Editor: to export B.C. liquefied natural gas and Alberta oil sands crude to China and Asia-Pacific countries needs careful consideration. Economists predict our domestic prices will rise toward world market prices as soon as energy export begins.
Our home gas heating bills and gasoline prices at the pumps will jump. With higher priced diesel, domestic freight rates will rise on everything trucked. Produce hauled from California, Florida and Mexico to all of Canada will cost more. BC Ferries鈥� fuel bill will rise and fares will see another increase plus further government subsidies, adding another blow to ferry-dependent communities. Island tourism will continue to suffer. Farmers and heavy manufacturing will see their production costs rise.
What are the true economic benefits to the average citizen for exporting our energy? Do royalties and tax revenues to government outweigh increased costs to the whole society? Should we be rushing to increase our North American energy prices to bring them closer to Asia鈥檚?
If the pipelines proceed and our energy is marketed, then we will soon realize the true costs. Meanwhile, the North American marketplace has set the cost of our private run-of-river hydro-electric power. BC Hydro customers now heavily subsidize run-of-river companies. And, for the new run-of-river projects currently under construction, or approved and still to come online, Hydro鈥檚 customers are locked-in, forced to honour the contract rate, which is far higher than today鈥檚 prices set in our energy marketplace.
Hydro generators sit idle while we pay inflated rates to private power companies. And more will be idled as more private generators come on-line. Spring floodwater runs over Hydro dams today because we鈥檙e locked by contract to purchasing private power.
Recently, Energy Minister Rich Coleman asked that we be patient, projecting the market will eventually turn upward and we鈥檒l be thankful. Building pipelines to open our energy sales to Pacific Rim nations, and thereby raising domestic prices, should help his prediction come true.
Larri Woodrow,
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