Category: Power Generation

After careful consideration, we’re screwed !

Locking BC Hydro into decades-long contracts (as much as 60 years) was a colossal mistake that ignored the likelihood of technological change. The cost of utility scale solar and wind power has dropped dramatically in recent years. As a result, BC Hydro will be paying tens of billions of dollars extra to private producers enjoying inflation protected prices far higher than alternative options.

Run of river, or ruin of river?

In the three months ended December 31, 2015, BC Hydro BOUGHT 3,719 GWh from private electricity producers at an average price of $91,422 per GWh (total $340 million). In the same quarter, BC Hydro SOLD 3,493 GWh to heavy industry at an average price of $54,394 per GWh (total $190 million). Liberals claim themselves to be wise managers of public finances.

Reward without risk for worthless surplus power

British Columbia’s government believes less in free enterprise than in assisted activities for approved associates. Entrepreneurs saw potential for a private power generation industry in the province but didn’t want to risk their own money. Instead, they arranged with the Liberal government for the public to accept all risks and guarantee substantial profits to the schemers…

Unparalleled, indeed

How fortunate (sarcasm alert) that British Columbia had a government determined to spend big dollars to increase exports to American markets for electricity. Lucky too that Liberals had the full support of business leaders and a courageous corporate press willing to stand with the government and call out naysayers who thought it was a mistake to commit tens of billions more to insure private power producers against business risks.