LTAP: Reaction to BCUC rejection

COMMENT: As predicted, the BCUC rejection of BC Hydro's Long Term Acquisition Plan (LTAP) has created a firestorm of media statements from all sectors.

Here is an assortment of statements and responses to the LTAP decision. Media coverage and commentary is in a separate post, here.

BCUC Decision Good News for Hydro Ratepayers

VICTORIA - The B.C. Utilities Commission's decision to reject the B.C. Liberal plan for more private power is good news for British Columbians concerned about higher electricity rates and for the environment, says Opposition energy critic John Horgan.

Horgan said today's decision backs the Official Opposition's call for a moratorium on private power projects until we have a better understanding of our long-term energy needs.

"The BCUC has quite rightly rejected Premier Campbell's arguments that these power projects will benefit British Columbians in any way," said Horgan, the MLA for Juan de Fuca.

"This decision is a victory for those who believe that the province's resources should be used for the benefit all British Columbians, not just for friends and donors of the B.C. Liberals."

Horgan called on the Campbell government to recognize the decision as an opportunity to engage in a meaningful discussion about our long-term energy needs.

"The commission also found that B.C. Hydro's conservation measures are inadequate. This decision translates into a failing grade for the B.C. Liberal energy plan."

Carole James and the Official Opposition have been calling for a moratorium on all new private power projects to ensure that they meet environmental standards, are done in consultation with local communities and first nations, and fit with the energy needs of the province.

"Independent power projects that use B.C.'s rivers to create power for export to California for the benefit of a few corporations are not in the public interest," said Horgan. "Especially when they will result in skyrocketing electricity rates for B.C. families."

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Contact: Tim Renneberg, 250-361-6314 or 250-356-0592

http://www.johnhorgan.ca/news/news-releases/bcuc-decision-good-news-hydro-ratepayers

Utilities Watchdog Bites Private Power

Not Green, Not Smart, Not Needed

BURNABY — Yesterday the BC Utilities Commission (BCUC) released an order which unequivocally curtails the gold rush towards private power in BC.

The BCUC concluded that the Long Term Acquisition Plan (LTAP) submitted by BC Hydro was “not in the public interest”, disrupting the provincial governments’ ongoing political interference of our public utility.

The BCUC order is a vindication of the comprehensive analysis submitted by COPE 378 on the LTAP and Clean Power Call. The BCUC agrees with COPE 378’s research and submissions: the government cannot exaggerate the need for power by downgrading the Burrard Thermal plant, shortchanging conservation efforts and forcing the purchase of private power, with British Columbians and ratepayers taking the risk.

Flowing from their decision that the LTAP was fundamentally flawed, the BCUC again agreed with COPE 378 that BC Hydro does not need the power asked for in the Clean Call. The Clean Call would have burdened BC Hydro with 3000 Gigawatts of surplus power - an enormous amount of unneeded electricity. The Commission’s decision means BC Hydro cannot use an LTAP decision to justify expenditures and expensive contracts with private power and then try and recover the costs through taxpayers.

The BCUC decision ensures each energy purchase contract and expenditure will come under more scrutiny to demonstrate if the project is in the best interest of British Columbians.

The BCUC also found the conservation efforts in the LTAP lacking. The Commission called the Demand Side Management provisions “deficient” and said that programs will decay.

“We are thrilled that the BCUC has recognized what we’ve been saying all along,” said COPE 378 President Andy Ross, “this is power we don’t need at a price we can’t afford.”

Over night markets quickly reacted to the BCUC's decision to reject the government's rush into private power and stocks plummeted. Hardest hit is Plutonic Power, the corporation developing a massive system of hydro projects in the Bute and Toba Inlets.

Yet unknown is if the powerful private power lobby will convince the provincial government to overturn the BCUC’s decision, or more ominously, its mandate and autonomy. “We saw it with Alcan. The BC Liberal government could use their cabinet powers to do an end-run around the BCUC,” warned Ross. “Alternatively the government could backstop the purchase of private power under the guise of economic stimulus.”

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Media Contact: Lori Winstanley, (778) 828-4039

BC Energy Watchdog Sides With Fossil Fuels

Well, no one said the transition off fossil fuels was going to be easy….
Yesterday, the BC Utilities Commission rejected the province’s main utility’s (BC Hydro) proposed Long Term Acquisition Plan. It’s a real example of the powerful hold of old-fashioned thinking getting in the way of the race to a clean economy.

You can read the whole 236 pages here
(http://www.bcuc.com/Documents/Decisions/2009/DOC_22470_LTAP_Decision_WEB.pdf).

Here’s my take:

1. We need to get vehicles, buildings etc. off fossil fuels asap. The BCUC took us backwards. The BCUC not only rejected suggestions to move in the direction of electric cars etc., it actually directed BC Hydro to look into saving electricity by having its electricity users switch to gas!

2. We need to shut down greenhouse gas emitting power plants and switch to zero carbon sources. The BCUC actually rejected the utilities’ proposal to decrease its reliance on Burrard Thermal (pictured left) which runs on natural gas and is the biggest GHG polluter in the Vancouver region when it’s fired up. The provincial government wants it shut down as part of its climate and energy strategies. Let that sink in — the utility company(!) wants to decrease its reliance, the government wants to reduce carbon emissions and the “public interest” watchdog goes the other direction.
Ugh.

3. We need aggressive energy conservation measures to use less and clean power built to replace fossil for what we still use. The BCUC was mixed on the first front and outright awful on the second. Instead of moving aggressively to ramp up clean energy, the Commission rejected funding for the utility to complete clean power proposals it had already called for.
BC has shown leadership (such as that’s defined in North America) on some climate policies but lags on clean energy. The province is finally on the verge of getting its very first wind farm on the grid and has 30-odd run of river hydro projects. These are pretty tepid numbers compared to what’s going on under Obama to the South, Ontario and other provinces to the West and China or South Korea to the East.

The basic problem is that these utility commissions are a good idea — they guard against energy price gouging and are supposed to make sure that things happen in the public interest — but what do you do when they define the public interest as “cheap” as opposed to avoiding catastrophe? The fossil fuel status quo is the cheap and easy route. And focusing on electricity without the whole energy picture leads to short-sighted mistakes.

Three-quarters of the energy used in BC is fossil fuelled. This is actually less than most places. BC has enviable advantages because most of its electricity (a small proportion of overall energy, but important) comes from big dam hydropower. So the climate gurus recommend using those big dams as backup “batteries” to a modern renewable energy system. Then the cars, buildings etc. can be “electrified” running on a no-carbon, green grid.

If the province hopes to realize that kind of vision with the kind of urgency climate change requires, the provincial government had better step in and provide some clarity. Here’s a news release I put out earlier:

BCUC Decision Supports Increased Greenhouse Gas Emissions

PowerUP Canada calls on BC Government to Take Action

July 28, 2009, Yesterday the British Columbia Utilities Commission (BCUC) rejected BC Hydro’s Long Term Acquisition Plan (LTAP) with a 238 page decision that was a serious blow to the clean energy transition and climate leadership in British Columbia.

“The BCUC decision would result in increased dependence on dirty energy and rising greenhouse gas emissions. It flies in the face of BC’s Climate Action Plan and could result in clean energy investment and jobs leaving the Province,” said Tzeporah Berman, Executive Director of PowerUP Canada.

BCUC recommended increased reliance on the aging, inefficient and polluting Burrard Thermal Plant (pg 115) and requested BC Hydro do an analysis of the cost effectiveness of decreasing electric demand by using natural gas for heating/hot water instead of clean electricity in new residential and commercial construction (pg175-179). The BCUC further rejected funding to complete the Clean Power Call process.

“At a time when the United Nations is calling global warming the greatest threat humanity has ever faced and competing jurisdictions are racing to build a clean energy economy, the idea that BC would continue reliance on fossil fuels is absurd,” continued Tzeporah Berman.

“The BC Government needs to step in and assure the public and investment community that this province is committed to climate leadership and developing a clean energy economy.”

The lack of planning for climate solutions is further apparent in BCUC’s refusal to ensure that BC Hydro’s demand forecast include demand for electric vehicles (pg 53-55). In contrast this month the Ontario government announced new subsidies, plans for charging stations and special carpool lanes to support the expansion of electric cars.

One bright point in the decision is that the Commission has begun to recognize the importance of energy conservation (DSM) measures. However even on this topic, the BCUC throws existing laudable efforts into disarray by rejecting the DSM plan.

For more information:

Tzeporah Berman 604-313-4713
www.powerupcanada.ca
Blog: www.zerocarboncanada.ca
Twitter/tzeporah

http://www.zerocarboncanada.ca/bc-energy-watchdog-sides-with-fossil-fuels

Energy Minister Calls NDP Response to Rejection of Private Energy Proposal Surprising

THE PROVINCIAL NDP IS APPLAUDING THE BC UTILITIES COMMISSION'S DECISION TO REJECT BC HYDROS PROPOSAL TO PURCHASE ENERGY FROM PRIVATE PRODUCERS----SOMETHING THE MINISTER OF ENERGY SAYS SHOWS THE OFFICIAL OPPOSITIONS LACK OF COMMITTMENT TO 'CLEAN GREEN ENERGY INITIATIVES'

BLAIR LEKSTROM SAYS HE FINDS THE OPPOSITIONS COMMENTS ABOUT THE SITUATION, SURPRISING

"I think what that tells me is they are in favor of putting out more greenhouse gas emissions, and not following through in support of clean, green energy initiatives"

LEKSTROM SAYS REJECTION OF THE PROPOSAL DOESN'T FIT WHERE THE PROVINCE IS HEADED

"this decision is as I indicated, a big surprise. I don't think that the people of the Lower Mainland would see this as a positive decision, and we are committed to growing the clean, renewable industry sector in British Columbia and that committment stands firm"

ENERGY CRITIC JOHN HORGAN BEGS TO DIFFER HOWEVER, AS HE TOLD CFAX EARLIER TODAY THAT PEOPLE SHOULD BE PLEASED WITH THE DECISION AS IT WILL SAVE THEM THE MONEY THEY WOULD HAVE HAD TO PAY UNDER PRIVATE POWER PRODUCERS.

- ANDREA BOYES

http://www.cfax1070.com/newsstory.php?newsId=9973

Energy regulator’s shocking rejection of BC Hydro energy plan

VICTORIA, BC – On Monday, the BC Utilities Commission rejected BC Hydro’s 2008 Long-Term Acquisition Plan, which has been under review for the last year.

“We are surprised and concerned at the Utilities Commission decision to reject BC Hydro’s long-term energy plan,” said Tom Hackney, Vice-President for Policy of the BC Sustainable Energy Association. “BC needs to develop its renewable energy resources if it is to move off fossil fuel dependency, and BC Hydro’s plan was going in that direction. This decision undermines that.”

A key part of the Commission’s decision was its rejection of BC Hydro’s proposal to down-rate the Burrard Thermal Generating Station to 3,000 Gigawatt-hours per year of energy. The Commission strongly suggested that Hydro consider relying on Burrard for 5,000 GWh/y.

“The Burrard Generating Station is an old, inefficient, polluting technology, located in a confined air-shed with many people and serious air quality problems,” said Hackney. “It is troubling that the Commission should reject Hydro’s plan to reduce reliance on Burrard.”

Although the Commission approved the spending of $418 million to implement BC Hydro’s energy conservation and efficiency plans, it nevertheless rejected the plan itself.

“This decision is clearly not a win for the environment and our fight against climate change,” said Naomi Devine, BCSEA Director. “It is a serious step backward in BC’s transition off of fossil fuels and our journey toward a sustainable future. The Commission does not seem to be taking seriously government's climate change policies and our urgent need to reduce greenhouse gas emissions.”

“Because the Commission second-guessed Hydro on the energy rating of Burrard Thermal and rejected Hydro’s conservation plans, they then concluded that the case to justify the 3,000 Gigawatt-hour per year Clean Energy Call had not been met,” said Hackney. “This introduces unfortunate uncertainty into the industry. It would have been better had the Commission accepted the plan and called for Hydro to correct any errors with the filing of its next energy plan.”

The BC Sustainable Energy Association (www.bcsea.org) is a non-profit society that envisions a future in which all of BC's energy needs are met with clean, efficient, renewable energies. We actively promote sustainable energy in BC through practical projects, education and policy development.

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For more information, contact:
Tom Hackney 250-381-4463
Guy Dauncey 250-881-1304