Category Archives: Hydropower

Independent Economist: Site C Dam Numbers Don’t Add Up

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The following is an open letter by independent economist andCommon Sense Canadian contributor Erik Andersen to the leaders of BC’s four major political parties on the eve of the May 14 provincial election.

Dear Ms. Clark, Mr. Dix, Ms. Sterk and Mr. Cummins,

I am writing to all of you political party leaders in the midst of the BC provincial campaign, as a senior economist who is very concerned that the proposed construction of Site C dam on the Peace River may push our provincial indebtedness beyond its already critical level.

The disclosed total liabilities of the province a year ago, according to government’s own figures, were $70 billion.  In addition, the Auditor General confirmed that as of a year ago BC’s “Contingencies and Contractual Obligations” totaled another $96.374 billion.  By the time the dust settles, the fiscal year just ended (2012/13) will likely have the provincial total liabilities closing in on $200 billion. The bulk of the nearly $100 billion of contractual obligations come from the IPP contracts to which Hydro has committed us.

Site C represents the addition of at least $8 billion to the already seriously bloated debt load directly associated with BC Hydro and its exaggerated expectations from industrial “want-a-be’s”.

Over the course of the past four decades the need for a Site C generation facility has been part of the larger and exaggerated demand narrative BC Hydro has been telling. The demand exaggeration theme goes as far back as 1961.  It is no different today.

Where is the evidence of future need? It is certainly not from residential and commercial customers in BC (which has actually decreased on average since 2008). The future need, as stated repeatedly by the Liberal government of late, is strictly industrial, specifically the proposed LNG plants.

But the irony, not missed by many, is that by the design of the rate structure, we are expected to shoulder the financial burden that is created when Hydro contracts/builds at costs of  +$100,000 per GWhr per year yet plans to sell to their new “best friends” at $35,000 per Gwhr per year. This is not new for Hydro . Hydro’s narrative of greater future need is just as before, a fiction created to be the cover for a ‘borrow and build into financial oblivion’ strategy.  Site C is one important element in this flawed narrative.

One must consider the “market” prices for electricity are in the western part of North America. These are the best indicators to determine whether electricity is currently in surplus or shortage. While Hydro has been buying electricity from IPPs at $100,000 per GWhr or greater, Powerex has reported selling, on average, at $20,000 per GWhr in the past three years.

In 2011, the volumes indicated a large regional imbalance between electricity generation capacity and regional demand. In such circumstances, it is a very high risk strategy to build more capacity until there is evidence of sustained higher prices, indicating demand has tightened. We are a very long way from this condition, making the Site C plan irrelevant for a long time to come if not permanently, as new energy technologies are integrated in the future.

On the evidence there seems no case for the development of Site C. Hydro is financially crippled because it not only produced fictional narratives about future demand, but worse, acted on these exaggerations with tens of billions in contractual long-term obligations with IPP’s. Secondly, to knowingly build a new generation facility that needs to sell at $100,000 per GWhr or more in order to break even – when the regional demand for electricity is decidedly weak and expected to remain so for a long while, is absurd.  I don’t see Hydro customers, i.e., the voting public, thinking that is a good idea.

Clearly, it’s time to “draw a line in the sand” and say no to Site C.

Sincerely,

Erik Andersen, Economist

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References:

BC Hydro audited reports for the past 12 years

Annual BC Hydro demand forecasts for the past 12 years

Annual Reports by the BC Auditor General

Personal correspondence between Erik Andersen and the Auditor General of BC, Feb 19, 2013

“White Gold: Hydroelectric Power in Canada,” Karl Froschauer

http://thecanadian.org/k2/item/543-new-report-bc-hydro-driving-rates-higher

http://www.theglobeandmail.com/news/british-columbia/auditor-general-sounds-alarm-over-bc-hydro-accounting/article4199754/

http://thecanadian.org/item/2045-bc-liberal-legacy-a-huge-debt-burden

BC Ministry of Finance, Provincial Debt Summary/ Debt Statistics

BC Ministry of Finance, Contractual Obligations Supplemental/Public Accounts/Summary Financial Statements

Links to data sources for total provincial debt:

http://www.fin.gov.bc.ca/ocg/pa/11_12/PA%20Prov%20Debt%20Summary%2011-12.pdf
http://www.fin.gov.bc.ca/ocg/pa/06_07/PA_2007_ProvDebt.pdf
http://www.fin.gov.bc.ca/debtmgmt/debtstat01-02.pdf
http://www.fin.gov.bc.ca/debtmgmt/debstat00-01.pdf

Links to data sources for contractual obligations:

http://www.fin.gov.bc.ca/ocg/pa/11_12/Contractual_Obligations.pdf
http://www.fin.gov.bc.ca/ocg/pa/10_11/Contractual_Obligations.pdf
http://www.fin.gov.bc.ca/ocg/pa/09_10/Contractual_Obligations.pdf
http://www.fin.gov.bc.ca/ocg/pa/08_09/Contractual_Obligations.pdf
http://www.fin.gov.bc.ca/OCG/pa/07_08/PublicAccounts.pdf
http://www.fin.gov.bc.ca/OCG/pa/06_07/PublicAccounts.pdf
http://www.fin.gov.bc.ca/ocg/pa/05_06/PA_2006_Summ.pdf
http://www.fin.gov.bc.ca/ocg/pa/04_05/PA_2005_Summ.pdf

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Bait and Switch: Red Chris Mine, ‘Green’ Funding and the Northwest Transmission Line

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The Northwest Transmission Line (NTL), a 344-kilometre, 287 kilovolt transmission line currently being built by BC Hydro between Skeena Substation (near Terrace, B.C.) and a new substation to be built near Bob Quinn Lake, is expected to be in operation by spring 2014. The NTL runs through rugged, avalanche-prone terrain. During construction, cost estimates for the first phase of the NTL have ballooned from $404 million to $617 million.

While AltaGas has contributed $180 million to the NTL, and $130 million comes from the federal government, BC Hydro is responsible for the extra costs, which have grown to over $300 million. In the future, it’s likely that B.C. residents can expect skyrocketing hydro bills to help pay the growing financial burden of NTL construction.

To help fund the NTL, the B.C. Government received $130 million from the federal Green Infrastructure Fund. The contract between the two parties states that the Province was obligated to deliver plans for an extension of the NTL to Iskut – to get the community off diesel power – by June 30, 2012, or risk being in breach of contract and defaulting on the funding agreement.

B.C. did not deliver the plans in time. In fact, it wasn’t until March 2013, almost nine months after the deadline, that Imperial Metals and BC Hydro announced that the mining company would build a 93 km extension of the NTL to Tatogga Lake and its proposed Red Chris mine. BC Hydro agreed to buy this NTL extension for $52 million, and to build a smaller power line from Tatogga Lake to Iskut.

The line to Red Chris will not require a new environmental assessment, and is exempt from reviews that would normally be required to determine if it was necessary or if construction costs have been properly assessed. In other words, the power line to Red Chris is being fast-tracked.

If allowed to proceed as planned, the open pit Red Chris mine would destroy prime wildlife habitat for Stone sheep and grizzly bear, and leave a tailings impoundment that would pose a long-term risk to fish habitat and water quality at the headwaters of the Iskut River. It’s hard to see what’s “green” about that.

Apart from connecting Iskut (population 350) to the grid, little about the NTL would seem to qualify for green funding. According to the Federal Government website, the Green Infrastructure Fund supports “projects that will improve the quality of the environment and…that promote cleaner air, reduced greenhouse gas emissions and cleaner water.” It’s a stretch to say the NTL does any of those things.

In reality, the transmission line could be the catalyst for an unprecedented wave of industrial development in northwest B.C., including up to 11 new mines in the Unuk, Iskut and Stikine River watersheds. These transboundary watersheds – flowing from B.C. into Alaska – are some of the last remaining largely intact watersheds in North America, sustaining robust populations of wild salmon and wildlife such as Stone sheep, grizzly bears, wolverine, and migratory birds.

If built, the new mines would bring open pits, industrial roads, greenhouse gas emissions, tailings ponds, and the risk of acid mine drainage throughout the watersheds. Red Chris would be the first of these mines to be developed.

Impacts are already occurring. Contractors clearing the right-of-way for the NTL have piled the cut trees into giant fifty foot tall tipi-shaped piles. Instead of selling the wood – some 490,000 cubic metres are being cut to clear the NTL right-of-way, enough wood to fill 16,000 logging trucks – the trees are simply being burned, with towers of flame turning the once living forest into smoke and ash.

As independent MLA Bob Simpson points out in the Vancouver Sun, the clear-cut and the wood-burning may put the province in violation of two of its own laws: The Clean Energy Act, which sets targets for carbon emissions reductions, and the Zero Net Deforestation Act, which contains a pledge to replace tracts of forest removed from the land base with plantings elsewhere.

In the name of “improving the environment”, the federal government gave $130 million of Green Infrastructure funding to the NTL, a project that could lead to the construction of multiple open pit mines in the transboundary watersheds. In order to receive the funding, the Province of B.C. was contractually required to deliver plans for the NTL extension by a certain date, but missed the deadline for delivering the plans. They still took the cash. Now it turns out they need a lot more money.

B.C. is quietly piling on the debt at BC Hydro as the cost of the NTL balloons – costs that may ultimately be paid by ratepayers in increased energy fees. While proponents tout the NTL as a “green” project that will provide cleaner energy and economic stimulus to a depressed region, in reality, it is a massive subsidy to industry, opening the region to large-scale mining and the subsequent destruction of wildlife habitat, and increased threats to water quality and wild salmon habitat in the transboundary rivers.

Tadzio Richards is Rivers Without Borders’ Transboundary Conservation Campaigner.

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WATER + POWER: Upcoming Presentations by Rafe Mair and Damien Gillis

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In the lead-up to the BC election, Common Sense Canadian co-founders Rafe Mair and Damien Gillis are travelling to four BC communities – Kamloops, Merritt, Williams Lake and Prince George – to discuss key issues shaping the future of our province. The multi-media presentations, titled “WATER + POWER: The Future of BC’s Energy, Environment and Democracy,” will include video clips from filmmaker Gillis, a speech by Mair and an audience Q&A session.

On the agenda is a web of proposed energy projects which represent the vision of both our provincial and federal governments for the economic future of BC – all with profound impacts on our vital freshwater and coastline. The discussion will cover everything from proposed oil and gas pipelines to fracking, Site C Dam, Liquefied Natural Gas (LNG) and private river power projects – to an alternate vision for managing BC’s resources and economy to the benefit of the public and environment.

The non-partisan events will scrutinize the BC Liberals’ economic and environmental record over the past decade, while examining the NDP’s policy positions on issues the like the proposed Kinder Morgan pipeline expansion to Vancouver and the nexus of Site C Dam, natural gas “fracking” and the plan to build a massive LNG industry on BC’s coast.

“Our goal is to provide the public with accurate information and connect the dots between interrelated projects of enormous environment, social, cultural, and economic significance,” says Gillis. “We’re furthering a much-needed dialogue about the future of our province at a key moment politically.”

The details for the upcoming events are as follows:

  • April 23, 7 pm: Kamloops, BC @ Desert Garden Seniors’ Centre (540 Seymour St. – Mojave Room)
  • April 24, 7 pm: Merritt, BC @ Merritt Civic Centre (1950 Mamette Ave.)
  • May 8, 7 pm: Williams Lake, BC @ Williams Lake Secondary School (640 Carson Dr.)
  • May 9, 7 pm: Prince George @ UNBC (stay tuned for room information)

The Kamloops and Williams Lake events are co-hosted by the local Council of Canadians chapters. All events are by donation.

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Historic Outpouring of Public Opposition to Site C Dam

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Yesterday, I joined several thousand British Columbians in submitting my comments to the environmental assessment process for the proposed Site C Dam in northeast BC. While it will likely take a few days for the most recent submissions to be registered on the government website for the process, judging by early indications, this was one of the largest-ever responses by the BC public to an environmental assessment – a clear sign of how much this issue matters to British Columbians.

The Sierra Club and civic engagement driver LeadNow teamed up to facilitate online submissions and are reporting over 3,400 comments filed by yesterday’s deadline – none of which appear yet on the official review panel website. That’s on top of the close to 1,000 comments already logged prior to that campaign, which kicked in during the final couple days of commenting. So we can expect to see a final tally of well over 4,000 submissions, comparable only to the highly contentious Enbridge Northern Gateway Pipeline proposal.

Herewith my own letter, addressed to Linda Jones, Panel Manager for the Canadian Environmental Assessment Agency:

Dear Ms. Jones,

As someone whose family settled in the Peace Valley a century ago, before losing our home, Goldbar Ranch at 20 Mile, to the first big hydro project on the Peace, I take very seriously this latest threat to the valley – Site C Dam.

Peace country is home to some of the best agricultural land in the province and critical fish and wildlife habitat. The unique soil and topographical conditions of the valley yield one of the longest growing seasons in BC. My family grew all manner of fruits, vegetables and grains there decades ago – until that sustainable way of life was taken away from us. I never got the chance to work my family’s land.

Today, we face a food security crisis in BC, producing just 40% of our total needs. We do not have an energy self-sufficiency crisis. I direct you to the work of my colleague, the independent economist Erik Andersen, who has clearly demonstrated that we have plenty of power for the foreseeable future…Unless, that is, we ramp up fracking operations, mines, and build 5-6 massively energy intensive Liquefied Natural Gas (LNG) plants on BC’s coast.

For evidence of this, you need look no further than our own premier’s recent comments. Ms. Clark told Global TV last week, “You can’t power up these huge [LNG] facilities without more power, so BC Hydro’s going to have to build Site C – we’re in favour of making that happen.” Last year, she acknowledged to a crowd in Fort St. John that just one of these proposed plants – Shell’s joint project with three Asian partners – would eat up the entire load of Site C, that being 1,100 megawatts.

Incidentally, how is the public supposed to take seriously this process when the outcome has clearly already been decided by our political leadership?

Despite the premier’s Orwellian assurances to the contrary, fracked natural gas, converted to LNG, then shipped halfway around the world to be decompressed and burned is not in any way, shape or form “clean energy”. Nor is a massively ecologically destructive mega-dam to power this gas development. In this era of climate change and drought conditions, I do not support using taxpayers’ and ratepayers’ dollars to subsidize the fossil fuel industry – nor to divert, contaminate and destroy billions of litres of precious fresh water, which is what these projects will do.

I respect Indigenous peoples’ rights and voice, as I respect the farming families still tilling the yet unspoiled land of the valley. I take very seriously the unified, unambiguous opposition of the Treaty 8 First Nations and farmers in the region to this project.

Moreover, I take the forced removal of the BC Utilities Commission from its role as the public’s watchdog in evaluating this project as patently undemocratic.

The lack of review of the project from a meaningful cumulative effects approach is also deeply troubling – especially in light of a recent report from the David Suzuki Foundation showing that over 65% of the region has already been marred by heavy industrial impacts – dams, roads, logging, mining, oil and gas.

This process, this project, and the draconian values that underpin them are deeply flawed.

I am steadfastly opposed to the $8 Billion-plus subsidy of the fossil fuel industry, the destruction of vital ecosystems and farmland, and the trampling on First Nations and citizens’ democratic rights that the proposed Site C Dam represents.

I urge you to do the right thing and reject this project.

Sincerely,

Damien Gillis

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Site C Dam: A $10 Billion Taxpayer Subsidy for LNG, Fracking

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Christy Clark argues the need for Site C Dam to power LNG on Global TV last week (screen capture).
Christy Clark argues the need for Site C Dam to power LNG on Global TV last week (screen capture).

Premier Christy Clark wants BC citizens to subsidize the oil and gas industry with a $10 Billion taxpayer-funded dam. Though she won’t put it quite like that, that’s precisely the implication of the policies she’s promoting in the run-up to May’s provincial election.

Clark confirmed her vision for powering a new, much-ballyhooed Liquified Natural Gas (LNG) Industry to Global TV last week (a must-watch). The premier has promised in recent months a $100 Billion windfall of provincial revenues from the yet-to-be-developed LNG industry, a boast which has drawn justified ridicule from pundits.

LNG requires enormous amounts of energy to super-cool gas in order to liquefy it and load it onto tankers. Numerous global energy companies – including Shell, Chevron, and a number of big Asian players – have lined up over the past year to build LNG plants in Kitimat and Prince Rupert, in order to access Asian markets which are currently paying significantly more for gas than the North American market.

Clark acknowledges the province doesn’t have enough electricity to supply the demands of multiple proposed LNG facilities. Her solution? Flood an 80 km stretch of the fertile Peace Valley in northeast BC to build a new dam. Dubbed Site “C” because it would be the third dam on the Peace River, the project would flood some 20,000 acres of high quality agricultural land and wildlife habitat.

Clark was blunt with Global TV reporter Jas Johal:

[quote]You can’t power up these huge [LNG] facilities without more power, so BC Hydro’s going to have to build Site C – we’re in favour of making that happen.[/quote]

The statement came as the window for public comments to the environmental assessment process for Site C winds down, drawing to a close Thursday, April 4.

Last year, at a press conference in Fort St. John, near the location of the proposed dam, Premier Clark spoke to the need for Site C to power LNG. She acknowledged that just one of the 5 or 6 planned LNG terminals on BC’s coast – a proposal by Shell and its Chinese, Korean and Japanese partners – would eat up the entire 1,100 megawatt output of Site C.

So even with this new dam – which won’t be up and running until 2020 at the earliest – BC has nowhere near the energy required to power the energy-hungry LNG industry. To that end, Premier Clark created a loophole in the Clean Energy Act to allow gas companies to generate power for their plants by burning their own natural gas. Which begs the question: why the continued need for Site C?

Perhaps it’s because the power from Site C would be offered to gas producers at a steep discount, which is the standard for large industrial users, who typically pay less than half what residential and small business customers pay for hydroelectricity in BC.

When pressed by Johal on the taxpayer subsidy issue, Clark brushed it off – “That’s not part of what we’re negotiating…We aren’t going to ask residential taxpayers to subsidize this.”

And yet, the dam itself, pegged at $8 Billion but sure to balloon beyond that (a study of 70 large dam projects funded by the World Bank found that the average overrun was a whopping 27%), will be on the shoulders of taxpayers and crown corporation BC Hydro – already drowing in massive debt. And unless the plan is to make the LNG industry pay top dollar for this new power (which defeats the purpose entirely), then residential hydro customers will bear the full burden through much steeper power bills.

While Site C is a looming taxpayer boondoggle, it will also destroy precious farmland at a time when we produce just 40% of our own food in BC. And as this recent report from the David Suzuki Foundation shows, it will compound the enormous industrial footprint that has marred over 65% of the Peace Valley over the past half century – making it easily one of the world’s most heavily impacted regions already.

A major source of those impacts is the natural gas industry, which relies more and more on environmentally risky “fracking” to extract the gas that would flow to these LNG plants through multiple new pipelines.

So Site C and LNG mean a major ramping up of increasingly controversial fracking.

Clark’s opposition in the upcoming provincial election on May 14, the BC NDP, are showing signs of backing away from Site C. The party’s Energy Critic John Horgan told the Vancouver Sun in February, “I’m confident that in the first two years of an NDP government we won’t be building Site C.”

For more information on Site C and tools to help you submit your comments to the environmental assessment process by the April 4 deadline, click here.

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BC's Fiscal Mess: Hydro, LNG Numbers Don't Add Up

BC’s Fiscal Mess: Hydro, LNG Numbers Don’t Add Up

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BC's Fiscal Mess: Hydro, LNG Numbers Don't Add Up
Proposed LNG plant in Kitimat – artist’s rendering

The famous bordello keeper of the 20s, Texas Guinan, used to greet her “guests” with, “Hello suckers!”

Texas Guinan has her presence today in the form of BC’s Finance Minister Mike de Jong.

First we must understand some underlying facts about BC finances.

A balanced budget – your style and mine – has us forecasting revenues and expenses accurately, including everything, not something to be pushed at a banker after a three martini lunch. If you don’t include everything you’ll have to borrow money when the car breaks down.

You and I know that if we don’t include everything, we’re just fooling ourselves. Well, folks, there’s no gentle way to put it. We have been played for fools and I’m only going to deal with three headings and leave the deep analysis to economists.

Robbing Peter to Pay Paul

We are selling off some $800 million of Crown assets. This is like you and me selling our homes and using the revenue to balance our current budget. Using money from capital assets, you and I would say, doesn’t belong in our family’s budget because it simply isn’t proper revenue any more than selling off the family jewels is proper revenue.

Governments make up their own rules, of course, and some things that ought not to be are in the annual budget, while other things that ought to be there are missing.

Private Power Rip-off

Take BC Hydro – in fact, take it before General Electric takes it if the Liberal government is, God forbid, re-elected.

Under this government, BC Hydro, which used to pay us taxpayers hundreds of millions per year from its operating profits, is now essentially bankrupt, though not yet formalized. It will be sold with a Liberal victory in May.

No government would do such a thing?

Can you say BC Ferries? Can you say BC Rail?

Since the Liberals embarked on their deliberate plan to bankrupt BC Hydro, our crown jewel has seen its debt and contractual obligations rise to about $80 BILLION.

How has this happened?

Much of it comes from the sweetheart contracts BC Hydro is forced to give Independent Power Producers (IPPs). These contracts cost the public as high as five times the market rate for power and have pushed Hydro into an annual deficit position.

The trouble in dealing with this is it’s difficult if not impossible to believe.

Well believe it. Mair’s Axiom #1 prevails: “You make a serious mistake assuming that people in charge know what the hell they are doing.”

Now, if your family business started to lose big bucks and you decided to pump money from your family’s other sources of income into it, you would certainly show that in your budget. The Liberal government hasn’t told you about that.

LNG Pipe Dream

Finally, let’s take a look at projected income, particularly from Liquified Natural Gas (LNG), which is to be our fiscal saviour. Indeed, according to Premier Clark, we’ll be rolling in dough with this money!

Mr. de Jong perhaps hasn’t noticed that suddenly – and it has been sudden – the world is awash in natural gas. In the time I’ve been talking about it, our obvious major client, China, has discovered massive shale gas reserves of its own.

Believe it or not, it gets worse.

The Canadian Association of Petroleum Producers has made it clear that unless the BC government and the federal government agree to give 30% capital cost allowances – meaning they want a 30% subsidy on the money spent building facilities, like what happens in Australia – then thanks but no thanks to this LNG scheme.

A glance at the Australia experience shows that at the end of the day, the taxpayer ends up footing a big portion of the construction costs to serve a world that doesn’t want their product.

Here’s what one BC political blog had to say on the matter, comparing the LNG issue to our experience with private power:

…LNG exporters are just like our IPP run of river companies, who did nothing, built nothing, acted only on their own behalf, and laid out no money to build 1 kilowatt of power without 30 and 40 year guaranteed contracts, contracts that Gordon the thief Campbell was more than willing to sign. IPPs did not take one single risk, we, the taxpayers, the BC Hydro ratepayers were ripped off…

There are no LNG facilities built as yet, nor will there be unless government pays their capital costs and even then I predict we’ll never see a single plant, let alone the 5 or more proposed.

Christy Clark’s vaunted “Prosperity Fund” will never receive one penny.

The Speech from the Throne and the Prosperity Fund – and the Budget – are barnyard droppings and Premier Clark is trusting that a disreputable, ongoing lie will fool the public.

Hello suckers!

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Vaughn Palmer’s wrongheaded defense of private power projects

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Wow! The Vancouver Sun has been a-burst with environmental issues, two on the front page February 6.

Let’s first back up to Vaughn Palmer’s ill thought out column of February 4. It’s nice to see Palmer has finally sacrificed his virginity and tackled the Independent Power Producers’ (IPP) obscene contracts foisted by the government on BC Hydro. Before we rejoice at Palmer’s brain transplant we must recognize what tripe this column was.

Palmer defends gross overpayments to IPPs on the grounds that the contracts were granted at a time when electricity prices were much higher, which ignores the standard practice of tying contracts to prices at the time of sale. Certainly that would make matters riskier but that’s the name of the game in business.

Then Palmer attacks us skeptics by making the case that we will welcome these IPPs when we are short of energy, which Palmer sees in the immediate future. This is not so as Economist Erik Andersen has demonstrated. (You would see more of Andersen’s work if the Fraser Institute’s house organ, The Sun, would publish his work).

Mr. Andersen recently wrote in a letter intended for The Sun, but unpublished thus far, “When one sees value in a deliberately created surplus of anything costly, it can only be from ignorance of need. For decades, BC Hydro has an unbroken record of estimating provincial demand well in excess of recorded demand. The BCUC (BC Utilities Commission) recognized this several times in the last century but BC Hydro keeps coming back.”

Palmer also ignores the huge debt to IPPs by reason of these shameful overpriced contracts, which stand at over $50 BILLION and rising. It doesn’t seem to bother “Poodle Palmer” that if in the private sector BC Hydro would be in bankruptcy protection at best and that as of now BC residents owe about $16,000 per man, woman and child because of Hydro’s massive $70 BILLION in debt and contractual obligations.

Naturally, Palmer ignores the huge environmental cost of these projects; moreover, he neglects to mention that the IPPs are mostly out-of-province and out of Canada companies who – and these dots connect – take all the profits straight out of the pockets of ratepayers who will be dinged with ever-increasing rates to cover the costs of these government-cosseted corporate leeches.

The lead headline in The Sun of February 6 leads into a report that the federal government is ill-prepared for a tanker spill and talks about such a thing as “unlikely” – even though the Department of the Environment, scarcely made up of tree-huggers, assert that spills are a certainty.

That’s two certainties – a spill is certain and there is no way it can be cleaned up.

In Ancient times, Cato the Elder ended every speech to the Roman Senate, whatever the subject, with “Carthago delenda est” (Carthage must be destroyed”.) Eventually the Senate got the idea and Carthage was destroyed.

We must imitate Cato and wherever appropriate pronounce the essential truth about oil spills from pipelines or tankers: NOT IF BUT WHEN!

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Rafe's Welcome Letter to New Sun & Province Publisher

Rafe’s Welcome Letter to New Sun & Province Publisher

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In the Postmedia press this past week we learned that Gordon Fisher has become publisher of The Vancouver Sun and The Province. Here is my welcome.

Dear Mr. Fisher,

My congratulations on your new posting. These two papers need all the help they can get.

I’m an octogenarian now – I love that word because it’s more descriptive than “senior citizen” and because no one I knew in my 40s would have bet a plug nickel I’d ever get this far.

As a lifetime British Columbian I go back a long way. As a youngster I was a Tillicum mostly because The Province gave you a neat faked silver totem pole as a badge. The magic words were “Klahowya , Tillicum”, which my cousin said came from Indians saying to Hudson’s Bay employees, “Clerk how you?”

I doubt that but have never heard of a better answer

I didn’t join The Sun’s Uncle Ben club because my Dad hated The Sun – in those days there was real rivalry!

I remember some of the great writers of that day – Eric Nichol, Jack Scott, Harold Weir (a rabid royalist) and I even read Sir Michael Bruce, whose taffy-nosed columns used to get under everyone’s skin.

I would like to talk about more modern times.

Back in the 70s I ran for the BC Legislature and as I awaited the election I couldn’t wait to read Marjorie Nichols in The Sunas night after night she kicked the crap out of the NDP government, especially Dave Barrett.

When I was elected it seemed as if Marjorie had had a brain transplant as now she was hammering the hell out of the Socreds and Bill Bennett!

I asked myself how Marjorie had changed so dramatically until the light went on – it wasn’t Marjorie who had changed, it was the government!

As the days passed I noticed that Jack Webster, Pat Burns, Jack Wasserman, Denny Boyd, Garry Bannerman, Ed Murphy, Jim Hume, Barbara McClintock – indeed the entire political press were “unfairly” beating up on us.

After I left the government I realized that they were “holding our feet to the fire” and it made for a better, more responsive government. It was that obligation I adopted when in 1981 I went into radio.

In the nineties you will remember the NDP under Mike Harcourt took over for the next decade.

The print media, especially Mike Smyth of The Province and Vaughn Palmer of the Sun were merciless in their pursuit of at least a close proximity to the truth. There were two areas that stick in my mind – the fast ferries issue and Glen Clark’s dealing with a man trying to get a gambling licence, who did some work on the premier’s house.

These two and Les Leyne and Jim Hume, both of the Times-Colonist, were relentless in their pursuit of the facts and highly critical of the premier and other members of the government.

In 2001 it all changed as the Liberals under Gordon Campbell took power. The media suddenly started to avoid issues or give them a once-and-for-all treatment.

Let me be specific.

For the first time in my life, the environment has become an issue, perhaps the #1 in the province. In no special order, here are the main issues: loss of agricultural land due to the Gateway Project, fish farms, private river power, pipelines and tankers, and most recently “fracking”.

Mr. Fisher, I ask you to look at your columnists and determine for yourself whether any of these questions have been canvassed – not well canvassed but canvassed at all.

Let’s start with fish farms. These have not been covered at all in spite of the terrible consequences of them including ruination of wild salmon! I invite you to find a critical word – indeed any word at all – in Smyth or Palmer’s columns in the last 12 years. You will note that your former editor of the Sun editorial pages, a “fellow” of the Fraser Institute, freely gave op-ed opportunities to the fish farmers’ lobby, yet you’ll search in vain to see anything from, say, Alexandra Morton.

The so-called “run of river” policy has desecrated 75 rivers and proposes to do the same to hundreds more. These projects build a dam (they prefer to call them “weirs” but they are dams) which kill migrating salmon and resident trout and, in effect, permanently decimate the ecosystems that depend upon the river. You see, Mr. Fisher, these plants not only impact the fish directly but the entire ecology as they require roads and clear-cutting for transmission lines.

Let’s leave aside the environment and look at the economics.

BC Hydro is compelled by the provincial government to sign agreements with Independent Power Producers (IPPS) on a “take or pay” basis meaning that when IPPs are going all out during run-offs, BC Hydro, which has full reservoirs, must buy this power even though they don’t need it, at double to ten times the export price and many times more expensive than it can generate it themselves. BC Hydro owes IPPs for future power over $50 Billion!

This all means, of course, that Hydro can no longer pay a dividend to the government of the customary hundreds of millions of dollars and is, in fact, bankrupt by private, corporate standards.

I invite you to look at your columnists’ work over the past 5 years and try to find a discouraging word about private power. There have been the occasional, very occasional, news story but your political columnists are and have been silent.

Let me pause and tell you that after I had raised hell on this subject, Province editor Wayne Moriarty phoned me and whined, “Rafe, do you think I tell my columnists what they must not write about?” to which I replied ,“You don’t have to, Wayne, you don’t have to.”

Let’s move on to the pipelines issue, especially the Enbridge proposal and the proposed new Kinder Morgan line. At the same time, let’s glance at the tanker traffic these two pipelines will need.

These are both huge issues. The issue isn’t the risk of spills, Mr. Fisher, but the certainty of them. Even the Federal Environment Ministry (scarcely known to be tree-huggers) says that these spills are inevitable.

But, you may well ask, surely these spills can be cleaned up?

First let’s deal with the proposed Enbridge line, which is more than 1,000 Kilometers long and passes through the Rockies, the Rocky Mountain Trench, through the Coast Range then through The Great Bear Rainforest. When a spill occurs, how the devil will Enbridge get men and machines in to the spill area?

Mr. Fisher, it’s even worse. It doesn’t matter.

Enbridge had a huge spill into the Kalamazoo River in July 2010 and it hasn’t been cleaned up yet and never will be. Access to the spill site posed no difficulties but cleanup certainly did.

The cargo is what they call dilbit or diluted bitumen, product of the Tar Sands, which in itself is the world’s largest polluter. With ordinary bulk oil one can get to a lot of it by “rafting” which, as you would imagine, is surrounding it, localizing it then scooping it up.

Unfortunately, within a very short time after a dilbit spill, the bitumen separates from the diluent and sinks like a stone. Not only will Enbridge be unable to get to the spill, even if it could they would be helpless to do anything of consequence.

The problem scarcely ends there. The tanker traffic poses huge problems.

Again, Mr. Fisher, it’s not a matter of “if” but “when”. The consequences of a spill are too awful to even contemplate. Whether down Douglas Channel from Kitimat or through Vancouver Harbour from Burnaby the consequences of a spill will be horrendous.

Yes, with double hulling there will be fewer accidents, the operative word being fewer. As we know from the BC Ferry Queen of the North calamity, where there is a possibility of human error, tragedies will happen.

I’m sorry to have been so long-winded, Mr. Fisher, but my point is that Postmedia’s coverage of the matters mentioned has been pathetic and journalistic critique, let alone criticism, has been nonexistent.

I ask you, are you content to let this continue?

Yours very truly,
Rafe Mair

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This map from the David Suzuki Foundation's recent report shows all human-driven change to the Peace Region (buffered by 500 m) in red.

New Suzuki Foundation Report Shows Staggering Longterm Industrial Impacts on Peace Region

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Roads, dams, logging, mines, fracking, seismic lines, pipelines, transmission lines. The Peace Valley region in northeast BC has seen its share of industrial development over the past half century. Now, a new report from the David Suzuki Foundation vividly illustrates the toll these cumulative impacts have taken on the land.

The foundation commissioned scientists from Global Forest Watch Canada to survey 40 years worth of satellite images in order track the increasing industrialization of the land. They found that over that span, more than 65% of the region has been impacted by industry – often involving different activities layered on top of each other – leaving little intact wilderness.

“Our study found that there are 16,267 oil and gas wells, 28,587 kilometres of pipeline, 45,293 kilometres of roads, and 116,725 kilometres of seismic lines packed into the Peace Region. If laid end to end, the roads, pipelines and seismic lines would wrap around the planet an astonishing four and a half times,” said Peter Lee, who led the research study.

Far from being a thing of the past, this industrialization of the region continues marching forward, with the proposed Site C Dam, new coal mines, and continued logging, fracking and other impacts. All this occurs atop important habitat for threatened populations of grizzly and caribou and amid sensitive boreal forest critical to carbon absorption and sequestration.

The Suzuki Foundation is supporting the work by Treaty 8 First Nations, farmers and conservationists to oppose Site C Dam, which would be the third dam on the Peace River. Representatives of these groups recently came to Vancouver and shared their message with local media.

“Enough is enough,” West Moberly First Nations Chief Roland Willson told The Vancouver Sun. “We need to slow down. It’s more important to maintain the integrity of what’s there than put it under water…all to expand the industrial footprint.”

Said Dr. Faisial Moola of the Suzuki Foundation in a blog on the report’s release, “If built, Site C would flood 3,173 ha of prime farmland and destroy sensitive wildlife habitat.”

“That’s why the David Suzuki Foundation is standing with local farmers and ranchers, as well as the Dunne Zaa/Dane zaa First Nations, to oppose further destruction of this productive, ecologically important and picturesque valley with the construction of the Site C Dam and reservoir.”

Download the full report here.

Damien Gillis is co-directing a documentary, Fractured Land, which examines these issues in detail. Learn how you can support the film here.

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‘Power & Energy’ Subject of Intergenerational Dialogue in Vancouver

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Gen Why Media and the Canadian Centre for Policy Alternatives are co-hosting an “intergenerational dialogue” in Vancouver on Tuesday, December 11 to explore various existing and proposed energy projects in Western Canada. Titled “Power & Energy: Connecting the Dots”, the program is the third in a series of “Bring Your Boomers” events, sponsored by Vancity, designed to debate key social issues from different generational perspectives.

In addition to musical performances and a keynote talk by the CCPA’s Marc Lee, the evening will feature a three-way dialogue, with each panelist representing a different generation. I have the privilege of representing Generation Y (a.k.a. “Millennials” – born from the late 1970s to early 2000s), while leading energy and public policy expert Ben Parfitt of the CCPA will represent Generation X. Rounding out the panel is Boomer Karen Cooling, National Staff Representative at the Communications, Energy and Paperworkers Union of Canada. Adding further generational depth to the discussion will be 11 year-old moderator and First Nations singer/songwriter Ta’Kaiya Blaney – a vocal critic of oil tankers on BC’s coast.

Cooling’s union represents workers in the energy sector, among other areas, and has actively raised concerns about proposed oil pipelines to export Alberta bitumen to Asia and the United States. Her colleague, union president Dave Coles, recently told a crowd of thousands gathered in Victoria to oppose pipelines and takers in BC, “these pipelines are job killers” because they export bitumen without refining it and threaten the environment.

Ben Parfitt has published a number of highly-regarded independent reports on hydraulic fracturing, or “fracking”, in BC. Fracking is also a key focus of a film I’m currently co-directing with Gen Why co-founder Fiona Rayher, called Fractured Land, which examines energy issues in northern BC and Alberta through the eyes of a young First Nations law student named Caleb Behn. The film will discuss the concept of the “Carbon Corridor” – an interconnected web of fracking and tar sands projects, dams, coal mines, oil, gas and condensate pipelines, and Liquefied Natural Gas (LNG) plants and tankers on BC’s coast – designed to transform Canada into a major hydrocarbon provider to new markets in Asia.

Founded in Vancouver in 2010, Gen Why Media describes itself as “a production group that collaborates across disciplines to create media, events, workshops, public art and intergenerational dialogues that engage society in new forms of public engagement.” Says Tara Mahoney, Gen Why co-founder and organizer of Tuesday’s event, “Our goal with this dialogue is to engage a broader audience in a discussion about energy policy – a topic that isn’t always very accessible, particularly to young people. We hope to use culture as an entry point into a conversation about energy policy and to find ways different generations can work together to shape these issues going forward.”

Gen Why’s previous “Bring Your Boomers” events have examined topics such as technology, globalization, activism and intergenerational cooperation and featured an impressive list of speakers – including former National Chief of the Assembly of First Nations Phil Fontaine, journalist and activist Judy Rebick, filmmakers Nettie Wild and Nimisha Mukerji, Vision Vancouver Councillor Andrea Reimer, and LeadNow.ca Executive Director Jamie Biggar.

Tuesday’s “Power & Energydialogue will also feature a musical performance by popular Vancouver band Brasstronaut. The event takes place at the Rio Theatre – 1660 East Broadway, adjacent to Commercial-Broadway Skytrain Station. Door open at 6:30 and the event starts at 7 pm. Tickets can be purchased online here.

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