Dr. Harry Swain explains in detail how BC Hydro can show a profit while losing money. He then describes the “oversight” process involving Site C.
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.
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.
A guest post from Roger Bryenton P.Eng. (former), MBA, Energy Systems Consultant, Suzuki and SPEC elder.
BC residents have not been told the full truths about Site C and BC Hydro’s markets for electricity.
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.
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?
Looming disasters in BC, ON and LN have one thing in common. They are the work of Liberal government controlled and politically manipulated Crown corporations.
The set of facts that troubles BC Hydro executives most is the one that best reveals their deceptions. The consumption of electricity in this province has remained stable for a dozen years. In fact, the first half of the current fiscal year shows consumption is down by 2.1%, compared to the preceding year. Under its current Liberal direction, BC Hydro’s leadership forgets the company’s original purpose. Now, the aim is to deliver benefits to a tiny group of individuals and corporations and to have ordinary citizens pay the cost, whether it is affordable or not.
Increasing IPP purchases and flat demand for power obviously means that BC Hydro creates less power to meet demand by its users in BC. However, massive spending means the utility employs more than triple the assets to produce one gigawatt hour of electricity than it did a dozen years ago. This is bad policy not explained by mere incompetence of management. We must conclude that the Liberal Government is directing the public utility, either to cripple it or to deliver billions of dollars to friends and supporters.
Opponents of Liberal power policy assume that, beyond grabbing the profits to be made flipping IPP contracts, Liberal operatives aimed to cripple BC Hydro to make its privatization palatable. The guiding parties decided they could gain more another way. There was no need to privatize Hydro’s assets and liabilities. Instead, they privatized its profits and left Hydro and the public with all the financial risks…
My children’s grandmother spent final years in our home. She lived for the children and was an oxygen-tank-dragging regular in front row seats at hockey rinks, ball fields, rec centres and concert […]
With mounting losses, declining consumption, soft markets for surplus power, $58.3 billion committed to high cost private power and a massive capital spending plan, only BC Liberals and their minions can see anything positive on the horizon for BC Hydro.
Moody’s Investors Service issued a warning this week about rising debt at B.C. Hydro. In the first six months of fiscal year 2017, term debt increased $1.3 billion to $19.5 billion. That number is up $7.8 billion during Christy Clark’s time as Premier, which is an increase larger than the total term debt incurred in the utility’s first 48 years of operation. Of course, debt has been rising quickly despite current consumption being the lowest in the preceding 12 years.
Swag is what British Columbia’s Liberal Party is about. Whether it’s cash-for-access, pay-to-play, quango patronage or tried and true scratch-my-back contracting, Liberals are practiced at converting public wealth to private. BC Hydro is an example. The utility paid private power producers over $9 billion between 2003 and 2016. But, that’s only the start.
Follow this link and read my commentaries about BC Hydro. Listen to CKNW on Wednesday after the 9am news. I’ll be talking with Jon McComb. ipp-purchases-and-market-prices
BC Hydro has experienced flat demand for more than a decade. Nevertheless, the value of its assets have grown 250% and purchases of private power grew 280% since 2005. Add to this, the fact it has committed to spend another $10 billion or so to build the Site C dam. It is inexplicable.
BC Hydro has three particularly important types of customers. These consumers, all inside British Columbia, are categorized as: Residential, Commercial and light industry, Heavy industry. There are others outside the province but BC […]
At my Tyee article BC Hydro: From Public Interest to Private Profits, a couple of commenters associated with BC Hydro and the Liberal Party dispute statistics. However, the numbers I use are from BC […]
An almost quote from James Boren, “Every Liberal has a right to fuzzify, profundify and drivelate. It’s a part of our freedom of speech…If people can understand what is being said in Victoria, they might want to take over their own government again.”