British Columbia Hydro publishes quarterly reports that provide a long term record of consumption by domestic consumers, which are:
What did grow were Hydro's purchases of electricity from independent power producers. In calendar year 2006, 5,636 GWh supplied by IPPs cost $368 million; in 2015, 14,418 GWh cost Hydro $1,217 million.
A 155% increase in the volume of IPP purchases is alarming by itself given the lack of need for it but the average unit price has been rising steadily. In the 4th quarter of 2015, IPP unit prices were 9.2% higher than the preceding quarter. To accommodate power coming into the system, BC Hydro had to choose between shutting down their own capacity or dumping power in markets outside BC at well below cost.
The U.S. Energy Department issues comprehensive reports of electricity prices and the key number for the Pacific Northwest is the Mid-C (Columbia) Rate. By taking the weighted averages for 2015 and converting to Canadian dollars, we find the Mid-C price averaged under 3.8¢ a KWh in our currency.
That suggests IPP power, costing BC Hydro $1,217 million, could have been acquired from our southern neighbors for $545 million, a $672 million premium for buying power in BC. Ironically, many of the IPPs are foreign owned companies, happily exporting their profits.
As the charts below indicate, the fastest growth in the independent power industry has been in last two years, while Premier Clark hurries to get the Site C dam construction beyond what she calls a point of no return.
If this government's assertions and policies were subject to careful analysis by investigative journalists in the professional media, we would see daily headlines and scandalous revelations. However, this is 2016 and that approach only happens in the movies.
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- Residential
- Commercial and light industry
- Heavy industry
A 155% increase in the volume of IPP purchases is alarming by itself given the lack of need for it but the average unit price has been rising steadily. In the 4th quarter of 2015, IPP unit prices were 9.2% higher than the preceding quarter. To accommodate power coming into the system, BC Hydro had to choose between shutting down their own capacity or dumping power in markets outside BC at well below cost.
The U.S. Energy Department issues comprehensive reports of electricity prices and the key number for the Pacific Northwest is the Mid-C (Columbia) Rate. By taking the weighted averages for 2015 and converting to Canadian dollars, we find the Mid-C price averaged under 3.8¢ a KWh in our currency.
That suggests IPP power, costing BC Hydro $1,217 million, could have been acquired from our southern neighbors for $545 million, a $672 million premium for buying power in BC. Ironically, many of the IPPs are foreign owned companies, happily exporting their profits.
As the charts below indicate, the fastest growth in the independent power industry has been in last two years, while Premier Clark hurries to get the Site C dam construction beyond what she calls a point of no return.
If this government's assertions and policies were subject to careful analysis by investigative journalists in the professional media, we would see daily headlines and scandalous revelations. However, this is 2016 and that approach only happens in the movies.
In 3 months ended Dec/15, BC Hydro paid IPPs 9¢ a KWh and charged heavy industry 5¢ a KWh. Residential users pay for this. #bcpoli
— Norm Farrell (@Norm_Farrell) March 2, 2016
Forensic audits of BC hydro and high profile ministries within the current government, led by Clark and the organized criminal group known as the BC Liberals, will in the future lead to various high level charges, of fraud and corruption. All of Norm's evidence has to be seen by prosecuters and interested "third parties" read class action lawsuit "groups".
ReplyDeleteThis corrupt game has gone on long enough. Personal opinion....
"Personal opinion..."? I wish it were a fact. Perhaps anywhere other than a banana republic it would be.
Delete$672,000,000 / 365 / 24 = $76,712.33 for every hour of 2015 going to IPPs.
ReplyDeleteIPPs need $$, kids living in poverty and adults with developmental disabilities... not so much.
"If this government's assertions and policies were subject to careful analysis by investigative journalists in the professional media, we would see daily headlines and scandalous revelations."
ReplyDeleteAnyone in the professional media reading this care to comment? Anyone in the professional media who has visited one of these hydroelectric IPP sites before (and after) construction care to comment? I'm pretty sure Norm won't block you. The key word here is "care", because I am pretty sure you know how to count.
IPPS were paid $672 million......
ReplyDeleteHugh, how much is $672 million in billions?...over half you say?...how long will it take to be a whole billion? Maybe pro Media has a $1 billion threshold for BC taxpayer money before being important enough to care about. Shouldn't take much longer....Bennett and Polak can't refill the ink in their pads fast enough, rubber stamping more and more alpine lake draining projects on the Sunshine Coast. I will do some research and see if indeed any items that cost less that a billion dollars have ever been investigated by the MSM, in depth, with cameras rolling, on the evening news. I know they report whenever trillions are mentioned.
DeleteGlen Clark's deck, a whopping $6,000 I think it was.
DeleteThe first anonymous stole my words "forensic audit" for that was my first reaction before I was half way through the piece Norm.
ReplyDeleteI don't know what the answer is but like everyone else who reads you, I sure know the question. Who is going to step up? There must be dozens of potential whistle blowers, at least a few lawyers and maybe even an honest cop who is disgusted with this corruption.
If Laura Miller can crowd fund her defence of criminal charges while a Liberal operative, then perhaps we, the people, can accomplish the same.
MCguy asked the MSM to do their job and I put the same challenge to honest caring people who are in a position to take up the fight, to do so. Somebody needs to be a hero here.
If not then Christy Coleman wins.
Gosh.
ReplyDeleteIn addition to the proMedia Club members that mcguy mentions above, this sounds like something the good folks at the CTF may want to comment on as well.
You know, in the same way they have been so vociferous recently about private planes and ice bomb bridges.
Oh.
Wait.
.
There is very little difference between what Bernie Madoff was doing and what B.C. Hydro is up to with their books.
ReplyDeleteThe BC government has violated it's responsibilities to the people by enacting legislation to force the purchase of IPP power.
Fraud and Extortion and the running of a Ponzi scheme are all within the realm of what should be investigated.
Any ratepayer of Hydro or group of ratepayers has the right to seek legal opinions and perhaps further action. A class action perhaps. It shouldn't require any special person to do this?
Any lawyer specializing in that type of law could be contact for consultation.
If I'm wrong I stand to be corrected.
do you really think that lawyers can be trusted
DeleteA class action would certainly back the media into a corner now wouldn't it? Anyone remember Eron Mortgage? Nearly 20 years ago they defrauded investors out of something between 170 and 220 million. The stench touched the Government of the day and a large accounting firm. A class action was sought and denied. BC has government friendly courts.
ReplyDeleteEron Mortgage Corp cost investors about $170 million.
Deletehttp://www.cbc.ca/news/business/eron-mortgage-found-guilty-of-170-million-fraud-1.168916
Brian Slobogian and Frank Biller, principals of the fraud, spent a short while in jail and the BC Securities Commission assessed financial penalties that remained unpaid as of January 2016.
http://www.bcsc.bc.ca/Enforcement/Sanction_Payment_Status_Report/
One of the effective deterrents to financial fraud in BC was Vancouver Sun investigative journalist David Baines. Here's an example of the kind of work that used to be done by pro-media journalists, back in the days when they served readers instead of advertisers.
http://www.vancouversun.com/business/Baines+Biggar+necessarily+better+when+comes+Bulletin+Board+promotions/6808949/story.html?__lsa=0ec8-3270
What about the $5 billion in deferred BC Hydro debt:
ReplyDeleteQuote:
But that deferred debt, estimated at $2.1 billion in the 2011 fiscal year, is expected to keep climbing to reach $4.7 billion by 2014, according to the latest numbers from the Ministry of Energy and Mines.
http://bc.ctvnews.ca/bc-hydro-s-deferred-debt-set-to-jump-to-4-5b-1.830657
The deferrals are up to $5.564 billion at Dec 2015, according to unaudited financial statements of BC Hydro. That was an increase of $131 million in 9 months of the current fiscal year.
Delete“Site C won’t be built for almost another decade, but it’s not just about Site C,” Mr. Bennett (BC Energy Minister) said. “The forecasts that Hydro has done indicate it won’t need much, if any, new generation in the next 10 years either. It’s the current situation in the province, where we are using about the same amount of electricity in 2016 that we were using in 2008.”
ReplyDeleteSay what?
http://www.theglobeandmail.com/news/british-columbia/bc-energy-minister-says-clean-power-projects-arent-the-priority/article28961898/
"and the beat goes on" I am 64 years old now and I can't recall anything EVER changing without SOMEONE doing something!
ReplyDeleteWith regards to class action suits in this country. I don't think its friendly courts as was mentioned in a post above. It would appear most of our laws in this country, with regard to governance issues, are one sided, protecting governments and the"system" as it were. Enron being a private corporation had a different scenario. The US taxpayer is a far more "engaged" entity as a group than we here in "nice" Canada are. The US takes their rights and governance very seriously, the average Canadian ..well.."not so much".
ReplyDeleteWe the taxpayers in this country have to become far more "vocal" as a group outside of the political party setup. We have to demand laws to protect taxpayer rights and our financial input into a poorly run, often corrupt system, whose "traditional " parties have become out of touch with the average citizen, while pandering to their corporate masters, to ensure funding is maintained for election wins. The pay to play system is alive and well in this country. Corpratists know this and will support a corrupt system as long as their profits are maintained and large debt socialized so that their taxes are kept low, while their profits continue unabated.
Unless the taxpayer "revolts" on a massive scale and becomes a third powerful entity to the corporations and governance setups, we will continue to be kept in the dark and fed....like "cultured mushrooms".
IPPs in operation now and in development are shown in links on the right hand side of this page:
ReplyDeletehttps://www.bchydro.com/energy-in-bc/acquiring_power/meeting_energy_needs/how_power_is_acquired.html
Note how BC Hydro justifies its IPP madness:
ReplyDelete"B.C.'s electricity needs could grow by as much as 40% in the next two decades."
https://www.bchydro.com/energy-in-bc/meeting_demand_growth.html
They've been saying that for 15 years. Endless growth on a finite planet.
It's a hoax.
It occurred to me yesterday that the "Fast Ferries" failed experiment should now, officially, be put to rest. The BC Liberals are sinking the equivalent of THREE Fast Ferries per year, through these IPP overpayments. I say sinking, because there's nothing to sell for scrap, or to a former employee now living in Fiji… it's just GONE.
ReplyDeleteThe NDP's Fast Cats cost BC residents about $460 Million in Year-2000 dollars. That's about $608 Million in 2016 dollars.
Now, we see the BC Liberals requiring BC Hydro to buy power they don't need — and pay $672 Million over the market price. It would be refreshing if the BC Libs said, "Ya know… this isn't working. We're going to put a stop to all future IPPs." But no: they keep on approving them.
Three (+) Fast Ferries per year. Sunk by the current government and future governments, thanks to the long-term contracts. Link back to this story, whenever you hear someone say, "Remember the Fast Ferries."