Construction camp for Toba Inlet run-of-river power project on B.C. coast east of Campbell River, 2009. (Tom Fletcher/Black Press)

B.C.’s private power vision shows up as big charge to hydro bills

NDP tracks B.C. Liberal donations while long-term contracts signed

Former B.C. premier Gordon Campbell’s rush into private electricity projects has turned into a high-voltage political battle over their long-term impact on B.C. Hydro rates.

As the NDP government gets ready to announce electricity rate increases to cover the $10 billion Site C dam and $5.5 billion in deferred debt from utility operations that kept rates artificially low during the B.C. Liberal years, it has issued a new report on the impact of run-of-river and other private power deals that Campbell’s government launched in 2002.

Those contracts with mainly run-of-river hydro, wind and biomass power producers, are expected to cost the utility $16 billion over the next 20 years, according to a new report commissioned by the government from former B.C. Treasury Board director Ken Davidson. Entitled “Zapped,” the report calculates the extent of what the opposition NDP said at the time, that B.C. Hydro was paying over market price for intermittent power that is generated mostly in spring when B.C.’s large dams are at full capacity.

RELATED: NDP’s Horgan reluctantly proceeds with Site C dam completion

RELATED: In 2011, Andrew Weaver was pushing for run-of-river power

Campbell’s 2002 B.C. Energy Plan set the direction, ordering B.C. Hydro to expand its electricity supply through long-term purchase contracts with private suppliers. The plan also required the utility to become self-sufficient in energy, rather than buying surplus power on the North American grid that may be from fossil fuel sources.

As Energy Minister Michelle Mungall prepared to release results of the NDP government’s review of B.C. Hydro performance Thursday, the political battle began with the NDP adding up $3 million in campaign donations collected by the B.C. Liberals from private power producers as their business boomed in B.C.

Campbell’s vision of B.C. as a climate change leader and clean energy exporter to California to replace fossil fuel sources was soon undone by technology and global events.

“Market prices for natural gas, and hence for electricity, remained strong until 2008,” Davidson’s report says. “The financial crash of 2008 reduced demand and prices. Unfortunately, this crash was timed with a major development in the oil and gas industry, which wasn’t fully appreciated until large amounts of new gas appeared in the market: shale gas and oil and hydraulic fracturing.”

B.C.’s private power contracts included biofuel cogeneration at sawmills and pulp mills, wind energy in the Peace region and the biggest player, run-of-river hydro. One of the largest-scale projects was by Plutonic Power on the Homathco River at Toba Inlet on the B.C. coast.

A second, larger phase with multiple river sites at Bute Inlet was cancelled as California and other major energy markets embraced gas-fired power.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

First Nations given max compensation for Ottawa’s child-welfare discrimination

2016 ruling said feds didn’t give same funding for on-reserve kids as was given to off-reserve kids

Comedians with a cause bring their charity fundraising tour to Ladysmith

Tickets are $15 and proceeds go toward Cowichan Cat Rescue

49ers AA Peewee coach Shawn Freer speaks on successful season

Throughout their regular season and tournament play, the 49ers lost only three games

Toth’s comeback results in sudden-death playoff victory

Victoria golfer rallies from four shots down to take prestigious Mount Brenton title

VIDEO: Vancouver Island mayor details emergency response after fatal bus crash

Sharie Minions says she is ‘appalled’ by condition of road where bus crashed

UVic president offers condolences after two students killed in bus crash

‘We also grieve with those closest to these members of our campus community,’ Cassels says

Coming Home: B.C. fire chief and disaster dog return from hurricane-ravaged Bahamas

The pair spent roughly one week on Great Abaco Island assisting in relief efforts

Newcomer Ferland lines up with sniper Pettersson as Vancouver Canucks camp opens

Ferland provides more depth and a scoring threat up front, Pettersson says

Intelligence official charged seemed to be ‘exemplar of discretion’: UBC professor

Professor Paul Evans says he served on Cameron Ortis’s doctoral dissertation committee

B.C. police watchdog to investigate man’s head injury during RCMP arrest

Suspect fled on a bicycle and fell off when an officer attempted to stop him

Nanaimo company gets licence to test psychedelic drugs for therapy treatment

Salvation Botanicals interested in manufacturing, testing and research and development

‘A real shame’: B.C. MLA says factors behind Tolko mill closing should have been caught

Kelowna-Mission MLA Steve Thomson said the industry is in bad shape across the province

VIDEO: Seniors at B.C. assisted living facility shocked by Oct. 1 eviction notice

Building owners terminate lease for McGuire Lake Congregate Living in Salmon Arm

Most Read