Tuesday, December 03, 2002

IPABC Members: FYI: The attached Letter to the Editor was written by the IPABC’s first President (1992-1994). Just goes to show that old IPPers (GIPPers?) never die - they keeping on generating energy. B.C. energy policy a step in right direction G.W. Clayton Times Colonist Tuesday, December 03, 2002 Re: "The new B.C. energy policy: No more dams, many flaws," Nov. 27. Is it really likely that new large hydroelectric projects will be developed in B.C. given the past vehement public opposition? Recall Site C on the Peace River and the Kemano Completion Project. Apart from the re-development of existing hydro facilities, where are these potential hydro projects that B.C. Hydro is being prevented from developing? If B.C. Hydro is so profitable why are these profits not flowed back to the ratepayer to keep rates as low as possible once the freeze is removed? Why is regulation even required to keep rates low? If B.C. Hydro is so efficient why has it taken so long to initiate a new generating project on Vancouver Island and why has Hydro gone through so many potential partners in the process? B.C. Hydro and most other electric utilities in Canada and the United States, public and private, have been regulated since the beginning of time. If a fair rate of return on investment is allowed why would the capital required not be available? It always has in the past. The energy policy, while not perfect, does satisfy a number of outstanding issues. One, it allows private generation developers access to the transmission system so that they can, at a cost, move their product to market. Two, it allows transmission line reciprocity with U.S. transmission agencies, thereby allowing Canadian power to flow to southern markets. Three, it confines B.C. Hydro to the development of hydraulic generation where whatever engineering expertise it has left can be usefully applied. New generation development is left to the private sector where, like it or not, the expertise lies. While large gas-fired projects may be the flavour of the month, they are not a flavour that B.C. Hydro has ever tasted and technical experimentation can be costly (remember the fast ferries?) Four, it confirms the role of the B.C. Utilities Commision in respect of the regulation of Hydro. Not a perfect package, but a step in the right direction. G.W. Clayton North Saanich. © Copyright 2002 Times Colonist (Victoria)