Fair Compensation for Transmission / Distribution Lines

Transcription

1 Fair Compensation for Transmission / Distribution Lines EA Directors Meeting Richmond, BC Feb 15 th, 2010 First of all I would like to thank Al Richmond for giving the RDKS a chance to present at this EA meeting and to John Kettle and the Regional District of Central Kootenay for their work on this in

2 Infrastructure Shortfall I represent Area C of the Regional District of Kitimat Stikine: 10,000 square miles (approximately 10% of the land base in RDKS) 2800 registered voters at last Election. not one community water or sewer system in the dozen or more small communities in my area. Infrastructure Shortfall Luckier than most as I have a natural gas pipeline crossing my area but generally no tax base other than private residences. Historically when it appears I am about to get an industrial tax base one of our municipalities annexes or expands it s borders Gas tax and NDI are the only funding sources that are available and have too short a time frame for repayment to use it to finance large infrastructure projects 2

3 Kemano In-Leu Lobbying efforts on the part of the RD s of Bulkley Nechako and Kitimat-Stikine on concerns over the 50 year tax exempt status for Alcan s Kemano Generation and Property resulted in 2009 with a grant-inleu of taxes of approximately $1.1 million/ year split approximately 60/40 between the two RD s. Northwest Transmission Line The announcement of the long pursued NTL caused a conundrum for our RD Board, we wanted the line and the economic development it will surely bring, but do we say we are unhappy and don t want the line because it brings little or no benefit to the infrastructure of our RD. 3

4 Past History The RDKS looked into the Central Kootenay s numbers from when they made their attempt in 2007, From our analysis of their report, if the Transmission Lines alone were assessed at the same rates as Private industry it would appear we would receive in the range of $414k per year. (presently get $13K) Backgrounder RDKS met with the then provincial Finance Minister Colin Hansen at the UBCM 2010 convention in Whistler and presented him our concerns that the proposed NTL would provide our RD with only a couple of years of construction work and no legacy to our RD in the future. 4

5 RDKS followed up the Whistler meeting with a letter to: Colin Hansen Minister Of Finance Gordon Campbell - Premier Stephanie Cadieux Minister of Community, Sport and Cultural Development Bill Bennett Minister of Energy the Northern Caucus 25 Regional Districts Three northern MLA s (Austin, Coons & Donaldson) As an addition to this letter the Regional District of Kitimat - Stikine forwarded a request in November 2010 to UBCM staff to have a package sent to all of your Regional Districts for support for our policy paper. 5

6 Regional District of Kitimat- Stikine Our file no TO: UBCM FROM: Bob Marcellin, Administrator DATE: November 16, 2010 RE: Fair Compensation from BC Hydro Letter to Honourable Colin Hansen attached for UBCM information and consideration. It would also be appreciated if the attached memo, letter and background material could be forwarded by to all Regional District s on our behalf. Alternatively a list of these addresses would be appreciated. TO: Regional District Boards Chair and Directors FROM: Bob Marcellin, Administrator DATE: November 16, 2010 RE: Fair Compensation from BC Hydro The Regional District of Kitimat Stikine Board continues to advocate the Province explore the property taxation of BC Hydro assets. Letter to the Honourable Colin Hansen attached. The Government s response to 2009 UBCM Resolution was found in adequate and needs to be pursued. Your Regional District support of these efforts would be appreciated. Please confirm interest and support in this matter. Copies of supporting correspondence would also be appreciated. 6

7 I personnally sent the package to all the EA Directors for whom I have an address and asked you to push your RD Boards to add your support. Our thanks to the two RD s of 25 who responded Not sure why others have not responded, if this is a timing issue or nobody else is interested? Recent Changes in BC Clean Air Act introduced BC Hydro Infrastructure replacement program announced. BCUC status restructured Premier and Leader of the Opposition resigned New VP of Transmission and Distribution Leadership races for both parties in full swing. 7

8 Clean Air Act Provides for suggested goals for BC Hydro: Self Sufficiency by 2016 Harness Clean Power Maintain Rates amoungst the lowest in North America Reduce Green House Gas Emissions Hydro Spending Plans Over the next ten years they have a $20 Billion Capital Spending Program $10 Billion of that capital to be in Infrastructure New transmission lines planned for Peace Region and Kitimat Stikine SW Alaska want in. 8

9 BCUC The BC Utilities Commission was set up to basically protect the consumers of BC from being over charged for energy. The focus of the BC Utilities has moved away in the last year from a consumer interest to a user pays formula to allow BC Hydro to progress towards fulfilling its mandate from the Clean Air Act Hydro Rates now are approved by Cabinet rather than BCUC Political turmoil has caused the government to come to a stand still and movement on issues awaits the new Premier and the new Cabinet? Leadership hopefulls are interested in our rural problems? 9

10 RDKS Resolution The Regional District of Kitimat-Stikine have submitted a resolution to both the NCLGA (North Central Local Government Association) and the UBCM for consideration at their conventions this spring (May) and fall (September). BC HYDRO FAIR COMPENSATION WHEREAS Crown Corporations are expected to pay their fair share of property taxes by providing a grant-in-lieu; AND WHEREAS private utilities pay property taxes to municipalities and regional districts on property including rights-of-way for distribution and transmission lines, and private utilities and BC Hydro provide municipalities a 1% tax on gross sales revenues within their jurisdictions; THEREFORE BE IT RESOLVED that the NCLGA and the UBCM lobby the Province of British Columbia to explore the taxation of BC Hydro and implement a fair and equitable method of compensation to all local governments for the provision of local and regional Services 10

11 Al Richmond Al says that he needs support from the RD s and the Local Government Area Associations in the form of Resolutions put forward to UBCM so he can get staff time allocated to research for us. Will someone volunteer to get their RD to submit this resolution to their Area Local Government Association? SILGA LMLGA AKBLG AVICC 11

12 Volunteers SILGA - LMLGA - AKBLG - AVICC - Where do we go from Here Are you in? Is your RD in? What can we do that we are not already doing? What should we do? 12

13 Thanks for your time Questions? 13