Meeting held November 8, 2005 at the Coast Bastion Inn in Nanaimo Page 1 of 6

Transcription

1 Meeting Date and Location November 8, 2005 Coast Bastion Inn 11 Bastion Street, Nanaimo, B.C. 6:30 p.m. 8:30 p.m. Attendees and Interests Name Interest/Organization J. R. Young Gabriola Ratepayers Ed Thompson Richard Storrock Earl Wallace Interested citizen Interested citizen Electrician H. Hermanns Interested Citizen Anna Gerrard Student M. Rasberry Interested citizen B. Neill Interested Citizen R. Kanngiesser Interested citizen S. Merriom Interested citizen C. Aikman Interested citizen W. Jones BC Sustainable Energy Association (BC SEA) BC Hydro/IEP Representatives Name Department and Organization Role Ted Olynyk Community Relations Manager, BC Hydro Facilitator/Host Stephen Watson Community Relations, BC Hydro Greeter/Observer Mary Hemmingsen Power Planning and Portfolio, BC Hydro Presenter Rohan Soulsby Power Planning and Portfolio, BC Hydro Presenter Elizabeth Panozzo External Consultant Greeter/Note Taker Meeting held November 8, 2005 at the Coast Bastion Inn in Nanaimo Page 1 of 6

2 Introduction BC Hydro 2005 Integrated Electricity Plan (IEP) Ted welcomed all participants and introduced the BC Hydro Integrated Electricity Plan (IEP) team. He noted that this meeting is the culmination of 15 regional meetings held throughout the province. Rohan Soulsby took over the floor and a round of introductions by participants followed. A wide range of interests were identified, including such things as Gabriola Island energy issues, interest in balancing energy sources, coal generation, follow-up to Duke Point, interest in alternative energy sources, power generation using municipal waste, Port Alberni energy issues relating to industrial customers and independent power production, and Site C. Rohan noted that this session will report on the progress of the IEP team since the last regional sessions and will hear input from attendees as well as discuss the next steps in the IEP process. He then provided a brief overview of what an IEP entails the planning process and why BC Hydro is doing it. Mary Hemmingsen and Rohan Soulsby co-presented a Power Point presentation (available at to provide an overview of the IEP process since the last round of regional sessions in the spring. They reviewed the feedback from all streams of input, the analysis of input received and the strategy of the planning process going forward. They also noted that BC Hydro would like to hear participants input on the strategies proposed by the Provincial IEP Committee (PIEPC). Following is a summary of the questions and answers and discussion that arose during and after the presentation: Vancouver Island input regarding coal: In response to an interest in this resource expressed earlier by a participant, Mary elaborated that coal generation was not generally supported on Vancouver Island, although there was an interest in clean coal technology. Coal was not favoured in Nanaimo, but received more support on the North Island. Do the resource options listed by region represent physical ability or options desired by the community? This question was asked in reference to a slide chart used by Rohan Soulsby to illustrate a representation of where in the province various resource options would have the largest scale potential. He replied that this refers to favourable attributes for these types of projects in each region, but generally, Vancouver Island would likely be able, in pocket areas, to provide all these resource options. Has BC Hydro issued many calls for cogeneration and what has been done about the requirement for 30-year contracts, which is viewed as a disincentive for developing this resource? There will be opportunities for cogeneration power providers in the next call for tender, which allow bidders to choose the length of contract. Clarification of supply/demand curve and the impact of Power Smart (PS): The presenters elaborated on this slide to illustrate the aggressive targeting of the PS programs. The deficit between the 20-year load forecast without PS and supply is approximately 30,000 GWh or the equivalent of 3 million homes. BC Hydro is looking at one third of new demand to be met by Meeting held November 8, 2005 at the Coast Bastion Inn in Nanaimo Page 2 of 6

3 going to the maximum Demand Side Management (PS 2-5). The savings that have been realized from about 2001 onward is about 1200 to 1300 GWh. Does BC Hydro have the results of a residential metering trial conducted on Gabriola Island, which a participant suggested, would support the use of metering to allow for differential rates? This project was supported by BC Hydro (Community Relations and Distribution) and was received by BC Hydro. A metering trial was conducted on Gabriola. Does the Demand Supply Balance curve represent only BC Hydro supply and demand or does it include Canadian Entitlements to Downstream Benefits (DSBs)? It represents BC Hydro customer demand and supply forecasts; DSBs are not included. Clarification of Downstream Benefits: The Canadian Entitlement to DSBs resulted from the construction and operation of three Canadian Columbia River Treaty dams which regulate river flows, providing downstream flood protection and increasing the generation capability at projects on the U.S. portion of the river. The province s share of the DSBs represents approximately 500 MW per year and is sold, for the benefit of the province, through Powerex. Why are DSBs not used in the supply forecast as they are a resource that is free? It was clarified that DSBs represent a premium energy product that Powerex can market to achieve the highest and best use. Rohan noted that the PIEPC did consider DSBs as a resource option, but this option was discounted as it was recognized by the committee to be in the best interests of ratepayers to sell DSBs to the U.S. rather than serve the needs of BC Hydro customers. Do the load forecasts consider potential future impacts such as outsourcing of production or mill closures? BC Hydro recognized that economic conditions may change, but recent trends indicate the economy is picking up, and pulp and paper manufacturing is focusing on higher value product, with processes that consume more electricity. What is the status of the Gold River waste/biomass project? Gold River has indicated they will bid on a next call for tender. One participant very strongly favoured biomass generation using municipal waste. Is there a time in the foreseeable future when solar energy will be part of the asset mix, particularly if energy costs increase? This question was raised in view of the potential for residential applications. BC Hydro replied that we are fortunate in that we have a lot of resource options that are cost effective (e.g. micro hydro, wind, biomass).the cost of solar energy compared to these is very high, which is not the case in other jurisdictions. Continual improvements in solar technology are being made, but in the 20-year horizon, it is not likely to be a part of the mix except in niche opportunities. BC Hydro acknowledged that as new resources are added energy costs will go up. Future Power Smart programs (i.e. PS-5) will look at effecting demand savings through building codes and regulations, or by incentives. This may be an avenue whereby an acceptance of solar power in residential or commercial applications may be fostered. Can BC Hydro customers run power back into the grid? BC Hydro has a Net Metering Program in place whereby customers may sell excess energy into the grid. At the end of year, if a Meeting held November 8, 2005 at the Coast Bastion Inn in Nanaimo Page 3 of 6

4 customer generates more than they consumed they will receive a credit on their hydro bill for the energy supplied. Does BC Hydro have contact information for sourcing the equipment (inverters) necessary to do this? BC Hydro staff can forward information to interested parties. Are there any incentives for large institutions or complexes such as malls and hospitals to be more energy efficient? BC Hydro replied that there are Power Smart programs that provide for retrofitting buildings and installing efficient heating/lighting systems. The participant suggested there may be opportunities beyond simply retrofitting (i.e. solar). What is the potential for increasing the efficiency and number of generators in existing large hydro facilities and why has that potential not been realized yet? There followed a discussion of the various BC Hydro dams (Mica and Revelstoke) and whether or not they have a full complement of generators and their individual capacity. The participant suggested the technology in use here (500MW generators vs MW) is inadequate compared to the technology upgrades in use in the Grand Coulee facility in the U.S. BC Hydro recognized there are opportunities to create incremental energy efficiencies in some of its large hydro facilities and is actively pursuing these through its Resource Smart program. Typically, through Resource Smart, efficiency gains of 4-10% are realized by upgrading to the most efficient technology available. A number of facilities have already been upgraded. BC Hydro uses the same technology as other jurisdictions so are up to date on any hydroelectric efficiency advances. Why are Revelstoke 5 and 6 turbine upgrades not being brought on line at the same time for cost effectiveness? BC Hydro replied that the hydraulic balance between dams downstream must be maintained. The participant suggested that all the dams in series could be upgraded at once to maximize efficiency, flexibility in energy supply and self-sufficiency. BC Hydro responded that this expenditure and energy supply would be in excess of what we need. It was reiterated that all four IEP strategies achieve 100% self-sufficiency. Is cogeneration not viewed as a suitable resource for Vancouver Island as it was not represented on the slide listing resource options by region? BC Hydro replied that this slide represented a summary of the largest scale potential for resources by region, and such, it is a generalization; there are niche opportunities here (the Island Cogeneration Plant is operating in Campbell River). Recommendation to recognize the potential of logging residue for biomass generation and change regulations to make these projects more viable. A participant made this recommendation to utilize what was suggested to be a large amount of potential fuel (wood debris) resulting from logging practices that is otherwise wasted or left behind. In the development of wind energy will BC Hydro consider using hydro to complement for reliable capacity? BC Hydro acknowledged that when intermittent energy sources are added to the resource mix, we have to make sure firm capacity is in place. BC Hydro would be doing exactly this if, for example it followed Strategy #1; the capacity firming and shaping with Revelstoke would be advanced. A participant suggested that the storage ability of dams needs to be more clearly stated to the public. Meeting held November 8, 2005 at the Coast Bastion Inn in Nanaimo Page 4 of 6

5 Will we see details of the plans and costs? Details of costs are available in the Resource Options Report which may be viewed on the IEP website; details of each portfolio strategy will be in the IEP. The final IEP report submitted to the BCUC at the end of November will have further details. How has the Norske proposal to BC Hydro for compensation for load curtailment (through shutting off or shifting load) been received? BCTC piloted Norske s proposal this past summer to ensure that it would work and effectively reduce the load. Load curtailment opportunities, whereby industrial customers will receive compensation if they curtail their load, are more generally being pursued with other customers. BCTC will be investing funds into the HVDC transmission cable until the new 230 kv line to Vancouver Island is online in These two measures will maintain electricity to the Island customers until the new cable from the Mainland is complete. What is the status of the proposed Terasen liquefied natural gas (LNG) storage/transportation facilities in Cassidy and Terrace? The BC Hydro team believes that Terasen s proposals are still going forward but it was emphasized that BC Hydro has stated they have no requirements for LNG following the withdrawal of Duke Point. What are the implications of reservoir storage increases resulting from nearby construction on a Pelton wheel generating facility located on Garbriola Island? BC Hydro is not encouraging additional storage. New calls for tenders, if they are to be green, have a limit on the amount of storage. BC Hydro added that IPPs are looking for these sorts of niches and are working with smaller jurisdictions and communities on these types of projects. What happened with the Tsolum River micro hydro proposal? This is an IPP project. It has not gone forward at this time; it may in the future. Why does BC Hydro provide incentive to large customers such as Canfor and Weyerhaeuser for load displacement but not small communities? BC Hydro replied that as we implement Power Smart (PS) 3 and 4, it may make sense to go through commercial and residential levels, but at the present, on a cost effectiveness basis, BC Hydro needs to tackle industrial customers first. The participant commented on the large potential for savings that could be realized if new construction particularly in subdivision developments was Power Smart. These types of things could be part of PS 5. What is the cost of capital that is assumed for IPPs in the decision making? What discount factors are used? From a planning perspective, BC Hydro looks at the portfolio and costs over life at net present value, using a common discount factor for BC Hydro and IPP projects. A range of sensitivities at 6, 8 and 10% were used as real cost of capital. Next Steps Mary outlined that BC Hydro will file its Integrated Electricity Plan, with the Action Plan as the last chapter to the BCUC in late November. The Revenue Requirement filing process will begin March The IEP process will then start again in 2007 (to be completed every two years). Mary added that BC Hydro appreciates receiving feedback on how attendees would like to see the IEP process structured and on the strategies developed. Meeting held November 8, 2005 at the Coast Bastion Inn in Nanaimo Page 5 of 6

6 Both presenters thanked all for attending. Appreciation for hosting the meeting was expressed by some participants. Meeting held November 8, 2005 at the Coast Bastion Inn in Nanaimo Page 6 of 6