A Vancouver Island river renowned for its fish 鈥� including two endangered runs of steelhead and five species of wild salmon 鈥� is being dammed and diverted into a pipe to produce hydro power. Construction on the Kokish River, near Port McNeill, started last year, months after the provincial government allowed corporate giant Brookfield the rights to industrialize the river.
While the Kokish is a sad story, it isn鈥檛 the only river at risk in British Columbia. Over the last 10 years, 800听rivers, creeks and even lakes have been staked by corporations.
River-diversion projects, also known as independent power projects, were never supposed to be in fish habitat, according to the provincial government, but today 72 per cent are located in known or suspected fish-bearing waters. Due to lax environmental standards and significant cuts to regulatory agencies, non-compliance at IPPs is rampant.
But even if the projects weren鈥檛 located in fish habitat, left more water in the river and had far better environmental practices, there would still be a deal-breaker: the impact to sa国际传媒 Hydro.
sa国际传媒 Hydro is our public hydroelectric utility. For 50听years, it has provided us with reliable low-carbon power, long-term planning, energy security and billions of dollars to fund our schools, hospitals and libraries.
Today that legacy is in deep trouble.
Because of a deeply misguided government policy that forced sa国际传媒 Hydro to purchase energy it didn鈥檛 need, our public utility 鈥� and the people of this province 鈥� are on the hook for $54 billion in sweetheart energy-purchase agreements to IPPs. Now, far from being a revenue generator, sa国际传媒 Hydro is forecast to lose a billion dollars over the next four years.
What happened?
Thanks to private power companies, sa国际传媒 Hydro now has a surplus of very expensive IPP power, which sa国际传媒 Hydro is being forced to sell at a massive loss. It is sobering to recollect that in the last call for power, sa国际传媒 Hydro was required to issue contracts to IPPs for $125 per megawatt-hour 鈥� well over double market prices. In fact, sa国际传媒 Hydro can currently purchase surplus hydro power from south of the border for as low as $10听a megawatt-hour or less. This represents a squandering of public dollars that is mind-boggling to say the least, and appears to lead to only one conclusion: a bankrupting of sa国际传媒 Hydro.
To make matters worse, there has been no planning for IPPs. Projects are located in endangered spotted-owl habitat, sensitive grizzly-bear recovery areas and important salmon streams. Local governments have had their zoning authority removed and no longer have the ability to protect rivers that are important to their communities. Astoundingly, at one project near Whistler, when a government biologist requested that more water be left in the river to protect salmon, the company refused to do so, citing an impact on their profits.
Private power producers are hoping that sa国际传媒 Hydro will use their energy to power liquefied natural gas terminals. This is a pipe dream; not only is IPP energy too intermittent and undependable to run these plants, but LNG producers consider it to be far too expensive.
sa国际传媒 Hydro is left holding the bag with a 鈥渂uy-high, sell-low鈥� strategy that is particularly problematic during 鈥渟pring freshet,鈥� when rivers run high from melting snow and produce a lot of power. In the Pacific Northwest, this situation drives power rates down to something called 鈥渘egative pricing,鈥� where sellers actually pay buyers to take the power. Over the past two weeks, energy prices have already dipped into negative pricing. sa国际传媒 Hydro can鈥檛 take advantage of this golden opportunity because of its contractual obligations with IPPs.
Some people, who haven鈥檛 looked carefully at the complexities of this issue or who don鈥檛 value our publicly owned utility, believe IPPs will make sa国际传媒 an energy powerhouse. But in reality, every time sa国际传媒 Hydro is forced to issue another overpriced contract to an IPP, it impoverishes us 鈥� driving our utility, and our best tool against climate change, further into crippling debt.
The sa国际传媒 government needs to find a way to sever the contractual obligations between sa国际传媒 Hydro and private power producers, and it also needs to close down those operations which cause unacceptable damage to our environment.
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Gwen Barlee is policy director of the Wilderness Committee.
