Saving BC Hydro from Gordon Campbell

So far, the cornerstone of Premier Gordon Campbell's green revolution consists of forcing the public utility BC Hydro to buy power at twice the market value from private independent power producers and then resell it at a loss to owners of air-conditioners in California .
A good deal for IPP investors like General Electric/Plutonic Power who get to use BC Hydro as a guaranteed market ; a bad deal for the environment and BC ratepayers who will presumably see the loss reflected in higher hydro rates.

"If this was happening in India or Pakistan," SFU Professor Douglas McArthur is quoted as saying in The Tyee, "we would be raising no end of questions."

Because this already did happen in India. Long before the Enron scam broke in the US, Enron and the US government coerced India into a contract that forced India to buy the more expensive power produced by Enron, bankrupting India's own power producers in the process. Unable to get out of the contract, India eventually decided it was cheaper to pay Enron not to produce power.

Well, as Kurt Vonnegut once said in another context, we're the Indians now.

Fortunately Marvin Shaffer at Policy Note has an idea :

IPPs don’t want to export directly. They don’t have a product they could readily sell — intermittent seasonal energy isn’t worth very much. Their bankers wouldn’t finance them without long term guaranteed prices from BC Hydro. And their shareholders don’t want to take the market risk.

Here is a modest proposal. Why doesn’t the government simply tell BC Hydro that it must sell to IPPs, at a competitive price, the transmission, back-up and other services IPPs need to export power. And then, for those projects that truly are environmentally benign, let the IPPs and their bankers and shareholders decide.

Unfortunately Gordo's run-of-river buddies will never go for it.
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Why the rush to PowerUp?

A map of proposed and existing run-of-river licences via IPP Watch:
Blue - generating; green - granted; red - application
Large Google map of sites here.
I wonder what the salmon think of it?

So given that we generally generate more power than we need in BC, what are all these for again?
Oh yeah - exporting power to the US :

"A key adviser to California Gov. Arnold Schwarzenegger said yesterday that B.C. run-of-river power may yet qualify as green power.
Utilities in California are nearly all struggling to meet a requirement that 20% of their electricity come from renewable sources by 2010.
They have only months to meet the target or face financial penalties, and private-sector power producers in B.C., along with the provincial government, are urging California to expand its definition of renewable power to encompass run-of-river projects with up to 50 megawatts of capacity as part of the solution."

Which is interesting because projects of less than 50 megawatts do not require environmental reviews.

Over at Plutonic Power, home of the $4-billion Bute Inlet run-of-17-rivers Project in partnership with US General Electric, environmentalist and executive director of PowerUp Canada "citizens initiative" Tzeporah Berman gave us another reason :

"We're in a recession and calling for a moratorium of the private sector of renewable energy companies would send the signal to the business community that this is not a place for them to invest in."

Certainly Gordo is invested in IPPs. In response to Squamish’s strenuous objections to a run-of-river development on Ashlu River, Gordo passed Bill 30, retroactively removing the right of local municipalities to stop such developments.

And Plutonic Power has in turn invested in Gordo's Liberals :

"CEO Donald McInnes said his company did not donate to the Liberal Party, in response to a caller on CKNW's Bill Good show this morning, but Elections BC records prove otherwise.
When asked why he made that claim, McInnes responded, "I don't consider that to be donations, that's buying a seat at a table."

Quite.

In comments in the post below - BC's Watershed Election - commenter Racheal11 left some handy info and links to Liberal party insiders and BC Hydro execs who have recently shifted over to the extremely lucrative IPP industy : Insiders move to IPP industry

So we're good with all this, are we?
Gordo's government, former BC Hydro execs, private industry, and prominent environmentalists all pulling together ... to export power to California.
The mind boggles.
And if we decide we want our rivers back before the 25 to 50 year leases are up, are we looking at a NAFTA Chapter 11 challenge?
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"Lethal, survivable, supportable, affordable"

That's what it says on the Joint Strike Fighter logo which I'd normally post up here but for this advisory on the JSF website : "Note, individuals utilizing the JSF logo for purposes other than that which is determined to be in the best of interests of the program may be prosecuted."***

Via Paul Graham, who isn't happy about it :
"The big news in the Peg this afternoon is the federal government’s $43.4 million loan to Bristol Aerospace of Winnipeg, part of a $120 million upgrade that will allow Bristol to help develop the F-35 Lightning II fighter jet. According to the Winnipeg Free Press, this investment could yield $3 billion in revenue over the next 25-30 years."

Bloomberg : "The U.S. and eight countries are collaborating on the development of the aircraft in the largest international weapons program ever."

The largest evah! Vroom, vroom!

Dept of National Defence in 2006 : "The Joint Strike Fighter (JSF) program is a United States-led multinational effort to build an affordable, multi-role next generation, stealth fighter aircraft.... There are defined needs for more than 3000 aircraft over the course of the program with an estimated value of over US$276 billion. An additional 3000 aircraft could be sold to other allied buyers."

"In 2001, the U.S. Department of Defense selected Lockheed Martin as the Prime Contractor for the JSF Program. Pratt and Whitney US and General Electric have been selected to design and develop engines for the JSF.
Canada's $US160 million contribution to JSF includes funding from both the Department of National Defence and Technology Partnerships Canada (TPC). TPC promotes the participation of Canadian firms, especially small and medium-sized enterprises.
As a result of Canada’s participation in the JSF program, 54 Canadian companies, universities and research institutions have won 154 contracts to date valued at approximately CDN$157 million."

So what is Canada's current rank in the echelons of world arms dealing? Still sixth, are we? Or has this latest investment rocketed us into the Top 5?

And are our pension plan contributions still being invested in these arms dealers? Yup, there they are at the Canada Pension Plan Investment Board website, who report a good return last quarter.

War is a racket.

***JSF do however permit the logo to be used as a nice screensaver, if you're interested.