Forgive me if you find some conflicting data from post to posts. My intention is to provide food for thought, and as I learn new things, I may link it in or reference it, but not go back to earlier posts and make corrections. Thank you and enjoy.

Monday, November 2, 2009

Where did all the revenue go to ????

Ok, I'm at a complete loss for words now. On page 60 of the 2007/2008 NB Power annual report, the annual statement of sales is shown for the years 2003/2004 to 2007/2008. The total in province sales for these five years is $5.497 Billion dollars. I'm not sure what last years sales were, but lets say it is the average of the previous 5 years. And because the MOU fixes the heritage pool at slightly below the average for the same years, lets assume there will be no growth in any demand for the next five years. Now, this proposed sale of NB Power to Hydro Quebec will result in an estimated $5 Bilion in savings for all rate payers for the next five years. Well the total sales is estimted, based on past sales and no growth, at only $5.497 billion. So that means a %90 rate reduction across the board. But we all know residential is only frozen for the next five years. Residential represents about %35 of in province sales. So if we leave the residential customer out, then everyone else gets their power for free?? Could someone check this and please comment on my math. I obviously didn't learn the same math class as the premier. Oh, BTW, this kinda negates any math I did in my previous posts. So I opologize for that.

The annual report is available here: http://www.nbpower.com/html/en/about/publications/annual/Annual_Report07-08-.pdf

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