On Day 12 (Wednesday 2 July), VIEC Panel 6 finished off with considerable
discussion coming from BCUC Panel chair Robert Hobbs on the question of how the
CFT (Call for Tenders) process will work. BC Hydro has presented a draft
document that gives itself a very large amount of control over the process and
the terms of reference, extending even to limiting the amount of profit an
independent power producer would be able to make.

This is where the major strategic thinking will be taking place: how to cast
the CFT so that IPPs will have sufficient confidence to make applications and
not think it's rigged in Hydro's favour? How can Hydro maintain its legitimate
standards that go with its duty to serve? How can the BCUC have input for the
public interest withouth taking over BC Hydro's responsibilities? From Hydro's
point of view, they may be thinking, how can we run this process and still have
VIGP win in the end? From GSXCCC's point of view, we are trying to get
greenhouse gas liability criteria factored into the cost of energy calculations
of all projects that may be considered. At the same time, strategically, we
would prefer to see the 230 kV lines as number 1 priority. But how to address
BC HYdro's claimed energy shortfall between the 2007/08 retiremment of the HVDC
subsea cables and the 2008/09 (at the earliest) in-service date of new 230 kV
lines? One part answer is that we will argue that the "gap" of electricity not
served is very small or not at all (BC HYdro claims the gap is about 200 MW).

Norske also presented its witness panel of five. A very well-coached bunch who
said virtually nothing that was not already in their written evidence. And that
does not clearly specify their proposals. Clearly they are waiting for the CFT
process to put forward their plans. Norske was followed by
Hillsborough/Quinsam, who propoase a 60 MW coal-fired power plant for the
Quinsam min site. Their cost of generation is remarkably low, and we can't rely
on the Environmental Assessment Office to protect air quality. A Freudian slip
if ever there was one: twice the witness for Hillsborough referred to WLAP
as "Water, Land and Air Pollution".

The hearing will reconvene tomorrow, with a 7th VIEC witness panel consisting
of Bob Elton and Dawn Farrell, they will address mainly the CFT process, and we
will try to insert our views into the process.

My expectation is that we will end the hearing tomorrow, as the only other
Panels to present are Green Island and Maxim.

Tom Hackney