The structure of the Canadian Entitlement makes it an extremely valuable commodity in the utility industry. Electricity is more valuable when it is virtually guaranteed to be available, or “reliable,” and when its delivery can be shifted to times of high demand, or “flexible.” The Canadian Entitlement offers both of these attributes. British Columbia’s sale of 4,540 GWh of electricity brings in about $120 million a year, which is 2.64¢ per Kwh. We didn’t need that power because, with ever-increasing purchases from independent power producers (IPPs), the province had surplus electricity. In the last reported quarter, December 2016, BC Hydro paid an average of 9.14¢ a KWh to IPPs. Had BC replaced IPP power with the Canadian Entitlement, at 9.14¢/KWh, it would have saved $295 million in 2016.
The Wall Street takeover of Canada shouldn't come as a surprise. Ex Goldman Sachs executive, Mark Carney, is demonstrating once…