Tag Archives: private river power

IPP Champion Tzeporah Berman Returns to Vancouver – Read her Fluff Piece in the Vancouver Observer

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Read this fluff piece by chief private power greenwasher Tzeporah Berman in the Vancouver Observer, marking her return to the city after a year in Amsterdam.Of course, no mention is made of the controversy her support for GE and private power projects stirred up within the environmental community before jetting off to Europe.

“For the past year I’ve been dreaming of Vancouver. Specifically I have
been aching for the beaches, wishing I could wake up and see the fresh
snow on the mountains and imagining walking through the endowment lands.
Yesterday as I stood in a friends apartment with a gorgeous view of the
city and the sun setting over the mountains I felt a place in my heart
open up that had been dormant for too long and for a minute I couldn’t
catch my breath. I knew this would happen. I love this place. I have
since I arrived for visit almost twenty years ago and realized that for
the first time since I was a child I felt like I was really home.” (Sept. 4, 2011)

http://www.vancouverobserver.com/5-minutes-with/2011/09/04/tzeporah-berman-coming-home-vancouver#comment-37918

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NDP Energy Critic John Horgan on Hydro Report, IPPs

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Read this op-ed in the Vancouver Sun by BC NDP Energy Critic John Horgan on IPPs and the recent panel report on BC Hydro.

“The Liberals imposed a policy on BC Hydro that forced the utility to
only buy new electricity supply from private providers here in B.C. This
“independent power” purchase plan costs ratepayers as much as four
times the market rate for electricity and will see at least $45 billion
in unfunded liabilities over the next 30 years. They also introduced
unnecessary requirements to be electricity self-sufficient, boosting the
need for such purchases. With the damage done, BC Hydro was forced to
request rate hikes of more than 50 per cent over five years. The
Liberals called for a review of BC Hydro, prepared by a panel of deputy
ministers and released earlier this month.” (Aug, 24, 2011)

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Cobb Fallout: Coleman, Clark Say No New IPPs but Refuse to Kill Policy

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The admission by Dave Cobb, President of BC Hydro, that Hydro is spending 100s of millions for energy they don’t need came as a shock, except for Damien Gillis and me and others, notably the Wilderness Committee, who have been saying this for three years without a peep out of the government. It’s too bad that Mr. Cobb didn’t stand up and be counted by way of a press conference – instead his remarks were leaked. It could still cost him his job, although if he were fired, he would get a pretty penny in severance, to be paid by us of course.

The response by Energy Minister Rich Coleman is what I would expect from a member of this appalling government, though I did harbour hope, in vain, that the minister is made of sterner stuff. He simply replied that they had no plans for any more private power at this time, but they’d be sticking with the underlying policies that justified IPPs – criticized by both Cobb and the recent panel report on Hydro.

Coleman knows, or ought to know, that there will be no new private power, period. The political fall-out from Mr. Cobb’s statement has been enormous but if Bute Inlet, Glacier-Howser or other projects are approved, this government will never be allowed to get away with it. Without any doubt, such a happening would be ugly.

Let’s not overlook another problem: the environment. This is what got many of us involved in the first place. The environmental consequences of these plants is enormous and that alone would have kept any government of decent, caring people away from private power in the first place.

The issue of private power being both wrong economically and environmentally was raised by Dr. John Calvert in Liquid Gold, a book that every one should read. When Damien, Tom Rankin, I and others started raising the economic argument, it was greeted by silence, making me think of the famous Sherlock Holmes story about the dog that didn’t bark. Roughly, in the solving of the case, Holmes said that he solved it because of the dog. When it was pointed out to him that the dog hadn’t barked Holmes said, “Precisely.” We were, up until last week, faced by public dogs that wouldn’t bark, which confirmed we were right.
 
It wasn’t easy dealing with this matter, for the government insisted on the negotiations and the contracts remaining secret. Reflect on that for a moment – Billions of dollars of taxpayer’s money, given away in secret deals!

We had to fly blind with no help whatever from the mainstream media. Dr. Calvert’s book was published 4 years ago and the media remained silent. Op-ed pieces by industry and apologists for it were as regular as ones supporting fish farms but nary a discouraging word. The “hardnosed” columnists, Vaughn Palmer and Mike Smyth said nothing. Indeed the Province, the day after the Sun finally printed the statement of Mr. Cobb – and blockbuster story it was – was silent on the subject. Frankly, it’s been lonely as hell.
 
Now comes the issue of what next?
 
I can only tell you what an honest government would do. The minister would state that the policy had turned out to be too pricey for the shareholders (us) and it was hereby abandoned and would not be revived, Finis.
 
But this is not an honest government. It has been a corrupt gang from the start and Christy Clark was part of it, an integral part, as deputy premier. During her time in radio, she raised not a whisper about the Energy Plan – indeed she abstained from any criticism of the government. The hallmark of this bunch is one falsehood after another. They make the last NDP government look like paragons of virtue with brilliant economic policies.

When, in 2001, then attorney-general Geoff Plant introduced the legislation for fixed election dates in the legislature, he called it “an important tool for moving some of the power out of the premier’s office and restoring public trust in the political system.”

“When people are suspicious of the timing of an election, they become suspicious of the work their politicians do,” he said.

Deputy Premier Clark vociferously supported the move then, but somehow 10 years later – when a premier wants to exercise that very power we all assumed had been taken away – she recants. This is quite in tune with the insincerity and dishonesty of this government.

The revelation by Mr. Cobb could not come at a worse time. Premier Clark had hoped that the blue ribbon committee set up by Rich Coleman would fuzzy over the scandalous issue of costly and useless private power but, try as they might to be nice to the government, they disappointed the premier, who thought she could run an election with BC Hydro an issue for environmental kooks only.

It fortifies an old and cynical rule that governments should never appoint commissions unless they know what their answer will be or don’t care. Ms. Clark cares about this answer, that’s for sure!

Whether there’s an election in the fall or on its proper day in 2013, Premier Clark will have to tell us why she supports a policy which gives private power a monopoly to create new power which BC Hydro doesn’t need but is compelled to buy at a huge loss – while the IPPs ravish the environment.

I sense that no matter when she calls an election, Premier Clark will learn that being a photo-op is not enough.

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Hydro CEO Cobb Predicts End to Govt’s “Self-Sufficiency” Policy

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Read this blockbuster story from the Vancouver Sun revealing an internal conference call on August 12 in which Hydro CEO Dave Cobb criticizes the government’s IPP policy and predicts an end to its artificial “self-sufficiency” and “insurance” requirements that have helped justify the program.

“If it doesn’t change, it would be hundreds of millions of dollars per
year that we would be spending of our ratepayers’ money with no value in
return,” said Cobb. “The way the self-sufficiency policy is defined now
… would require us to buy far more long-term power than we need.” (Aug 20, 2011)

http://www.vancouversun.com/news/Hydro+head+predicts+energy+self+sufficiency/5283019/story.html

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BC Libs, IPPs Can’t Distance Themselves from Hydro’s Woes

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The response of the private power industry (IPPs) to the recently released study on BC Hydro is goofy even against other barmy statements they make.
 
The defence against the charge that their power costs many times what BC Hydro can make it for themselves is that BC Hydro has paid for its facilities long ago so doesn’t have any capital costs whereas IPPs must build new plants.
 
Of course that’s true – AND THAT’S THE WHOLE POINT!!!
 
Why should BC Hydro (that’s us folks) pay huge rates to cover the construction of private dams when they can get the power from their own system at a fraction of the cost? To pay a triple, quadruple bonus to IPPs so they can build power plants that ruin our rivers and supply us with hugely dear power is plain and simply nuts – yet that’s what the Campbell/Clark Government has been doing for 10 years!
 
Repeat after me – Vaughn Palmer and Mike Smyth too please: “We have never needed IPPS, don’t need them now and won’t need them in the foreseeable future.”
 
Independent experts make it clear that with reasonable conservation, upgrade of current facilities, new generators on flood control dams and taking the Columbia River Treaty power back that we currently sell, puts us in a position that no new power will be needed for decades.
 
My Liberal colleague on our Monday morning Political Panel said today, obviously thinking this was in the government’s favour, that the Committee Report is a window into BC Hydro’s inner workings.
 
I replied and say again, “Yes that’s absolutely right and when the experts look into that window they see a screwed up mess of massive proportions all of which happened during the last 11 years the Campbell/ Clark government has been running the show!”
 
There is no escaping this charge because BC Hydro has its policy directed by the government of the day and always has. The orders to bugger up our rivers and streams by IPPs came directly from the Campbell/Clark government. The government has persisted in this policy even though they have been fully informed throughout.
 
This report also, without saying so, is a condemnation of the media which knew all the facts leading up to the report’s criticism of IPPs, but stayed silent. This is disgraceful and there’s no excuse for their silent support for the Campbell/Clark encouragement of IPPs. If Vaughn Palmer had dealt with this issue the way he dealt with the “fast ferries” issue under the NDP, I have no doubt that the outcry from the public would have been such that the government would have been forced to cancel this outrageous policy.
 
As with fish farms, and will be with pipelines and tankers, it’s all there for everyone to see – BC Hydro has been brought to where, if it was in the private sector, it would be in bankruptcy protection.
 
Premier Clark would like to distance herself from the past and considering her role in government and her silence when in radio, one can understand why.
 
She could make a big step towards her goal by ending BC Hydro’s commitment to private power immediately.
 
If Ms. Clark refuses to change, she will deserve to have her name linked with that of Gordon Campbell because her government will continue to be joined at the hip to the 10+ years the Liberals have been destroying BC Hydro and the environment.
 
My Liberal colleague on the CBC is right – the report is indeed a window into BC Hydro’s government-directed follies which have destroyed our rivers, are bent on destroying many others and committing corporate suicide in the bargain. 
 

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Hydro Report: Death Knell for BC’s Public Power?

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This will be a short blog because the point is simple…and devastating.
 
Mark down August 12, 2011 as the day BC Hydro all but concluded its suicide mission, with the Campbell/Clark government and the Review Panel playing the role of Dr. Jack Kervorkian.
 
When you sort through the announcement by Rich Coleman and the verbose report itself, you learn that BC Hydro will cut its future costs by 50%, which in practical terms means this: Hydro will be unable to upgrade its facilities and build generators on flood control dams which means they will buy more and more power from more and more private power producers – which is surplus to their needs – buggering up more and more rivers and streams, thus fulfilling the Campbell/Clark government’s ambition to privatize power in BC.
 
BC Hydro, in taking all this unneeded power from Independent Power Producers (IPPs), must either export it or use it instead of its own vastly cheaper power. This means that BC Hydro will use power at at least double what it can make it for or export it at half to a quarter what they were forced to pay for it. Last year Hydro wasted $600 million buying IPP power it didn’t need – that money was our money, folks.

This comment on the report by former BC Hydro board chair and SFU political scientist Marjorie Griffin-Cohen. She said that the review – which also called for the utility to cut its proposed 50% rate hikes by half – distracts from the utility’s real problem: that  the real burden of cost is the government’s policy on private power. “Basically, what they have required to happen in BC is for new power generation to be in the private sector, BC Hydro to buy that and their hope was that this could spur exports of electricity to the United States,” she said.

“It was a very serious miscalculation of what was going on. So what we have now is a lot of private power that is extremely costly.”

Griffin-Cohen said private power projects produce 16 per cent of domestic power, but account for 49 per cent of energy costs. (emphasis added)
 
The much esteemed SFU professor and energy economist Marvin Shaffer had this to say:

“The real story in the review panel report, although gingerly and cautiously stated, is that it is government itself which bears major responsibility for driving up BC Hydro costs and rates. It was the government that directed BC Hydro to acquire all new sources of energy from Independent Power Producers (IPPs) except in the refurbishment of existing projects or developments like Site C on existing BC Hydro-controlled river systems. (emphasis added)

It was the government that legislated self-sufficiency requirements that have forced BC Hydro to buy more power than it needs to ensure reliable supply. It was the government that imposed debt/equity provisions that exaggerate the cost of BC Hydro financed investments. And it was this government that raised water rentals in a way that directly affected BC Hydro and its customers, but that would not impact private power producers, including Alcan and Teck.
 
Anyone who’s run a household budget knows that leads to the poorhouse and bankruptcy.
 
What this means is that the Campbell/Clark government, as advised by the right wing Fraser Institute, see their dream come true – the end of public power in our province with the ruination of our rivers in ever increasing numbers.
 
We at The Common Sense Canadian have been saying this for close to two years and as individuals nearly four. I have faced audiences all around the province and have seen disbelief in the faces of the audience saying to me, “No government would do anything so stupid!” Well they have and are about to make it worse.
 
BC Hydro is the egg that’s become the omelette. The dice were cast and they turned up snake-eyes. The Campbell/Clark government privatized BC Ferries and BC Rail and now it’s moments away from privatizing power by bankrupting our crown jewel – the much coveted BC Hydro and Power Authority..
 
The story Damien and I and many others including our adviser, economist Erik Andersen, have been telling since 2008, has been difficult to believe.
 
Well, folks, BELIEVE IT!!!

Postscript – to Vaughn Palmer and Mike Smyth – repeat after me: “The problem with BC Hydro is the massive sweetheart deals made with private power companies where under Hydro must buy ever increasing amounts of power at a huge loss.” Now, having spat it out, PRINT IT!

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Issues NDP Can Win On…If They’re Smart Enough

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The New Liberal leader will, on several questions, be like the fighter sitting on his stool and refusing to answer the bell because he knows he’s going to get the crap knocked out of him.

One of those is BC Rail.

Another is private v public power which, in essence, is combined into Campbell’s so-called run-of-river policy.

We must all know that no matter who the leader is, he/she will duck these issues and they will be greatly aided by the mainstream media people who are not allowed, apparently, to bring them up.

For the NDP this is a glorious opportunity to win, outright, two huge issues – but before they can do that they must establish their understanding of these two issues and offer solutions.

The NDP didn’t have the opportunity to really deal with BC Rail for the serious stuff was before the courts and no one would have believed that the Liberals would shut the case down just as former Minister of Finance, Gary Collins, and the Premier himself were to give evidence.

On the Energy/Rivers issue the NDP was woefully weak in the election campaign. For much of the campaign the NDP candidate could only sloganize (a new word I just invented) with such puffery as “we’ve got to stop giving our rivers away”, which was true but scarcely did the issue justice. The NDP have a history of sloganizing – neat little ditties that mask ignorance or lack of courage or both. They bring an appropriate giggle and applause at NDP bun tosses but do nothing to enlighten the voter or present a solution.

First, then, the NDP must show that it understands the colossal and perfidious – in the sense of cheating citizens – policy the Gordon Campbell government have us involved in. The giveaway is immense – large corporations get subsidized by the public to get paid double or more what their power is worth by BC Hydro (at a huge loss), for power that’s not for British Columbians but for export.  

Read that again. It defies belief doesn’t it? And until this issue is understood by political parties it won’t be understood by the public.

The secret contracts BC Hydro is forced to make are unconscionable. The NDP must pledge to make them public and if they are indeed unconscionable, refuse to honour them. The analogy is rather like the mayor elected to clean up city hall, then, when elected, promising to honour all the sweetheart deals his predecessor made with his family and cronies.

Politics is a tough game and demands courageous answers to difficult questions. This means that the party itself must understand the issues and have the platform very firm on what’s wrong and what must happen.

This is not easy, for the business community will scream and the NDP has done a lot of work to make inroads there. Business people, in general, don’t like the NDP anyway but smaller business people are far easier to deal with. Once the policy is in place, NDP spokespeople around the province must speak, with knowledge, to the people all around BC, the business community being welcome. They won’t be the only ones out in the communities speaking on this subject.

I do know of one NDP candidate who thoroughly understands this issue – John Horgan. Others may also understand and we at The Common Sense Canadian would welcome a blog from any other leadership candidate interested in letting our readership hear their view.

I’m often accused of being a turncoat because I was once a Social Credit Minister.

Sticks and stones etc … I’ve been a strong environmentalist for a great many years. I don’t believe for one second that Premier Bill Bennett would have jeopardized – hell, killed – BC Hydro for any reason much less by forcing them to pay private companies double for energy it didn’t need meaning they had to export it at a huge loss.

If he had believed that, we’d never have met, let alone become colleagues.

I believe with every fiber that the saving of our environment – our salmon, our rivers and the ecologies they support – is far and away the biggest political issue of the day. As I often said during the last election – a government might be a very bad government on fiscal issues but if it is, that can be fixed by a new government.

Once you lose your farmland, your fish, your rivers and the ecologies they support, you can never get them back.

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Pinocchio Campbell - detail of Common Sense Canadian cartoon by Gerry Hummel

BC Liberals’ Four Big Lies & Why the Media Ignore Them

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From my present vantage point a very long way from home the news briefs and emails I receive are very disturbing. It seems pretty clear that the next premier will bear no scars from his/her involvement with the Campbell administration. Indeed, it almost seems as if the media are already looking back at the Campbell times with a melancholy longing for those great days.

One expects that sort of rubbish from the Liberal Party itself, but from the media?

In due course, before the new leader is nominated, there will be a big banquet for Campbell as if he deserved honour instead of contempt. He will be the man that brought the economy back from those bad old days of socialism and marshaled our resources, blah, blah, blah…

As has been well said, one is entitled to one’s own opinion but not to one’s own set of facts.

Let me try using the truth, leaving the benefits of policy open to everyone’s own opinion. I say to you, however, that on four material issues – issues that go, as the lawyers say, to the root of the matter – the government, either through ministers or the Premier himself, lied. I know that’s a harsh word but how else can one describe falsehoods in the face of clear evidence to the contrary?

Let’s start with BC Rail. The lies are firmly on the record. Campbell, in the 1996 election, to try and save his electoral bacon, promised not to privatize BC Rail. He made the same solemn vow when he was elected in 2000. Not only did he lie, the deal does not, to say the very least, pass the smell test.

Now let’s look at the Campbell lies during the 2009 election about the financial affairs of the province. By almost every reckoning the figure is much higher, but out of caution, the difference in the state of affairs between the 2009 budget and the reality was at least $1 billion and both his toady Finance Minister, Colin Hansen, and the Premier stated that they didn’t have any idea that such was the real state of the province’s finances during the election when they were telling the voters that they were superb trustees of the public purse. This is as impossible to believe as any little boy who’s stolen a candy bar and, with chocolate all over his face, denies it. If the Deputy Finance Minister and his crew of able economists did not know by the time of the 2009 budget that the province was in trouble big time they should all have been sacked. Never mind the subtleties, a look at tax figures, which are readily available on a current basis, would have set alarm bells ringing. I know that from personal experience when my colleague, Finance Minister Hugh Curtis, correctly predicted a year or more in advance the recession of the early 1980s and demonstrated to Cabinet the evidence, which was not rocket science.

The lies by toady Hansen and Pinocchio Campbell on the HST scarcely need repeating. The evidence that they had decided to implement the HST long before they were denying it on the hustings is blatant.

Campbell and Hansen have also lied through their teeth on the broad issues of energy and the environment. I think one reason these bastards are getting away with it is because the series of falsehoods is so egregiously corrupt that normal people have trouble believing it.

Many environmentalists, closer to issues than I, have spoken out on the assault on the Agricultural Land Reserve, the desecration of wilderness, and consequent massive assaults on the atmosphere. Donna Passmore has been tireless and we can only thank providence that she and others like her have their health and dedication.

Rex Weyler, one of the most respected environmentalists on earth is leading a fight against Tar Sands Oil being piped to our South Coast into supertankers. A punctured pipeline or wrecked tankers are not acceptable “risks” – they’re not “risks” at all, in fact, but mathematical certainties. Rex has the full support of The Common Sense Canadian on this front. Our allies on the North and Central Coast, such as the tireless Ian McAllister, are waging a similar battle against the proposed Enbridge Northern Gateway Pipeline from the Tar Sands to Kitimat.

I have no idea how Alexandra Morton keeps going as she fights huge international corporations, both senior governments and an industry that spends millions on sugar-coated lies as she carries on her fight to save our precious salmon from destruction from the impacts of lice and disease infected fish farms. We at The Common Sense Canadian have fought shoulder to shoulder with Alex and the fight goes on.

How to begin the defence of our rivers and the saving of BC Hydro?

Colin Hansen is a good place to start. A particularly telling interview of his is still online.

This is the senior cabinet minister we’re dealing with and every statement he makes in this 1:51 interview is false – I would accuse him of lying but I don’t want to deprive him of the defence of being a damned, easily led fool.

He tells us BC is a net importer of power – we aren’t. Sometimes BC Hydro imports power from its neighbours in Alberta and Washington State, only to sell it back to them at a profit soon thereafter. The fact is that BC is as a rule a net exporter of power. Hansen claims private power plants are little operations that don’t impede the flow the river – it’s “run of the river”. I’m tempted to call this one as it is, a goddamned lie!

These are small sort of Mom and Pop undertakings! Right, Colin, like General Electric, Ledcor and the Dupont family!

This private power will help BC be energy self-sufficient. Honestly, folks, it’s getting very hard to keep my pledge! The short answer to this is that private power is for the most part generated during the Spring run-off when there is sufficient water for them to produce. This is precisely the time BC Hydro doesn’t need power yet they must take it anyway under the agreements they’ve been forced to sign.

Here’s the skinny. BC Hydro must take private power on a “take or pay” basis, meaning it must pay for power it doesn’t need. Now here comes the neat part – the price BC Hydro must pay is 2-3 times what it can export it for! Or about 12 times what it costs them to make it themselves!

I must move on but here’s a little cherry for your martini. Traditionally BC Hydro has paid a dividend to our government to build hospitals, schools and so on. Now they will have no profit so no dividend because all the profits are going to large corporations. Now, even of you still believe the Campbell/Hansen bullshit – try this. BC Hydro has applied for a rate increase, out of your hides so they can give some of it back to you by way of that dividend!

Why has all this happened? God knows – so does Wendy! – how often I’ve asked myself that question. It’s sheer madness! No man or government would do this to their province, would they?

Only one answer makes sense – political philosophy can account for this. This is Milton Friedman stuff. It’s Fraser Institute holy writ! (Fazil Milhar, former senior fellow of The Fraser Institute is the Editor of the editorial page of the Vancouver Sun, which may help us understand the media’s role in this).

It’s Bilderberger, Davos stuff. It’s the New Order, Corporate World. It has nothing whatever to do with the good of the people. The same people bundling sub-prime mortgages, going broke, taking government handouts then paying themselves million dollar bonuses are running things all over the world.

Re-read or read for the first time Thomas Friedman’s The Lexus and the Olive Tree which explains what has happened and did it before it happened.

We have only one chance left – we must throw this government out at the earliest opportunity! No ifs, ands, or buts – this rotten bunch has to go.

It will be tough because they have a strategy – don’t answer any questions by The Common Sense Canadian, Donna Passmore, Rex Weyler, Alex Morton, The Wilderness Committee. Ignore them as if they didn’t exist! Fight the next election on other issues and remember that the folks in the media who used to ask tough questions aren’t asking them any more. Read Vaughn Palmer, Mike Smyth, listen to Bill Good or Christy Clark and tell me when over the past decade any of them covering BC affairs as an editorialist have truly held the government’s feet to the fire on the issues I’ve raised here.

There are only two answers – either all the fighters I’ve mentioned are full of crap, or the fix is in.

The next British Columbia electorate will decide, and for a very long time, whether the province is to be run by corrupt corporate boards with a bought-and-paid-for government or by us.

 

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