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The truth about independent power projects

Between 85 and 95 people converged on Roberts Creek Hall last Sunday, giving up their afternoon and venturing out into the rain to listen to presentations on what's wrong with independent power projects (IPPs).

Between 85 and 95 people converged on Roberts Creek Hall last Sunday, giving up their afternoon and venturing out into the rain to listen to presentations on what's wrong with independent power projects (IPPs). John Calvert, author of Liquid Gold - Energy Privatization in British Columbia, was the guest speaker at the meeting hosted by the local chapter of the Council of Senior Citizens Organizations.

Calvert said there are numerous problems with IPPs, starting with the 2002 B.C. energy plan that he said effectively took B.C. down the road towards privatizing BC Hydro and making it possible for the ongoing expansion of IPPs. As well, Calvert said the government and independent power producers have "persuaded the public there is an energy crisis and packaged the solutions very effectively as green energy, putting an environmental spin on it." Calvert said he doesn't believe the government or power producers are giving the whole story, and that in the end, the government's energy plan "will cost us dearly and result in the loss of control of our energy resources and public renewable energy."

One of his bones of contention is that the government has banned BC Hydro from building any more power projects. He said there is no evidence that this ban is in our benefit and will only end up creating a market for private energy producers. He said while BC Hydro can't build anything, it has to acquire new energy from private power producers.

British Columbians have been transformed from owners into renters and in effect, we are paying off the mortgages of the independent power producers, he said.

"When the contracts expire, the private power producers own the asset and can sell it to anyone they want. Power developers can sell to the highest bidder, and that undermines our energy security," he said.

In a follow-up interview this week, Steve Davis, president of Independent Power Producers Association of B.C., said he understands Calvert's and other people concerns about IPPs. However, he urges that people do some real research and make sure they have all the facts before making any decisions. Davis said he has read Calvert's book and said it has some interesting information, but that it also has lot of blatantly incorrect information. He said there is a misconception that huge multinational corporations own most IPPs, when in fact most IPPs are fairly small and locally owned. Some of the bigger owners such as EPCOR and ENMAY are publicly owned and traded and are based out of Edmonton and Calgary respectively, he said.

Davis also refutes Calvert's assertions that BC Hydro has been banned from building new projects, especially in light of BC Hydro's $350 million Revelstoke project and the $94 million Aberfeldie project. He said that according to BC Hydro's annual report, it had something along the lines of $6.6 billion in projects last year.

Davis said he takes particular exception to Calvert's comments that IPPs haven't been very good or respectful of First Nations, adding before he goes down that road, he should check his information with First Nations communities and the experiences they've had since 1962 at the hands of BC Hydro and their experiences now with IPPs.

Davis said anyone wanting more information should read the BC Water Act, section 12.2 (RS Chap.483).