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VIGP and the Province's new energy policy
The province's new energy policy has two "Policy Actions" that indicate what will happen in coming months with the Vancouver Island Generation Project (VIGP) and the proposed GSX Pipeline. It's business as usual over the short term. BC Hydro will continue to push both projects - VIGP and GSX - aggressively. On January 15th, BC Hydro will take VIGP to a review by the BC Utilities Commission. If the BCUC grants VIGP a "certificate of public convenience and necessity", then VIGP may get built. At some point, perhaps if the projects are ever built, both VIGP and GSX will be sold. While the energy policy itself is not clear on these matters, Energy and Mines Minister Richard Neufeld was very direct in an interview with CBC Radio 1 on November 27.
Policy Action #6: The Vancouver Island Generation Project will be
reviewed by the BC Utilities Commission to determine if it is the most
cost-effective means to reliably meet Island power needs.
Can the projects be sold? Minister Neufeld in the same interview said that without an electricity purchase deal with BC Hydro, VIGP was not saleable. To attract a buyer, then, the people of BC will have to take on all the risk of developing the project, and guarantee the profitability of the investment. So much for "free markets" and "independent" power production. How deceitful! But how can they do this? Policy Action 1 caps electricity rates for ten years. With capped rates, VIGP cannot hope to compete. With gas at $3/mmBTU, VIGP cannot produce electricity for less than an estimated $75/MWh. Compare that to the cost of hydro-electricity, which is $24/MWh or less. Policy Action #1: A legislated heritage contract will preserve the benefits of BC Hydro’s existing generation. But it gets even more contradictory. Policy Action 9 says distributors will acquire the least cost supply. VIGP will never be even remotely "least-cost". Policy Action #9: Electricity distributors will acquire new supply on a least-cost basis, with regulatory oversight by the BC Utilities Commission.The same concerns apply to the proposed GSX Pipeline. BC Hydro will have to build the thing, at public expense, then guarantee its profitability to make it saleable. How will the government square this circle? Do they intend to make exceptions to their "policy" for these projects? Do they intend to simply lie and deceive the public? Do they intend to let them collapse in the respective review processes?
Arthur Caldicott GSX Concerned Citizens Coalition The 26 policy actions are at: The government's information on the policy begins at: GSX Concerned Citizens Coalition Quick Take on the policy: GSX Concerned Citizens Coalition on VIGP and the energy policy: |