It is worth remembering that BC Liberals created a new class of debt that is not reflected in traditional calculations. They force BC Hydro to make advance commitments to purchase electricity for billions of dollars. The exact amounts are unclear to outsiders; the total seems to be in the range of $40 to $65 billion, and growing, the value of that power is unknown.
In other words, the total debt and payment commitments facing future taxpayers are far higher than the graph reflects, perhaps double. Recommend this post
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One odd thing in the new Clean Energy Act is that BC Hydro's expenditures for export of electricity are not to be recovered by increasing our Hydro rates (Sec. 4(5)).
ReplyDeleteThat means those huge expenditures, for Site C, more IPP power, etc, will have to be covered by increasing govt debt.
The govt said that Site C was for accommodating and backing up IPP power, I'm assuming for export.
So the public is to pay for Site C. And the public will also pay for expensive IPP power, by increasing govt debt. All without BCUC oversight, thanks to the Clean Energy Act.
Good stuff Norman....
ReplyDeleteThought you might be interested to know....
Today on the Sean Leslie show(Sunday June 13)....
Between 4:30 pm and 5:00 pm on CKNW the discussion of our BC Debt came up....
I sent Sean Leslie your link to the above article....
Sean Leslie....Right after the 5:00 pm news mentioned you by name and cited your debt numbers...
If you would like to hear it....Check the CKNW audio vault...Listen to the 4:30 segment first then listen to the 5:00 pm segment...
Cheers
Thanks Grant. It is worth noting that the self-styled great business managers have taken debt from $34 billion in 2001 to an estimated $56 billion at the end of their current three year plan. Maybe that end amount will be better, maybe worse.
ReplyDeleteHowever, there is another issue, a black lining to an already dark cloud? BC Hydro is making huge commitments to private power producers (commitments strong enough that financiers are taking the contracts as collateral) that add tens of billions more provincial debt.
The Auditor General when making the annual provincial debt report needs to publish the total contingent debt as another column. Just as we owe CN Rail about $600 payment for taking over BCR, we owe huge sums to former penny stock promoters who are soon to be private power tycoons.
I am well aware Norman, it scares the hell out of me....
ReplyDeleteDamn main stream media, what will it take for them to at least inform the public of the potential financial disaster.
Keep up the great work Mr. Farrell.
Still a huge fan of your precision posts ....
Grant G
Taxpayer Supported
ReplyDelete1996 19,865
1997 21,152
1998 21,979
1999 23,204
2000 25,181
2001 24,998
2002 27,534
2003 29,425
2004 29,984
2005 28,668
2006 27,251
2007 25,968
2008 26,589
2009 26,446
2010 30,593
2011 33,748
2012 36,720
2013 38,329
Total Debt, although not including advance purchase contracts of BC Hydro
ReplyDelete1996 28,713
1997 29,248
1998 30,182
1999 32,261
2000 34,478
2001 33,880
2002 36,082
2003 36,877
2004 37,737
2005 35,869
2006 34,457
2007 33,439
2008 34,637
2009 38,014
2010 42,332
2011 47,757
2012 52,363
2013 55,862
Aaah, but the Libs are superb financial managers.......
ReplyDeleteYou probably know about this link Norman:
ReplyDeletehttp://www.bcbudget.gov.bc.ca/Annual_Reports/2002_2003/
What I find interesting is that all of the bold promises that the Ministers made on how they were working on behalf of all British Columbians....then along came the raid on the BC Legislature....and we lost Attorney General Geoff Plant, Finance Minister Gary Collins, Minister of Education (Deputy Premier)Christy Clark "we provided: greater autonomy to locally elected school boards", and Highway Minister Judith Reid "BCR Properties manages all of the Company's real estate assets, the majority of which are required for Rail operations." - Source http://www.bcbudget.gov.bc.ca/Annual_Reports/2002_2003/trans/trans_appendix1.htm
Do you think you could use the data from this link to generate just how good Colin Hansen is doing as Finance Minister as opposed to his buddy Gary Collins.
http://www.fin.gov.bc.ca/ocg/pa/02_03/PPcharts0203/publicaccounts.pdf
"They force BC Hydro to make advance commitments to purchase electricity for billions of dollars. The exact amounts are unclear to outsiders; the total seems to be in the range of $40 to $65 billion, and growing, the value of that power is unknown."
ReplyDeleteWell, most folks that can actually do math figure that the "value of that power" is in the range of 10%-25% of what BC Hydro is being coerced to guarantee purchase for. As Finerva blowhard project shows, and the Rape of the Rivers are no different, once the "friend" of the mob has the purchase contract in hand, it doesn't matter if they have an old beater for collateral, they are golden to the moneybags boys that like to bring us to the brink of financial collapse.
I just wish I could buy spot power from BC Hydro, and sell it BACK to them for many times more than I buy it for in other words what they sell onto the grid for compared to what they've obligated themselves to pay the Pirates. That makes as much sense as the contracts with AXOR, Plutonic and the rest of the Pirate Power scoundrels. To top it all off of course, the excess power available for sale from projects like Glacier/Howser will only be there during times of the opposite of peak demand, demanding that BC Hydro almost pays customers to take it, assuming they will even buy it, as the California Senate considers IPP Power "DIRTY."
Then down the road when the current contracts expire, unless we get an honest government that tears them up, when they come up for bid again, we may wind up freezing in the dark to power hair dryers in Phoenix for people who won't be going to Coyote games!