Sea Breeze appeals BCUC VITR decision
8/10/2006
News Releases
Juan de Fuca Cable - Application for Leave to Appeal the British Columbia Utilities Commission Decision
Sea Breeze Power Corp., on behalf of its affiliated subsidiary, Sea Breeze Victoria Converter Corporation (“Sea Breeze Victoria”) announces that it has filed an application for “Leave to Appeal” to the Court of Appeal for British Columbia from Order No. C-4-06 of the British Columbia Utilities Commission (“Commission”) pronounced July 7, 2006.
The decision to appeal, made during the 30-day period following the Commission’s Order, was based on Sea Breeze Victoria’s continued belief that the Juan de Fuca Cable Project, an underground and undersea 550 megawatt High Voltage Direct Current Light® transmission cable that would link Vancouver Island with Washington State, is the most environmentally sound and cost-effective option to address Vancouver Island’s immediate transmission reliability requirements.
On July 7, 2006, the Commission granted a Certificate of Public Convenience and Necessity for the Vancouver Island Transmission Reinforcement project (“VITR”) proposed by British Columbia Transmission Corporation (“BCTC”). Sea Breeze Victoria’s appeal is based on its belief that the Commission erred on four matters within Order No. C-4-06 and the accompanying decision, which directly impact how the Commission evaluated the viability of the Juan de Fuca Cable:
· The Commission incorrectly assessed and attributed wheeling costs and transmission system losses to the Juan de Fuca Cable which resulted in an indirect cost penalty of $190 million that Sea Breeze Victoria believes is unsubstantiated. According to the BCUC methodology used in the balance of the calculation, without this indirect penalty of $190 million, the estimated cost for the Juan de Fuca Cable would be $65 million less than the estimated cost of VITR.
· The Commission also did not consider evidence submitted by Sea Breeze Victoria that described and quantified the benefits that would be shared by BCTC, the Province of British Columbia, as well as ratepayers, as a result of the positive impact that the Juan de Fuca Cable would have on exports and revenue to the Province. The evidence indicated that up to $485 million in new revenues could accrue to BCTC, generated by an increase in domestic transmission activity as a result of increased cross-border trade, over the life of the Juan de Fuca Cable. This amount of $485 million does not take into account additional benefits arising from the improved opportunity for British Columbia’s independent power producers to access the thriving US market for renewable energy.
· The Commission did not consider the evidence of Sea Breeze Victoria’s willingness to negotiate with BCTC for a level of compensation (other than 75% of the cost of service or the capital costs of the VITR Project) in order to reduce the risk of VITR cost over-runs to ratepayers, and to ensure that the Juan de Fuca Cable would, under any circumstances, be more cost-effective than VITR.
· In determining whether the VITR Project was in the public convenience and necessity, the Commission considered only the cost-effectiveness of the VITR Project and not the many other aspects of public interest that Sea Breeze Victoria and other intervenors argued should be considered. In particular, the Commission did not properly and adequately address environmental and human health impacts, including concerns arising from the placement of alternating current (“AC”) high voltage lines in close proximity to residential dwellings.
The Juan de Fuca Cable uses HVDC Light® technology, environmentally sound installation techniques, and is sited on a seismically stable and secure route.
Sea Breeze Victoria notes that the option to use direct current transmission technology, which is recognized internationally for its lack of fluctuating electromagnetic fields, should be considered in order to fully address issues that matter to British Columbians.
Copies of Sea Breeze Victoria’s Notice of Application for Leave to Appeal can be obtained through the British Columbia Court of Appeal.
ON BEHALF OF THE BOARD OF DIRECTORS
“Paul B. Manson”
--------------------------------------------------------------------------------
PAUL B. MANSON, President
For investor information please contact Mr. Paul B. Manson
Email: info@SeaBreezePower.com
Toll Free 1-866-387-1240
Voice: 604-689-2991
Fax: 604-689-2990