BC Hydro recently released its first quarter results for the fiscal year ending March 2024. The report covered three months in 2023: April, May and June. It is worth looking at the changes at British Columbia’s public utility since June 2007.
When BC Hydro said that growing demand required asset additions worth billions of dollars and contractual commitments of $50+ billion owed to independent power producers, should we have believed what they said? The record clearly states the answer was NO.
Lew Edwardson wrote the following as a comment on the post Lack of transparency at BC Hydro may conceal massive fraud. It deserves to be repeated in this separate post. WARNING: this will not build confidence in elected officials and senior public servants.
BC’s government seems determined to continue the present model for private power in the intended 2024 call for additional electricity. The difference in 2024 will be that large contracts for wind power will be issued. Government knows that citizens would not, and should not, tolerate privatization of the public utility. The arrangements with Independent Power Producers, which are largely owned outside of British Columbia, amount to privatization by stealth.
Site C was conceived when output per MW of capacity was higher than it has been in recent years. BC Hydro has regularly claimed that 1,100 MW capacity at Site C will annually produce 5,100 gigawatt hours (GWh) of electricity. That would be 4.64 GWh per MW of capacity, almost a quarter more output than BC Hydro’s dams have collectively produced in the five fiscal years.
Boston University economist Dr. Jetson Leder-Luis studies fraud in public spending. He estimates that fraud in large projects may divert five percent of spending. On the Site C power project, that suggests fraud could amount to hundred of millions of dollars. BC Hydro’s lack of transparency encourages corruption.
BC Hydro is preparing a call for power and expects to award new contracts to independent power producers in 2025. The 500 MW Revelstoke 6 is deferred again, even though it could produce electricity for about $1.2 million per MW of capacity, which would be less than one-tenth the cost per megawatt of Site C capacity. While BC Hydro has been buying private power, it has been exporting public power at market rates. If we value private power purchases at the same value the utility has realized from trade sales, the losses form 2010 to 2022 amount to $6.4 billion ($7.5 billion in 2022 dollars).
A Bloomberg headline too consequential to ignore: European Power Prices Plunge Below Zero as Solar Output Booms. Had British Columbia committed to wind and solar power eight years ago, it could be experiencing the same low cost energy. . .
For years, informed commentators without a partisan interest or a financial stake in construction of Site C argued for alternative energy projects. BC New Democrats and BC Hydro were disinterested in lower cost production of electricity generated close to where it is consumed. Many of us are certain we know why.
Public utility BC Hydro is now admitting that significant rate increases are coming because of Site C. Whatever happened to the “40 percent growth over 20 years” that BC Hydro had promised throughout a decade and a half of flat demand?
I invite readers to look beyond a comparison of the noted energy projects to consider the long term objectives of two publicly owned energy companies. BC Hydro is focused on doing what it has done since the 1960s. Sweden’s Vattenfall is an innovator, creating permanent jobs and pursuing solutions to address the climate crisis…
Gaining billions of dollars, with a promise of $50 billion more, by selling an unneeded product to a single customer for a multiple of market value ought to earn IPPs a featured place in the Canadian Business Hall of Fame.
BC’s Auditor General says the 2022 surplus would be $6.5 billion higher if government followed Canadian Public Sector Accounting Standards. The surplus would have been $8 billion had government also eliminated fossil fuel subsidies.
Because corrupt practices of the past are not easily resolved in court, it may be too late to save the billions of dollars that will flow to private power producers. But it is not too late for voters to punish political figures who originated or tolerated this grand scheme. They sit on both sides of the BC Legislature.
The utility that for years could not estimate demand growth accurately and missed on the Site C cost estimate by 100% knew the future danger posed by rooftop solar panels. How are you going to expand a business empire if you allow ordinary people to interfere?
In psychiatry, the word “delusion” means a firm belief in what others know to be false. Despite evidence of massive physical and financial risks, Liberals decided to green light Site C. Not wanting to be labeled anti-development, and having its own friends to reward, BC NDP chose to carry on…
Misinformation is common in our world. Sometimes it involves benign self-protection or ego boosting. Other times, humans use deception to gain advantages. Businesses and governments do it every day, by simple shading of the truth, egregious deceit, or something in between. With cooperation and assistance from government, BC Hydro relies on the illusory truth effect…
Political observers who expected BC NDP to live up to electoral promises of 2017 are by now thoroughly disillusioned. Broken promises could pave the the grounds of the BC Legislature…
As managed since 2001 under Premiers Campbell, Clark and Horgan, BC Hydro has been an unqualified disaster. The company has used falsehoods to justify capital spending of about $40 billion during a decade and a half of flat demand. Instead of managing BC Hydro for the benefit of citizens, political officials in BC have directed or assented to disastrous utility policies. This is another case of supervision by policy regulators who do not believe in regulation. To them, private interests are foremost, public interests subordinate.
The way forward is privatization of BC Hydro and creation of a strong, independent, and unassailable regulator that ensures citizens are protected from capitalist profiteering and self-interested financial fraud orchestrated by corporate insiders and politicians.
English writer Lewis Carroll penned the title words for Alice in 1865. Carroll, born Charles Dodgson, was also an Oxford trained mathematician. Were he a 21st century resident of British Columbia, Carroll might be using that phrase about BC Hydro deals with SNC-Lavalin…
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Batteries? Sand Batteries?. Are you kidding? More energy Innovation from? Finland. Why am I not surprised? https://www.msn.com/en-ca/money/general/the-sand-battery-that-could-change-home-energy-forever/vi-AA26xRxk?ocid=winp2fptaskbarhover&cvid=6043e23f9df14c50f9b622b91223d915&cvpid=6a6616b797344bd9b7dc6759606e5153&ei=87#details Finland’s radical answer…
Geothermal Innovation? https://www.cbc.ca/radio/quirks/former-mines-geothermal-energy-1.6720501 Dirty old mines could be a source of clean new energy Bob McDonald's blog: Springhill, N.S., heats…
in-sights.ca 
It's that big bad Global Warming hoax-thing, isn't it? How else can you explain what they’re doing to fish in…