In Ed Hollett's recent post, "something under the bed is drooling", he continues to question the immense profits generated by Hydro Quebec from Upper Churchill Power. He questions everyone and thing he can get his hands on because they have not provided him a mathematical equation.
Ed...unless you pay you will not get that type of info and here's why - the year to year markets of HQ vary significantly, particularly the exports. HQ for a decade provided a "heritage pool" of power for it's domestic markets at very competitive and stable prices. They were able to do that because supply was in abundance primarily because of the Upper Churchill windfall.
In recent years - over the past decade, the American and Ontario markets have boomed from lack of supply and reliability - HQ was johnny on the spot-market to sell power, at times 1000 times its value. This again was due to the supply from Quebec.
Canada is a net exporter of power and until last year so was Quebec - the National Energy Board deals with these values on a yearly basis. If you look at the overall export of hydro-power and the MW values you will see, again, that it is primarily on the back of Churchill power.
When you are determining value to the company, there is no doubt that basic math on the cost of power and the resale value delivers the majority of the so-claimed profits, but Ed it's not as simple as that. Upper Churchill supply has allowed the company to re-invest in further installations in Quebec and in fact worldwide - it was the foundational windfall that allowed the company to grow the way that it has.
HQ has hydro capitech, transmission, distribution, construction, and generation subsidiaries and for several years benefitted from gaz metro after Andre Caille became pres. Now Thierry Vandal is at the helm and tradition continues.
Further Quebec is now a net importer and is busily getting ready for another "big invest" in new supply including the Lower Churchill.
We are being modest when we say HQ makes a billion a year from the Upper Churchill - when one factors in the investment value of the new assets acquired through Upper Churchill windfalls the revenue to HQ soars.
As for your go-it-alone fears, Ed have a look at the risk HQ took at the time it financed the Upper Churchill, but they made a decision the risk was worth the possible benefits and they were right. Historical accounts of the financing in the 60's of this mega-project was not romantic it was gutsy and premised in Quebec's desire to stand on it's own and build their own economic base.
There is no fear of Upper Churchill or HQ as it relates to power development - in fact they are almost the perfect model. We too can go it alone and use the energy to develop an entire new industrial sector, particularly Labrador, and be that much closer to securing our future.
I am willing to debate with you Ed but only after you truly educate yourself on the history of HQ and what the Upper Churchill has brought to their feast.
You are demonstrating a"can't do" attitude which relies on Quebec to develop our resources.
We can do it alone and this time the outcome for our people would be a hell of a lot better than our last go-round.
In some areas Ed, I would yield to your expertise and learn. You should learn to do the same - because my friend on this issue you are nowhere close to.
4 comments:
If I am wrong. Prove it. Everything else is bluster.
As for your post you miss the point: the mythology on which you and Danny base your argument is corrosive to the body politick in the province.
It is not about can't do, it is about can do. You and Danny are of one mind in convincing that we cannot do without the salvation you and he offer.
It is therefore proven in the HQ annual reports for 20 years.
As I ntoed before you do two things.
You offer no information or evidence whatsoever to back your own point or refute mine.
Second you miss the point entirely: or deliberately misread my post on my own blog. oddly enough though, you got the point of the title: the demonization of foreigners, as you seem to be doing with Hydro Quebec, or the corrolary of criticising our own people for a litany opf bad deals promotes fear and ignorance. Only by dispelling those demons under the bed can we actually start seeing things more accurately.
Perhaps at some point you will actually provide more than news media clippings and engage in a genuine debate.
I am not going to post HQ's history on line when their audited statments are available.
As for the demonization of HQ huh?
I do not blame them for being intelligent, and I have oft stated they are one of the best energy companies in the world.
This is where you miss the point. Because I beleive with just reason that they are superior in their planning and policy does not mean I think we should turn our resources over to then to manage or own. The opposite we can do the same.
There is no hidden monster, HQ is out and there for everybody to see - the fact that they are interested in Lower Churchill is one of the main reasons we should do it for ourselves.
Post a Comment