Monday, December 7, 2009

B.C. Liberals admit private power contracts could bankrupt BC Hydro!

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)

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)

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


Anonymous said...

Welcome to the "Best Place On Earth", where the truth becomes lies; corruption is the norm; confidence tricksters run the province; and elected MLA's are no better than goons who work for organized crime.

Welcome to Gordo-land!

Evil Eye

Crankypants said...

Grant, the MSM doesn't have the time nor the available space to delve into the BC liberal's pillaging of this province. After all, it is much more beneficial for us peons to be kept updated on the Tiger Woods saga!

Anonymous said...

There also seems that Gordo and his government have given SNC Lavalin some "under the radar" loans, that do not have a paper trail that can followed via Canada Line financing. Then there are loan guarantees for InTransit BC and other players.

Add this to the about $230 million (courtesy of Rail for the Valley) that is needed to subsidize the current SkyTrain system annually, makes Vancouver's metro system annual subsidy approaching $300 million annually!!!!

Now add this to the IPP scandal, the ferry scandal - Gordo is bankrupting the province!

And this is what Canada's right-wing (nuts) think is good business practice?

Evil Eye

Anonymous said...

The link to that story also says this:

"The export market looks solid — recent documents from California regulators suggest that utilities in the southwest state may be willing to pay as much as $130 a megawatt for fixed volumes of renewable power on fixed-price 20-year contracts."

If the export market is solid for fixed-price, 20-year power contracts at '$130/MWh' then BC Hydro might be Okay. Maybe.

Grant G said...

Anon 9.14.....even at 130 MWH the province makes no money,we break even...but,Firm power has to be backstopped by bc hydro heritage dams..and...

That 130$ mwh for "Clean,green,renewable power"

A muggs game, (The California senate has said NO)....Big run of river power isn`t green...So they won`t get the good househeeping stamp of approval(It won`t fetch top dollar,BC Power will only be as valuable as coal-fired electricity)......And....

Here is the big one...If, Only if they could lock in a contract for 25 years at 130$ MWH...What does the province get out of that deal? Answer= NOTHING....

Gordon Campbell is incompetant,deriliction of duty,failed to protect public assets,Gordon Campbell showed the business savvy of a "Stooge"

We are at a point in this province where we need a stroke of lightning,we need prayers answered to avoid losing a fortune in private power...
Gordon Campbell could have written contracts that protect the Public...He failed,Campbell would have been fired in the private sector,fired for incompetance..And when is this contract going to be signed Anon 9.14 am?....

When pigs fly


Anonymous said...

Even if we did lock in a $130/MWh contract with the US, what if BC at some point needed that power? We would have to compete with the US for power produced in BC.

The key word is 'maybe'. Maybe the export price will go to $130/MWh. Maybe it won't. Maybe it will go down.

Anonymous said...

"The Golden ears bridge...The bridge will cost the province 20 to 30 million per year for decades"

You got that right bro. Translink released its latest 3 month fiscal report ending September 30 today and you know what?

They confirmed this - "Golden Ears Bridge tolls off by close to $2 million." Multiply that by 4 and that's the equivalent of $8 million/year less than projections.

Gawd, what a white elephant.

Beth said...

How can we get a forensic audit done?
It's sickening what is going on in this province .
The 1.6 billion coming from the feds will surely all be rifled to the ipp's and we WILL be bankrupt
The sell off of the province has got to stop, will one liberal m.l.a have the guts to stand up and say no more.
Im so disgusted, with the open contempt and criminal business dealings our so called elected m.l.a.'s have shown us.
The virtual silence from our msm is appalling
I wonder how many Life time b.c.'ers are thinking of pulling up roots and leaving the province like we are,
when I think of what Mike Harcourt had to resign ,and what the Libs did to Gordon wilson, and how we still hear about the fast ferries ...and they get to take what they want, do what they want, sell what they want and we are powerless to stop them until the next election?
Many Liberals have or will walk away from govt. being much wealthier than most of us could dream of and will be accountable for nothing.
thank you for printing the truth

Anonymous said...

Isn't the whole point to deliberately bankrupt BC HYdro to let the private sector vultures in? That is the platform after all. Everything private-nothing government. As Canadians continue to vote the politicans that subscribe to this philosophy (Harper, Gordo), then we(the majority) are getting what we voted for.

Anonymous said...

Can someone post links to primary sources backing up the numbers described in the article?

Anonymous said...

You could ask the author, Scott Simpson. He has written many articles on this topic.

Many of the figures are from BC Hydro.

kootcoot said...

Grant, I covered this Scott Simpson article at the House and Waterwalk the other day, but not with your inimitable style!

"..... everything that Campbell touches turns into a financial liability...."

Perhaps it is a liabilty or a loss to US, but everytime, if you look closely, somebody in Lord Gord's circle is MAKING MONEY!

to Evil Eye regarding:

"And this is what Canada's right-wing (nuts) think is good business practice?"

Yes, as long as the proceeds flow to themselves, they don't believe in any social "good" only their own greed!

and Beth:

"will one liberal m.l.a have the guts to stand up and say no more."

Look what happened to one who did, Paul Nettleton, it took BC Mary and a bunch of us a couple of years to even track him down he had been sent so far into exile. The rest of them are more useless than fence posts with hair, at least a fence post with or without hair can hold up barbed wire!

Grant G said...

Thanks Kootcoot...I read your piece,nice stuff...As for Anon 9.03 am...

The numbers are in the article(scott simpson article)...Blair Leckstrom has not denied the price that IPPs have been guaranteed..Blair Leckstrom..Has conceded with his own words...Leckstrom states that the province expects power rates to rise..Leckstrom states that it could happen(buying high and selling low)

Don Potts..The head of an industrial steering committee on electricity states...The numbers can`t work..For every 1000 mwh at current rates (spot market versus guaranteed prices to IPPs) will cost us 300 million dollars per year,(times X) --300 $million X 10,000 mwh = 3 billion $ dollars per year!

Nowhere in Scott Simpsons story does the province or Leckstrom state, YOUR WRONG to Potts or Schaeffer

And...Even if..even if the province could by miracle find someone to buy a long term contract for 100.00$ ..What do we get out of it? Nothing,A buggered up river with monies flowing to private pockets..Yet it doesn`t matter,the...

IPPs have absolutely no worries,their massive profits have been guaranteed by Gordon Campbell...
The main theme in this post is not the environmental footprint,it isn`t public versus private...My post was about..

The complete and total failure of Gordon Campbell to protect the taxpayer,protect the public,his economic decisions are criminal,he would be fired from private industry,he would have been dragged from his office either in handcuffs or a straight jacket in private industry.
Don`t you last few skeptics get it?

Gordon Campbell has bet the farm on black,Campbell`s action are criminal,...And lastly,these contracts will have to be torn-up,in law...A contract with criminals doesn`t have to be honoured.
The Scott Simpson article is by far...The biggest story of the year, and we,you,the intelligent reader knew this outcome was inevitable...The difference with the Simpson article is...
Blair Leckstrom have confessed,confessed that the power IS for EXPORT,confessed to what the contracts are for, and the biggest factor...Blair Leckstrom has confessed to..Praying,hoping that the spot market takes off to avoid bankrupting the province!


Eyes Wide Open

Anonymous said...

As far as I know, there is nothing to prevent foreign companies from buying up private IPPs in BC.

Big American companies like General Electric and Accenture have gained a foothold into BC's electrical system.

When IPPs have American or Mexican ownership, BC could be subject to NAFTA Ch. 11 claims. This would not happen with public ownership.

Here is a link to an article about this topic by agrologist/economist Wendy Holm:


"When the entity holding rights to Canada's water is American or has American investors, all such takings are covered by NAFTA."

Anonymous said...

Hi. I'm Anon 9:03am.

I'm just surprised that if these figures are accurate and if the primary sources of the figures are in the public domain and easily accessible, these issues are not being highlighted in the independent media and by the opposition parties and the incumbents not being held accountable in open forums.

I am not from Canada. Corruption is just as endemic in the States and the UK but it is not as blatant. In those countries those in power ensure that they are at least seen to be administering justice and upholding the will of the electorate, whilst keeping the graft hidden from view. What this means is that where corruption is blatant and is exposed in the media, it tends to be punished. It seems that here very little effort is made by these people to hide what they are doing. They lack any subtlety.

Grant G said...

Anon 12.09/9.03......Our BC Media is bought and paid for...Canwest Global owns the major T.V. networks,they own our big Newsprint dailies and dozens of small papers....

And the Asper family owns Canwest Global and the Aspers are big business friendly,fraser institute friendly,corporate friendly and damn the public...


Anonymous said...

Anon 9:03 here.

I agree. And another factor that seems to be at play is that there seems to be no appetite on the part of the average person to guard and protect his or her democratic interests. It's probably just apathy.

Works both ways though because I don't think a charismatic opposition leader would have much difficulty in hypnotising these apathetic Joe Schmoe's into voting for "change" once they realise they have been duped. Someone with a big mouth full of shiny teeth, like Tony Blair.

Anonymous said...

Campbell must really be insane!

Unknown said...

Compare this to BC bankruptcy