Pristine Power Inc: Hydro decision premature and costly

Attention News/Business Editors:

BC Hydro decision to terminate Duke Point project premature and costly

VANCOUVER, June 17 /CNW/ - Today's decision by BC Hydro to abandon the Duke Point Power Project is disappointing, premature and comes with long-term energy implications for Vancouver Island and BC's ratepayers, said Jeff Myers, President of Pristine Power Inc., speaking for the Duke Point Power Limited Partnership.

"We are extremely disappointed with BC Hydro's decision to terminate the Duke Point Power Project," said Myers. "There is a very clear need for this project. The business case is very strong and the need for this type of project will only increase."

"We do not agree with BC Hydro's decision and its assessment of risk with respect to the potential for delay. We reject the assertion that the project would not be built on time. The in-service date was guaranteed," said Myers. "The appeal court challenge was expedited with a hearing date already set for July 8 and we were confident that BC Hydro and our partnership would succeed on the very narrow procedural issue in question."

To ensure the project was in the public interest, the Duke Point Power Project went through an extraordinary amount of checks and balances including a rigorous, competitive bidding process, an environmental assessment and an extensive public hearing.

"The fact remains, the BCUC determined that the project is clearly in the public interest and is the best, most cost-effective source of dependable capacity to meet Vancouver Island's long-term electricity needs," said Myers.

"Gone is a vital piece of energy infrastructure for Vancouver Island," said Myers. "Vancouver Island residents should be concerned. BC Hydro's own load forecast predicts a looming supply deficit on Vancouver Island that will reach 280 MW in 2008."

"Short-term contingencies such as extending the life of existing cables, load curtailment and mobile diesel generators come with their own set of risks and new costs to deliver this essential service on Vancouver Island," said Myers.

"The BCUC has clearly stated that these contingencies do not constitute a viable option to provide Vancouver Island with dependable, long term capacity. Furthermore, the Commission has noted that the in-service date of the BC Transmission Company's proposed undersea cable could be delayed beyond 2010."

For further information: Michael Goehring, Tel: (604) 970-8115