IRR Bull$hitt Bookkeeping

      How do you like your Nelson hydro bills? Nelson hydro customers pay full retail and all other costs for the community solar garden power so those profits get distributed among the 130 who paid a token amount for a solar panel, the rest paid for by Nelson hydro customers, who will pay all future costs.

  Now Nelson hydro customersl will pay full retail for the recently installed  Balfour public buildings solar power systems paid with public grant money.  And CBT has another $900,000 for public building energy systems.    

                       While clean green water spills down the river with the profits that help reduce our power bills because we pay full retail for this feelgood greenwashing solar power from the misguided and misinformed .  

              In the last 10 years Nelson hydro rates have increased about 4% per year while the CPI only 1.5%.

Update Jan 12/2019  Nelson hydro announces next year rate increase of 1.5% city?  But 2.94% for rural customers?  BCUC has jurisdiction over rural customers rates.  For the first time in 10 years they shone a light on Nelson hydro rates and gave rural customers a refund.   Is this how Nelson hydro gets this back, raising rural rates higher than city rates? 

The community solar garden cost about $400,000 to make the power our dam makes for $80/yr.  And you subsidize Balfours public buildings electric bills for about the same economics.  But now there is $900,000 for more, who knows where this can go for these philosophical feelgood misinformed greenwashers picking our pockets.

Oct 22  CBT announces   $900,000 CBT grant funding  for community alternate energy systems.

To be selected for funding, projects must demonstrate a positive return on investment and significant community impact.  Would you tell the single mom trying to pay her rent and feed her two teenage boys what benefit this has for her, or the 100 or so bear proof garbage containers taxpayers bought unsold, she could use one but can't afford that either.  When will you do things to make this city affordable for her?

Applications close Jan. 7, 2019,  we will find out how badly the greenwashers will pick our pockets.
Public grants paid for Balfours solar systems on the Golf clubhouse, community hall and seniors centre.

How did they show a positive return to qualify? The Pembina Institute from Alberta, used the IRR bookeeping  method.   An Alberta company installed the systems.

What is IRR bookeeping?  ( IRR - internal rate of return)

IRR   - equivalent to  EBITDA (earnings before interest, taxes depreciation and amortization)

Warren Buffet calls EBITDA

                 Bull$hit Bookkeping.

My understanding of IRR as follows:

If I buy a business for $300,000 and gross $30,000 in the first year my IRR is 10%.

This ignores, interest, tax, wages, repairs, depreciation, utilities, essentially all costs.

Everyone will qualify for the $900,000 CBT grant money.  If all of it is spent on solar power systems in the Nelson hydro service area it could cost Nelson hydro $1.5M lost income if the solar panels last 25 years,  That will come out of your Nelson electric bill.

All  city residents are shareholders in Nelson hydro that makes money selling clean green waterpower helping to reduce our taxes 34%.   Why would the only city in western Canada with its own hydroelectric generation and distribution promote solar power when every kW is lost income from clean green waterpower sales.  The community solar garden is bad enough, now CBT funds will pay for solar power systems that will remove more income from clean green waterpower sales.

Talk about shitting in your own bed.  Public CBT grant money (better spent on societies real priorities) installs solar systems that removes  Nelson hydro income.  But then all the promotion regarding the solar garden made it sound as if it were a positive, when its nothing but a total loss, dare I use the word FRAUD.  They said it would payback in 12 to 15 years when even the consultants own report couldn't show a 25 year payback without fiddling the numbers.  Last year from October through March the community solar garden made the power our own hydro dam would make for little more than $200.  A $400,000 project!  If sold to BC Hydro it would make us $80.  Nelson hydro has sold power to BCH and Fortis.

The Balfour community hall system earned 4580kWh since it was installed this summer.  Nelson hydro makes power for 2c/kWh and sells for 12c/kWh. (avg of res. and comm.)  Nelson hydro would have made that power for $91 and sold for a 600% profit.

Nelson hydro customers already  pay full retail for the feelgood Nelson community solar garden power , now you will subsidize community building power bills.

Nelson got an award for the solar garden!  The Nelson Community Solar Garden SCAM

                             Ex Mayor Kozak holding the award. 
 left to right the manager of Nelson hydro, Alex Love, the solar garden contractor, now a Nelson hydro management employee, the ex  mayor and the local BC community energy representative.

      Two Alberta companies bid on the Balfour systems, you can find that info in the  RDCK AGENDA REPORT  starting page 441.

   it says:

 the details of how each company performed the calculation is unknown. It is suspected the calculations are not similar and may or may not include levelized operation and maintenance costs.

                 (Hello RDCK isn't it your due diligence to confirm these calculations?) If you had anyone who knew what they were doing they wouldn't get past the first page and announce Bull#$$%^

                      The calculations showed  IRR returns of +0.5% , -0.4% and +3.8%

Lets face it, this IRR bookeeping method to show a positive return is a sham.(or is it SCAM)

It requires Nelson hydro to pay full retail for any excess solar power:

The  RDCK Board Report Agenda states:  This is the current offering by Nelson Hydro but there is no guarantee Nelson Hydro will honour paying out the credit at the end of the year if the building produces more electricity than it consumes. 

Why would Nelson hydro buy any of their excess solar power?

                                   Is it because of the Nelson community solar garden?                                        

All Nelson hydro customers pay full retail for that power so the profits can be distributed among the 130 who bought a solar panel for their warm fuzzy feeling to save the planet.

I am sure the Nelson hydro manager never thought CBT would come up with $1M for solar systems.  But he provided city council with a business case no different that the IRR Bull$hitt bookkeeping method.  Could the CBT funding be a result of all the Nelson solar garden media information saying it will payback in 12 to 15 years, it was green, when it was none of that!

                                        Above is the perfectly good metal roof on the Community Hall

Who said this roof needed replacing at $12,000, was that cost factored into the solar costs?   Since it was installed this summer the Community Hall solar data shows it made 4259kWh in 5 months.
Nelson hydro makes that for $80 and sells for a 600% profit.

 $12,000 borrowed business case at 3.5% over 20 years is debt payments of $80/mo.  Did the "free" grant money pay for this roof?

The community hall with its new asphalt roof and solar panel tracks installed.

 A metal roof is at great risk for leaks from all the penetrations necessary to mount solar panels.   Installing on an asphalt roof is a different method with far less risk of leaks.  Did the roof need replacing?  Or was it an afterthought when it was discovered solar panels couldn't be mounted?

Above the Balfour Golf Clubhouse roof view showing over 40kW of solar panels. The on line public data shows they only have 24.8kW installed?? (see below)  The Nelson hydro bylaw says 25kW is maximum?  24.8kW just makes it under the bylaw maximum, what a coincidence.

I asked the hydro manager, council, mayor how the city bylaw maximum solar install only allows
25kW yet the golf clubhouse has 40kW?   No answers.  Typical, they won't answer any of my questions.

Something else is odd
Reviewing the past 3 months of public data, compared to all the other publicly available local solar data the Golf Clubhouse seems to be making a lot more power than one might expect from their 24.8kW installed.   Well the roof does show over 40kW installed so that easily explains that.

The unssuccessful Alberta bid stated their system size as under 25kW to meet the hydro bylaw?

The Nelson community solar garden cost $400,000 to install 60 kW or $6.66/watt installed.

The RDCK agenda report shows the Alberta company installation for the golf clubhouse at $2.76/watt?

The Kimberley SunMine the largest in western Canada claimed cost efficiency because of size, it was over $5/watt installed.   The recently denied by the BCUC because it was of no benefit to anyone, Kelowna solar project estimated installation at $4/watt.

Balfour gets an Alberta company here for $2.76/watt?  But then they replaced a roof that I doubt needed replacing.   Whats believable?

Believe this your Nelson hydro bill pays full retail for the feelgood solar garden power so that money can be distributed to the 130 who bought a 25 year contract for the power of a solar panel for their warm fuzzy feeling to save the planet.   Greenvotes!
Your Nelson hydro bill will pay for the lost profits from selling clean green water power to community buildings with solar panels.  While buying back their excess feelgood solar power at full retail.
And every kW of solar panels in the Nelson hydro area is lost hydro income yet this city
promotes this.

Will Balfour get an award for their community solar?  For the six months of winter it makes nothing and in summer any excess is sold to Nelson hydro at full retail.  While clean green water spills down the river that would make clean power and profits.
I try to educate but its a lot like religion, those who believe, facts don't matter, we have too many who believe.
We have dangerous incompetent people picking our pockets.

I have asked the question if Balfour received special consideration for the Balfour golfclubhouse solar system to install in excess of 25kW without any answers
Nelson hydro customers pay full retail for the solar garden how can they deny Balfour full retail? 
But that would require someone to start telling the truth........and they have fooled everyone with the solar garden, accountability?  None,  Ethics ?  None 

Nelson hydro bylaw excerpt below  

6.4 Net Metering Interconnection Requirements IPP (independent power producer) Customers may install small distributed generation facilities, such as small residential solar or wind, inverter based projects, where the Owner is responsible for the project and Nelson Hydro will purchase the generated power at the current rates established in Schedule “B”. These projects are limited to single phase 120/240 volt installations of 25kW or less rated capacity. The “Interconnection Requirements for Small Net-Metering Distributed Generators” standards shall apply to these projects. 

IPP projects larger than 25kW single phase require special considerations as established in the Nelson Hydro “IPP Requirements” document for application and operating guidelines. These requirements apply to projects single and three phase larger than 25kW and less than 250kW. Interconnection to the Utility Department will be at the sole discretion of Nelson Hydro. Rates paid for electricity will be subject to the approval of the Nelson Hydro General Manager and will be determined based on economic benefit to Nelson Hydro. 

Solar has no future in BC's renewable energy future 
click here you will know more about solar than all the experts wasting our money 


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