B.C. pulls plug on power projects

BC Hydro has cancelled or deferred four electricity purchase contracts with independent power producers, and the total may reach 20

Wind turbine components await construction at independent power project near Chetwynd in 2008. High construction costs stalled B.C.'s first commercial wind energy project

BC Hydro has cancelled or deferred four electricity purchase contracts with independent power producers, and the total may reach 20 by the time a review of projects is complete, Energy Minister Bill Bennett said Thursday.

Bennett said the review is part of a broader effort by BC Hydro to meet his instruction to “spend less money,” as he leads an effort to reduce costs across all government operations.

BC Hydro proposed the move, identifying the 20 project proponents that were not meeting their contract obligations due to financing, regulatory or other problems. That non-performance gives BC Hydro legal authority to delay or terminate contracts.

The utility has contracts with 81 operating projects, mostly run-of-river hydroelectric, and another 47 are under construction or seeking permits after receiving purchase contracts.

BC Hydro released its latest draft resource plan last week, which estimates the province has enough electricity supply to meet growing demand for the next 10 years. Bennett said he is skeptical about that forecast, with population growth and industrial demand from new mines and natural gas development in northern B.C., but it gives the utility some breathing room.

“I’m a real fan of the clean energy industry, but obviously we don’t want to be agreeing to buy more power than what we need,” Bennett said.

BC Hydro has been criticized in recent years for running up billions in deferred debt, as it completes major expansion and seismic upgrading of its network of dams. A new power line to northeast B.C. has run over budget, and the NDP opposition has accused the government of forcing BC Hydro to buy private power at inflated rates through contracts running as long as 40 years.

Bennett said he has asked for a detailed analysis of the cost of private power compared to new sources such as the proposed Site C dam on the Peace River or adding turbines to BC Hydro dams on the Columbia River.

B.C.’s Clean Energy Act requires BC Hydro to be self-sufficient in electricity by 2016, based on an average rainfall year to replenish its hydro dams. The requirement is to minimize the import of power generated by burning coal or natural gas.

Just Posted

“Winter Heart” a musical gift to Sooke

Community Choir’s Christmas offering a thoughtful seasonal concert

New report finds B.C. victims of opioids crisis on lower of end of socio-economic spectrum

UVic scholar calls for decriminalization of drugs responsible for opioid crisis

NDP leader Jagmeet Singh visits with Langford high school students

Students asked him questions about current political issues

Alleged child abduction attempt in Langford a family issue, RCMP say

Const. Matt Baker with West Shore RCMP says parents should not worry

City of Victoria to see 588 affordable housing units

Provincial funding is aiming to see 4,900 new mixed-income rental properties across B.C.

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Vancouver Island remembers

Important stories shared as Islanders salute those who made the greatest sacrifice

Kuhnhackl scores 2 odd goals as Isles dump Canucks 5-2

Vancouver drops second game in two nights

Student arrested at Vancouver Island elementary school

Pupils never in danger, incident unrelated to the school

POLL: Have BC Ferry waits ever forced you to cancel your travel plans?

Many BC Ferry passengers heading out from Swartz Bay to Tsawwassen on… Continue reading

Stink at B.C. school prompts complaints of headaches, nausea

Smell at Abbotsford school comes from unauthorized composting operation

Fear of constitutional crisis escalates in U.S.; Canadians can relate

Some say President Donald Trump is leading the U.S. towards a crisis

Racist slur cleaned off memorial at Qualicum First Nation graveyard

Site was hit by vandals on Friday; many immediately offered support and assistance

B.C.-based pot producer Tilray reports revenue surge, net loss

Company remains excited about ‘robust’ cannabis industry

Most Read