patent black dr martens Overheard by a fly on the wall
LO: Well that’s a lot of green for green energy. How exactly did you arrive at that cost?
BCH: Happy to report we went to the same team that came up with the $1.5 billion estimate for the Port Mann bridge. They were so close to the mark with that $3.6 billion project we had to go back to them again.
BCH: Not really, still in a state of flux. We keep revising our demand forecasts, then the project’s cost. It goes on and on. The plans are out of date almost as fast as we finish them.
LO: OK. Do you have any customers that have signed up to buy the electricity?
LO: Hmm. Any ideas who you might sell it to?
BCH: Ideas we’re not short of. Promises, promises. But California might buy some now, Alberta too. Then there’s data centres and server farms.
LO: I thought I read that Site C was going to flood farmland?
BCH: Different kind of farm sir. Let me tell you, with all the phantom customers we’ve identified, it would be really embarrassing if one of those LNG plants did come to fruition because we might not have enough capacity to supply power to it. Funny, no?
LO: Not really. Tell me about California. If memory serves you had a spot of trouble down there already.
BCH: Well, yes, but that was because of the spot price of electricity. After lobbyists, lawyers and $750 million, it’s all behind us now.
LO: So California needs the power?
BCH: No, not at all. They have a glut. or New York.
LO: Even if you have to sell it at a loss?
BCH: We like to think of it more as a loss leader to upsell vacations at Whistler. We’re calling it: “Buy the power, come for the powder.”
LO: Let’s talk Alberta. Didn’t I read something in the press recently about some newfangled energy auction they had?
BCH: You did. They signed contracts for 600 MW of capacity.
BCH: Not that it’s germane to our discussion, but $37/MWh.
LO: What do you forecast the cost of generation at Site C will be again?
BCH: The last time we pulled those numbers when the project was still coming in ‘on budget’ at $8.8 billion about $95/MWh.
LO: So you’re ready to sell to Alberta at a loss too.
BCH: Well, at least until one of those LNG plants materializes.
LO: What were LNG producers going to pay?
BCH: Roughly $55/MWh, but they were also going to create 100,000 new jobs and fund a $100 billion Fantasy Fund I mean Prosperity a Prosperity Fund. With that kind of money we could build eight, maybe nine Site Cs.
LO: Perhaps we should look at some broader numbers? What’s the long term trend for electricity consumption look like?