Friday, September 11, 2009

Proposed Power lines costs go sky high!

Power line costs are expected to go as high as 200.00 per month for individual homes. 1.3 million homes in Alberta times 200.00 per month - you play with the zeros.

Power lines are heavily financed. Any number of generation plants and power lines fell by the way side in the US when the interest rates went sky high under Nixon. It seems like a long time ago but the deals put in at that time are still being paid for!

If the costs of today's numbers are based on today's rates of 1/4% we are well and truly in deep trouble. Think of it! If the bank rates go up to 5% which they most certainly will at some point, the interest charged on those power lines will be 100 times higher than they are now.

I think it is fair for Albertans to ask for some figures on the "estimates".
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