ISLAND POWER PLANT IN JEOPARDY

WebPosted Nov 26 2002 08:03 AM PST

VICTORIA - The future of B.C. Hydro's electrical generation station planned for Nanaimo is up in the air, following the announcement that Hydro will no longer build or operate new power plants or transmission lines.

Energy plan calls for private power plants

The Crown corporation currently has two such projects planned for Vancouver Island;  the power plant and the Georgia Strait natural gas pipeline.

Energy Minister Richard Neufeld says Hydro will pull out of both projects.

"Hydro will move toward selling both its interest in the pipeline crossing and the generation plant to the private sector," he says.

The minister says the B.C.Utilities Commission will determine whether the plant is the best way to way to meet the needs of Vancouver Island.  He says if it is approved, it will be up to the private sector to build it.

Neufeld won't say how quickly that might happen.

In the past, Hydro has said the Nanaimo project was essential, to avoid brownouts on Vancouver Island.

However, the Hydro Chair and CEO Larry Bell now says a just-launched conservation program and the downturn in the forest sector has bought more time for the Crown corporation.

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