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U.S. court finds against BC Hydro in massive lawsuit
VANCOUVER/CKNW (AM980)
CKNW News Staff | Email news tips to nwnews@cknw.com
2/21/2013

BC Hydro officials say they plan to appeal a U.S. court ruling that has ordered them to pay $265 million.

A California judge has ruled Hydro’s Powerex subsidiary manipulated markets during the state’s energy crisis in 2000.

In a statement, Powerex chief legal officer John Irving says: "We see this latest decision involving 16 energy sellers, including Powerex, as another step in a legal process that has been underway for over a decade and may go on for years before we reach resolution."

A lawyer representing the California Public Utilities Commission says the latest win is a long way from the end of the road.

“It was a really significant experience for California – very traumatic to have both power failure and blackouts at the same time, as we were experiencing these excessively high prices – the highest prices ever recorded for energy.”

Frank Lindh says there are two other cases like this one, also involving Powerex, worth billions of dollars, which will go to court later this year.


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  • 31
  1. KenL_6250 posted on 02/21/2013 03:08 PM
    Reminder this all happened under a NDP government in BC!
    1. Ken280 posted on 02/21/2013 04:07 PM
      @KenL_6250 Restructuring during the 1980s saw new BC Hydro subsidiaries to take over its testing and research services (Powertech Labs), computer services (Westech Information Systems) and electricity trade activities (Powerex). Hydro began turning its focus from building new generating facilities to getting the most out of its existing ones. In 1989 several innovative programs announced a change of direction for Hydro, including the high profile Power Smart.These are Independent of government to spin it ,is typical of the Liberal/cons of the coalition.As the NDP ask for is an inquiry into BC Hydro operations.Go NDP Go
    2. AlexF_6 posted on 02/21/2013 10:23 PM
      @KenL_6250 If you had read the story in todays LA Times, you would have seen that there were also power companies from Alberta, Shell Energy a division of Shell Oil and even the Bonneville Power Adminstration part of the US Departrment of Energy, just goes to show that some people are quick to blame the NDP, Business companies are not perfect either.
  2. Ken280 posted on 02/21/2013 03:52 PM
    To Liberals supporters remember, Adrian Dix was not ever elected in government then. Plus he had already quit and remember it was the Liberals that already negotiated this with California which said would not pay BC Hydro millions back, stated prices were manipulated by powerX corp and other Companies set up to find the best possible return for BC Hydro! I hope their is an internal audit of BC Hydro, that the NDP has asked for,then we will see just how many Liberals insiders sitting on the IPP boards. Power X acts independenly of Government you know like judges and the courts! http://www2.powerex.com/Homepage.aspx Old news but timed for the election!!!!! Go NDP Go
    1. ianm_0078 posted on 02/21/2013 04:06 PM
      @Ken280 Thanks NDP! Why had Harry Potter quit?? Was it something to do with the Police??
    2. commonsense posted on 02/21/2013 04:16 PM
      @Ken280 "I'd be surprised if there were many decisions that the premier made” without consulting Dix." - Bill Tieleman. Vancouver Sun March 25, 1999

      Just like you NDPers say about Gordon Campbell and how he groomed people....
  3. bctaxpayer posted on 02/21/2013 04:20 PM
    JUST think the BC lie berals have added over 60 Billion to the NDP 29 Billion equals 90 Billion to the BC Prov. debt.Are you lie BERALS proud of that??????
    1. commonsense posted on 02/21/2013 04:32 PM
      @bctaxpayer Actually, the recorded debt is $29 from the NDP and less than $40 from the Liberals. You are a star at trying to convince people it's above $90B.
  4. joes_2868 posted on 02/21/2013 05:58 PM
    Rich Coleman and John Horgan are now on the same side, 100% with this issue. Amazing how the NDP now side with government when this was negotiated with a previous NDP government.
    What do say about that, Ken280, the readers consultant, a man with a briefcase 50 miles away from home?
  5. JD_9814 posted on 02/21/2013 06:03 PM
    "A California judge has ruled Hydro’s Powerex subsidiary manipulated markets during the state’s energy crisis in 2000"

    Isn't this done in the stock market all the time? This is not the same thing as criminal fraud whatsoever. Hopefully someone can provide a rational of the decision.
  6. JD_9814 posted on 02/21/2013 06:14 PM
    Here's a snipped from a news story out of California;

    "The judge, Philip Baten, found that more than a dozen power wholesalers engaged in manipulative bidding practices to ratchet up pricing"

    That is hardly fraud, but wrong. On review of the headline it appears that BC Hydro and other companies took unfair advantage of a supply and demand situation.

    Read more here: http://www.sacbee.com/2013/02/20/5201958/california-wins-ruling-on-2000.html#storylink=cpy
  7. miltw posted on 02/21/2013 11:36 PM
    The BC government forgave a massive unpaid debt from California Power in california already. It is time to refuse to sell any more power to the states at a reduced rate . Make them pay the consumer rate monthly as we have to do before they receive any more of our limited power. This will leave lore for the voters of BC and we can than have lower rates. Also there will no longer any reason to join a world wide grid so the smart meters are a mute point . If the power company wins than we renegotiate all the contracts at a fair price.
    As for colman and dix saying there was no wrong doing than that is the proof that the deal must have been as honest as BC Rail sale or Basi - Virk
    payout. Good enough for me as that is all the proof I needed.The politicians wouldn't lie to us because we are the voters .
  8. BCSkulker posted on 02/22/2013 08:39 AM
    The FACT is the NDP (including Dix) were up to their “rear end” in Powerex. Having stated that, our problem is we are a flea on an elephant’s “rear end”. The big oil companies use supply and demand as a reason for inflating gas prices. Whenever there are adverse weather conditions that impact food production, don’t food prices go up under ‘mega’, agro business? If you live in California and subscribe to this philosophy, why should power be any different?

    I always thought the US was big on free enterprise; including supply and demand. Oh, I forgot! California is a hotbed of socialist freeloaders; much like the NDP. Free enterprise, free speech, free choice and profits are only for big government Progressives (a.k.a. socialists, fascists or communists) and for no one else. In an area like California, you don’t expect justice unless you are connected to the “lefty” power base. California (like much of the rest of the US under the “Obama ilk”) doesn’t believe in free enterprise anymore (if it ever existed). Much of the US believes in managed enterprise; as long as it’s managed for their benefit. A little province like BC can’t expect justice in an area like California; we just don’t have the political influence. Our only hope is for a higher court that may decide in our favour; assuming the higher court hasn’t already been corrupted.

    Please remember; injustices are normal in areas where government is the answer to all problems. Under a big, centralized government you eventually lose control of almost every aspect of your life; left or right wing. Sadly, real justice also just doesn’t seem to be part of the equation.

    From their track record, I would suggest the NDP and their ilk seem to have exhibited they are proponents of centralized power; sadly the BC Liberals don’t seem to be too far behind. Following our next election, one can only expect the ones that will suffer the most will be the taxpayers and those that value personal freedom - no matter who wins the election.

    To paraphrase Ronnie Reagan, the worst words anyone can hear is “I’m from the government, I’m here to help.” This usually equates to hang on to your wallet; expect things to get worse. Keep this in mind when you decide who you want controlling your province and your country. If you don’t seem to have a viable choice this time, it’s long past time for you to start getting involved and change the people in the system. This can only be done if you get of your apathetic ‘rear end’ and become an active participant; at the very least support a group that will do the heavy lifting for you. It may already be too late for this election; make sure it isn’t for the subsequent ones.
    1. HJDH posted on 02/22/2013 09:50 AM
      @BCSkulker Excellent points; don't agree with everything, but overall says it like it is.

      People need to get involved and pay attention to protect their rights.
  9. KenL_6250 posted on 02/22/2013 09:31 AM
    what you mean quick to jump they were in power at this time and one the of the reasons they got booted from government. One NDP hack was filling his own pockets at the time, a disgraceful government, will Nix and his buddies be any better you tell me. Nix and Clark are not the right people to run this Province, they are proven failures!
  10. joes_2868 posted on 02/22/2013 02:20 PM
    commonsense: Excellent comments to Ken280, the readers consultant, a man with a briefcase 50 miles away from home.
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