Did you know that the City is the owner and shareholder of the Lulu Island Energy Company Ltd.?
The Lulu Island Energy Company (LIEC) is a wholly-owned municipal corporation, established to operate district energy utility operations in the City of Richmond on the City’s behalf. LIEC was incorporated in August 2013 for the purpose of managing DE (district energy) system in future years, and as such does not have any assets or customers.
The names of the Directors of YOUR energy company are:
- George Duncan, Chair, (Chief Administrative Office, City of Richmond)
- Jerry Ming Chong, Vice-Chair, (Director, Finance, City of Richmond)
- Robert Gonzalez, CEO, (Deputy Chief Administrative Office, City of Richmond)
- John David Irving, COO, (Director, Engineering, City of Richmond)
- Cecilia Maria Achiam, Corporate Secretary, (Interim Director, Sustainability and District Energy, City of Richmond).
This Board is controlled by City employees some of whom re already on the Oval’s board.
- Why are there no board members with utility expertise involved?
- Were the taxpayers asked if we wanted to own an energy utility?
- Who is looking after the taxpayers’ interest?
- Who will be held accountable if this venture fails?
The City plans for further District Energy development are:
- Alexandra District Energy Utility (Staff is recommending the transfer ADEU assets and operations to the LIEC within the current year.
- Oval Village District Energy Utility (OVDEU, previously known as River Green District Energy Utility)
The 2015 Operating budget has an overall budgeted net surplus of$31,375, which will be transferred to a provision account to be used toward future capital repayments.
What is LIEC’s return on equity (ROE)?
- BC Hydro’s ROE is 11.84%,
- FortisBC’s ROE is 8.75% (FEI).
- Corix’s ROE is 9.5%.
As some taxpayers have stated with respect to other projects far outside the scope of core civic responsibility, this type of financial adventurism HAS to stop. If this power project was such a good idea, private enterprise would have jumped at the opportunity.