Who's got the power with our power?BC Progress Board Releases Discussion Paper on Provincial Energy BC Progress Board Releases Discussion Paper on Provincial EnergyOn November 9, 2005, the BC Progress Board tabled a discussion paper on energy with the provincial government. The paper, "Strategic Imperatives for British Columbia's Energy Future", was prepared for the Board by Sage Group Management Consultants. The document surveys BC's current energy situation and makes a number of suggestions for action News Release Who's got the power with our power?By Les Leyne There's a revolutionary concept embedded in the B.C. Progress Board report on energy. The 60-page outlook floats the notion that the democratically elected government of B.C. should wrest control of energy policy away from B.C. Hydro. That's the kind of coup d'etat plotting that can get you strung up in some countries. But the scheme is laid out in the Progress Board report, by the Sage Group. It's no secret that B.C. Hydro is a power unto itself in the province, so a discussion paper that confirms that fact is unlikely to ruffle too many feathers. Recommending a change to that situation, however, is something new and different. The report comes dangerously close to questioning B.C. Hydro's supremacy in all things electrical. Not only that, but it states that a lot of people are doing the same sort of thinking. "In discussion with the Progress Board, many parties stressed the importance of the overarching responsibility of the B.C. government and specifically the Ministry of Energy, Mines and Petroleum Resources, to determine energy policy and ensure it is implemented." Suggesting that the Energy Ministry set energy policy would be a mushy motherhood position in some jurisdictions, but in B.C. it's actually a controversial proposition. The Liberals came to power in 2001 with an attitude that "political interference" when it came to Crown corporations was a cardinal sin. NDP meddling in the ferry system -- "Go out and build some aluminum catamarans. And make them go really fast" -- was fresh in everyone's minds. The Liberals also remembered the grand New Democrat misadventure in Pakistan, where they sent a Hydro subsidiary off on a questionable venture involving lies, off-shore bribery and missing money. (It's best remembered in the legislature for the Liberals bellowing: "Who is Ali Mahmood?") New Democrats also dictated the Island energy policy that resulted in the proposed Duke Point generating plant in Nanaimo, which was just turning into a problem when the government changed, and gradually evolved into a debacle, since abandoned. So the hands-off attitude, combined with the mass buy-outs of staff resulting from the budget-cutting spree, left most of the field clear to B.C. Hydro, when it comes to electricity policy. As long as it makes the government a few hundred million dollars every year and keeps the lights on, it can do whatever it wants. (A good illustration of their relative status is at the annual Union of B.C. Municipalities convention, where the government and B.C. Hydro throw matching receptions. Grumbling delegates are obliged to line up for a half-hour to shake hands with the premier and make an appearance at the government function. Then they bolt over to the lavish Hydro bash, where the real party is.) But now the Progress Board is questioning the natural order of things. "There was particular concern expressed that the government does not have adequate staff and budget dedicated to developing electricity supply policy and ensuring that this policy is adhered to by B.C. Hydro," says the consultants' report. It then makes the assertion: "It is the role of the B.C. government to speak for the public in this regard and it is the role of B.C. Hydro to follow the direction of government." The board says Hydro has the government out-gunned at every turn when it comes to staff and resources, "which puts the government in the position of not being able to provide adequate oversight and direction to B.C. Hydro." Consequently, "B.C. Hydro is seen as setting its own policies with regard to electricity supply or responding to matters of public interest, such as the government's energy plan, in its own time and manner." The main reason for asserting control over Hydro is the paramount goal stated in the report of regaining self-sufficiency in electricity, an advantage that was lost around the turn of the century. Whether it was a lack of political will or the absence of compelling need, the province hasn't added any major generating capacity in more than 20 years, and is now a net importer of electricity. Now they're trying to make up the shortfall, but the report said there is growing concern that many of the small-scale projects are being vetoed by local governments, for zoning or other reasons. Local governments do have a say in approving such projects, but the report says the province must be the final decision-maker. "B.C. is not yet in a crisis with regard to its supply of electricity, but it does have serious planning challenges and if these challenges are not met in a timely manner a supply crisis will likely follow." Somebody needs to ramrod some fairly urgent action on this front. B.C. Hydro is compiling an integrated electricity plan that will try to address self-sufficiency. It would be reassuring if the elected officials did more than just wave their hands over it when it's done. Posted by Arthur Caldicott on 24 Nov 2005 |