BC Hydro 2005 Integrated Electricity Plan (IEP) Vernon Regional Meeting Final Meeting Notes

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1 Meeting Session Date and Location October 26, 2005 Prestige Inn, Vernon Salon nd St., Vernon, B.C. 1:30 p.m. 4:30 p.m. Attendees and Interests Name Interest John Anderson Charles West Sue Anderson Don Trethewey Tony Brunell Lois Maynard Wes Maynard Highland Valley Copper Highland Valley Copper MP Darrel Stinson left 2/3 of the way through BC Wildlife Federation/Kamloops & District Fish and Game Association Interested Citizen Interested Citizen Interested Citizen BC Hydro / IEP Representatives Name Organization and Department Role Charmane Edwards Community Relations BC Hydro Host Mary Algar Community Relations BC Hydro Host Brenda Goehring Dorell Carlson Power Planning and Portfolio Management BC Hydro Power Planning and Portfolio Management BC Hydro Presenter Technical Resource Karen Mason External Consultant BC Hydro Note taker 1. Introduction Charmane Edwards welcomed attendees to the 2005 Integrated Electricity Plan (IEP) regional meeting in Vernon. She introduced the members of the IEP team and explained the purpose of the meeting, noting this session was designed to provide an overview of the feedback received and outcomes to date of regional information sessions and workshops held last spring in Vernon, Revelstoke, Kamloops and other cities across the province. Charmane told the Meeting held October 26, 2005 at the Prestige Inn in Vernon Page 1 of 6

2 attendees to see her for a participant-funding sheet if they qualified. She then outlined the agenda for the afternoon. 2. Why Are We Doing an Integrated Electricity Plan? Brenda Goehring outlined the agenda for her presentation, then provided an overview of why and how BC Hydro develops its Integrated Electricity Plan. She spoke of the stakeholder engagement process and explained the five key questions; self-sufficiency, resource mix, demand side management, Site C and the Burrard Generating Station. 3. What Has BC Hydro Heard in the Process? Brenda provided details on which resources and attributes came across as most important in the First Nations and Regional sessions. She also shared information on the levels of public support that were expressed for wind turbines, Power Smart, small hydro, new hydro, gas plants, coal plants and Site C by 600 people who participated in telephone polls conducted by Ipsos Reid. 3.1 Questions and Discussion Following is a summary of the questions and answers that arose during this part of the presentation: Biomass Biomass was defined for one participant as the burning of wood waste and landfill gas. Another participant expressed concern about categorizing biomass as a Green, or environmentally friendly, resource option, saying burning waste increases particulate matter in the atmosphere, which causes pollution and endangers human health. Brenda noted the pros and cons of biomass, like any other resource option, must be considered in the 2005 IEP process and in fact, have been widely discussed. GHG A participant asked for a definition of GHG Greenhouse Gases. Independent Power Producers (IPPs) When a participant asked if the environmental impact of run of river IPPs is assessed site-by-site or overall? Brenda explained the cumulative impacts are captured at a planning level. The participant also asked if there was a plan or set of standards by which regional governments could determine and set thresholds for acceptable IPP development. It was suggested he look to Union of BC Municipalities, Memorandum of Understanding on Energy Development, a multi-party agency working on that issue. Brenda asked the participant to get in touch with her office after the meeting to obtain contact information for that group. Revelstoke A participant expressed strong support for expanding the existing power facility at Revelstoke. Brenda explained plans for Revelstoke were within the portfolios and they have been factored into the resource mix. 4. Five Key Questions for Long-Term Electricity Planning in B.C. Dorell Carlson took over the presentation and proceeded to explain how BC Hydro has used the information gathered during the stakeholder engagement process. She said more than 20 Meeting held October 26, 2005 at the Prestige Inn in Vernon Page 2 of 6

3 portfolios were modeled during the input sessions, with impacts tracked across seven financial attributes, and 40 social and environmental attributes. For the next portion of the presentation, Dorell went through the five key questions that were identified in the stakeholder engagement process, identifying the options and tradeoffs of each. Brenda tag teamed with Dorell, outlining the makeup and role of the Provincial Committee and then sharing the committee s recommendations, and the input of the regional workshops, First Nations and the general public on each of the five key question areas. 4.1 Questions and Discussion Following is a summary of the questions and answers that arose during this part of the presentation: Sustainability There was some discussion about the importance of ensuring BC Hydro has access to energy-rich and capacity resources in order to guarantee sustainability. One participant pointed out relying on a variety of resource options, rather than just one or two, is the only way to meet long-term demand and ensure industrial operations have the power they require. Brenda supported this concept, saying that for example while wind may be a viable power resource, it can t be stored for later use due to its intermittent nature. Rates One participant expressed concern about the growing reliance on Independent Power Producers (IPPs). There was some discussion about what will happen to prices once the IPPs 20-year contracts expire, and whether BC is heading down the same road as Ontario and Alberta, where power rates are now three to four times higher than British Columbia s. The participant also wondered what would happen if, at the end of their contracts, many IPPs decided to sell their power to the United States, rather than BC. Brenda explained that at the end of the 20-year contract terms, BC Hydro has the option to renew its deals with IPPs. She also pointed out IPPs have been able to entertain U.S. contracts, but to date many have chosen not to do that because they obtain long term contracts here which is difficult to do in the U.S., and because of securing transmission to that market. Burrard Generating Station There was some discussion about the viability of continuing to maintain the Burrard Generating Station. One participant firmly believes Burrard is not needed and should be retired. Another disagreed and said it should be maintained as required and used as an emergency back-up power source. A participant asked if, under the maintain for capacity option, Burrard would be refitted with new, more efficient technology. It was explained a complete refit would be too costly under this option and BC Hydro would just maintain and repair the existing equipment. Meeting held October 26, 2005 at the Prestige Inn in Vernon Page 3 of 6

4 5. Four Broad Directions for B.C. s Energy Future Brenda emphasized that much like the other stakeholders who were consulted in the IEP process, the Provincial Committee members are a diverse group, with diverse opinions; however main themes and recommendations emerged from their discussions and input nonetheless. She explained the end result is four strategies, each of which comes with varying costs and tradeoffs and represents different directions for BC Hydro. 6. Your Comments and Input Dorell explained the next part of the session would allow participants to provide their input on the strategies. Attendees would rank the strategies in order of preference from one to four, giving 100 points to their top choice, and fewer points to their lower ranked options to show the strength of their support. Feedback forms were distributed and participants spent a few moments working on the ranking exercise. 6.1 Ranking Exercise of Strategies: #1 #2 #3 #4 Self Sufficiency Resource Mix Green Green Low Cost Mix (including green, coal, and others) Low Cost Mix (including green, coal, and others) Demand Side Management Power Smart 5 Power Smart 5 Power Smart 5 Power Smart 5 Site C No Yes No Yes Burrard Generating Station Retire Maintain for capacity Maintain for capacity Maintain for capacity 1. Please fill in the table below and rank the above strategies from your first choice (#1) to your last (#4). 2. Give 100 points to your first choice. 3. Give lower ranked options fewer points to show strength of your support. Meeting held October 26, 2005 at the Prestige Inn in Vernon Page 4 of 6

5 6.2 The results of the ranking exercise are as follows: Ranks Weights #1 #2 #3 #4 #1 #2 #3 # Questions and Discussion Following is a summary of the questions and answers that arose during and after the ranking exercise. IPPs - One participant asked why there was no specific mention of Independent Power Producers (IPPs) as resource options in the four strategies. It was explained although each strategy includes a mix of resources, it stands to reason the strategies that don t include Site C as a resource option will naturally require a greater volume of power from the private sector. Site C There appeared to be strong support in the group for a strategy that includes development of Site C. One participant said it would eliminate the need for a large number of small IPPs and would create a different infrastructure with a range of added benefits. He admitted finding a solution that will please everyone is impossible but said Site C is needed and, after years of discussion, it s time to go head with the project. Another participant added maintaining capacity for Burrard and developing Site C are good choices. She expressed her pleasure that BC Hydro has kept rates down and hasn t jumped on the bandwagon of charging outlandish amounts. Privatization A participant expressed concern about the political direction of BC Hydro. He fears it is losing control of its infrastructure and eventually, the entire organization will be split off into private companies, causing British Columbia to lose one of its most valuable assets. He says the financial and environmental costs will be huge. Moran Dam One attendee recalled years ago, plans to build a dam for Moran Canyon on the Fraser River were shelved because the project would have wiped out the salmon population. It was noted that values and priorities have changed substantially since the Moran Dam project was initially considered and the idea was unlikely to resurface. Meeting held October 26, 2005 at the Prestige Inn in Vernon Page 5 of 6

6 7. Next Steps for the IEP BC Hydro 2005 Integrated Electricity Plan (IEP) Brenda asked the attendees to leave their rating feedback forms behind in order for BC Hydro to track their input on the four strategies. She then explained notes from the meeting would be posted on the BC Hydro website One participant asked if he could receive a hard copy of the notes. Charmane Edwards noted his request as an action item for the Vernon Community Relations office. Brenda went over the next steps for the IEP process, thanked everyone for their involvement, and asked the attendees to provide their assessment of the stakeholder engagement process by filling out a feedback form. Charmane Edwards distributed the feedback forms and thanked everyone again for taking the time to attend the meeting and be a part of the 2005 IEP process. Meeting held October 26, 2005 at the Prestige Inn in Vernon Page 6 of 6