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Climate Change, Energy, and Pipelines:
Year 2002 News, July to December

New BC Environmental Assessment Act in effect Dec 30
Dec 30, 2002
VICTORIA - The new provincial Environmental Assessment Act was brought into effect Dec. 30, opening a chasm of uncertainty and doubt about the integrity of reviews for present and future projects.
EAO ...news release
EAO ...backgrounder
Bill 38 - the new EA Act ...click here
Westcoast Environmental Law assessment of Bill 38 ...click here

Watch closely for the "transitioning orders" for BC Hydro's Vancouver Island Generation Project (VIGP) and BC Gas' Inland Pacific Connector (ICP).
new EAO VIGP ...website
new EAO ICP ...website

Canadian Regulator Says Duke Overcharged for Power
Dec 19, 2002
CALGARY, Alberta (Reuters) - Alberta regulators ordered a Duke Energy Corp. unit to refund the province's power grid administrator C$62.6 million ($40.4 million) it said the firm overcharged for short-term electricity supplies last year.
Reuters, www.globeinvestor.com ... article

-At the time of the overcharges, Engage Energy was wholly owned by Westcoast Energy.  Westcoast was acquired by Duke in 2002.
-Duke is one of the club of power trading companies (Enron, Williams, Calpine, Mirant, Dynegy, and BC Hydro's Powerex) which have been the subject of various investigations and refund orders for manipulative practises in the western states in 2001.  Powerex was ordered in early December to return US$279 million in excessive charges.
-In 2000, the offices of Enron and Powerex were raided by the Competition Bureau for evidence to support charges of price manipulation in Alberta.
-Williams and BC Hydro are partners in the GSX proposal, and Powerex is the only customer.  Calpine is BC Hydro's customer for the gas in Campbell River.  Duke, Westcoast and Mirant are all intervenors in GSX.
-Why should British Columbians doubt that they were being set up, for same manipulative tricks as Albertans, Washingtonians, Oregonians, and Californians, fell victim to?

U.S. ruling drains B.C. Hydro profits
Dec 13, 2002
Judge Bruce Birchman at the U.S. Federal Energy Regulatory Committee found that Hydro's Powerex subsidiary and dozens of other energy traders, including Duke, Williams and Enron, must return windfall profits that came during manipulation of the unstable California market during 2000 and 2001.
Scott Simpson, Vancouver Sun ... article

Bad enough that Hydro has to return US$279 million.  Their GSX partner Williams is complicit in many fishy energy trading activities, has a number of class action suits against it, its stock price is in the tank, it is selling assets madly to cut its debt, and if GSX were approved, it could not capitalize its share of the project anyway. Dump Williams. Dump GSX

NEB report shows WCSB deliverability is in decline
Dec 12, 2002
deliverability from the Basin will likely decrease from 470 million cubic metres (16.6 billion cubic feet) per day at the end of 2001 to about 450 million cubic metres (15.9 billion cubic feet) day by the end of 2004. The expected decrease is a result of two factors. First, the initial productivity of new wells has been declining steadily since 1996. Second, the rate of production from these wells has been declining at increasing rates.
NEB ... news release
Short Term Natural Gas Deliverability from WCSB 2002-2004 ... PDF
The NEB's statement underscores fundamental risks to the viability of GSX and gas-fired generation on Vancouver Island.  GSX now is as ill-advised as a new cod boat in Newfoundland.

Kyoto protocol ratified: 195 to 77
Dec 10, 2002
The long-awaited conclusion to a chapter in Canada's role in the Kyoto protocol came Tuesday when the House of Commons voted in favour of ratifying the deal.
Allison Dunfield, Globe and Mail ... article
Canadian Press, National Post ... article
Sierra Club presents Prime Minister Chretien with the John Fraser Award ... release
Next Steps, Greenpeace Canada ... web page

Sumas Energy 2: NEB will consider plant’s impacts
Dec 9, 2002
The National Energy Board will consider the emissions impacts of the proposed Sumas Energy 2 gas fired generation plant in their review of the proposed international powerline that would enable SE2 to "wheel" its power into the western continental grid through BC Hydro's transmission facilities.
NEB ... news release
NEB ruling ... PDF(Very Big File)
Amy O'Brian, Vancouver Sun ... article
NESCO ... news release

In the GSX pipeline review, the Panel will be considering downstream emissions from the gas being burned; with the SE2 powerline hearing, the Board will be considering upstream emissions where the electricity is being produced. It has been a tough year for the transmission biz.

'Green' hydro projects face tough challenges
Dec 9, 2002
In the last two years, the stream of applications to the B.C. government for private-sector small-hydro projects has turned from a trickle to a flood, prompting widespread concerns that the province lacks the resources to deal with the situation.
Scott Simpson, Vancouver Sun ... article
Tracy Tjaden, Business in Vancouver ... article

VIGP and the energy policy
Nov 28, 2002
It's business as usual for VIGP and GSX - BC Hydro will continue pushing both projects aggressively. On Jan 15, VIGP will be reviewed by the BC Utilities Commission. Should both projects receive approvals, BC Hydro will endeavour to sell them to the private sector. To obtain a sale, the people of BC will have to guarantee the profitability of the investment.
GSXCCC ... article

BC Government releases new energy policy
Energy for Our Future: A Plan for BC

Nov 25, 2002

THE GOVERNMENT STORY COMMENT
News release
Backgrounder 1
Backgrounder 2
Backgrounder 3
Backgrounder 4

Executive Summary (PDF 1.4MB)
Challenges, Opportunities (PDF)
SOLUTIONS, CONCLUSIONS (PDF)
Glossary and Appendices (PDF)

Fact Sheets:
B.C. Electricity Resources
B.C. Oil and Gas Resources
B.C. Offshore Oil and Gas Resources
B.C. Coal Resources
B.C. Coalbed Methane Resources

Watch the energy policy video:
Real Video    modem   high speed
Windows Media    modem   high speed

Minister Neufeld's speaking notes
GSXCCC
Quick take on the policy
VIGP and the energy policy

Paul Willcocks, Sun, Nov 27, 2002
Not a stampede to privatization

3 letters, Sun, Nov 27, 2002

Vaughn Palmer, Sun, Nov 26, 2002
Liberals wary about politics of power

Matthew Ingram, Globe&Mail, Nov 26
BC Avoids Hydro Issues - Again

Green Party response

CBC news: Power plant in jeopardy

Andrew Duffy, Times-Colonist, Nov 26
Island project faces review

ELECTION 2002: Congratulations to winning candidates Sheila Malcolmson, Gail Lund, Jean Crowder, Jenny Farkas, Sharon Jackson, Loren Duncan, Mike Walker and others who were running on a platform that included opposition to GSX and VIGP. (click)

Attorney General's Energy Investigation Nets First Settlement
Nov 14, 2002
Williams will pay $417 million to resolve state claims that it participated in market manipulations and overcharges that caused electricity rates to skyrocket for Washington consumers over the winter of 2000-2001. Williams Energy is the first of several energy companies under investigation by the Attorneys General of Washington, Oregon and California.
Attorney General of Washington State ... release
Dept Justice, Oregon State ... release
Attorney General of California ... release
Editorial, Seattle Times ... editorial
Editorial, Seattle Post-Intelligencer ... editorial
Note the PI's comment about "the questionable nature of deregulation, which, unfortunately, FERC continues to try to inflict on the entire country.".  Consider this statement, in the context of Richard Neufeld and Gordon Campbell telling British Columbians that we need to break out the transmission component of BC Hydro because FERC requires it.

B.C. to reform electricity sector, lift rate freeze
Nov 13, 2002
Within the next three weeks, the BC government will announce its new energy policy, with plans to lift a decade-long freeze on electricity rates in the province and permit British Columbia Hydro and Power Authority's transmission division to operate independently from its Crown-owned parent.
Peter Kennedy, Globe and Mail ... article

Canada running low on gas
Nov 8, 2002
Canada's supplies of clean-burning natural gas are tight and getting harder to find. There are concerns that conventional gas production has peaked and could be headed for a permanent decline ...
Claudia Cattaneo, National Post ... article
Nov 11, 2002
Ladyfern is depleting so quickly it won't be able to meet natural gas production expectations next year. Volumes peaked last June at 700 million cubic feet per day when natural gas prices were weak, and volumes are expected to dwindle to under 100 million cubic feet by the end of next year.
Claudia Cattaneo, National Post ... article
Despite record levels of drilling, Western Canadian natural gas production appears to have peaked at 16.6 bcf per day and continued frantic drilling is needed just to keep pace with that level. There aren't any elephant pools waiting to be discovered
Maurice Smith, Nickles Daily Oil Bulletin ... article

Three cheers for BC Hydro!
BC Hydro's Green Energy Study, October 2002:
5000 MW and 18,000 GWh

Summary ... PDF
Tidal Current ... PDF
Small Hydro ... PDF
Integrated Photovoltaic & Wind ... PDF

Read Scott Simspon's coverage of this great work by BC Hydro...

Massive potential for green power
Nov 6, 2002
Unleashing the latent energy in British Columbia's rugged geography could increase the province's electricity supply by as much as 40 per cent without building another dam or a gas-fired generator, says a new B.C. Hydro study.
Scott Simpson, Vancouver Sun ... article

Magnitude 7.9 Quake hits Alaska
Magnitude 5 Quake hits Queen Charlottes

Nov 3, 2002
This earthquake initiated on the Denali fault in the epicentral region of the M6.7 Oct. 23 earthquake and apparently ruptured eastward (towards the pipeline). This M7.9 shock is the largest earthquake on the Denali fault since at least 1912. The Trans Alaska Pipeline (TAPS) is shut down to assess and repair damage.
Katie Pesznecker, Anchorage Daily News ...more
Wesley Loy, Anchorage Daily News ...more
USGS Earthquake info ...more
Pacific Geoscience Centre ...more
ELECT SOMEONE WHO CARES
ELECTION 2002
Saturday
November 16
8 AM - 8 PM

Candidates
positions
on GSX and
gas-fired
generation
here
...I promise you Canadians will see the day when the Member of Parliament from Langley/Abbotsford is chained to the tracks, and there he will stay. For if I don't, I will have said to you, to my community and to my country: I did not fight to the end for our future.

We ask you to stop this now. Tell SE2 to go home, build their polluting plant and transmission line on their own land, and try to understand from their own good citizens that the 21st century belongs to the environment, which we have already terribly damaged, not to corporate profits.

MP Randy White, Oct 19, 2002, to the NEB panel on what will happen if SE2 builds its transmission line to Abbotsford. transcript

Nanaimo public tells the EAO to stop VIGP
Oct 22, 2002
The crowd at Beban Centre was unanimous in its condemnation of BC Hydro's proposed gas-fired generation plant for Duke Point (VIGP). People spoke to health concerns, environmental issues, and the economic risks. They called for a BC Utilities Commission review of VIGP. They were advised that with the enactment (expected soon) of the new Environmental Assessment Act, this process could be abandoned, continued, a hearing could be imposed, or a ministerial order to grant the project its permit.

The US must turn its back on oil
Oct 16, 2002
The EU and the US are beginning to diverge in the most basic aspect of how a society is organised: its energy regime. The difference in approach to the future of energy couldn't be more stark. While the EU is beginning to mobilise its industrial sector, research institutes and the public to the task of making an historic transition out of carbon-based fossil fuels and into renewable resources and a hydrogen future, the US is pursuing an increasingly desperate search to secure access to oil.
Jeremy Rifkin, The Guardian ... article

BC Hydro's environmental assessment flawed
Oct 15, 2002
VANCOUVER - Several BC groups are taking action to stop the BC government's approval of a proposed gas fired power plant at Duke Point, near Nanaimo. BC Hydro has significantly underestimated the pollution from the plant, and may be exposing Nanaimo area residents to unacceptably high levels of air pollution.
Sierra Legal Defense Fund ... news release
SENES Consulting review of dispersion modelling analysis ... PDF
VIGP/Levelton dispersion modelling analysis ... PDF

Panel releases new timetable
Still no hearing date

Sept 27, 2002
GSX-PL response to unanswered IRs29 Oct 2002
Written evidence of intervenors28 Nov 2002
IRs to intervenors17 Dec 2002
Intervenors responses to IRs21 Jan 2003
Oral hearingnot scheduled
The Panel also ordered GSX-PL (BC Hydro) to reply to many unanswered information requests. Many are concerned with electricity supply to Vancouver Island, including cable alternatives to GSX.
No links to documents yet, because the NEB hasn't published them

Marine Technical Conference: November 14 & 15
Sept 27, 2002
The Panel has decided to set 14 and 15 November 2002 as the dates for the conference so participants can make plans accordingly. The conference will take place at the Mary Winspear Centre at Sanscha, 2243 Beacon Avenue, Sidney, B.C. commencing at 9:00 a.m.
NEB registry ... PDF

Port Alberni group wins Canadian Environment Award
Sept 24, 2002
Port Alberni, British Columbia, is not the sweetest-smelling town on Vancouver Island, but its citizens know when they've had enough. Imagine, then, the response when B.C. Hydro announced its plan, in November 2000, to build a $300 million gas-fired generating plant alongside the town's largest shopping mall. In Port Alberni, they got mad — and then they got organized...
Canadian Geographic ... article
News Release ... Word Doc

Electricity: the oxygen of our economy
Sept 26, 2002
David Freeman, Chairman of the California Power Authority, beat around no bushes, George or otherwise. "Electricity is the oxygen of our economy," he told hundreds of people at the University of Victoria Wednesday night, and the BC government has "gotta take their cotton-pickin' hands off BC Hydro." more...
Frontline interview, April 4, 2001 ... interview
Ian Mulgrew, Vancouver Sun ... article

FERC approves the US portion of GSX
Sept 19, 2002
US Regulator (FERC) gives nod to 137-km U.S. line; Canadian portion remains in doubt
Canada Newswire ... article
Reuters News Service ... article
Ericka Pizzillo, Bellingham Herald ... article
Scott Simpson, Vancouver Sun ... article

GSX cost jumps another $80 million to $340 million
Sept 12, 2002
B.C. Hydro is blaming red tape from the National Energy Board for an $80-million increase in the cost of its proposed GSX gas pipeline crossing to Vancouver Island.
Scott Simpson, Vancouver Sun ... article

Wind could ease energy crunch
July 31, 2002
British Columbia could quickly gain thousands of new jobs for employment-starved communities if it got serious about developing a wind-energy industry in the province, says a consultant's report obtained by The Vancouver Sun.
Scott Simpson, Vancouver Sun ... article
Greenpeace clean energy video ... Quicktime

Calpine to Establish Canadian Income Trust Fund
Hopes to sell 100% of Island Cogeneration

July 23, 2002
The power generating assets to be acquired by the Calpine Power Income Fund are a 100 percent interest in the 225-megawatt Island Cogeneration Facility located in British Columbia, near Campbell River and a 100% interest in the 300-megawatt combined-cycle Calgary Energy Centre
Canada NewsWire ... article
More info about Calpine ... GLOBEinvestor.com

Williams may sell its BC assets
July 23, 2002
Cash-strapped energy giant Williams is considering selling natural gas assets in British Columbia and Alberta in a desperate bid to reduce debt after slashing its stock dividend by 95 per cent and announcing a large second quarter loss on Monday.
Scott Simpson, Vancouver Sun ... article
More info about Williams ... GLOBEinvestor.com

Panel revises timetable: adds months to GSX hearing date
July 12-17, 2002
GSX-PL refused to answer many of the information requests from intervenors. As a result, those intervenors are submitting notices of motion asking the Panel to force a response by GSX-PL. Today the Panel introduced a schedule for those notices of motion and related submissions, which has the effect of delaying until late September or October, the earliest possible new date for filing evidence - which had been August 8. The hearing itself remains unscheduled, pending filing of evidence on First Nations consultion. It is increasingly unlikely to be in 2002.
A0E7Z9 Letter from Joint Review Panel revising schedule ... PDF
A0E8D5 Letter from GSX-PL requesting Panel to reinstate schedule ... PDF
A0E8G5 Letter from Joint Review Panel denying request ... PDF

The Nanaimo gas plant: why no public review?
July 16, 2002
Why would a government that campaigned so ardently against risking public money on megaprojects not pause long enough for an open public review of a $1-billion risk that is comparable in size to the fast ferries fiasco it criticized so harshly? Why would it instead use a loophole created by former premier Glen Clark to exempt Hydro from commission oversight?
Dr. Mark Jaccard, Times Colonist ... letter

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