained special treatment from British Columbia’s government.

At TheBreaker.news, indefatigable investigator Bob Mackin reported:

Woodfibre LNG donated $79,500 to the BC Liberals from 2014 to 2016, including $5,000 just 11 days after the eDrive announcement. [Country manager for Woodfibre Byng] Giraud gave $48,964.36 since 2006. Two of Giraud’s 2016 Liberal donations ($10,225, Sept. 30 and $3,050, Nov. 30) bookended the period that included Coleman’s meeting with Tanoto and the eDrive decision. Natural gas supplier FortisBC and its predecessor, Terasen, donated $327,487.79 between 2005 and 2016.

Economists write papers on the circular flow of income but they don’t include the flow between politicians, businesses and the public treasury. In BC, it is commonplace.

Eoin Finn may have explained how Woodfibre can afford to pay both lobbyists and Liberals.

BC Hydro pays Woodfibre $1.7 million a year for electricity generated at the site. It’s a small independent power producer (IPP); water from a lake up top powers a small turbine.

I think it is a take or pay: whether Woodfibre gives electricity to BC Hydro or not, BC Hydro is on the hook for $1.7 million a year. It allows Woodfibre to pay their staff out of what is essentially an ongoing gift from BC Hydro.

BC Hydro pays Woodfibre $158 per megawatt hour, about twice the rate to break even. But last November, it was announced that Woodfibre will be able to buy electricity from BC Hydro for $54 per megawatt hour.

If correct, and BC Hydro’s FIA report supports the amount, that payment of nearly 16¢ a KWh is almost 50% more than the average paid other IPPs and six (yes, 6) times the price at which BC sells the Canadian Entitlement from downstream benefits of Columbia river dams.

The price BC Hydro pays Woodfibre for power is also three times what BC Hydro would charge Woodfibre to liquefy what would probably be royalty-free, subsidized natural gas.

If you are an observer grown cynical – like the writer – you may wonder what secret benefits are to be found in the circular flow of income between Government, leaders of the governing party of British Columbia from 2001 to 2017 and the companies they purport to regulate. 

coleman
Sukanto Tanoto & luxury housing expert Rich Coleman holding LNG documents Government refuses to release to the public.


Are illegal donations from Woodfibre LNG linked to political favours?, Tracey Saxby (Co-Founder of My Sea to Sky), Dogwood BC

6 replies »

  1. ”Say anything Christy to get elected has got to go. W.A.C. Bennett once said, “never waste
    live ammunition on a dead duck. Kevin Falcon must be licking his lips. “Drain the swamp”.
    Thank you Norm for exposing all the cockroaches in Chrity’s pay to play scam.

    Liked by 1 person

  2. So was the ‘Christy’ Squamish LNG hype for real or as has always been the case… just more electioneering spin? I guess we may find out one day.

    Both these Pirates above would look a lot better in handcuffs.

    Liked by 1 person

  3. Things won’t change with Falcon, remember that. He’s another wolf In sheeps clothing, another of the Campbell clan. They’re all the same. Not working for the citizens of this province. Never have, never will.

    Like

  4. I wonder if Christy’s many “internal enemies” will attempt a putsch after they are defeated? Gives one pause. I think it is likely they will try. However, the years she consolidated power and destroyed opponents like Ben Stewart, George Abbott and Kevin Falcon point to a personality cult there. In this case, I think that she would be regarded as a politician past her prime.

    Like

    • I think she’ll leave the Legislature on her own because she will have favours to cash. There may be no softer landing spot than the Canadian Senate and there she can accept well paid posts with the companies that have thrived under her Premiership. That will put her in the oil & gas biz, construction and real estate development. Those companies made billions so they’ll find room for her without a second thought.

      Liked by 1 person

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