Power export plan isn’t dead yet

He would never quite admit it, but former premier Gordon Campbell’s push for self-sufficiency in clean electricity has always looked to me like a long-term strategy to export hydroelectric power. It still looks that way

Former premier Gordon Campbell meets former California governor Arnold Schwarzennegger at the Copenhagen climate conference

VICTORIA – He would never quite admit it, but former premier Gordon Campbell’s push for self-sufficiency in clean electricity has always looked to me like a long-term strategy to export hydroelectric power.

It still looks that way. B.C.’s spring and summer runoff match perfectly with peak air-conditioner season in California. But the recent review of BC Hydro operations discusses how the prospects for exports have changed since Campbell’s 2007 energy plan.

The government instructed BC Hydro to wean itself off power imports by 2016, even in drought years, and obtain new capacity mostly from outside sources with net zero greenhouse gas emissions. Nuclear plants were formally ruled out.

The review of BC Hydro by three top bureaucrats acknowledges that government directions have “placed pressure on BC Hydro to increase their energy supply through increased long-term agreements with independent power producers (IPPs).”

Cue the doomsayers. Independent power production is enemy number one for BC Hydro unions. Their champion, NDP energy critic John Horgan, was immediately out with a grossly distorted version of the report. He cherry-picked statistics to compare the $124-per-megawatt hour average cost for delivering independent power with the lowest end of the spot market for electricity, which currently swings wildly from around $4 to more than $50.

In fact the report puts the average price paid for IPP power at $63.85. Compare that with the projected cost of $87 to $95 for power from Site C, the proposed third dam on the Peace River that will be BC Hydo owned and operated.

The $124 figure includes other costs, notably extending the electricity grid to connect IPPs. Horgan claims to favour wind or run-of-river for remote areas with no other clean energy option, but apparently is against hooking them up to the grid.

(Further evidence that current NDP energy policy is nonsense: Horgan opposes Site C based on an assumption of little or no growth in mines, mills or other industries such as liquefied natural gas, which an NDP government would be a good bet to deliver. He’s against smart meters for the same reason he’s against the HST – because it looks like a popular pose right now.)

When it comes to electricity exports, the important point is not what power sells for today, but what it will be worth a decade from now. And that depends on whether clean energy can command a premium price, and whether coal and other fossil fuel sources have a carbon price imposed on them.

Conventional wisdom right now is that carbon taxes and cap and trade programs are, if not dead, at least dormant in North America. Climate change has fallen off the front page as the U.S. and Europe grapple with economic troubles.

So I was surprised to find that this month Powerex, BC Hydro’s electricity trading company, wrote to the California Air Resources Board asking for clarification of the state’s proposed changes to its greenhouse gas reporting and cap and trade rules. California wants to prevent suppliers from engaging in “resource shuffling,” where a supplier such as B.C. might import coal power from Alberta for its own use, while selling supposedly clean power for export.

Considering that restriction, B.C.’s self-sufficiency rule starts to make more sense. If B.C. is not importing power, its supply must be clean.

Also, a meta-analysis on climate effects came out last week in the journal Science, detailing world-wide species migration due to warming.

Clean energy sales to California are a long way off, but it would be a mistake to reject the possibility.

Tom Fletcher is legislative reporter and columnist for Black Press and BCLocalnews.com

Follow me on Twitter: tomfletcherbc

Just Posted

Elk Valley mines boost overall Teck production

Fording River, Elkview achieve record fourth quarter; Fording, Greenhills have bumper year

B.C. Interior free from measles

Vancouver measles outbreak hasn’t spread to the B.C. Interior

Man injured in police shooting near Nelson has died

The death follows an incident in Bonnington on Feb. 13

Local DJ to take stage at Fernie Stoke Fest

Jenn Johnson - aka Jenn Frost - confirmed as closing act at Fernie Stoke Fest on April 9

B.C. BUDGET: Surplus $374 million after bailouts of BC Hydro, ICBC

Growth projected stronger in 2020, Finance Minister Carole James says

Sell regulated heroin to curb B.C.’s overdose problem: report

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

Kootenay man dies in crash near Sparwood

Accident occurred last night east of Sparwood, RCMP appealing for witnesses

POLL: Are Wildlife Detection Systems in the Elk Valley working?

In 2016, the Ministry of Transportation and Infrastructure (MOTI) installed two wildlife… Continue reading

Fernie Ghostriders face defeat during away weekend

Fans encouraged to wear white for first playoffs game at Fernie Memorial Arena, February 26

UPDATE: Man charged in stabbing of woman, off-duty cop outside B.C. elementary school

Manoj George, 49, is facing two counts of aggravated assault and two counts of assault with a weapon after the incident on Wednesday, Feb. 20.

Why do zebras have stripes? Perhaps to dazzle away flies

Researchers from University of Bristol look into why zebras have stripes

Poll: More voters believe Canada doing worse under Trudeau government

22 per cent believed the country is doing better and 27 per cent said things are the same

HBC shuttering Home Outfitters across Canada

North America’s oldest retailer is revamping its various stores to improve profitability

BC SPCA investigates Okanagan woman with prior animal abuse convictions

BC SPCA is investigating a property near Vernon

Most Read