BC Liberals suppressed Hydro rate hikes

For decades, B.C. governments have hidden the true cost of Hydro rates -especially the BC Liberals.

image: Common Ground

Under the direction of the BC Liberals, the Crown utility used “inappropriate” accounting to pile $5.5-billion in what are known as deferral accounts says B.C.’s auditor-general.

“That debt amounts to $1,300 for every residential customer, more than $10,000 for each commercial and light industrial ratepayer, and almost $5-million for each large industrial consumer,” according to the Globe and Mail, February 7, 2019.

Deferral accounts are not improper when correctly accounted for. They can be used as a temporary measure to avoid the shock of sudden rate hikes. After rates are gradually increased, the deferral account can be paid off.

But that’s not what happened. To keep voters happy and to make governments popular, BC Hydro rates were kept artificially low leaving future governments to deal with the problem of billions hidden in deferral accounts.

“BC Hydro was not allowed to charge its customers enough to cover its operating costs each year,” Auditor-General Carol Bellringer wrote.

The current minister responsible for BC Hydro, Bruce Ralston, said his government is committed to fixing the problem but it will take time given the size of the debt. “We are going to keep rates affordable. No one’s rates are going up by $1,300 in a year.” His government has already reduced the deferral accounts by $950-million by bringing that debt onto government books.

The NDP government also intends to prevent misuse of deferral accounts by future governments by restoring the role of the independent regulator, the BC Utilities Commission (BCUC) and ensuring that BC Hydro adopts ordinary accounting practices.

Industries who are used to cheap hydro are not happy with the prospect of paying the real cost of producing electricity. Industry representative Richard Stout says industrial customers shouldn’t absorb the shock of getting Hydro back on sound financial footing. Since the government is responsible for the mess, they should pay:

“I think most would agree the appropriate source of paying down the debt should be from government, rather than the ratepayer.”

Huh? He wants taxpayers (the government) to pay for the meddling of former governments rather than ratepayers? Last time I looked Hydro users and taxpayers were one and the same.

Critics of BC Hydro will point to the debt incurred in building the massive hydro dam at Site C as an additional source of the problem. The project was started by the BC Liberals and given green light by the NDP who said the project had gone too far to abandon.

The government is faced with a hard choice, says Bellringer: “You can either have a rate increase or you can end up with a deficit that ends up getting covered by the government at some point.”

Hiding Hydro debt, which in reality is our debt, is not an option.

Transferring BC Hydro’s debt to the government’s books is the right thing to do but government debt is not popular with voters because it’s visible. Turning control of BC Hydro over to an independent regulator is the right thing do but hydro rates will go up.

We’ll see if doing the right thing pays off for the NDP in the next election.

Advertisements

How Russia could determine our next prime minister

Did you hear about the Canadian commandos who slipped into the Donetsk People’s Republic in eastern Ukraine in 2016? The commandos were targeting the new Republic which, with the help of Russia, was seeking independence. It was a surgical strike to incapacitate the breakaway region.

image: Unian

While it was widely circulated on social media, it’s not true. An English translation of the story was shared over 3,000 times on Facebook alone. A similar story blew up on pro-Russia websites this last May. The new iteration, which spread even more widely, suggested that three Canadian soldiers were killed after their car hit a land mine while they were being escorted by the Ukrainian military (Walrus magazine, December, 2018).

It’s part of Russia’s disinformation campaign to discredit the North Atlantic Treaty Organization and sow general discontent and division -a sophisticated drive in which lies are mixed with truth.

It works. Russia’s Internet Research Agency managed to affect the outcome of the 2016 U.S. election. It microtargeted Facebook ads to stir up conflict in an appeal to patriotism, honour, inequality, race, nationality, and LGBTQ+ rights.

Russia’s propaganda is not dogmatic; it’s an attempt to destabilize Western governments. Moscow is in for the long game –discontent leading to civil unrest and the disintegration of democracies. It’s Putin’s revenge for the collapse of the USSR and economic sanctions against Russia from Western nations including Canada.

The Internet Research Agency is always looking for wedge issues and none is more volatile than immigration. The UN Compact on Migration has recently become a focal point with Prime Minister Trudeau supporting it and Opposition leader Andrew Scheer against it.

Scheer recently rose in the House of Commons recently and stated that signing the compact would mean that “foreign entities” would be able to dictate Canadian immigration policies.

While Scheer’s comments are not true, it does play into Russia’s disinformation campaign. The pact’s preamble states explicitly that it “reaffirms the sovereign right of states to determine their national migration policy,” meaning governments will not sign away their rights to design their migration policies by signing onto the pact. Former Conservative immigration minister Chris Alexander has called Scheer’s comments “factually incorrect.”

Scheer is nervously looking over his shoulder at Maxime Bernier and his People’s Party of Canada and worries about them stealing right-wing votes.

Inspired by the “Yellow Vest” protests in France and fueled by Social media, demonstrations have spread across Canada. In Calgary one protester yelled through a megaphone: “They hate our country and they hate our way of life,” to cheers and whistles, not specifying who “they” are.

Professor Fenwick McKelvey at Concordia University has studied social-media manipulation. He believes there are plenty of other domestic pressure points Russian bots could exploit. “You’ve got language, Indigenous issues,” he says.

When you see how effective Russian was in the 2016 U.S. election, it’s not a stretch to think to see how Bernier could ride a wave of political instability. Immigration fears, Alberta’s anger on one side of pipelines and Indigenous conflict on the other, Right-wing governments in Quebec and Ontario -all provide fertile ground.

McKelvey says Canada is vulnerable to this kind of exploitation, if it isn’t happening already. If the thought of Prime Minister Bernier seems improbable, so did President Trump.

How Russia uses social media to stir conflict

Russian President Vladimir Putin has unleashed an army of trolls and bots. His bad intentions go beyond revenge and interference in U.S. elections. Recently, postings from his motley crew have resulted in deaths due to a measles outbreak in Europe.

image: Rantt

Putin never forgave Hillary Clinton for the mass protests against his government in 2011. He was convinced that Clinton was seeking a “regime change” in Russia. Hacking of the Democratic National Committee’s email server threw the Clinton campaign into disarray. Michael McFaul, U.S. ambassador to Moscow until early 2014, commented: “One could speculate that this is his moment for payback.”

Canada is not immune. Putin doesn’t like Canada’s Foreign Affairs Minister Chrystia Freeland. As a reporter, she called him an authoritarian, an autocrat and “really dangerous.” Months after she became minister, Putin banned her from Russia. Canadians have been targeted through Facebook. Russian trolls befriend unsuspecting users to spread their propaganda.

To be clear, I like Facebook and use it daily but I’m very careful about friend requests. I personally know most of my contacts and others are friends of people I trust. But Facebook admits that hundreds of millions of others have been sucked into the Russian vortex. If you’re not sure, check your Facebook account here for any Russian agents. If the box is empty, it doesn’t mean that you weren’t exposed, it just means that you didn’t engage them.

The motive of Russian trolls is to agitate and divide countries with the hope that governments will be thrown into chaos. That’s easily done in the U.S. with a president that refuses to admit what everyone knows: the Russians interfered in his election.

Russian trolls are responsible for the public health misinformation that led to a measles outbreak in Europe this summer where cases doubled over 2017 and 37 people died.

Heidi Larson, London School of Hygiene and Tropical Medicine, told CBC Radio’s The Current about her research. Here’s the exchange between CBC host Piya Chattopadhyay and Dr. Larson:

Piya: “And specifically I want to ask you about Facebook because as you know Facebook has been accused of contributing to misinformation — in other arenas, in other contexts. How has Facebook contributed to misinformation about vaccines?

Heidi: Oh I think it has contributed significantly. But these new tools: social media, Facebook, they are organizational tools, they’re not just about spreading information — they’re empowering groups of people not even geographically local across different locations to organize into groups. And that kind of organizational power that these tools have given some of these anti-sentiments is I think as concerning as the negative sentiments.”

The malicious posts have been traced back to the Russian troll farm, Internet Research Agency.

Researchers found that trolls were 22 more likely to tweet using a hashtag referencing vaccines than the average user. Echo chambers embolden Facebook users into thinking their bizarre thoughts are valid. It turns out that when just 25 per cent of people in your social media network are against vaccination, it can delay or prevent vaccination –even for those who previously were ready to vaccinate their children.

Facebook and Twitter are working remove agents who want to undermine democracy. Meanwhile, we need to be vigilant.