BC Wind Power, Waneta Dam Hearings, Haida and NaiKun and Biomass EPA's Approved

Wind Turbines Are Spinning in BC (finally!)
 
British Columbia's first wind energy facility opened earlier this month in Dawson Creek. The Bear Mountain Wind Park, which is owned by AltaGas, when completed will consist of 34 turbines and generate enough electricity to power 38,000, homes. The project has an EPA with BC Hydro under the 2006 Power Call and will receive up to $20.5 million from the the Government of Canada's ecoENERGY For Renewables Program. This marks a significant milestone on the Canadian renewable energy landscape. Now each of Canada's 10 Provinces can claim to be generating electrons to their respective electricity grids from the power of the wind. A monumental moment indeed. Those in British Columbia can purchase electricity from the Bear Mountain Wind Park, through Bullfrog Power.
 
BC Hydro's Purchase of 1/3 of Waneta Dam before BC Utilities Commission
 
This week marks the start of the public hearing stage for BC Hydro's proposed purchase of a 1/3 interest in Teck Metals Ltd.'s Waneta Dam in Trail, BC . BC Hydro is seeking an order from the BCUC under s. 44.2(1) of the BC Utilities Commission Act that the proposed for $825 million purchase is in the public interest. In its submission to the BCUC, BC Hydro characterizes the Waneta Dam as a significant hydro electric generating facility that has produced safe, reliable power for Teck for over 50 years. If the purchase completes, BC Hydro believes it would gain access to 167MW of capacity and 890 GWh/year of energy. This is an interesting proposal for BC Hydro.  In BC there are only a handful of privately owned dams, and rarely, if ever, are these dams available for purchase. So, BC Hydro buying an existing asset which can supply base load power to the grid and storage capacity, seems to follow quite well with the Province's energy self-sufficiency objectives. The hearing process which will take place over the course of the fall, will examine, among many other things, the cost to acquire the interest in the dam and aboriginal consultation and/or accommodation. This will be very interesting to follow.  Here is the link to the BCUC's webpage on the BC Hydro Waneta Transaction.
 
NaiKun and the Haida Nation sign Investment MOU
 
Last week, NaiKun Wind Energy and the Haida Nation signed a memorandum of understanding which could give the Haida nation a 30% ownership stake in NaiKun's proposed $2 billion wind power project off the coast of the Queen Charlotte Islands. NaiKun currently has a proposal into BC Hydro as part of the Clean Power Call. Kudos to NaiKun and the Haida Nation who continue to show tremendous leadership on the business relationship between first nations and independent power producers. Here's the Vancouver Sun's story on the deal.
 
EPA's for Four Bioenergy Projects Accepted By BCUC
 
Following up on my earlier blog posts (here and here) on Phase I of BC Hydro's Bioenergy Call for Power, electricity purchase agreements between BC Hydro and the four successful projects have now been accepted by the BCUC. They are: Canfor Pulp Ltd. Partnership's project in Prince George, PG Interior Waste to Energy Ltd.'s project also in Prince George, Domtar Pulp and Paper Products Inc.'s project in Kamloops, and Zellstoff Celgar Ltd. Partnership's project in Castlegar. Together, the four projects will generate a total of 579 GWh/year of electricity, or enough to power more than 52,000 homes. Here is BC Hydro's press release. Biomass energy is certainly a welcome boon to BC's forest industry. Great to see BC Hydro buying more of it. Here is the latest information on the Phase II of the Bioenergy Call.
 
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Wait a minute....is Burrard Thermal back in play?

That is a big question coming out the cross-examination of BC Hydro at the BCUC hearings into BC Hydro's 2008 LTAP. 

If you followed the hearings, by attending or, like me, you read the daily transcripts (see bottom of the BCUC webpage), you would have enjoyed a unique look inside some of the complex decision making that goes into planning BC's future electricity requirements.  And you would have also learned of a somewhat curious, but often-visited topic of discussion, one which could have a dramatic impact on the future of power generation in the Province and the air-quality in the Lower Mainland - Burrard Thermal.

Burrard Thermal, the outdated, inefficient and costly natural gas generation facility located in Port Moody, BC, was a popular topic for BC Hydro's panellists during the cross-examination. Some of the intervenors appeared to want the BCUC to consider whether BC Hydro should fire up Old Wheezy to its full generating capacity of 6,000 GW/h per year or more.  BC Hydro responded generally on maintaining the status quo, the significant costs to upgrade, and the possible loss of its social license to operate the facility.

The upgrade controversy lies in the facility itself. Burrard Thermal, has, for the past few years, been maintained by BC Hydro to operate as an "insurance policy", to be used only in peak demand periods, such as the recent cold snap in Vancouver in December 2008.  While capable of generating 950 MW of power, Burrard Thermal, when operating, produces significant greenhouse gas emissions (although not as much as it once did).  These pollutants, because of its urban location, are then spread throughout the Lower Mainland. It would cost hundreds of millions to upgrade the aging facility to full generating capacity. The good news is that BC Hydro has scheduled Burrard Thermal for retirement as a firm energy supplier by 2014. This is supported by the Government's BC Energy Plan.  Fine. She was a good facility, reliable in her day, provided lots of jobs over the years, but soon it will be time for BC Hydro to her to go, to be replaced by some young upstart, modern, efficient and clean renewable power generating facility.  That's called modernization of your grid and, given the availability of green power alternatives today, it just makes sense.

So, Burrard Thermal generating at full capacity? Like Bobby Orr in a Blackhawk uniform, or Michael Jordan on the White Sox, some things just should not happen.

Electricity Showdown at the BCUC

 

BC HYDRO 2008 LTAP HEARINGS

 

 

Main Event:      February 19, 2009 - Oral Public Hearings 
                              (expected to last one month)

Undercard:

  • February 10, 2009  - BC Hydro responds in writing to BCUC Staff and Intervenors Information Requests  (click here for a link to all filings with the BCUC in respect of BC Hydro's 2008 Long Term Acquisition Plan)
  • February 13, 2009 -  BC Hydro Direct Testimony and Rebuttal Evidence, if any

 Location:         BC Utilities Commission

Participants:

Decision: 

  • BCUC decision is expected in June or July

 

What's at stake (and why you should care about the LTAP hearings): 

  • the BC Energy Plan
  • the role of independent power production in the Province 
  • green power
  • union-made power
  • power for export
  • BC Hydro's autonomy
  • future electricity costs to all British Columbians.

Given BC Hydro's recent evidentiary update and its subsequent clarification letter, the current passionate debates over run-of-river power projects, and the oversubscribed Clean Power Call, this BCUC hearing will no doubt be closely followed by the energy community.  And, with a large cup of coffee in hand, it might even be worth a visit.