GUTTING A POWER HOUSE - BC Hydro and the new Energy Plan

Only by eliminating all of the ad- ket price, with the province providing the difference and, vantages of the BC Hydro system can circumstances be at the same time, running up its debt to finance the price created so that private producers can be induced to enter freeze.22 Since the ratepayers are the same people as the the market. [...] Getting the private sector to ensure that there in electricity production in BC are that the private sector is enough electricity supply in the future is particularly has better access to capital resources and that the private difficult if one of the objectives of the state is to try to sector will assume the ‘risks’ of new investments.24 The keep consumer prices from rising too rapidly. [...] In a blending of the worst of all possible ticularly at the rate of two-thirds of the total, as is hap- worlds, the public will continue to invest heavily in elec- pening with Weyerhauser), it is highly likely that the tricity, although this will not be for the benefit of the accu- private sector will find the BC market very attractive mulation of public assets, but to support and encourage indeed. [...] The irony in the new en- ment of its competitors certainly undermines the whole ergy policy is that the people will continue to assume excuse for the exercise–-eliminating the need for the pub- the costs of much of the new investment, but will not lic to both borrow money and to take any risk on new in- accumulate any assets in the process. [...] BC Hydro will progressively account means that BC Hydro appears to be ready to underwrite a for a smaller and smaller proportion of the total elec- large proportion of the investment of the private sector in tricity generated in the province, and the privatization the future.