Retired economist Erik Andersen has long been a critic of BC Hydro’s economics. This week, he wrote:
In a few words, over a 15 year span, total annual revenues (what we have paid as customers) have increased by 100%, over the same period and with inclusion of contract obligations the total capital deployed more than doubled but customer needs ( as represented by volume of annual sales measured in gigawatt-hours) remained unchanged.
Erik says the intrinsic value of the money we pay BC Hydro has collapsed by more than half. Another thing to remember is that fifteen years ago, the utility didn’t resort to accounting trickery to claim profitable operations.
And that’s before Site C adds more than half a billion dollars a year to BC Hydro’s costs of operation.
My charts illustrate Erik’s words and facts that BC politicians and highly paid utility executives prefer were left unknown.