Today, the BC government introduced the Clean Energy Act. The Act sets out objectives for BC Hydro and the BC Utilities Commission (BCUC) designed to achieve the government’s vision of BC as a “green energy powerhouse”. The Act aims at creating green jobs, increasing electricity exports, reducing green house gases and ensuring electricity self-sufficiency by 2016.
Analysis
Many features of the Act establish in legislation priorities (e.g. electricity self-sufficiency) that have previously been expressed in government policy. The Act empowers BC Hydro largely as the instrument by which components of provincial energy, environmental and economic policies are to be achieved. The Act exempts BC Hydro, various projects, programs, contracts and expenditures from BCUC oversight.
There are no commitments, as hoped for by the independent power sector, in the legislation to regular acquisition calls. Matters such as acquisition, export potential and infrastructure requirements (especially transmission) are to be dealt with in the context of future BC Hydro integrated resource planning. 1
Specific measurements contained in the Act include:
- BC Hydro to secure long term export contracts with renewable power producers. This is to be done without risk or cost to BC ratepayers.
- Integration of BC Hydro and BC Transmission Corporation (BCTC) into a single organization with one board of directors and executive, and transfer all BCTC assets, liabilities and employees to BC Hydro.
- Exemption of “strategic projects” (Site C, Northern Transmission line, Mica among others) from approval by the BCUC. Future projects, specifically for the purposes of supplying export markets, will also be exempt from BCUC review.
- A “two river policy” that limits energy facility upgrades to the Peace River and the Columbia River Systems.
- Introduction of a “Feed-In Tariff” program to foster the development of emerging technologies in renewable power production. The program will aim to support emerging technologies that can supply power from renewable resources. Government and BC Hydro will work with industry to define the program, which will be established through regulation.
- Direction that BC Hydro meets 66 per cent of the province’s incremental electricity needs through conservation by 2020. This is up from the 50 per cent target set in the 2007 Energy Plan.
- Replacing all BC Hydro customer meters with digital, solid state, smart electricity meters. These meters enable two-way communication between the customer and the utility, giving customers more information about their energy consumption.
- BC Hydro to rely on no energy and no capacity from the Burrard Thermal gas plant, except in the case of emergency or as authorized by regulation.
- BC Hydro not to sell or otherwise dispose of the energy heritage assets.
- Creation of a First Nations Clean energy business fund ($5 million) to facilitate the participation of First Nations in clean energy projects.
1 In 18 months, BC Hydro is required to submit to the Minister of Energy, Mines and Petroleum Resources an integrated resource plan that must include a description of BC Hydro’s infrastructure and capacity needs for electricity transmission for the period ending 30 years after the date the plan is submitted. Additionally, the plan must outline how BC Hydro plans on meeting the government’s self sufficiency and green house gas reductions requirements.