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What the BC Hydro Report Hides
Premier's team deftly obscures the real fix, and what drove up costs: BC Lib decisions.
BC Hydro transmission tower on Mt. Seymour. Photo by agaumont from Your BC: The Tyee's Photo Pool.
"You shouldn't have to pay higher than necessary electricity rates, because government wants to play politics with BC Hydro." -- BC Liberal Party 2001 election platform
The B.C. government report suggesting BC Hydro cut its planned 50 per cent rate hike must have been written in a burning glass factory, because it's full of smoke and mirrors.
That explains why despite the misleading appearance of being "tough" on BC Hydro, this report in fact completely ignores obvious solutions and lets the government right off the hook.
Instead of terminating the expensive, useless and possibly unhealthy billion dollar "smart meter" program, the report instead suggests BC Hydro may need to charge consumers more money sooner to pay for it!
And still worse, the report doesn't conclude that government must immediately stop forcing BC Hydro to buy extremely expensive electricity from so-called independent power producers -- because hydro rates are going up unnecessarily as a result.
Hardly surprising the government emerges unscathed, because the report was authored by Premier Christy Clark's own Deputy Minister John Dyble, Finance Minister Kevin Falcon's Deputy Minister Peter Milburn and Advanced Education Acting Deputy Minister Cheryl Wenezenki-Yolland, B.C.'s former comptroller general.
Even they had to admit that private IPP electricity in the latest call for tenders costs $124 per megawatt hour compared to power readily available to Hydro on the market at between about $4 and $52.
BC Hydro purchases of IPP electricity have jumped dramatically, from $364 million in 2007 to $568 million in 2010 -- a 64 per cent hike. And let's not even talk about the $30 billion obligation B.C. has to the IPPs in contracts stretching over the next quarter century -- because the deputy ministers certainly don't.
But the report makes darned sure people who are not responsible for BC Hydro's rate increase extravaganza will pay the price -- consumers and BC Hydro employees.
Hydro rates will still go up at least 16 per cent over three years instead of a planned 32 per cent, including an eight per cent jump next year. No word on what happens to two additional eight per cent hikes in each of the two years following that for the original total of a 50 per cent compounded rate increase over five years.
And up to 1,000 workers will get a pink slip from B.C. Hydro, on top of the 400 meter readers who are being phased out as smart meters are installed -- who were previously "outsourced" to private multinational Accenture Business Services.
They saw it coming, and hid
The BC Liberal government knew in advance that smart meters and a huge call for expensive IPP electricity would be big trouble with BC Hydro customers. That's why in April 2010 they exempted both from approval by the BC Utilities Commission which regulates energy issues.
Just like the Harmonized Sales Tax, this government wasn't confident enough in the merits of their policies to subject them to independent public review -- and to let voters decide the issue before a provincial election.
And not the for the first time, the BC Liberals completely contradicted their 2001 election promise to "restore an independent BC Utilities Commission, to re-regulate BC Hydro's electricity rates."
"You shouldn't have to pay higher than necessary electricity or auto insurance rates, because government wants to play politics with BC Hydro or ICBC. You should be confident that government will protect your interests," the New Era for British Columbia party platform loudly proclaimed.
Protecting friends and interests
Instead, the government has been working hard to protect its own interests -- and those of its friends and political donors who own IPPs and install smart meters, as previously documented by The Tyee's Will McMartin.
The deputy ministers' review of BC Hydro is intended to give the government the tools to look good by cutting the proposed rate increase -- but it also should give critics considerable worries about customers being gouged even more.
The report backs the Smart Metering and Infrastructure [SMI] project completely: "The business case rationale for the SMI project appears reasonable, and the assumptions used to support the cost savings are generally consistent and supported."
But there's a catch, and it's a big one. BC Hydro consumers aren't paying enough for the billion dollar boondoggle.
The deputy ministers say cost recovery won't happen until 2015 -- conveniently well after B.C.'s scheduled 2013 provincial election -- or possibly even after a 2015 election should Clark hold an early election this year.
The report states: "The scheduled completion date for the installation of the smart meters component of SMI is in 2012, yet no costs are to be recovered until three years later, according to the current Revenue Requirements Application."
"This deferment of costs is understandable from the perspective that BC Hydro does not wish to increase rates or pass on costs to the ratepayer pre-maturely," it concludes.
No, don't increase rates even more "pre-maturely" -- wait for the politically right moment -- after an election.
True courage
Given all this, one wonders if New Democrat energy critic John Horgan has a very strange sense of humour.
Horgan has publicly called the three deputy ministers who wrote the report "courageous" for saying the government may need to rethink its energy self-sufficiency policy that forces BC Hydro to buy high cost power from independent power producers.
Courageous? Christy Clark and Kevin Falcon’s own deputy ministers don't do anything courageous if that means contradicting the wishes of their bosses!
What would be truly courageous for this government is to do what is obviously needed:
Cancel the smart meter program and tell independent power producers the gravy train ride is over.
And put publicly owned BC Hydro back in charge of generating electricity at the lowest possible cost for consumers.
If not, smart meters and IPPs may be another big reason voters will put the BC Liberals out of power. ![]()




45
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Lin
40 weeks ago
Lowest possible cost for consumers
I challenge the author to provide an alternative low cost solution for electricity in BC. Coal was proposed, then challenged and rejected. Site C, small or large, private or public renewables are not as cheap as developing large hydro in the 1960s and 1970s. The alternative is to import from regions that develop the coal and nuclear that is rejected within our borders OR to drastically cut back demand through conservation - something SMIs attempt to do. Consumers: rates must go up. BC Government: increase rates for those who can afford it.
Gary
40 weeks ago
I challenge
the liberal spinner above to show the people just why we have to pay these huge costs of IPP power generation regardless whether Hydro buys it or not. And for the record most of these IPP's cannot produce hydro in peak usage periods because there is no water available to generate the power.
Having to pay for something that you are not provided is extortion, pure and simple.
pianosaurus rex
40 weeks ago
facts Lin
I challenge Lin to come up with a bona fide reason as to why we require more electric energy needs.
I challenge Lin to tell us why we need to buy IPP power when it is only available in the spring run-off when the BC hydro dams are full.
I challenge Lin to explain to us why a private company would purchase power at 124 per kilowatt when they could produce their own for less than half that cost.
I challenge Lin to explain to us why BC hydro has been compelled to pay for this IPP power.
I challenge Lin to compile a list of former liberal ministers and deputy ministers who now are directors of Plutonic power.
After all over the last decade BC has been an exporter of Alberta’s dirty and cheap power.
Some facts Lin instead of the usual propaganda.
pianosaurus rex
40 weeks ago
Another good one for you Lin,
The reason BC hydro power is so cheap is the fact that the entire infrastructure is paid for long ago.
The biggest reason that IPP power is so expensive is the fact that their infrastructure is not paid for.
So we as taxpayers are expected to pay for the infrastructure of private companies?
Can you explain why we collectively should do this as British Columbians?
Dan the socialist
40 weeks ago
Can you explain why we
Can you explain why we collectively should do this as British Columbians?
==========
We shouldn't but most BC'ers are uninformed whether on purpose or not. The BC Liberal friendly 6 pm news casts would never dare tell the sheep the truth...
OhCanada
40 weeks ago
Tesla principle
Why is it that people never think of creating their own energy instead? Why do we have to be tied to power porducers and then being gauged for more and more money while the company mismanages the business and want users pay for it? This is absolutely insane.
On the other hand energy is still very cheap on this part of the World therefore no one is forced to look for alternatives. Which exists already through the Tesla principle. http://www.youtube.com/watch?v=aKal8ymJdkY
In parts of Germany almost every house has a solar panel on it. While it cannot replace all energy use in the house it certainly reduces usage from the provider. Thus you pay less for the electricity.
And then you have the www.earthship.net in New Mexico that have tests sites for building energy neutral buildings - using solar and wind for energy production. It exists. What do we have here?
Why is it that people are not interested in this kind of solution? Everyone is bitching about hydro rate hikes and etc. instead of looking for becoming energy independent. Hydro would pay me then to use their electricity I guess.
Those who own their houses are in the best position to become less dependent on bought energy, yet I haven't seen one house in BC with a solar panel on it. Talk about dumb.
Most Canadians have no idea how good they have it in this country. Bring in the rate hike, make it super expensive - maybe then people will start to think for themselves and look for more viable and sustainable solutions.
pianosaurus rex
40 weeks ago
Good one Dan
So by extension I have built a business over the last 39 years. I want to charge a 10 cent fee to every BC’r so that my capital costs are paid back to me.
But that’s not all; how about if we all pay for Pattisons’ car dealerships. Or perhaps the entire mining infrastructure of Hunter Dickenson.
Let’s not forget the gambling place out there in Richmond; we should all pay for that building too.
Geezus didn’t Delta just build a new hotel somewhere? How come we are not paying for that construction?
Are we all expected to have the brains of a small shrimp??
A while back I was musing about how desperate this government is to show some benevolence. I suggested that one way was to let the HST fail and then to have a press release stating; “see our government does listen to the people.”
This BC Hydro report, completed by liberal government friends, deliberately inflated the numbers to double what they should have been; then the government could come in and reduce the numbers to give appearance that they “care about families and the average British Columbian.”
-----------
Oh Canada I posted about Nicolai Tesla and his invention last week; it is a good topic and deserves its own reporting. One thing I have seen missing from all the reporting on the BC hydro situation; alternative methods of power generation like the Tesla coil.
Mr Beers? You have the floor…….
telus employee
40 weeks ago
contibutions add up to $600,000 for 2009
1. Pristine Power 95150
2. Teck Cominco Metals 75000
3. Plutonic Power 69100
4. Peter Kiewit and Sons 62500
5. Brookfield Asset Management/Renewable Power 60000
6. NaiKun Wind 24650
7. Cloudworks Energy 16050
8. Donald McInnes 15550
9. Pacific Bioenergy 14500
10. Ledcor CMI 12600
11. Syntaris 12300
12. Nexterra 11000
13. Golder associates 8488
14. Ledcor construction 8000
15. Canadian Hydro Developers 7000
16. Jeremy P. Haile 6400
17. Run of River Power 6000
18. TransAlta Utilities 5850
19. Capital Power Corp - See Epcor 5700
20. Pinnacle Pellet 5320
21. Fred Olsen Renewables 5000
22. Fortis ----Aquila (2002) 4670
23. AMEC EARTH AND ENVIRONMENTAL LTD. 4500
24. National Public Relations (Joined IPPBC 2008?) 4450
25. Alterna 4000
26. Aeolis Wind Power 4000
27. Epcor Utilities 3876
28. ELEMENTAL ENERGY INC 3500
29. Ainsworth Lumber company 3050
30. Kleana Power 3000
31. General Electric 3000
32. AltaGas 3000
33. Ledcor power 2500
34. Glacier Power 2400
35. Juergen Puetter 2010
36. Renewable Power 2000
37. Peter Kewitt 2000
38. Sea Breeze Power 1975
39. PG & E 1832.25
40. HEMMERA ENVIROCHEM INC 1650
41. Innergex 1500
42. GEOFFREY PLANT 1360
43. Robert Poore 1321
45. Enbridge Wind Energy 1300
46. Regional Power 1000
47. R. Stuart Angus 1000
48. CRAIG ASPINALL & ASSOCIATES 900
49. R.G. 'Jako' Krushnisky 750
50. HAWKEYE Energy 750
51. Fries Creek Hydro 700
52. Rupert Peace Power 650
53. PRINCE GEORGE INTERIOR WASTE TO ENERGY 650
54. Walter Segsworth 500
55. GLOBAL ENERGY HORIZONS 500
56. CRAZY CREEK POWER COMPANY 500
57. LEVELTON CONSULTANTS LTD. 400
58. NATURAL POWER CONSULTANTS ASSOCIATION 350
59. PRINCETON COGEN LTD 306
60. Tom Syer 300
61. Dr. Alexander Eunall 300
Total 2009 contributions to
BC Liberal Party from IPP
related interests:
$598,608.25
http://contributions.electionsbc.gov.bc.ca/pcs/SA1Search.aspx
telus employee
40 weeks ago
$1.5 million to BC Libs between 2001-2009
"total financial contributions from IPP industry to $1.5 million since 2001."
Vox.Pop
40 weeks ago
Another BC Liberal Scam
Well said, folks. What a terrible scam! Classic BC Liberal "help our friends at the public expense" policy. Let's have the whole of the BC NDP come out screaming over this latest abuse (perhaps to coincide with the announcement that the HST is soundly defeated). Let them confirm now that they will eliminate these DUMB meters & DUMBER IPP commitment (& cleanout the BC Hydro Board of Directors & Executive). Let's make this another major election issue. Time for the fat cat Liberals to go on an extended vacation - at least, for 10 years.
woodworker
40 weeks ago
green power
Lots of Tyee readers and writers and always complaining the we don't go green and as soon as we do look at the whining about the price. Can't have it both ways.
AS for solar power. A $1000 (one years present hydro bills) will run less than one circuit in my house at most 40% of the time and if you figure snow cover more like 25% on of the time an none of the time of highest energy use. It would cost $20k to power my furnace and then only when no snow and sunny so for $20k worth of solar panels I could get maybe 300 or less hours of year of free heat, Not on my coin. Got to figure, I don't need heat during the day most of the year. And solar does not work at night. And when I do need heat during the day we have snow cover so panels won't work.
RobertWilliams
40 weeks ago
smart meters
MUST-SEE 4-minute youtube video on Smart meters:
http://www.youtube.com/watch?feature=player_embedded&v=8JNFr_j6kdI
RobertWilliams
40 weeks ago
Smart Meter Health Problems and Cancer
SMART METER HEALTH PROBLEMS AND CANCER.
A. The WORLD HEALTH ORGANIZATION on May 31 2011 placed the Non-ionizing radiation coming from Wireless smart meters (and some other wireless devices) on the Class 2-B Carcinogen List, along with DDT and Lead.
http://www.iarc.fr/en/media-centre/pr/2011/pdfs/pr208_E.pdf
B. The NATIONAL INSTITUTE OF HEALTH months ago (Feb 2011) found biological changes in the brain after only minutes of exposure to non-ionizing radiation.
http://jama.ama-assn.org/content/305/8/808.abstract
C. LABORATORY SCIENTISTS have observed
(1) Human Cell Damage
(2) DNA Chain Breaks
(3) Breaches in the Blood-Brain Barrier
from levels of non-ionizing radiation lower than emitted by WIRELESS Smart meters.
http://electromagnetichealth.org/electromagnetic-health-blog/cc-video/
D. INSURANCE COMPANIES Hired Independent Laboratory Scientists and these scientists also observed Cell Damage and DNA Chain Breaks and now the Insurance Companies will NOT Insure Liability of damage from Wireless Smart meters and other wireless devices.
TV Video (3 minutes)
http://eon3emfblog.net/?p=382
So shouldn’t installation of Wireless smart meters on people's homes STOP?
Because Cell Phone use and other devices are Voluntary and can be shut off at the user’s discretion, that is a different issue.
1. WIRELESS SMART METERS – 100 TIMES MORE RADIATION THAN CELL PHONES.
Video Interview: Nuclear Scientist, Daniel Hirsch, (5 minutes).
http://stopsmartmeters.org/2011/04/20/daniel-hirsch-on-ccsts-fuzzy-math/
2. WIRELESS SMART METERS – CANCER, NERVOUS SYSTEM DAMAGE, ADVERSE REPRODUCTION AFFECTS.
Video Interview: Dr. Carpenter, New York Public Health Department, Dean of Public Health, (2 minutes).
http://emfsafetynetwork.org/?p=3946
3. THE KAROLINSKA INSTITUTE IN STOCKHOLM (the University that gives the Nobel Prizes) ISSUES GLOBAL HEALTH WARNING AGAINST WIRELESS SMART METERS.
2-page Press Release:
http://www.scribd.com/doc/48148346/Karolinska-Institute-Press-Release
4. RADIATION MEASURED FROM SMART METER MOUNTED ON A HOME (once active in the utility system) SHOWS RADIATION BURST PULSES APPROXIMATELY ONCE EVERY FOUR SECONDS 24 HOURS PER DAY traveling into and through the bodies and brains of the inhabitants of that home.
Youtube Video (6 minutes, 1st minute is sufficient).
http://www.youtube.com/watch?v=uRejDxBE6OE
rantnic
40 weeks ago
B.C. Hydro, a runnaway train
Where are the brakes.
The Liberals policy has sent our once profitable jewel of a crown corporation spiraling into bankruptcy like a runaway train. The combination of IPP's and the Smart Meter Program is putting Hydro over $3.5 billion in debt. The bailout will then rest on our shoulders as citizens to pay the debts to the liberal banker friends by doubling our rates or by selling our assets at a bargain basement price, to private interests(see above list of contributors).
One major advantage of the smart meter is that it will be able to tell if you are charging the batteries on an electric car. Hydro will then be able to impose a government tax on that usage, this will help cover the lost revenues from gasoline taxes.
Why that darn smart meter may even be able to read the GPS units that will be required to license electric cars in the province and charge taxes by the kilometer.
motorcycleguy
40 weeks ago
whining Tyee readers
woodworker hits the nail on the head....when we do need heat and/or electricity snow is covering the ground and solar panels will not work....that means woodworker realizes neither will IPP river power....the water is hard when it is cold out....there is no electricity generated when we need it most...it is not green to bottom drain alpine lakes like they are doing on the Sunshine Coast and then clearcut hundreds of km of powerline right of way to connect to the existing grids...this is already on our coin and will be for the duration of the contracts.....we aren't whining about paying extra but we are whining about paying it to private foreign corporations and we are whining about it not being any greener than what is already out there....the monthly production figures for IPP's prove that there is virutally no output until April or May of each year....then when there is, we pay 3 x the rate we can sell it for...yes..we have to sell it because we already have too much of our own at that time
A Voice
40 weeks ago
The NDP in all this
Vox.Pop wrote Another BC Liberal Scam
Well said, folks. What a terrible scam! Classic BC Liberal "help our friends at the public expense" policy. Let's have the whole of the BC NDP come out screaming over this latest abuse
*******************************
The problem is that the NDP are a bunch of pussies, with no balls to stand up for whats right, you would almost think they were on the Liberal payrole the way they avoid confrontation like the plague. When was the last time ANY of them stepped up to bat for us and did any good, they cant even stop fighting among themselves long enough to take a stand on these issues, especially the Hydro issue, something that should have been dealt with years ago, when the Liberals started monkeying around with our crown jewel. No, I truely dislike the Liberals, but dont see the NDP proving they are any kind of leaders. And thats the problem with BC politics right now, liars and thieves on one side, and bunch of spineless clowns on the other
motorcycleguy
40 weeks ago
batter up
"If not, smart meters and IPPs may be another big reason voters will put the BC Liberals out of power"
*********************************************
"may" be another big reason.... is a pretty wishy washy statement...more IPP contracts are being finalized as we speak.....we "will" vote them out if there is someone actually at bat this time around ...there sure wasn't the last time....the official opposition has some pretty good batters now, it is about time to use them and do some official opposing
kootenay
40 weeks ago
NDP Outspoken From the Beginining
The NDP has spoken out against IPP power projects from the get go, so I don't know where Motorcycle guy is getting his information from.
Simply go to your favorite web browser and type NDP IPP Power, you will get many hits and see that they have in fact been very clear on their position.
Here's a good article Rafe Mair wrote in February of this year; you could use this to start your education.
http://thecanadian.org/k2/item/569-liberal-candidates-clueless-on-ipps
enjoy
verso
40 weeks ago
A Voice...
"The problem is that the NDP are a bunch of pussies, with no balls to stand up for whats right,"
Really? What more should the NDP be doing? Let's have some specifics, please.
"When was the last time ANY of them stepped up to bat for us and did any good, they cant even stop fighting among themselves long enough to take a stand on these issues, especially the Hydro issue, "
BS. Just because you personally haven't heard it, read it, or watched it doen't mean it hasn't happened.
Just one example: NDP MLA, John Horgan has been a very vocal critic of the BC Liberal's IPP deals. He is well versed on the subject of BC Hydro, too. A simple Google search will provide you with plenty more information should you really want it.
Cool Hand
40 weeks ago
IPP's Redux
As of April 1, 2011, BC Hydro has 68 Energy Purchase Agreements from IPP's representing 12,524 gigawatt hours of annual supply.
Lets break this down further:
During the Socred 1980's, BC Hydro entered into 16 EPA's for 2,205 GWh.
During the NDP 1990's, BC Hydro entered into 5 EPA's for 3,220 GWh.
Now we are upto 5,245 GWh of EPA's from IPP's during the Socred and NDP regimes.
Then we add on IPP's which an NDP gov't would also be required to agreeto:
Vancouver Landfill - 55 GWh
Brilliant Expansion 1 & 2 - 429 GWh
(Columbia Basin Trust)
Alcan Kitimat - 1,945 GWh
So now we are up to 7,674 of GWh in EPA's from IPP's.
That leaves 4,850 of GWh in EPA's from IPP's during the Liberal regime representing 38.7% of GWh of IPP's since the 1980's. Big deal.
http://www.bcenergyblog.com/uploads/file/IPP-Supply-List%20April%202011.pdf
BC Hydro purchased power from IPP's at a rate of $62.53 MW/hr according to its 2011 annual report.
That's cheaper than what power will cost BC Hydro from the newly refurbished BC Hydro Aberfeldie run-of-river generating station.
That's also cheaper than what power will cost BC Hydro from the newly-to-be refurbished BC Hydro Ruskin Dam.
BC Hydro still has the second lowest Hydro rates in North America.
OTOH, Manitoba Hydro, under an NDP administration, has purchased EPA's from IPP's as well. That's from the St. Leon and St, Joseph wind farms, some of the largest wind farms in Canada.
BTW, wind power production is intermittent and some of the most expensive power that you can purchase.
So why is the Manitoba NDP government so gung ho on Manitoba Hydro IPP purchases from multi-national corp.'s? Anybody? Anybody?
motorcycleguy
40 weeks ago
John Horgan
is precisely the good batter I speak of...and precisely the reason I support him....he is very knowledgeable, well spoken and has a real sense of presence...he always follows up on inquiries....there is no doubt the current (no pun intended) government is wary of him on all subjects, not just IPP's. I apologize if my remarks made it seem I was not aware of NDP opposition to IPP's...I know that. My comments were more a result of my dismay with the lack of prominence of this issue during the last election....thus the "batter up" call. There will not be another chance. I also understand there is a real issue getting exposure in the media....but the harder the coaches let the batters hit the ball, the more chances to get the truth out to the general public, a great number of whom are still in the dark (pun intended)...no ill thoughts about the NDP, just impatience on my part.
A Voice
40 weeks ago
verso
VERSO - BS. Just because you personally haven't heard it, read it, or watched it doen't mean it hasn't happened.
******************************
Really? And has ANYTHING they have done worked?
Did they stand up for us for the HST? It took VanderZalm to get things going with an apathetic public, then ANYTHING the NDP did.
Did they STOP ANYTHING? How vocal were they with the BC Rail deal and trial? Did they do anything about the Liberals trying to break up BC Hydro?
I would love to see the NDP become a stronger opposition, but based on their track record, I dont have much faith in them. An ex politician,once again, Rafe Mair has done more to prevent ROR projects than any one on the NDP.
Better to see them with your eyes wide open, than staring at them with rose colored glasses.
paisley
40 weeks ago
What would we do without Coolhand?
"Manitoba Hydro, under an NDP administration, has purchased EPA's from IPP's as well. "
Point well taken. The similarity between BC and Manitoba is immeasurable and it seems the reach of these socialists has no bounds.
"BC Hydro still has the second lowest Hydro rates in North America." And for those that don't know, in Libya the price of gas is 25 cents a gallon. They should be paying the same as the rest of us don't you think?
"BTW, wind power production is intermittent and some of the most expensive power that you can purchase." And for those that don't know, rain, waves and sunshine are intermittent too and can be expensive power as well.
"That leaves 4,850 of GWh in EPA's from IPP's during the Liberal regime representing 38.7% of GWh of IPP's since the 1980's. Big deal."
Right! BC Hydro being on the hook for some 50 Billion dollars can't be a big deal, can it?
Logical BCer
40 weeks ago
Hydro Quebec
Let's not forget Hydro Quebec in all this. They have only twice the number of customers as BC hydro but 23,659 employees (2010). Hydro Quebec also has lower rates than BC Hydro.
It was also funny to see no comment in the report about having too many accountants at BC Hydro; it must be because the report was written by accountants...
RickW
40 weeks ago
One thing to remember, y'all......
Saanich-Gulf Islands MP Elizabeth May says that up to 60% of generated power is wasted through inefficiencies in transmission and usage. So why aren't we addressing this before talking added generation cxapacity?
jnewcomb
40 weeks ago
what tieleman hides?
Tieleman ignores HUGE Powerex salaries as well as many BIG BC Hydro salaries - not made by management but by rank-and-file employees. Check out VanSun salaries database: http://www.vancouversun.com/business/public-sector-salaries/index.html
BCUC should be beefed up and BC Hydro should be returned to the private sector like where it was before 1962 and the megalomaniac obsession by WAC Bennett to convert Peace and Columbia into power generators. Private entreprise couldn't make a profit - but Wacky figured that growth, development and damming the environment was just fine.
G West
40 weeks ago
jnewcomb - you're joking, right?
Are you entirely unaware of the history of privatization of electrical utilities?
I think you need to do a lot of research because you're posting pure bunkum.
frank2
40 weeks ago
Two points not mentioned so
Two points not mentioned so far:
--the Liberal decision to grandfather industrial use at the old rates, leaving consumers to handle extra costs through higher rates.
--the failure to explore hardwired metering (avoiding the emissions problem, but retaining the advantages of continuous monitoring of consumers)
Vox.Pop
40 weeks ago
@Logical BCer & BC Hydro Accountants
***
It was also funny to see no comment in the report about having too many accountants at BC Hydro; it must be because the report was written by accountants...
*****************************
It is not just that all those authors of the BC Hydro report were accountants but the fact that they are Deputy Ministers. What's even worse, 6 of the 10 executives on Hydro's management team are also accountants (including the CEO, there's only one engineer.
http://www.bchydro.com/about/company_information/executive_team.html
All of these were appointed by the BC Liberals or their stooges on the Board of Directors (who were appointed by the BC Liberals). This helps the Neo-Cons push through their sell-off agenda: accountants are pussy-cats who don't argue with their clients. The sneaky trick here is to load up good public operations like BC Hydro (owning valuable assets) with crap liabilities & then claim the only solution is to sell off the public company at knockdown prices to more of their friends.
sunshine coast girl
40 weeks ago
@ A voice...
"Really? And has ANYTHING they have done worked?
Did they stand up for us for the HST? It took VanderZalm to get things going with an apathetic public, then ANYTHING the NDP did"
You haven't got a clue what you are talking about. Who do you think did the actual work for the Citizens' Initiative? Do you think Vander Zalm and Delaney had any people? No, they didn't. It was the NDP and their people who successfully organized the Petition. Not the Tories; not BC First; not VZ or Delaney. The NDP. Get it?
jimmy_laroux
40 weeks ago
@Cool Hand
This is a lie. The actual quote from BC Hydro (indeed from the very link you post) is this:
Emphasis mine. You clearly distorted BC Hydro's original statement in this way in order to pretend that there are not many, many more EPAs which have been signed by BC Hydro but are not yet producing power.
Here are a few examples, representing 3265 GWh/year of energy. In 2010 alone the Liberals agreed to buy more energy from IPPs than did the NDP in their entire time in government. In addition to the 3265 GWh/year of energy in the 2010 Clean Power Call, EPAs for roughly 600 GWh/year from the Forrest Kerr plant (AltaGas), and 630 GWh/year from the Waneta Expansion project (Fortis) were all signed in 2010 but are not delivering power. That’s almost 4500 GWh/year of energy for which EPAs are singed but which is not yet being delivered. And there are EPAs from the F2006 Call for Power which are not yet delivering. So the total for which EPAs have been signed is well over 17000 GWh/year. If we leave out purchases from Alcan’s Kemano plant, then the Liberals signed over half the EPAs, and the NDP ~18%.
jimmy_laroux
40 weeks ago
@Cool Hand
This is a grossly misleading comparison, as I’m sure you know. Over half the energy currently generated by IPPs is either from thermal plants (natural gas or biomass), or Alcan’s Kemano plant. Alcan’s plant was built over 50 years ago, so its electricity is cheap compared to newly built sources, just as electricity from BC Hydro’s “heritage assets” is vastly cheaper than electricity from new IPP projects. And you surely know better than anyone that building a natural gas plant is cheaper than a run-of-river plant. Indeed, you were shilling for natural gas right here on the Tyee not so long ago . These cheap sources decrease the average IPP price, and the they make the other very expensive IPPs (like wind and run-of-river) look much cheaper than they really are.
But rising fast. Thanks Gordon!
I agree entirely. Did you know that run-of-river is also intermittent, non-firm power and is also some of the most expensive power that you can purchase? That BC Hydro has signed EPAs for many projects generating electricity from both wind and run-of-river sources? Then why are you still shilling for IPPs?
Henry Dorsett Case
40 weeks ago
The first poster here "Lin"
The first poster here "Lin" must have poster within moments (literally) of when this article was posted.
Good to see the PAB work 24 hours a day.What kind of over time do you think they get?
Lin
40 weeks ago
@pianosaurus rex and @gary
As a left of center (i.e. non-Liberal) voter, I do not defend IPPs as the best model and agree that questioning accountability and transparency is important as BC Hydro is settling into this less than ideal (but dominant) model. However, I see very little in the way of alternative approaches that would negate the need to increase prices.
Price is a key issue - out of all OECD countries, Canada has lowest cost of electricity to consumers with the exception of Mexico (see Electricity Information 2011 report issued by the International Energy Agency, see page III.55, here: http://bit.ly/r5NgDR). Across Canada, BC has the third cheapest electricity rates after Manitoba and Quebec (see 'average electricity bills' provided by Manitoba Hydro, bit.ly/afq3w0). Further, the alternative to adopt the Hydro Quebec model proposed by @Logical BCer (above) is flawed - this Crown corporation not only started to tender to private companies to supply electricity like BC's IPP model, but has been able to keep costs low by making money for rate payers through investing heavily and provided expertise in foreign dam projects including China's Three Gorges! This was dropped in 2006 and, guess what? Rates are going up (see: http://bit.ly/nq07U7)!
The policy problem in my mind is how to manage this price increase so that people will not be harmed by these increases. In the UK, there are people freezing in the winter because they cannot heat their homes. Electricity is important for quality of life and raising it slowly or providing subsidies for those with low incomes might be useful.
Lin
40 weeks ago
@Henry
Not sure what a PAB is, but I am not one.
This issue seems a lot like the debate over carbon taxes to me. I think electricity price increases and carbon taxes are inherently good policies, aimed at reducing inequalities and improving our environmental quality. I do agree we need to hold government accountable and ask them how they will avoid impacting on people's lives, especially people who are poor, through refining the policy or adding subsidies, equalization, exemptions, etc.
I think our energy that is directed at outright opposition to policies should be redirected at issues like the two Enbridge pipelines that our federal government is actively promoting abroad, despite active opposition from citizens outside our borders:
http://bit.ly/oYeKxu
G West
40 weeks ago
This....(see below) simply isn't true
"...electricity price increases and carbon taxes are inherently good policies, aimed at reducing inequalities and improving our environmental quality."
Neither of these statements actually bears up under any kind of scrutiny. In fact, precisely the 'opposite' is true of the Campbell Tax (otherwise known as the carbon tax) and it is equally true of increases in the cost of electricity to consumers.
In fact, it can be argued that keeping Hydro costs low (and rejecting the move to high profit, long term contracts with IPPs) would not only have helped the environment but would also make BC more competitive in terms of jobs and manufacturing.
As for the Campbell Tax, it is a net drag on the provincial budget and it has not created ONE green job, converted one work truck to natural gas , nor built one mile of rapid transit light rail.
The whole idea is a joke.
The PAB, by the way, is the Public Affairs Bureau – the largest ‘newsroom’ in the province and the source of much disinformation about provincial policies and programs.
pianosaurus rex
40 weeks ago
joke indeed
Gasoline prices at the pump spiked in yr 2000 or a bit later some 50 per litre. This spike created no measurable difference in people’s consumption behaviours.
So how does 7 cents a litre gas hike modify consumption behaviours as is the claim.
Secondly please provide one bona fide reason as to why we require more electricity in this province.
7 years of the last decade BC has been a net exporter of electrical power.
Spending time comparing our rates to others is a waste of energy in itself.
motorcycleguy
40 weeks ago
@ Lin
The monetary cost is not the key issue, but it sure is right up there. One only has to look at construction and operational photos to see the environmental cost of inappropriately named "run of river projects"...they are true hydroelectric projects with dams and penstocks draining alpine lakes. They cannot exist as small powerhouses, they must be linked together in clusters to become even close to economically viable. The infrastructure involves hundreds of km of clearcuts for powerlines and service roads through some of our most pristine wilderness areas. There are a few excellent projects that really do displace fossil fuel generated electricity and are positioned close to the point of use, but by and large their existence under this government is solely to serve as a vehicle to generate income from export for foreign corporations and "retired" government officials. They are touted as "green" in order to grow the carbon credit trading industry and subsequent stock market promotions. The public is being misled by the term "run of river". Getting misled is becoming tedious. The risks coupled with the costs (monetary and environmental) are just too high……..unless a great part of the monetary risk is borne by the taxpayer and knowledge of the environmental risk is kept from that same taxpayer. They cannot even be relied on for backup power…. when we would need the power the most, the rivers are frozen. They cannot be relied on for a good rate of return for private investors without the lucrative contracts and required legislation put in place by the very people that are now employed by the IPP industry.
seth
40 weeks ago
Wire the smart meters - the economics.
Bill and all you folks have down a great job putting paid to this worthless report done by individuals with zero knowledge of the power industry.
The report failed to separate the trees from the forest, concentrating on nitpicking accounting adjustments and job loss strategy so typical of today's fascist business practice while ignoring the huge IPP and smart meter mess.
The report has no vision.
The report backed BCHydro's scam justifing its smart meter program on the $110M expected to be saved by cutting off 850 GWh in annual grow shop power thefts priced at the IPP contract power rate of 12.4 cents a kwh. Since the loss of that 850 GW load will not result in the elimination of a single IPP power contract all of which are surplus to current needs well into the future, the real value would be close to zero - its value on the Columbia grid. That same hypothetical saving could be achieved for less than 2% the money by installing 25K feeder meters instead of 2000K customer units then comparing feeder totals to current monthly customer meter readings. Existing meters could be also modified for about $10 allowing remote reading off telephone or internet lines.
The report ignores the wired smartmeter which would pay for itself by for less than $150 one time charge per customer, or a buck or two a month connecting the entire province to a best in the world 1000 Mbs internet with wired customer internet connections shared with wired smart meters, and out in the street wireless replacing cell phones. There are with 57K kilometers of distribution lines and 2 million meters in the province.
No more high powered (1 watt) transmitters posted on the wall 6 inches from your sleeping child's head. Note that cell phones transmit at a tenth a watt.
Unfortunately, this would darn near put Shaw and Telus out of business, interfering with campaign donations and post political board of director appointments for our corrupt politicians.
seth
40 weeks ago
Nuclear vs IPP's - the economics
The $30B in 2011 dollars so far committed to date to the IPP scam is rapidly expanding to the $65B level as signed contracts (some which fail or under perform) join the grid. These will ultimately produce about 1.5 GW average of power compared to the 6 GW average produced by today mostly Heritage BC Hydro production grid.
BC's traditionally low information greenies like Barlee always fail to mention that BCHydro is only a 30% wedge in BC's GHG pie. BCHydro needs to expand to three times its current size in order to replace fossil fuels.
Virtually the entire $65B in planned IPP expenditure is wasted (more than 200 times the fast ferry loss), since BCHydro is also being paid to take worthless legislatively mandated wind power for decades to come from Washington state - all it needs for decades - compared to the 12.4 cents it is paying for the worthless springtime only intermittent power it cannot resell. It will also soon be able to import, dirt cheap nuclear power clean and green from neighbouring states and Alberta.Can't get greener or cheaper than that.
Had the current $30B been spent on new Candu reactors, BC BCHydro would have added 15 GW average of clean and green power to its grid, eliminating its GHG contributions.
Natural gas heating application would move to green zero carbon electric heat displacing a third of energy requirements and for about $15B a gas to liquids plant like Shell's new facility in Qatar could produce all the gasoline and diesel BC needs from nuke hydrogen. At a cost of under $30 a barrel the plant would pay for itself with clean and green synfuel exports.
BC's Greenie global warming Deniers who don't believe the science that tells us we could hit a civilization ending climate crisis within the decade should read what the world's foremost climate scientist and greenie superstar James Hansen has to say about their Big Oil financed anti nuclear campaign here.
http://bravenewclimate.com/2011/08/05/hansen-energy-kool-aid/#more-4888
zalm
40 weeks ago
Common sense?
To end power theft by grow ups would require only the legalization of marijuana as a cash crop, appropriately taxed and sold like liquor, and provide the government with a nice taxation bonus in the bargain possibly even equivalent to our much-bemoaned provincial deficit.
Y'all can pick your favourite conspiracy theory - I'm not much on any of 'em - but there's no common sense in the business model we've been sold. This government (all governments!) really need to keep their mitts off Hydro!
jimmy_laroux
40 weeks ago
@Lin
Do you even have the slightest idea what's going on, why people are upset? It seems not.
Then you're blind. As pianosaurus rex pointed out above, how about not forcing BC Hydro to buy vastly more power than it needs? How about letting BC Hydro and the BCUC do their job? They were doing pretty well until the Liberals came along.
So we should raise it for no earthly reason other than to fill the pockets of Liberal party donors by paying for electricity we don't need? Why should the ratepayers of BC pay much higher electricity rate in order to subsidize worthless sources of electricity?
pianosaurus rex
40 weeks ago
only part of the reason
Zalm;
I don’t believe the power theft from grow-ops claim entirely. This is a ruse to distract from the real problem. Grow-ops do not amount to even half of what is wasted, for example; last Friday night I took the bus home from Empire Stadium.
While waiting at Burrard and Dunsmuir for transit to the west side I counted 125 rooms in the Bell tower all with gas tube (fluorescent) lighting on at 11pm at night.
And that is just one guy, looking at one building, one side of the building I could see…..
pianosaurus rex
40 weeks ago
agreed Jimmy
One thing about this that really bothers me is this; when you have to buy a car or a house or whatever you have choices….
Now with our auto insurance we are forced to purchase ICBC nonsense and subsidize all of the drivers with poor records and this is a tremendous sore spot with me…..
To extend it further now OUR POWER COMPANY has been forced by legislation to purchase power; power that is twice the price of our own and further, power we cannot use at that specific time of year.
So now what? Power sells on the spot market for less than half of what we just paid for it….
So what do we do with a commodity that is unsellable? What does any business do with a product that is unsold?
They ditch it and eat the cost….that means you and me pay for it…..why???
Also remember that these power companies get an HST rebate do you think that the IPP’s leave the rebate in BC? Not in your life; that money disappears from our economy.
Cool Hand
40 weeks ago
Yo Jimmy
You habitually label people liars on this site. That's always been a hallmark of the left. No wonder the MSM calls the NDP on their conduct when they form government here in BC! What goes around always comes around.
I referenced EPA's in production as of April, 2011. You then reference future EPA's without mentioning the attrition rate of these EPA's due to various financial, technical and other matters.
And then you mention Forrest Kerr. That ain't going ahead unless/until the NW transmission line is built.
And then you mention the Waneta Dam Expansion, which is also owned by the Columbia Basin Trust. An NDP government would also purchase that power. Don't kid yourself.
And then you attempt to marginalize the NDP's involvement in IPP's. Go figure.
And then you shill for natural gas or bio-mass because it's cheaper. You fail to mention that they also emit far higher carbon emissions, which is an anti-thesis to the BC NDP, which also wants to become BC's "green party" and attract its supporters.
And then the BC NDP doesn't want BC Hydro to purchase BC IPP green power but Albertan (or other jurisdiction) non-green IPP power ... ie. coal or natural gas because its cheaper.
Non BC IPP power is good but BC IPP power is bad? haha
Ya just can't have it both ways. To be clearer, ya can't both have your cake and eat it.
Now..... please.... please... give me a rational explanation for Manitoba Hydro (under an NDP government) purchasing expensive IPP power from the St. Leon and St. Joseph wind farms!
That power is more expensive than BC ROR IPP power and Manitoban NDP politicians are at the ribbon cutting ceremonies as well as provide government financial guarrantees to their financiers. Incredible.
As of now, all that I hear are crickets.