As you know I have maintained that electricity prices are trending downward, trending downward everywhere but here in British Columbia, Gordon Campbell has asked the BCUC for a 9.11% increase in residential hydro rates,also the BC Liberals are wanting more increases to residential hydro rates over the next three years totaling 33%.....Of course you know this money will be funnelled to IPPs....Gordon Campbell has signed power buying contracts with these IPPs worth over $50 billion dollars over the next 2 decades.
So now comes the residential Hydro price creep, I read an interesting article by Scott Simpson about BC Hydro and electrical rates, guess what, BC Hydro`s revenue is down $45 million dollars for the last quarter in comparison to the same quarter last year, how can that be,BC Hydro rates have been increased over last year, in fact on my hydro bill at home my usage is down from the same period last year but my bill is higher, no matter how much power I try and conserve I can`t keep my bill from drifting into the two-tier rate, talk about upsetting, I use less power year over year and my bill is higher,and with the next increases my bill will go up again,I can`t be alone,everyone in the Province must be getting higher hydro bills.
Back to the article I read by Scott Simpson, BC Hydro claims the reason for their losses are.....
Lower demand for power from south of the border, minimal profits from power trades, and this, lower natural gas prices making electricity from natural gas burning power plants really cheap...Snip....Let`s examine that shall we, that`s the excuse BC Hydro is making, but natural gas prices are much higher this year against last year, this time last year the price of natural gas was about the $3 dollar range, today`s price is $4.87...That`s much higher,although it is dirt cheap for natural gas compared to 3 years ago when the price was around $12....But the days of $12 natural gas are long gone, there is a glut of natural gas, in fact the USA is being called the Saudi Arabia of natural gas, with well injection and hydro fracturing into shale rock trapped gas is available all over the USA.
And there is that other little problem, the USA is broke, the jobless numbers are on the rise, Americans are drowning in debt and there isn`t one single State that can afford to jack up hydro electric rates to consumers without driving them deeper into debt and that fact isn`t changing anytime soon, also, a couple of years ago LED lighting started to get popular, but the problem at that time was that LED light bulbs were roughly $30 dollars a bulb, but not no more, My dad was recently in Wallmart and Costco and now you can get a package of three LED light bulbs for like $10 dollars, and LED light bulb uses 1/10 of the energy of a typical light bulb, and incandescent lighting in the USA accounts for about 25% of all electrical use, well when all the light bulbs get converted to LED light bulbs over the next 2 years that 25% number drops to 2.5% electric use on lighting,in other words with LED lighting,more efficient appliances the overall electrical use is falling, and with new technology like the Bloom Box and Solar thermal that trend will continue.
And there`s more, the spokesperson for BC Hydro also states the industrial usage is down,the demand for electricity from BC pulp and paper plants is gone,it`s also gone in the USA, you see folks what the Habitual Liar Gordon Campbell doesn`t understand that when you close down 70 mills,pulp and paper plants,when all that industry moves to Chine the electrical demand leaves to China as well, and unfortunately we won`t be selling China any electricity, that would be one monster transmission line!
But you know what,Gordon Campbell is aware that his energy plan is all but dead, Alberta has cheap hydro for sale,Montana has cheap hydro for sale, and also, back to that glut of natural gas all over the USA, do you really think the American natural gas lobby is going to allow states like Washington State or California to buy over-priced non-green run of river power or intermittent unreliable wind power at quadruple the price of Natural gas fired plants? I don`t think so, no one is going to be buying Gordon Campbell`s power.
Even through the Olympics with all those TVs running, all those skylights, all the neon, all the hotel rooms full BC Hydro had plenty of power to spare, friends that is why the top traders at Powerx left and went to work for Morgan Stanley, these pros will be flogging cheap Alberta power and be selling California the bulk of their needs, that old competition thing again, Gordon Campbell couldn`t run a lemonade stand, and the Habitual liar will keep raising our domestic hydro rates and BCers will respond by buying more LED lights, they will shut off more needless things, the higher the price the less people will use thus driving down overall usage leaving more and more power unused, you have all seen the playbook before, just look to BC ferries, Campbell keeps raising rates and ridership keeps falling and falling thus reducing BC Ferries income even more, it`s called pricing to the point of diminishing returns, there will be no Enron energy scandal, there will be no $200 or $300 dollar megawatt hours, even the best forecasters aren`t predicting prices to reach $200 dollars for 30 years.(read about BC Hydro`s revenue shortfall here) http://www.vancouversun.com/business/Hydro+reports+million+quarterly+revenue+drop/2637232/story.html
Here we are on the cusp of all this new technology and Gordon Campbell is stuck in 1930, his energy policy is flawed,broken,a financial disaster,he knows it,Blair Leckstrom knows it, Plutonic power knows it, everyone knows the policy is flawed, all I can say is this,Gordon Campbell tore-up the HEU contract, looks like in 2013 a bunch of power buying contracts will be torn up.
Lastly friends, Colin Hansen today in Surrey claimed there is a study coming out next week about the HST, Colin Hansen claimed that this study shows that the HST will create not 10,000s of thousands of jobs but hundreds of thousands of jobs over the next decade, Colin Hansen was asked by reporters what sectors these jobs would be in ,Hansen couldn`t answer that, he was asked if it was a Government study, Hansen wouldn`t answer that, Hansen was asked who or what entity was doing the study,Hansen wouldn`t answer that either, pretty funny stuff,Hansen claims this study will prove the HST will create 100,000s of thousands of jobs over the next decade but he had zero details on it?????......That makes me go HMMM....Any guesses on who is doing this study?......I have a guess, my guess is this report is being done by no other than Marc Jaccard....We will find out next week, remember it was Marc Jaccard who stated how great and effective the Carbon tax would be, it`s Marc Jaccard that stated the NDPs price for gas flaring plan would cost 60,000 jobs.....And it was the Fraser institute that said raising the minimum wage would cost 51,000 jobs....It`s a toss up,I`m predicting Marc Jaccard is the one doing the HST Job study(Con Job),my second choice is the Fraser institute,and lastly, would you turn off the lights on your way out!
The Straight Goods
Cheers-Eyes Wide Open