May 15, 2007
Kamloops Daily News


If the government of British Columbia were really serious
about providing us with low-cost electricity, they would
tell B.C. Hydro to build more generating plants.

The opposite is true: the government has prohibited B.C.
Hydro from building new plants.

It's not a hidden agenda, it's their legislation. Bill 116
clearly states: "The private sector will develop new
electricity generation, with BC Hydro restricted to
improvements at existing plants."

It gets worse. Not only has BC Hydro been restricted but
they must buy privately produced electricity at
approximately double the current market prices. And they
must buy private electricity at inflated rates for the next
25 years.

In particular, the purchase of future electricity from
private sources amounts to $9.5 billion over the next 25
years. The purchase will total $15.6 billion by 2015
according to figures obtained by the Canadian Centre for
Policy Alternatives in their report.

BC Hydro takes exception to the CCPA report. In her letter
to the Daily News, a vice-president from BC Hydro says:
"Contrary to the statements in the report, BC Hydro is not
prohibited from adding energy capacity to meet growing
demand."

Adding energy capacity is not the same thing as adding new
plants. Adding capacity alone will not meet our future
needs. BC Hydro is restricted to increasing current
capacity at existing BC Hydro plants and by the improbable
development of Site C in the Peace region.

Premier Campbell likes to tell us that he is not privatizing
BC Hydro but actions speak louder than words. Step by step,
Campbell has systematically deregulated and privatized
B.C.'s electricity system with the intent of while
integrating it with the U.S. dominated energy market of the
Pacific Northwest.

You only have to look at the price of gasoline to see what
happens when energy marketplaces are linked internationally.
As the shortage of electricity increases, the demand for
privately produced electricity will increase and the cost of
electricity will rise.

If Premier Campbell wants his government to be run in a
business-like manner, then he should run BC Hydro like a
well-run business.

BC Hydro makes money but all the profit goes into the
government's general revenue. In addition to providing B.C.
with some of the lowest prices, BC Hydro has delivered $750
million a year on average to the provincial government.

Sure, some of the profits of BC Hydro should go to run
government but some should be invested in future low cost
public power. BC Hydro has the expertise to build and
manage power plants but they are preventing from doing so.

You have probably seen the advertising that tells that we
are so low on electricity that we have to buy it from
Alberta but that is not the whole story. We purchase
electricity in order to save hydro capacity in our dams, not
because we are out of electricity.

The crisis has been artificially created by the B.C. Liberal
government in order to justify the purchase of expensive
private electricity. First they prevent development of
public plants and then claim (surprise) we are short of
electricity.

There is no immediate shortage of electricity but the
surplus of electricity we once enjoyed is running out
because of the government's restrictions on BC Hydro.
Here's how the government could add public electricity:

Stop holding back BC Hydro from what it does best: generate
cheap electricity. BC Hydro has a track record of
generating low cost electricity because it can borrow
development money more cheaply and because it doesn't have
to create a profit for shareholders.

Reconsider the very low cost of power now provided to
industry. Low cost energy is a good start-up plan for
industries, like Highland Valley Copper, but now that they
are very profitable they should pay their fair share.

Develop the capacity of Columbia Power Corporation, a public
utility in the Kootenays. They have untapped hydro
reserves.

Sell our surplus hydro capacity to the U.S. at a fair market
price. We currently sell water to the U.S. so they can
generate electricity under the terms of the Columbia River
Treaty. Then we buy electricity back from the U.S. at about
twice the price we could produce it. This deal needs to be
renegotiated.

Premier Campbell has weakened BC Hydro for ideological
reasons and created an artificial crisis in which we will be
the losers.
 

David Charbonneau is the owner of Trio Technical.
He can be reached at dcharbonneau13@shaw.ca

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