This little story came out a few days ago, Scott Simpson of the Vancouver sun has done great work on this file, Rafe Mair has been ringing the alarm bells too, anyways there is nothing new to see here, except this....(Blair Leckstrom states that the way these deals are structured, we WILL LOSE hundreds of millions of dollars)...Blair Leckstrom goes onto say....Unless the spot market for electric rates goes through the roof,we will lose a fortune!
So I read this Scott Simpson story, I expect the BC media to be all over the story, but no...The Media in BC ignore the biggest story of the year.
Lets breakdown the Scott Simpson story.......First off....The spot market rate for Hydro electric power over the past 5 years has been about 50$ a megawatt hour and.....BC Hydro projections,and others in the Hydro forecast game state that....Hydro rates are not expected to rise above 100$ per megawatt hour until 2032...Snip
But according the provincial government,Gordon Campbell has guaranteed these private power companies like Plutonic over 100.00$ per megawatt hour, and he has guaranteed this price for decades.
Well my friends,only two thing can happen here,either hydro rates spike or BC Hydro and Powerex go broke.
But lets stop for a minute and study Gordon Campbell`s financial wizardry...Convention center 1/2 billion over budget and will lose millions every year-----The Canada line P3..The Canada line will lose over 21 million per year for decades---The Golden ears bridge...The bridge will cost the province 20 to 30 million per year for decades,another P3...P3s that were supposed to protect the taxpayer,not bankrupt the taxpayer, The sea to sky highway...All done,all built, all paid for....HA HA..LOL LOL....Maybe you`re not regular readers of the Straight Goods...Because if you are....Then you are well aware that the Sea to Sky highway will cost the province 100 million dollars per year,every year for 25 years for maintenance...That`s a lot of maintenance..8 million per month, 370.000.00$ everyday,forever...Wow..What a deal....So surely Gordon Campbell couldn`t have screwed up these run of river contracts that badly.....Well lets have a look.
Gordon Campbell should be fired for incompetence, fiscal malfeasance, Gordon Campbell should be tried for harming the public purse,he should be jailed for putting billions of BC Taxpayers dollars at risk with Campbell`s private power friends.
If Gordon Campbell was CEO of any private company he would have been FIRED a long time ago....If you take the harm from run of river projects,fish loss,bear habitat loss,spawning grounds for salmon ruined,hundreds of kilometers of power lines,if you take all the environmental degradation out of the mix and just examine the merits of the deal on a financial level there is only one conclusion the public,the media and the opposition can come too....
Gordon Campbell is a Financial reject...Your FIRED CAMPBELL......
And why am I saying that, besides everything that Campbell touches turns into a financial liability....Here is the deal...Gordon Campbell said..Screw the wildlife, Screw BC Hydro...Gordon Campbell said..."Private power is the future" but....My god, Gordon Campbell is the worst money manager in history because....
Gordon Campbell guaranteed Plutonic and other private power over 100$ per megawatt of power when the going rate is half that price.....Gordon Campbell could have...Guaranteed private power the spot market and....50% of everything above 50$ a megawatt hour...In other words...
Gordon Campbell could of protected the taxpayer,protected the province,but no....Gordon Campbell has put BCers financial future and well being in the hands of the power traders, we have zero control,none and...Dan Potts...The head of an industrial power steering committee is completely shocked...Potts goes onto say that for every 1,000 gigawatts of power we sell in the spot market (at current prices) will cost us 300 million$ dollars...Well my friends..
Blair Leckstrom and the IPPs are now on the record stating this power IS for export,and by 2015 the power that comes online will be close to 10,000 gigawatts of power for export...That means we....
Could lose 3 $billion dollars per year on power exports......Dan Potts goes onto say that even with the fast ferries,you could park them and end it,but not with the IPPs...IPPs go on forever, decade after decade,decade after decade costing us billions per year...and..
In case you think power will rise, well,lets put it this way, if....IF,power rates double plus in price...We,the province of BC still won`t make any money, we need rates of 120.00$ a megawatt hour just to break even, and of course Blair leckstron is trying to put a positive spin on this story,Blair thinks that maybe the province can sign long term contracts for clean,green,renewable energy that will fetch a handsome price....First off...Blair Leckstrom talks about 100$ per megawatt hour....Big problem there is,we still lose money,just not as much...And perhaps Gordon Campbell, Blair Leckstrom,or even the Awesome one Barry Penner forgot about that other little problem.
The California senate ruled that our big run of river power is not green energy,the footprint is to big to qualify as clean,green,energy,thus...Drum roll please...California won`t pay a premium for BC Power, our power will get the same price as coal-fired -electricity.(read about the california senate here) http://www2.canada.com/vancouversun/news/business/story.html?id=fea563b3-0589-4d4a-8c75-f1488eb8d2e2&k=47024
My friends, Gordon Campbell is a complete idiot, he could of guaranteed private power a rate of 40$ a megawatt hour with a 50/50 split on all future rate hikes,in other words, Campbell could have structured contracts in a way that we BCers were protected,he hasn`t..Gordon Campbell is a financial disaster.
Gordon Campbell is guilty of endangering and risking the economic well being and economic future of the province,Campbell signed deals that no one in the private sector would have dreamed of!...Gordon Campbell,Blair Leckstrom have wagered our future on the electric futures market, with the US moving to wind,solar,conservation, and with no appetite for over-priced hydro, Gordon Campbell again has rolled the dice and lost, 100s of million in losses start as soon as the first power comes on line.(you can read the complete Scott Simpson article here) http://www.vancouversun.com/business/Independent+power+costs+raise+questions+about+policy/2305466/story.html
So lets see if I got this straight...The Canada line..35 million per year in losses until 2030....The Golden Ears bridge...25 million per year in losses until 2035......Convention center was 1/2 billion over budget and will lose millions per year...The Sea to Sky highway ...The yearly maintenance on that stretch of highway is 100 $ million per year for another 25 years...And the Run of River destruction is going to cost the treasury,BC Hydro 300 million per year starting this year with losses that could reach 3 $ billion dollars every year staring in 2015.
Yes my friends, Gordon Campbell will be recalled,contracts will be torn up,criminal contracts signed by a corrupt Gordon Campbell who committed deliberate fraud and crimes DO NOT have to be Honoured.
The Straight Goods
Cheers-Eyes Wide Open