We know Gordon Campbell crafted a story that people in BC should have enough domestic generation capacity to cover the most extreme shortage of water we could imagine. Like any unethical insurance salesman he consciously omitted telling the public what certainty of supply in a highly unlikely year would cost.
If one looks at economic disasters of the past, one thing is certain. Warning signs were obvious to people who paid close attention but were ignored by the rest. You can be sure that Erik Andersen’s concern arises from paying attention to rising debt levels and how the ordinary public will ultimately be left with an unaffordable burden.
In private emails, a number of people with expert economic knowledge exchange ideas about energy in BC. I get copies of some. This example, written by respected and retired economist Erik Andersen, refers to electricity markets in BC…
Most readers will be familiar with Erik Andersen, an expert commentator about economic matters in BC. This is the original text he submitted to the Vancouver Sun after the newspaper published an […]
BC Hydro and their consultants have not moved up the learning curve despite being wrong year after year for more than 12 years and sadly the BCUC has let them ride on this way. The consequence of being deliberately wrong for 12/15 years is the condition we now have. Residential and small business rates up +70% with no increase in demand. We also have new contractual debts of plus $60 billion to IPPs…
Recently, economist Erik Andersen circulated a paper discussing government liabilities and the games played by governments to disguise unconscionable growth of debt during non-recessionary times. I’ve expanded Erik’s words and we hope the following discussion will be understandable and helpful.
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…
BC Hydro has been announcing profits each year and that enables it to pay a dividend to the province, although it has to borrow the money to make the transfer. I argue […]
This devastating information from Erik Andersen, an economist and widely recognized expert on government and Crown Corporation financing: You will note the unbelievable increase in BC Hydro’s debt since Christy Clark took […]
From a presentation by renowned columnist Erik Andersen on CBC: …After BC Hydro made all the IPP contracts Premier Campbell found that California did not consider “run of river” generation green. Not […]
Economist Erik Andersen, writing at The Common Sense Canadian, contemplates why BC Hydro: indulged in its aggressive contracting with Independent Power Producers in BC when domestic demand increases are nonexistent. I suggest […]
Gerry Hummel’s full size piece about this BC Liberal enrichment program may be seen at The Common Sense Canadian. While there, read BC Hydro Driving Rates Higher, the work of economist Erik […]