Syntaris Power

Capital projects, upgrading of infrastructure account for most of proposed increases

By Jesse Ferreras

BC Hydro confirmed last week that independent power producers (IPP) are playing a role in the Crown corporation’s application to the B.C. Utilities Commission for rate increases.

In the fifth paragraph of a Dec. 2 news release, the power authority states that it is forecasting an increase of $7 each year for the next three years, on an average monthly bill of $71 – a total of 27 per cent over three years. The rate increases are subject to approval by the BCUC.

BC Hydro President and CEO Dave Cobb said he’s looking to implement the increases so that the Crown corporation can take on a $6 billion effort to renew and expand the province’s electricity infrastructure.

“We are committed to meeting B.C.’s growing demand for electricity by modernizing and investing in the province’s electricity system to safely keep the lights on for British Columbians,” Cobb said in a news release. “We are also taking steps to keep rates affordable by making our operations more efficient and introducing new conservation programs that will help offset rate increase.”

BC Hydro has a long list of capital projects it hopes to pay for through the rate increases. The projects include adding a fifth unit to the Revelstoke Generating Station; a seismic upgrade at the Coquitlam Dam; and increases in generating capacity at the Fort Nelson Generating Station.

…Speaking on background, a BC Hydro spokesman said in an e-mail that the capital projects account for half of the rate increase, while energy costs from sources such as independent power producers account for less than one fifth of the increases.

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VANCOUVER — BC Hydro is paying an average of $124 per megawatt hour in new electricity contracts with independent power producers, the Crown corporation said Tuesday.

In a report on its 2008 Clean Power Call, Hydro said it has contracted to pay 27 successful bidders a levelized firm energy price ranging from $105 to $133 per megawatt hour, averaging $124 once the comparative size and electricity output of each project is weighted in.

…Hydro said that even with a 30 per cent attrition rate among successful bidders, its grid will gain 2,286 gigawatt hours of power annually. That’s enough to meet the British Columbia government’s order that Hydro be self sufficient — no longer dependent upon imported power to meet domestic demand — by 2016.

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Link to BC Report on the RFP Process

The B.C. Citizens for Green Energy (BCCGE) has claimed that lumping the U.S.-generated electricity the province is entitled to under the Columbia River Treaty and calling it an export is “misleading and even somewhat disingenuous.”

BCCGE spokesperson David Field said in a release Thursday morning, “You can’t really consider electricity generated in the U.S.A. under the Columbia River Treaty to be an electricity export from B.C.”

The BCCGE, which advocates for more independent power production in B.C. and less energy importation, said that revenue generated by BC Hydro subsidiary Powerex from B.C.’s Columbia River entitlement is one reason electricity rates in B.C. are lower than many other jurisdictions in North America.

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New legislation will make B.C. electricity self-sufficient, create jobs and help support health care and education

By Bill Bennett, Special to the Sun

Our new Clean Energy Act will help ensure that British Columbians continue to enjoy the benefits of our clean, reliable and cost-effective power for many years to come.

Experts have told us that, over the next 20 years, as our population increases by more than one million residents, we can expect the demand for electricity to grow by as much as 40 per cent. In order to meet this growing demand, all of us must make every effort to conserve electricity and be more efficient in our power use. Recognizing this need, we have increased BC Hydro’s conservation target to 66 per cent, from 50 per cent. However, conservation alone will not be enough.

We need to ensure that we have secure, clean sources of power to meet this growing demand. There is no better place to get clean energy than right here in British Columbia. We have abundant water, wind and biomass, and a proven, track record in delivering sustainable projects such as the W.A.C. Bennett Dam in the Peace Canyon region.

…There are critics who say that we should continue to rely on electricity generated in the United States, even if it’s not generated from clean or renewable resources.

We simply do not agree with this approach. The Clean Energy Act puts in legislation that BC Hydro will be electricity self-sufficient, which includes 3,000 gigawatt hours of “insurance” electricity by 2020 and at least 93 per cent of our electricity will be generated from clean and renewable sources.

…The new Clean Energy Act sets the foundation for a future of electricity self-sufficiency and job creation, powered by unprecedented investments in clean, renewable energy across the province.

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