CAPPSalaryDependsOnHisNotUnderstandingItVille
For tens of billions of easily demonstrated reasons that local proMedia will never tell you about BC Hydro is in big, big trouble.
Norm Farrell, who has done so much to demonstrate said reasons, has come up with a way out of the jam (scroll down to the comments):
"...Sell BC Hydro’s generating and transmission assets at depreciated market value to a new BC Electric Company financed by a reformed bcIMC and owned by the pension fund and current employees with government continuing to hold shares. Public pension funds would be kept at work in BC instead of being invested abroad, funding the tobacco industry, arms dealers, Chinese state-controlled enterprises and other undesirable investments.
BC Hydro is already a financial basket case. Aging plant, worthless assets (about $7 billion of intangibles and deferred costs), unprofitable markets and a changing energy landscape means it cannot survive long term without huge subsidies from the province. Selling generating and distribution assets and paying off the enormous existing secured debt would leave a company with no ability to continue. It would have to declare its insolvency, unable to pay contractors.
IPPs could do contracts with the new company and ones that serve local needs would find success. Those expecting to sell power profitably to a public utility so that agency can sell it into money losing markets might not fair as well..."
Seems to me that the fine folks who currently hold the decision making power when it comes to such matters just might want to unplug their ears and start paying attention to Norm (once again).
"...Sell BC Hydro’s generating and transmission assets at depreciated market value to a new BC Electric Company financed by a reformed bcIMC and owned by the pension fund and current employees with government continuing to hold shares. Public pension funds would be kept at work in BC instead of being invested abroad, funding the tobacco industry, arms dealers, Chinese state-controlled enterprises and other undesirable investments.
BC Hydro is already a financial basket case. Aging plant, worthless assets (about $7 billion of intangibles and deferred costs), unprofitable markets and a changing energy landscape means it cannot survive long term without huge subsidies from the province. Selling generating and distribution assets and paying off the enormous existing secured debt would leave a company with no ability to continue. It would have to declare its insolvency, unable to pay contractors.
IPPs could do contracts with the new company and ones that serve local needs would find success. Those expecting to sell power profitably to a public utility so that agency can sell it into money losing markets might not fair as well..."
Seems to me that the fine folks who currently hold the decision making power when it comes to such matters just might want to unplug their ears and start paying attention to Norm (once again).
.
8 comments:
BC Hydro is awesome.
A publicly-owned electric utility, supplying relatively cheap, reliable, renewable power to BC.
Then the BC Liberals came along and drove it into the ditch.
Just like the other BC Liberal dumpster fire, ICBC, a well-managed BC Hydro can be good for BC.
Get rid of the fricken IPPs, for one. Just cut them off.
Get rid of the high priced sub-contractor companies who are Removing and Replacing the 1,000,000 BC Hydro poles. Why is it they continue to bury the poles in the ground, even if they have been treated with a WOOD preservative. They could be pouring reinforced concrete in the existing holes and add a knock-off 'Simpson Tie' to support the pole. In the future all they have to do is replace the pole above ground.
http://blogborgcollective.blogspot.ca/2017/03/how-many-times-are-bc-hydro-customers.html
PS
Executive Summary
The replacement value of BC Hydro's distribution size wood poles is approximately $1.6 billion. ......
https://4.bp.blogspot.com/-KJ5YEs-3k-Y/WNwd6DuxTEI/AAAAAAAARx4/ucMg3bFgOrcROC86Vk7nAXukQ_Nn5dYOgCLcB/s1600/Wood-Pole-Performance.jpg
Oh, I do like that idea, and B.C. Electric, omg can they move back to the old building in downtown Vancouver also. Just kidding, but it is a very good idea and yes the name would be fun. It makes sense and having pension funds in there from the people working in B.C. will prevent it, hopefully, from becoming a piggy bank for future governments. I'm game for it.
I am suspicious of such simple solutions. We need to keep the electricity flowing in B.C. or a lot of people can freeze in the dark. The present situation is certainly sub-optimal, but the electricity is flowing and I can heat my house in the winter.
B.C. Hydro is certainly pretty messed up, but I do get my heat from them and I need it to keep being there to heat my house, as do a lot of folks. So care is needed.
Ed, you're right. Care is indeed needed. It's needed even more now because it wasn't taken responsibly by the BC Liberals with regard to BC Hydro's activities on our behalf.
What's also needed are some ideas as a start to developing some solutions to the messed up suboptimal state of BC Hydro you describe.
I think Norm has offered some ideas as start to the careful development of the solutions you desire.
At the rate we're going it will be our grandkids freezing in the dark, and it will be our fault, not theirs.
If LNG export goes ahead, lots of power will be needed from BC Hydro, namely the $10 Billion Site C Dam fiasco.
If it goes ahead the new LNG plants would get the special cheap rate on electricity. FUBAR.
Salvation may come from the place we least expect...
But then again BC has a deep mining history!
https://earther.com/cryptocurrency-companies-are-rushing-to-gobble-up-canad-1823982984
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