Category: BC Hydro

IPP losses about $800 million in 2016

Despite the flat demand for power, BC Hydro is not only buying more private power, its capital spending program is out of control. As a result, despite a reduction in sales to BC customers since 2005, the utility’s assets in 2016 are 256% of the total eleven years ago. With Site C and other major capital projects, we can expect assets to grow by another 15-20 billion dollars in the near future. BC Hydro’s politicized management, under directions from Victoria, are hiding bad news with accounting trickery and, while they’ve increased the average price to residential and business consumers by 74% since 2005, the rates must rise significantly or the province must reverse the flow of cash from the public treasury to the accounts of BC Hydro.

Liberal estimates and guesstimates

A brisk building boom of hydropower mega-dams is underway from China to Brazil. Whether benefits of new dams will outweigh costs remains unresolved despite contentious debates. …We find overwhelming evidence that budgets are systematically biased below actual costs of large hydropower dams — excluding inflation, substantial debt servicing, environmental, and social costs. …The outside view suggests that in most countries large hydropower dams will be too costly in absolute terms and take too long to build to deliver a positive risk-adjusted return

Surprise is surprising – UPDATED

$101 billion in contractual obligations is breathtaking? What is really surprising is that Toronto Globe and Mail’s BC political reporter didn’t notice before February of 2017. On one hand, I applaud Ms. Hunter for daring to mention the subject now. On the other hand, I wonder why she previously avoided this huge issue and did not report it fully in her newspaper?

Blunders, haste and waste – UPDATED

We know the Premier vowed to get Site C dam past the “point of no return” before the May 2017 provincial election. Clark’s Liberals have their own reasons for Site C haste and these eventually will be revealed, perhaps by a postmortem report of an inquiry into the economic destruction of BC Hydro. However, we do know that incautiously pushing a project forward can be costly. Unfortunately, the cost of error will fall not on decision makers but on taxpayers not wealthy enough to hide their income elsewhere.

Assets up, production down

In the real world, if a company grew its assets by $18 billion (138%) but reduced its production by 8%, heads would roll. In Premier Clark’s La La Land, party favours roll instead. Good Liberal CEO Jessica McDonald is secure in her job, at least until until May 9.

Liespotting

BC Hydro will lose hundreds of million of dollars per year on Site C dam output, according to a Vancouver Sun article by economist Marvin Shaffer. Facing an installation cost double that of power from utility-scale solar or gas fired turbines, additional hydro-electricity is unneeded and unaffordable. However, in the face of an election, the board of BC Hydro, loaded with Liberal patronage appointees, is not about to correct its faulty course.

Falsehood flies, truth comes limping after it

A message to BC Hydro: “Figure out what you are supposed to be doing, then do it.
W.A.C. Bennett established this vital crown corporation to provide reliable, affordable power to British Columbians. That’s what it should be doing.
Instead, it is forcing citizens to pay much higher prices to provide financial benefits to foreign owned companies and a band of me-first IPP slicksters and a group of political contributors gaining returns on their liberal investments by sitting in the boardroom of BC Hydro.

Other lies

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.

Why this, why now?

Are there secret reasons why Liberals committed billions of dollars for Site C to produce power that BC consumers won’t need, even in the distant future? Have we had hints of why there is a rush toward what Premier Clark called the point of no return and what others called a route to nowhere? Do those reasons have anything to do with the rewarding habits of prime Site C contractors?