Editor:
Re: The big lie about B.C.’s power production (March 2 issue of the Grand Forks Gazette)
Ironically, in a column about “telling lies,” Mr. Ronaghan includes incorrect statements.
He wrote “Up until 2011, if an IPP wanted to build a so-called run-of-river power plant, that would produce fewer than 10 megawatts of power, it could do so without a public process or an environmental assessment. That limit was recently raised.”
I can assure him BC Hydro doesn’t decide what gets environmental reviews or not – every project built on public land must submit to a number of extensive public reviews.
The Standing Offer Program is modelled on other jurisdictions, whereby proponents who successfully satisfy all regulatory requirements and have all necessary documents may apply to sell energy to the utility at a pre-determined rate.
It specifically requires that all rights to develop the resource have been obtained before an application is considered.
For those interested, go to credible sources such as BC Hydro and the Integrated Land Management Bureau’s websites for actual information on the energy procurement programs and permitting processes.
While noting the base rate increase BC Hydro pays for energy, under the Standing Offer, Ronaghan doesn’t mention that Hydro revised the seasonal adjustment to the rate so that the amount paid for energy during high water is reduced.
Since typical power purchase contracts run for 25 to 40 years and only 50 per cent of the rate is indexed to inflation, the market price Hydro will pay will soon be higher than prices paid to IPPs.
Since all new customer loads must be met with new generating sources, it is reasonable to expect that costs will increase no matter what organization is building the generators.
When mega-projects were built 30 to 50 years ago, they had excess capacity, which BC Hydro sold to other provinces and the U.S.
That no longer exists and as customer load increases, Hydro is forced to buy foreign energy at market price.
It’s debatable whether BC Hydro actually imports more than it exports, since it buys and sells power to take advantage of seasonal price and availability differences, but there is no debate whether B.C. has enough of its own generation to meet future needs.
Despite conservation, consumers are using electricity for more of their energy needs.
John Wheeler, Grand Forks