Challenges and Choices

Challenges and choices Planning for a secure electricity future Reliable power, at low cost, for generations Message from the President & CEO Clean, abundant electricity has been, and always will be, the key to our province’s economic prosperity and our quality of life. Making sure we have enough of it to meet our needs will be critical so future generations of British Columbians will be able to enjoy the same benefits of low-cost, reliable power that we do today. With that in mind, BC Hydro is pleased to present its Integrated Electricity Plan (IEP) for 2006—an analysis of the challenges and choices that are fundamental to securing our province’s electricity future. The IEP looks at three critical questions: What are the resources we will need to meet British Columbians’ electricity demands, how much of them will we need and when will we need them? In examining the options before us, BC Hydro will continue to reach out to our customers, our communities, our stakeholders and First Nations—seeking your insights, your ideas, and understanding your needs. We are committed to keeping you fully informed and engaged in this discussion because we all have an important role to play in making the most of this public resource. Bob Elton At BC Hydro, our planning for the future is well underway A heritage we must The story of British Columbia’s economic development is inextricably linked to hydroelectricity. Between 1945, when the Province of British Columbia created the BC Power Commission, and 1961, some 200 rural and isolated areas received electricity. To enable the development of the Peace and Columbia River hydroelectric projects, the provincial government acquired BC Electric in 1961. A year later the government merged BC Electric with the Power Commission to create a new Crown corporation: the British Columbia Hydro and Power Authority, known more familiarly as BC Hydro. In the two decades to follow, BC Hydro successfully undertook some of the most ambitious hydroelectric construction projects in the world. In doing so, British Columbians secured access to a reliable, renewable, low-cost electricity source that has helped build and sustain our province and underpin our quality of life. As British Columbians prepare to take on a world of exciting new economic opportunities, these opportunities will be made possible through the hydroelectric heritage we now enjoy. protect and enhance British Columbians enjoy among the lowest residential electricity rates in North America. A survey of electricity rates in large North American cities observed that residential customers in Vancouver pay just $64 per 1,000 kWh, compared to the $89 that our neighbours in Edmonton pay. As BC Hydro plans for the future, the challenges and choices we as British Columbians face in protecting and enhancing this heritage will be critical to our economic prosperity and our quality of life. Today, clean hydroelectricity meets 90 percent of our province’s electricity needs and provides low, stable rates for customers. It is the overwhelming driver of our economy and has played a pivotal role in our province’s recent economic success. With BC’s economic growth averaging three percent from 2000 to 2004 and forecast to average about three percent* over the five years from 2005 to 2009, substantially more electricity will be required. British Columbians enjoy among the lowest residential electricity rates in North America. * Source: Sept, 2005 BC Budget Update. As in generations past, new economic opportunities will be made possible through the hydroelectric heritage we now enjoy We must also be cognizant that the world around us has an ever-growing appetite for energy. According to the National Energy Board and the US Department of Energy, global consumption of energy from all sources is expected to rise by about 60 percent by 2025. Propelled by fast–growing Asian economies such as China and India, demand for energy is going to place new pressures on how we live and work. Against this backdrop of rising worldwide demand, it is important to note that British Columbia’s own domestic demand for electricity is starting to outstrip the capability of our province’s existing low-cost resources. While in the past, we have enjoyed significant surpluses of generating capability in the province, BC is now a net importer of electricity. BC Hydro has imported electricity from neighbouring jurisdictions in each of the last five years;1,700 gigawatt-hours (GWh) in 2001, 5,200 in 2002, 1,700 in 2003, 5,100 in 2004, and 7,400 in 2005. The fact that BC is now a net importer of electricity may be hard for some to understand as BC Hydro does trade electricity in the market from time to time. The company, through its subsidiary Powerex, buys and sells electricity when it is advantageous to BC ratepayers. As noted in the BC Progress Board’s recent report, Strategic Imperatives for British Columbia’s Energy Future, this misunderstanding related to the import and export of electricity “removes any sense of public urgency to find new sources of electricity and gives us a false sense of security”. A reliable domestic electricity supply has been a standard that British Columbians have enjoyed for generations. In the February 2006 Throne Speech, the Provincial Government indicated it would be pursuing new policies and targets to return BC to electricity self-sufficiency within the decade ahead. A policy of self-sufficiency would ensure that we could meet our future electricity needs, while at the same time allowing BC Hydro to continue to trade electricity when it is beneficial to British Columbians to do so. BC Hydro is working to maintain our province’s advantage of reliable, low-cost electricity and longterm energy security. Ensuring electricity security means more than simply removing the risk of falling short. It means a lot more than keeping the lights on at 6:00 p.m. on the coldest day of the year when consumption is at its peak. It means more than having the electricity needed to keep our workplaces and public amenities fully operating. In a competitive, everchanging global economy where energy will become more expensive and scarce, electricity security is really about helping to ensure future generations enjoy our current standard of living. 2005 Load Forecast Range without Power Smart Heritage Resources BC Hydro Firm Purchases (IPPs) Domestic Requirements (including losses) BC’s electricity gap BC Hydro Domestic Requirements vs. Firm Capability: Heritage Resources plus BC Hydro Purchases 90,000 90,000 80,000 70,000 We currently estimate that BC’s electricity demand will grow between 25 and 45 percent over the next 20 years. 80,000 70,000 drop reflects planned phase out of Burrard (see page 9) 60,000 (GW.h) 60,000 (GW.h) Energy 50,000 50,000 Energy 40,000 Forecasted Data 40,000 30,000 30,000 20,000 Historical Data 20,000 10,000 10,000 - 1965 1970 1975 1980 1985 1990 1995 Fiscal Year 2000 2005 2010 2015 2020 2025 (year ending March 31) At BC Hydro, our planning for the future is well underway. It is guided by the Government of British Columbia’s 2002 Energy Plan, which preserves public ownership of BC Hydro and fosters an environment for the expansion of new, independent power sources, such as run-of-river hydroelectric projects, biomass, coal and wind power, and establishes a 50 percent clean energy target for new supplies of electricity. Going forward, BC Hydro will be guided by the updated Energy Plan as we seek to build on our province’s record of foresight, innovation and sustainability. We will be working with the provincial government to engage British Columbians in a dialogue about resource options and the trade-offs that will need to be made in order to meet future electricity demands. Our hope is that through an informed discussion and debate, we can create a portfolio of options that meets both the short and long term electricity needs of the province and balances the priorities of British Columbians. We need to begin these discussions now because new generating resources and transmission lines require significant lead-times for development including information gathering, consultation and construction. Through an informed discussion, we will be able to chart the best path for the province’s electricity future. power in perspective A strong and growing economy requires substantial amounts of electricity BC Hydro's electric generation system reaches throughout the province with 31 integrated hydroelectric generating stations and three gas-fired thermal power plants. With a total generating capacity of over 11,000 megawatts (MW), this system provides approximately 1.7 million residential, commercial and industrial customers with their everyday electricity needs. The average BC household uses approximately 10,000 kWh of electricity annually and all BC residents combined consume approximately 16,000 GWh per year.* A large retail outlet will consume 3.5 GWh in a year, or about as much as 350 households. A typical commercial office building of 20 to 25 stories will consume 5 GWh in a year, or roughly the same amount of electricity as 500 households. A large industrial customer might use 400 GWh in a year, about as much as 40,000 households. When BC Hydro customers are making their greatest demands on the system on the coldest winter day, demand is approximately 10,000 MW at peak usage.** An emerging gap Meeting the emerging gap in electricity supply in a growing economy requires an assessment of the future choices BC has available to meet our objective of reliable low-cost supply. BC Hydro is presenting the Integrated Electricity Plan, including a ten-year action plan, to the BC Utilities Commission. The IEP will be regularly updated to reflect changes to policy or circumstances. This approach will help customers, stakeholders, and First Nations to view the Integrated Electricity Plan within the context of the current policy and support discussions on the challenges and choices that are inherent in making new, long-term supply decisions. * The cumulative amount of energy produced or consumed over a period of time is measured in kilowatt-hours (kWh) or gigawatt-hours (GWh). For planning, energy needs are measured over an annual period against available supply. As an example, BC Hydro customers use over 50,000 GWh of electricity annually. ** Capacity refers to the power output of a power plant or a facility’s ability to transmit electricity, at any instant. It is normally measured in kilowatts (kW) or megawatts (MW). For planning capacity needs, an assessment of the highest one-hour peak is required. Filling BC’s electricity gap It has been more than two decades since British Columbia last made a major addition to its electricity system. Since that time, the legal, regulatory and consultation requirements have increased. This in turn creates new constraints in how BC Hydro is planning for the long term. Given these realities, we must start thinking now about the magnitude of the gap that we see ahead and how we can fill it. Our current load forecast indicates that BC’s electricity requirements will grow by between 25 percent and 45 percent over the next 20 years. As part of BC Hydro’s responsibility to ensure we meet the province’s electricity supply for the future, we are looking at a variety of options to fill our future needs and the gap that is emerging in the years ahead. Each of these options comes with its own economic and social benefits and costs; each comes with its own environmental advantages and risks. Each must meet the appropriate standards and regulations set by various levels of government. Although there are many issues and considerations underlying how we plan for BC’s electricity future, filling the emerging electricity gap will be met in three fundamental ways. Put simply, it means conserving more, buying more from independent power producers and building more, either by investing in our heritage assets or investigating new resource options. The IEP assesses these three ways and looks at options to mitigate the risks and maximize the opportunities that we will face in the coming years as we move forward. A commitment to our province and our communities Publicly owned BC Hydro is a leader in providing clean, renewable energy. We are accountable to British Columbians to take care of the environment, meet community needs and deliver excellent financial results. As such, we are committed to a path of sustainability whereby we balance, track and measure our performance along environmental, social and economic bottom lines. We believe better business decisions result from looking at these three bottom lines together and understanding that what happens in one area has effects on the others. For instance: With a view to finding a better balance between competing uses of water, 23 water use plans are being developed or implemented for BC Hydro's hydroelectric facilities throughout the province through a consultative process with British Columbians. In partnership with the Ministry of Environment, BC Hydro has established compensation and restoration programs in the Columbia Basin, Peace-Williston and Bridge River Coastal areas to conserve and enhance fish and wildlife populations affected by the creation of BC Hydro dams and reservoirs. These programs deliver a range of fish and wildlife-related projects each year, working in partnership with local communities, governments and environmental groups. BC Hydro is one of the lowest greenhouse gas emitters in the North American electricity industry. BC Hydro has been recognized since 1998 as being a three-time Gold-Level and three-time Silver-Level reporter under the Canadian Greenhouse Gas Voluntary Challenge Registry. Throughout our province, BC Hydro has developed and maintains a wide range of recreational areas as one part of our efforts to balance your energy needs with the preservation of the natural environment. At the community level, BC Hydro currently offers over 80 scholarships in a variety of categories, including aboriginal studies, engineering, technology and trades. BC Hydro donated $1 million in the 2004/05 fiscal year to over 370 community initiatives in support of arts and culture, aboriginal initiatives, community investment, education and the environment. BC Hydro is recognized internationally and annually wins awards for its innovative Power Smart program. “We don’t need to be electricity [net] importers. There are options open to us.” BC Progress Board Strategic Imperatives for British Columbia’s Energy Future, 2005 Resource Options Description • Provide reliable reductions of both dependable capacity and firm energy reductions • Reductions from encouraging residential, commercial and industrial customers to use less electricity by improving the efficiency of their energy use • Provides reliable supply with both dependable capacity and firm energy • Electricity generated from high-efficiency gasfired turbines in medium-to-large generating stations • May be situated on existing industrial sites, with low associated land impact • Provides reliable supply with both dependable capacity and firm energy • Electricity generated from coal-fired steam turbines, typically in large generating stations • May be situated next to mines to minimize transportation costs • Provides reliable supply with both dependable capacity and firm energy • Electricity generated from water released from a storage reservoir and passed through hydro generators • Would typically involve construction of a new dam on a large river • Provides intermittent supply with low dependable capacity • Electricity generated from water temporarily diverted from a stream, passed through hydro generators, and returned to the stream • Normally no significant water storage • Many small hydro projects are situated on non-fishbearing streams or allow fish passage • Provides intermittent supply with low dependable capacity • Electricity generated by wind farms using large wind-powered turbine generators • Most wind sites are situated in remote areas so there are long distances to interconnect with integrated system • Provides reliable supply with both dependable capacity and firm energy • Electricity generated by using a natural heat source to power a steam generator • Provides reliable supply with both dependable capacity and firm energy • Electricity generated by burning wood residues from the forest industry or municipal solid waste as a fuel for steam generators Resource Potential • Good potential to significantly enhance conservation initiatives throughout BC • Accessing some of the potential may require new regulation or significant behavioural shifts • May have future value as a greenhouse gas offset • Good potential • BC has natural gas and has access to market supply • Project developers may face long-term fuel availability/price risks and costs of future greenhouse gas regulation Cost Range ($/MWh)* CONSERVATION INITIATIVES 32 – 76 NATURAL GAS 48 – 100 COAL • Good potential • BC has an abundance of coal • Project developers may face costs of future greenhouse gas regulation and other emissions regulation 48 – 83 LARGE HYDRO (Facility with Reservoir) • Good potential • BC has large rivers that could accommodate a dam project • Project developers may face costs associated with mitigating impacts to land, fish and wildlife • Classified as BC Clean • Good potential • BC’s steep mountain terrain lends itself to small hydro development, with some concentration of sites • Identified within BC Clean Guidelines and may be certified as Green Energy 43 – 62 RUN-OF-RIVER SMALL HYDRO 47 – 88 WIND • Good potential • BC’s sites include ridge-based and offshore • Identified within BC Clean Guidelines and may be certified as Green Energy 45 – 198 GEOTHERMAL • Potential at a limited number of sites in BC • Identified within BC Clean Guidelines and may be certified as Green Energy 44 – 60 BIOMASS • Potential varies with availability of fuel source • Biomass availability varies with the state of the forest industry • Project developer faces costs of mitigation of emissions • Identified within BC Clean Guidelines and may be certified as Green Energy • Some potential • Limited to industrial and large commercial applications 56 – 87 *Approximate ranges for combined sensitivities (capital costs, greenhouse gas offset costs, and natural gas prices) CUSTOMER COGENERATION • Provides reliable supply with both dependable capacity and firm energy • Typically, natural gas and/or wood residue are used to generate a combination of electricity and steam used by industrial customers for manufacturing processes 63 – 87 Additional details regarding assumptions used in estimates are available in BC Hydro’s 2006 IEP. Conserving more Building on our global leadership Conserving is the first and best choice for us to manage the future supply gap that has been identified. By helping customers be more efficient, use their power wisely, and ultimately use less, we can collectively lower the forecast of new supply that will be needed. The Provincial Government’s updated Energy Plan may include new conservation targets to help make British Columbia electricity self-sufficient within the decade ahead. BC Hydro would welcome this commitment and looks forward to building on our recognized global leadership in energy conservation and energy efficiency through our Power Smart program. In partnership with BC Hydro, British Columbians can be justifiably proud of the conservation culture they have begun to build. Power Smart programs tailored to consumers and businesses have exceeded their conservation targets in each of the last three years. BC Hydro has built up its Power Smart program since 1989 and it now achieves savings of over 4,000 GWh. This is enough to meet the electricity needs of over 400,000 homes. Initiatives to address opportunities, such as industrial process improvements, commercial energy-efficient building upgrades, and residential use of energy-efficient light bulbs and other more energyefficient products, have contributed to this past success. Given the high electricity demands of BC’s resource-driven economy, these demand-side management efforts will continue to be an important and cost-effective resource for BC Hydro. With continued focus and resolve, BC Hydro plans to take Power Smart programs to the next levels – going beyond the successes of the past. BC Hydro is evaluating new ways to encourage customers to use electricity more efficiently or use less at specific times. BC Hydro will work through the electricity planning process, and as well will form an External Demand Side Management Advisory Panel to guide the development of a range of approaches under a future energy conservation and efficiency plan. Future energy efficiency initiatives will: continue to remove barriers that prevent customers from reducing their consumption. build upon efforts to educate customers about the choices they can make today with respect to the amount of electricity they consume. explore new rate structures to identify opportunities to use rates as a mechanism to motivate customers either to use less electricity or use less at specific times. employ new rate structures to help customers implement new energy-efficient products and technologies, and provide them with useful information about their electricity consumption to allow them to make informed choices. advance ongoing efforts to develop energy-efficient products and practices through regulations, codes and standards. Buying more Energy from independent power projects As impressive as Power Smart’s results are, conservation is just one part of the solution. As future demands for electricity continue to increase, additional resources provided by independent power producers (IPPs) will be needed. Consistent with the 2002 Provincial Energy Plan, BC Hydro will contract with IPPs to provide new incremental electricity supply. BC Hydro’s 2006 Open Call for Power is underway. It attracted approximately 50 potential bidders representing about 80 projects. Of these projects, some could provide large-scale, firm energy commitments while others could provide smaller-scale, non-firm commitments. In terms of fuel types, these projects represent a broad range of alternatives, such as biomass, coal, run-of-river hydro, waste heat and wind. This is the first of several stages that potential bidders will follow — from the expression of interest, to the offering of tender bids, to contract award and final delivery of electricity. Experience shows that there will be some attrition at each stage of the process, and this early representation of volumes will typically be reduced to a smaller amount of electricity delivered. Noteworthy in the call for tenders is the high level of interest, not just from within the province, but also from major out-of-province companies that are partnering with British Columbia firms. This significant degree of investor interest in British Columbia reflects a maturing and competitive IPP market in our province. As the list of fuel types indicates, there are a variety of advantages and risks to each type of resource. IPPs are subject to the same regulatory and public processes as any other projects and must obtain a range of approvals before they can build. Individual proponents must address environmental concerns and gain First Nations and public support for projects as part of the regulatory and permitting process. BC Hydro will continue to conduct best-in-class competitive call processes. British Columbians will continue to be encouraged to take part in the debate and public processes to ensure that we achieve a balanced, low-cost resource portfolio. Going forward, BC Hydro expects to obtain a mix of projects that will meet the 50 percent clean electricity target through open, competitive, transparent processes and targeted actions. 100 percent of the new energy acquired since 2002 from independent power producers has been clean Building more Protecting and enhancing our heritage To fully meet BC’s growing demand for electricity over the next decade, we must not only make the most of our conservation efforts and our acquisitions from IPPs; we must also reinvest and modernize our existing heritage hydro assets. Resource Smart - Reinvesting in our heritage assets While BC Hydro’s heritage assets have served our province extremely well for more than four decades, they are aging. Maintaining and sustaining their contribution to the system poses increased costs and risks. They are reliable today; however, some will need reinvestment and replacement in the future. Reinvesting in and enhancing these assets remains an important strategy for BC Hydro to ensure continued low-cost supply. The Resource Smart program was initiated in 1988 to identify and implement efficiency gains at existing BC Hydro facilities. The program provides additional electricity to the BC Hydro system by modifying, updating and retrofitting our existing generation facilities. This means increased efficiency and electricity production with generally low or no incremental environmental impact. Since its inception, the Resource Smart program has added almost 1,300 gigawatt hours (GWh) a year. That’s enough to power about 130,000 homes. BC Hydro plans to invest in upgrading its heritage assets at the Revelstoke Generating Station on the Columbia River to yield approximately 500 MW of additional generating capacity. This additional capacity creates new opportunities for clean and green intermittent resources such as wind and run-of-river hydro by increasing our ability to shape the energy in the system. In addition, BC Hydro will look to advancements in technology that will continue to support the program’s ability to extend the life of existing assets and expand their current generating capability. Continuing the Resource Smart program will add cost-effective energy and capacity for that coldest winter day. Burrard Thermal Generating Station Burrard Thermal Generating Station is a large facility that burns natural gas when it generates electricity. While it has contributed to BC Hydro’s firm energy and dependable capacity in the past, it is an aging plant that is inefficient by today’s standards. Today its value is mainly as a plant that provides emergency capacity when needed. When operating, it is a source of local air emissions and its cost to operate is subject to gas price fluctuations. For these reasons, BC Hydro is planning to replace the energy and capacity generated at Burrard Thermal. This will be done in a staged and flexible manner that will ensure the replacement of energy and capacity is both cost-effective and available prior to any retirement of Burrard. Reinvesting in our aging heritage hydro assets will expand their lifespan and capacity. Building more Options for adding firm generating capability Filling the electricity gap will also require us to examine the possibility of new, large-scale projects. Potential large-scale projects BC Hydro has identified electricity supply to meet the needs of the province through the next decade. However, beyond the next 10 years, with demand continuing to grow at the rate forecast, BC Hydro will need to identify additional firm and reliable electricity resources. The types of projects that typically offer energy and capacity are large hydroelectric dams, biomass, coal, or natural gas facilities. In the future, technological advancements could also provide new resource options that will create additional electricity supply potential. Technological enhancements will also be able to improve existing resource performance with lower impacts. BC Hydro will continue to monitor these advances within the electricity planning process to support the discussion and decisions on pursuing potential large-scale projects. One example of a project which has been discussed is a new, third dam on the Peace River, known as Site C. A large-scale hydroelectric project such as Site C could provide in the range of 900 MW of electricity, or about eight percent of our existing needs. It would produce approximately 4,600 GWh a year, enough to power about 460,000 homes. While such a project would take over 10 years to come on-line, it would have a lifespan of up to 100 years, providing a secure supply of electricity at stable rates for generations to come. As with all projects there are environmental and social trade-offs that require careful consideration. Similarly, a large-scale, coal-fired electricity generating facility is another option that could be given further consideration. British Columbia’s abundant coal resources would provide a low-cost source of electricity that would be dependable and not be subject to the magnitude of price fluctuations faced by other resources such as natural gas. While the up-front capital cost would be less than a large-scale hydro project, long-term operating and maintenance costs are typically greater and the facility would have a shorter lifespan. As well, the environmental impacts and attendant costs would have to be carefully considered. In the future, technological change may improve the emissions profile of these fossil fuel resources. These are two examples of potential large-scale resource projects that represent complex decisions and require long lead-times to plan and develop. Any possible future decision to pursue large-scale projects would require considerable examination, dialogue and informed discussion. All such projects pursued by BC Hydro or the private sector would require provincial and federal regulatory approvals and would involve a significant level of First Nations, community and stakeholder engagement as well as technical study and environmental review. Given the scope of the challenges our province faces, delaying these discussions is not an option. We must begin the discussions on all potential options now so we can fully understand the risks and advantages of each and make the required decisions in a timely manner. Transmission requirements A direct requirement when adding new generating supply is a plan to enhance transmission infrastructure. The planned transmission infrastructure will have a direct bearing on the types, amount and location of future generation resource additions. Strong load growth in the Lower Mainland and on Vancouver Island has pushed the Interior-toLower Mainland 500 kV transmission lines to the limit. The BC Transmission Corporation (BCTC) is already proposing additional transmission capacity to Vancouver Island. In addition, BC Hydro expects that as a result of its ten-year action plan, the BCTC will need to pursue additional investments in transmission capacity from the Interior to Lower Mainland. Large-scale electricity projects require long lead-times to plan and develop. Two recent hydroelectric projects in Manitoba and Quebec will likely take over 10 years from start to completion. Listening to British Columbians In developing its plans, BC Hydro has sought and considered a broad range of insights and perspectives from a cross-section of British Columbians, including customers, community leaders, First Nations, independent power producers and intervenors. Several rounds of meetings were held in communities throughout the province with First Nations and participants over the course of 10 months. In addition, BC Hydro’s provincial IEP committee (PIEPC) conducted an in-depth examination of a range of interests, preferences and values around electricity options and trade-offs that will form the basis for discussions and decisions still to come. This information is reflected in the First Nations and Stakeholder Engagement Report as part of the 2006 IEP. BC Hydro is also working with First Nations and the Government of British Columbia in support of the New Relationship policy. Through the IEP process and other mechanisms, BC Hydro will continue to work in close cooperation with First Nations to make this important public policy goal a reality. engagement activities Stream Focus Objective Method Broad Public Engagement and Communication Understand public values about future energy planning, keep the public informed throughout the IEP process, and elicit feedback to shape and inform future engagement activities • Round One: Fifteen information sessions were held around BC in February and March 2005 • Round Two: Eight information sessions were held around BC in October and November 2005 Education First Nations Engagement Education/ Feedback Inform First Nations about BC Hydro’s integrated electricity planning process, obtain information about their values related to energy planning, understand their interests related to long-term electricity and transmission planning, and seek input and feedback about the plan and how First Nations would like to be engaged in future IEP processes • Round One: Seven information sessions were held around BC in December 2004 and January 2005 • Round Two: Six workshops were held around BC between February and April 2005 • Round Three: Seven meetings were held around BC in October and November 2005 Regional Engagement Education/ Feedback Learn about and understand regional values about future energy planning and obtain feedback and degree of support for different future electricity resource options, elicit feedback on emerging IEP strategies, and elicit participant input to help shape and inform future engagement activities • Round One: Fifteen regional workshops were held around BC during February and March 2005 • Round Two: Eight regional meetings were held around BC in October and November 2005 Technical Resource Options Workshops Technical Seek input from those with an interest in the technical aspects of the potential resource options and ensure that the assumptions, characterization and evaluation of all the commercially available potential resource options and technologies were broad, current, and representative of the options available in the province, within the planning guidelines • Three technical resource options workshops were held in Vancouver between December 2004 and May 2005 Provincial IEP Committee (PIEPC) Decision Analysis Work at a more detailed and technical level through a structured decision-analysis process to understand BC Hydro’s future electricity needs, identify values around electricity planning, consider the implications of tradeoffs between different values and work towards identifying common or preferred strategies • Seven committee meetings were held over 13 days between December 2004 and September 2005 A staged and flexible approach BC Hydro’s current load forecast indicates that BC’s electricity requirements will grow by between 25 and 45 percent over the next 20 years. As part of BC Hydro’s responsibility to ensure the province’s electricity supply for the future, we are looking at a variety of options to fill the gap that will emerge in the years ahead. Our planning for the future is well underway, guided at present by the Government of British Columbia’s 2002 Energy Plan. BC Hydro is awaiting the government’s updated and expanded Energy Plan and the broad public policy directions that it will provide to guide us in maintaining and enhancing the fundamental competitive advantage that reliable, low-cost electricity provides our provincial economy. BC Hydro is presenting the Integrated Electricity Plan including a ten-year action plan to the BC Utilities Commission. The IEP will be regularly updated to reflect changes to policy or circumstances. This staged and flexible approach will support the ability of customers, stakeholders and First Nations to view the IEP within the context of the provincial energy policy and support discussions on the challenges and choices that will be inherent in making new, long-term supply decisions. Any new resources and transmission required to meet our future electricity needs will require significant lead-times for development. For that reason, we need to begin this public discussion now. An informed discussion will chart the best path for the province’s electricity future and ensure we continue to fulfil our purpose to provide reliable low-cost power, for generations. Reliable power, at low cost, for generations www.bchydro.com