Gwen Johansson, The Common Sense Canadian, Originally published in the Alaska Highway News
"Purchases are classified as non-firm, meaning electricity that isn’t available all the time such as wind or run-of-river; and firm, meaning electricity that’s always available.
"Bids from IPP’s to supply electricity to BC Hydro recently came in at an average of $100 per megawatt hour for non-firm and $124 for firm. Recent spot market prices ranged from a low of $4.34 for non-firm to a high of $52.43 for firm. Firm power with delivery in 2012 was recently listed at $27-35 on the Pacific Northwest wholesale market. The further into the future you go, the less reliable the price predictions. Keeping that in mind, the 2030 price is suggested to be in the range of $81-85 per megawatt hour. So relying on the best information available, it seems BC Hydro is being forced to pay artificially high prices for electricity.
"Buying high and selling low doesn’t work for long. So who will pick up the shortfall between what Hydro is paying and what it can sell the electricity for?
"Well, that would be you, BC Hydro customers..."
Recommend this post