2005 Integrated Electricity Plan

Transcription

1 2005 Integrated Electricity Plan Regional Workshops Round 1 Victoria February 25, 2005

2 Introductions. Please introduce yourself. Name Affiliation, if any Identify 1 interest area regarding the Integrated Electricity Plan (IEP)? Page 2

3 Workshop Objectives To provide a forum to learn, share and express regional preferences about future energy options for the province Round 1 To obtain regional input on different future electricity resource options (wind, gas, hydro, etc.) Round 2 To obtain regional input on key questions and highlights from the portfolio analysis Page 3

4 Workshop Agenda Introductions and Workshop Overview 30 mins Update (2004 IEP) and Overview (2005 IEP) 30 mins Review Resource Options and Attributes 45 mins Mock Exercises 45 mins Lunch mins (~12:00pm) 45 Resource Option Discussions 120 mins Page 4

5 Overview - An IEP What is an Integrated Electricity Plan? A long-term plan that describes how BC Hydro will meet its customers demand for electricity Includes new resources/ demand side management/ transmission 20 Year Plan Re-evaluated every 2 years A plan to meet customer electricity needs while factoring in financial, social and environmental impacts Page 5

6 Overview IEP 2005 IEP builds on 2004 IEP by: Incorporating feedback from First Nations and stakeholders during the 2004 IEP process Eliciting new input on values around electricity choices for BC's future Page 6

7 Overview - Definitions What is a resource option (RO)? A resource type to meet electricity needs (such as wind, hydro, thermal, solar, etc.) These are the building blocks (or ingredients) for creating portfolios What is an (energy) portfolio? A portfolio is a combination (or recipe) of resource options It identifies the size, location, and timeline for when new resource options are required What is an attribute? An attribute is a measure used to characterize and compare resource options (like cost, emissions, area impacted, etc.) Page 7

8 Overview - Portfolio Illustration Yr 0 Yr 10 Yr 20 Page 8

9 Overview IEP Process 1. First Nations / Stakeholder Engagement Plan 2. Develop Planning Objectives (what is important) 3. Demand / Supply Outlook (how much electricity needed when) 4. Resource Options Report (identify and describe options) 5. Portfolio Analysis and Selection (ROs - which, when, where) 6. Create Action Plan (short term steps) 7. File Resource Expenditure and Acquisition Plan Page 9

10 Overview - Process - Roles IEP Steps RO Tech Workshop Provincial IEP Cmte Regional Workshop FNs Workshop BC Hydro 1. Engagement Plan 2. Objectives 3. Demand / Supply 4. ROR 5. Portfolio Analysis 6. Action Plan Page 10

11 Workshop 2 Portfolio Analysis Questions Overview - Process - Links Regional RO Technical First Nations Engagement Mtg Workshop 1 RO / Attributes Preferences Workshops Resource Option Characterization Workshop 1 RO / Attributes Preferences Provincial Mtg (Dec) Mtg (Feb) Mtg (Mar) Mtg (Jun) Mtg (Sep) Optional Workshop 2 Portfolio Questions Page 11

12 Overview - Regional Workshops About the Regional Workshops Workshops around the province (Feb to Sep) 15 locations / 20 workshops 2 rounds of workshops Preferences on Resource Options Input on key questions from Provincial Committee s Portfolio Analysis Page 12

13 2004 IEP Results and Highlights

14 Overview IEP First IEP in 10 years Filed with BCUC on March 31, 2004 Did not seek to establish a preferred plan Identify and assess impact of resource types Provided direction to pursue Power Smart Call for tenders on VI Investigation of Burrard, Site C options 400Gwh call for tenders Stakeholder Engagement Inform public and solicit feedback on the 2004 IEP Page 14

15 2004 IEP - Feedback First Nations Input Need earlier engagement Historical grievances Remote electrification and reliability of service to First Nation communities Impacts of transmission lines Revenue sharing Environmental impact and full cost accounting (life cycle costing) Page 15

16 2004 IEP - Feedback Stakeholder Input Consider triple bottom line in planning High value on the environment but a higher priority on maintaining reliability and low cost power Support independent power producers, economic development in BC Public ownership of BC Hydro Page 16

17 2004 IEP - Feedback Feedback from Vancouver Island Cost should include a full life cycle cost analysis Keep costs low, but support economic development Reliability should be the fourth bottom line Provide support for R&D on renewable technologies Serving domestic load should be priority Page 17

18 2004 IEP - Next Steps For the 2005 IEP Encourage dialogue and learning to balance contradictory views Incorporate feedback into 2005 process Provincial IEP Committee to work through planning process and reach consensus on BC s preferred portfolio Page 18

19 Design of the 2005 IEP

20 2005 IEP Objectives Solicit additional input from First Nations Solicit additional input from Stakeholders Meet regulatory requirements Select a Preferred portfolio of new resources Page 20

21 2005 IEP - Engagement Principles The 2005 IEP process will seek to: Be understanding and representative of diverse views; Be transparent, honest, and open; Strive for meaningful discussion and dialogue, and Emphasize two-way communication and mutual respect. Page 21

22 Feedback from Last Night s Public Information Session

23 2005 IEP - Feedback From Information Session Overview of key themes related to the IEP Invest in demand-side management through peak demand and time of use initiatives (industry and residential) Focus on environmental impacts (GHG, air quality, inundation/flooding, aesthetics) Ensure reliability and predictability of energy supply Page 23

24 2005 IEP - Feedback From Information Session Key themes (con t) Support efficient production (small production projects located close to demand) Invest in alternative energy sources Focus on sustainability and renewable energy (no fossil fuels) Public ownership of production and transmission Page 24

25 Q & As Page 25

26 Exercises Mock Exercises Page 26

27 Overview - Workshop Exercises Purpose of the Mock Exercises: To get people to begin to think about trade-offs and what is important To help frame subsequent discussions and better highlight the strengths and weaknesses of the resource options and how they are characterized The resulting discussions will serve as input to help generate ideas for how the resource options should be mixed together to create portfolios for the provincial committee Page 27

28 Overview - Mock Exercises Mock Exercises: Primarily use attributes based on the information from the 2004 IEP These attributes are currently being reviewed and refined and should be considered a work in progress.. For the mock exercises the resource options have been caricatured into 1000 GWh Bundles to better allow for comparisons between different sized projects Page 28

29 Overview Resource Options and Attributes Page 29

30 Mock Exercises Mock Exercises Page 30

31 Mock Exercises Again, Mock Exercises are designed to Help frame and guide subsequent discussions about the resource options And ultimately serve to help generate ideas for the development of preliminary portfolios Page 31

32 Mock Exercises Go to spreadsheet to compare between resource options using the available attributes Page 32

33 Mock Exercises A few words about the exercises: These exercises are a discussion tool to help participants begin to discuss their preferences There is no right answer, as everyone s rankings and preferences will be unique People are asked to write their name on the top of the sheets as it will help facilitate the discussions The resulting discussions from these exercises will be summarized for input to the Provincial IEP Committee as they develop portfolios and included in the 2005 IEP First Nations and Stakeholder Engagement Report Page 33

34 Mock Exercises: Primarily use attributes based on the information from the 2004 IEP These attributes are currently being reviewed and refined and should be considered a work in progress.. For the mock exercises the resource options have been caricatured into 1000 GWh Bundles to better allow for comparisons between different sized projects Page 34

35 Mock Exercises 2 exercises will be done: Direct Ranking of Resource Options Swing Weighting using the Attributes Note: People will be able to revise their ranking values during the facilitated discussions Page 35

36 Exercises - Direct Ranking STEP 1: Rank each of the Resource Options from #1 (best) to #8 (worst). Avoid ties. STEP 2: STEP 3: Distribute 100 points for the #1 (best) ranked resource option Distribute a lesser amount of points for the next best ranked (#2) resource option relative to #1. Repeat for remaining resource options (#3 through #8) Page 36

37 Exercises - Direct Ranking Alternative Biomass Coal Geothermal Large Hydro Natural Gas Wind Small Hydro Power Smart 3 4 Rank Weight Page 37

38 Purpose: Exercises - Swing Weighting Provides an alternative means to assess resource options according to their attribute values Provides a way to gain insight into the relative importance of each attribute according to the improvements (worst to best) that can be made Swing refers to the importance of moving one attribute from its worst to best value Page 38

39 Exercises - Swing Weighting STEP 1: Rank #1 the attribute that is most important to you to change from worst to best. Repeat for #2, #3,. For Example. Page 39

40 Exercises - Swing Weighting Worst Best Rank Adjusted UEC $ 70 $ 35 3 # of Projects GHG 900, Local Emmissions (Nox) Impacted Area - Water Footprint Area - Land 4, Temporary Jobs Created 0 1,670 7 Permanent Jobs Created Page 40

41 Exercises - Swing Weighting STEP 2: Distribute 100 points to the Rank #1 attribute. Distribute whatever proportion less than 100 to the Rank #2 Attribute according to its importance relative to Rank #1 Distribute proportion for Rank #3, must be less than Rank #2 Repeat for all the attributes e.g. Page 41

42 Exercises - Swing Weighting Adjusted UEC # of Projects GHG Local Emmissions (Nox) Impacted Area - Water Footprint Area - Land Temporary Jobs Created Permanent Jobs Created Worst $ , , Best $ , Rank Weight Page 42

43 Exercises - Swing Weighting STEP 3: Check relative swing rankings to ensure consistency Page 43

44 Lunch time Exercises Page 44

45 Other resource options Portfolio Development Page 45

46 POST Exercises Are there other resource options that the Provincial Committee should be looking at when developing the first round of portfolios? Are they other attributes to better compare between resource options or between portfolios? Page 46

47 Regional Workshops BC Hydro s Regulatory Requirements and Planning Goals

48 BC Hydro s Long Term Goals

49 BC Hydro s Purpose Reliable Power, at Low Cost, for Generations Ensure reliable electricity service (supply & delivery) for customers Ensure the benefits of historic low cost supply continue with prudent investments in infrastructure and operations Proactively manage the environmental and social footprint for future generations Page 49

50 How will this Purpose be fulfilled? 15 Long Term Goals under six categories that span the breadth of BC Hydro s business over a 20-year horizon The Goals will be pursued: Within policy and regulatory environment and, By inviting comments from British Columbians on how BC Hydro pursues and achieves them The 2005 IEP process is one avenue to explore what they mean to you and how they can be implemented Page 50

51 Goals influencing the IEP Customer Reliability of Supply Electricity self-sufficiency for domestic needs Environment No net incremental environmental impact Foster a conservation culture resulting in a reduction in electricity intensity Financial Maintain low cost position in North America Enable Western Opportunities Continue to leverage trade opportunities Page 51

52 Goals supporting the IEP Social First Nations improve relationships built upon mutual respect that appropriately reflect the interests of FN Stakeholder Engagement to be the most respected company in BC Page 52

53 Next Steps.

54 Next Steps Notes from today s proceedings Website Presentation materials Notes Provincial IEP Committee progress Funding forms Is anyone interested in being involved in the second round of regional input in the fall? Feedback Forms Page 54