BC consumers to subsidize electricity exports
February 5, 2010 by Norm Macdonald
Filed under BC democracy, BC finance, BC news, Business, Energy
BC Liberal private power agenda will cost taxpayers $450 million a year.
A leaked document has confirmed what many British Columbians have always suspected about the BC Liberal private power agenda; forcing BC Hydro to buy private power does not make economic sense, says Columbia River – Revelstoke MLA Norm Macdonald.
In a submission to the Green Energy Task Force, BC Hydro’s largest industrial customers state that the government’s electricity export scheme will force BC Hydro to pay independent power producers twice as much for electricity as it would be worth on the open market.
This overpayment will cost BC Hydro $450 million per year, or $9 billion over the next 20 years. BC Hydro is a crown corporation which means that profits are returned to the province to fund healthcare, education and other government services.
“The BC Liberals are promoting the privatization of our rivers to generate electricity which taxpayers through BC Hydro will be forced to buy at exorbitant rates,” says Macdonald. “It doesn’t make sense for BC Hydro, and it doesn’t make sense for British Columbians.”
Private river-diversion projects have been built on rivers across British Columbia, and more are planned. Area residents are concerned about the proposed project on the Wood Arm, along the Athabasca Trail, the route which David Thompson travelled almost two hundred years ago.
“The David Thompson Heritage Lands are part of an important wilderness area that is nearly pristine. We need to protect this area for historical and environmental reasons. And with the release of these economic numbers it is clear that to proceed with this project will have negative economic impacts as well.
“The BC Liberal Energy Plan not only puts our province’s rivers at risk, it puts the viability of BC Hydro at risk. This plan takes money out of public hands and puts that money into the hands of private power producers.”
Macdonald is strongly encouraging people to continue their fight against the destruction of their rivers for private power production.
“So far two major private power projects have been stopped because of public outcry. In the Lower Mainland, 1200 people protesting the Upper Pitt River project forced the government to back down.
“Closer to home, the Glacier – Howser project has been stalled because people from all across the Kootenays have been clear that they will not accept the privatization of this river system or the destruction of pristine wilderness for the transmission lines.
“It has been proven; your voice really does make a difference.”
Golden
February 4, 2010
Norm Macdonald MLA
Columbia River – Revelstoke
Here’s an interesting article; http://www.vancouversun.com/business/Secrecy+shrouds+controversial+bailout+green+wind+farm/2539930/story.html
-”Energy Minister Blair Lekstrom is defending the controversial bailout of a troubled wind farm near Chetwynd in his Peace River South constituency.
“I was happy that we were able to move this forward,” said Lekstrom. “When it was under, it left a lot of people [in a tough spot] and a lot of money owing to a lot of businesses in the region.”
BC Hydro signed an energy purchase agreement with the private developer of the proposed wind farm at Dokie Ridge as part of a call for “green energy” projects back in 2006.
But work on the 144-megawatt first phase was halted during the global financial meltdown in the fall of 2008, amid rising construction costs and a consultant’s report that questioned the reliability of the site as a source of wind power.
Dokie was reactivated last fall, after being taken over by GE Financial Services and Plutonic Power, two firms that were already active in building independent power projects in B.C. However, they only agreed to step in after successfully persuading BC Hydro to sweeten the power purchase contract for the project.
“They came back and said, ‘With the numbers that were in that purchase agreement, it just can’t work,’” Lekstrom acknowledged during an interview with me on Voice of B.C. on Shaw TV last week…..
~Did this project not go through all of the necessary processes to prove it was a viable and to justify it’s construction in the first place? ~Endangered
Unfortunately, Norm Macdonald, in he and his party’s rush to slag anything to do with or might be associated with BC Liberals and his rush to appease his supporters, has been able to keep his opinions about the good part of ” Run of the River ” type power projects.silent.
There are good things about run of the river, there are good things about wind farms and there are good things about bio fuel generation plants not the least of which is using those dead and dying trees in the Central Plateau / Cariboo areas of the province.
As to Glacier Howse, Norm and his supporters did not understand the function of the Environmental Review process and ended up, in sessions, using the venue as a platform to vent against everything from the Columbia Rvier Treaty to privatization. to power lines in the wilderness.
They did forget the part of the system the EAO is tasked with addressing It there for one reason and one reason only, to address environmental issues of a proposal. Not listen to worries of selling to the ugly Americans, our water supply or our electricity. Norm knows that is not the case.
It was not about privatization of our rivers. He knows that is not the case. Yes, the rights to a company to LEASE the area and water license is set at 40 years. Privatization? Hardly.
Norm has been simply patronizing his supporters. Even the NDP party’s leader and executive has changed their stance for the party in relation to alternative power generation.
Why was Glacier Howse denied a license ??? It was because some folks stood up and talked about the environmental impact and lack of remediation regarding fish habitat. Nothing to do with power lines which the proponent has a very good solution and very innovative to boot, Not because of the Columbia River Treaty and its selling of power to the USA.
That Columbia Treaty sale and building of infrastructure has been in place for decades and has benefited the Kootenays immensely for decades.
An alternative to ” Run of the River ” type of power generation might be another dam on the Peace River and all that inherent issues. Also for that matter, all that inherent cost increase over what our current rates are being based upon. Costs have not gone up since the Columbia River dams have been built. Do you believe that? I don’t.
Our electricity rates have not gone up relative to current costs of building a dam across any river.
The remuneration reflected in the levels offered to private companies leasing rights to different streams and rivers does reflect current costs.
Hence the rhetoric of ” oh oh, the people of BC are subsidizing these private companies “.
Think on these realities of power generation.
Realistically, the easiest way to reduce electricity consumption in BC is to raise rates for hydro to both residential and to industrial users. There are however economic consequences to raising industrial users’ rates are there not?? Companies not being able to produce, then possible unemployment. But that would certainly force companies to reduce power consumption.
The consequences for residential upcharges is monies out of our pockets. The good side would then be, we would use less electricity.
Therre are good things and bad things to every choice a government decides to accomplish. It is always a balancing act. To make the best use of scarce resources, any government has to make choices and sometimes they are difficult and sometimes unpopular choices. More often than not, there is always someone out there that wants things differently. or in their vision.
The balancing act for any government in regards to power generation and use is : big power projects = Site C dam—— OR. small run of the river systems that require shorter power line transmission lines relative to a Site C —–Or Brown outs in our communities Read Golden in the immediate area —– OR sever conservation measures to stop over use of current resources which then means much higher hydro rates than currently in existence.
I would appreciate hearing back from you, the public as to your preference.
David R Pacey
President, BC LIberals
Columbia River Revelstoke
Cell 250 342 1524
For anybody whom would like to become more informed on Private power, risks to the taxpayers and alternate power sourses that may compete with Run of the river I would encourage you to read the information on this blog site; http://northerninsights.blogspot.com/search/label/BC%20Hydro.
B.C. Hydro seeks 9% rate increase, link here; http://www.theprovince.com/news/vancouver/Hydro+looking+nine+cent+rate+hike/2635613/story.html
The comments section is interesting.
Here’s a link to a precautionary tale of Unfettered Capitalism, Deregulation and a lack of transparency. Who killed Montana Power; http://www.cbsnews.com/stories/2003/02/06/60minutes/main539719.shtml
~Endangered.