FortisBC Inc. (FortisBC) Application for a Certificate of Public ...

The table’s first column reports the unit of purchase.
The second column reports the average
price of the purchase of that unit. The third column
indicates the number of grams in the purchase
bundle in order to put the purchases into a
common unit. The final column reports the implicit
price per gram at the different quantities. As
is expected, larger quantities are cheaper on a per
gram basis. 12
Growth cycle and “bud” size
Outdoor crops mature once a year. Each indoor
crop takes between 6 weeks and 4 months to mature.
13 To err on the side of caution, we will use a
period that gives four harvests per year.
At harvest each plant produces one “bud” which
is the structure that produces about 100 grams of
usable marijuana. This, in turn, yields a dry
weight of roughly 33 grams. 14 Although they may
not be a representative sample, data from Vancouver
police drug busts suggest that in 1998 a
bud weighed about 3.3 ounces (100 grams). In
1999 the average bud had increased to 4.3 ounces
(122 grams). Most estimates (Plecas et al., for example)
take 100 grams as the relevant average. This
assumption will also be made in what follows.
Potency
One frequently uttered sentiment is that British
Columbia grown marijuana is on the stronger
PUBLIC POLICY SOURCES, NUMBER 74
end of the spectrum. This may be true, but it is
tricky to document systematically. Data collected
by the RCMP tend to suggest that the potency,
the THC content, has remained roughly
constant over the 1995 to 1999 period. Nationally,
there was no obvious increase in the
measured quality of marijuana acquired by the
police from various activities: busts, buys, and
the like. Within British Columbia, although the
mean THC content has increased over the same
period, that increase is not statistically significant.
15 Consequently, although it is possible that
there has been an increase in the THC content (if
popular reports are to be believed), it remains to
be observed systematically, though the raw
numbers are not inconsistent with an increase in
the late 1990s.
The house
Appendix BCUC IR1 74.1
The marijuana producer needs an establishment
to house a grow-op. Typically, grow-ops have
been found in rented houses. A house typically
rents for about $18,000 a year, though there is evidence
that increasing the scale of production demands
alternatives. 16 Grow-ops arise (in part)
because they have a very quick time to market
compared to natural marijuana crops that have an
annual cycle. 17
The equipment necessary to run a grow-op includes
supplies, lights, fans, seeds, and miscellaneous
other materials. For a 100-plant operation,
12 For example, Caulkins (1994) finds a similar relationship for cocaine prices and quantities in the United States.
13 A relatively new phenomenon is that grow-ops are being found with “continuous cycle” harvesting. That is, there is a “circle”
of plants with one at each stage in the productions process. Such a model takes more hands-on work, since one task or
another has to be performed more frequently, but if the grow-op is busted by competitors, then there is much less market-ready
product available. A clear trade-off is being made.
14 In addition, there are often several smaller buds, but I have not seen estimates of how many or how large they are.
15 Based on 2,089 BC observations, the THC (delta-9-tetrahydrocannabinol) content from 1995-1999 was 6.5, 6.9, 6.6, 7.1 and 7.4
percent (Ladds, 1999).
The Fraser Institute 9 Marijuana Growth in British Columbia