IRR Bull$hitt Bookkeeping



      

 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 .

 The Area Director for RDCK Area E, Ramona Faust found the   Pembina Institute from Alberta, to do her calculations.  They told her what she wanted to hear.

 I had previously spoken with the director asked her to contact me so I could go over her
solar quote, she never called, I read in the newspaper the systems were installed.
When I emailed Ramona telling her how disappointed I was she replied 
"we did our homework".

 They used the IRR bookkeeping method of calculating a postive return.
.
 Balfour BC received grant money for solar systems on their Golf clubhouse, community hall and seniors centre.

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.

IRR Bookeeping:

I don't really know bookkeeping but it appears to be a method of making things
look better than they are.

Anyone can show a positive return and get grant money this way.

We all lose.
Society loses grant money better used for real needs.  Nelson hydro loses power sales
profits that could help bring rates down and we increase our carbon footprint.  Nothing is cleaner
or greener than our waterpower spilling down the river with the lost profits.

Nelson already has its phoney community solar garden, the hydro manager brought city council
a business case.  Solar projects have a business case if they can payback in 25 years his consultant
gave him a report showing a 25 year payback by  fiddling the numbers.


We credit the Balfour community solar systems full retail credit, all in summer when Nelson hydro can make full 16MW nameplate hydropower.  They cash in that credit in winter when solar doesn't work and Nelson hydro is reduced to its licensed 9.1MW generation and buying the most excess
power from Fortis at double our generation costs.

Nelson hydro customers lose all the way.  Paying full retail for the phoney solar garden so that money is distributed among those who bought a 25 year contract for the power of a solar panel, and subsidize these community solar power projects.  Even though Nelson hydro's own bylaw says
they will only buy excess power if it makes economic sense for Nelson hydro!



      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.

                  In the report the RDCK states they must ensure public dollars are spent prudently, where is their due dilligence?  Two bidders different calculations and they don't know whats included?

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

These calculations presumed Nelson hydro would credit any excess power at full retail.  Against
Nelson hydro's own bylaw, I brought this to the attention of everyone......nothing changed.

The  RDCK Board Report Agenda states(regarding Nelson hydro crediting full retail):  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. 

 If Nelson hydro enforced their bylaw there would be no phoney positive return.

Even the cities own expert, manager of Nelson hydro found a consultant  for the community solar garden to show a business case no different that the IRR Bull$hit bookkeeping method. 

 Maybe that is why he isn't enforcing the bylaw, it wasn't enforced with their own political
solar project.

The public are told it will payback in 12 to 15 years, only those who invest will benefit etc.  

And more and more public grant money keeps coming for more of this.



                                        Above is the perfectly good metal roof on the Community Hall

Regional district taxpayers paid for a new roof on the Balfour community hall, $16,000.  Was this so they could install solar panels or did the roof need replacing?  All the penetrations necessary to
install solar panels creates a huge leak risk on a metal roof.
The community hall with its new asphalt roof and solar panel tracks installed.
Deception?  The on line public data shows 12.4kW installed, what we see above
is 60  305 watt panels = 18kW.   

Anyone going to the on line public data will read that they have 12.4kW installed.
When in fact the data represents 18kW of power, giving the appearance the system
is doing far better than it should.



Above the Balfour Golf Clubhouse with over 40kW solar installed, the Nelson hydro bylaw
states a maximum of 25kW, their on line public data suggests only 24.8kW is installed.  Although
the data is what one would expect from 40kW....very deceptive to anyone trying to use this
data for their calculations.


I have pointed this out to the past mayor and council, general manager of Nelson hydro, the RDCK and  the area director where the systems are installed.  I also pointed this out to the Alberta
installation company....asking why this has happened.  Nobody talks.
The online data will fool people into thinking the system is doing far better than it is, they show 24.8kW installed the data is what a 40kW system would earn.

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



They take our public money, find salesmen(in the case of the city solar garden a consultant) to provide exaggerated phoney calculations install solar systems that takes away Nelson hydro income from clean green waterpower and get an award.

 UBCM Award at City Council Meeting for Nelson
Community Solar Garden
Left to Right  Alex Love manager of Nelson hydro, Carmen Proctor solar garden contractor, ex Mayor Kozak with award, Trish Dehnel  BC energy director of something or other.


Economics to date for the Balfour Community Hall

 18,000w solar installed at $3-4/watt = $60,000 +.
Business case borrowed money over 25 years
 (life expectancy of solar)

 payments $270/mo.

 Meter reading Oct 2018 through Mar 2019
shows solar earned average $30/mo.

 Public money spends $270/mo plus new roof any and all future costs

 so Balfour Community Hall 

 saves $30/mo on their power bill!!!!

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