BCTC Capital Planning

2005 First Nations Engagement BC Hydro Integrated Electricity Planning BC Transmission Corporation Capital Planning 2005 Planning Engagement Principles In our dialogue with First Nations we will strive to: • Be understanding and representative of diverse views, • Be transparent, honest and open, • Have meaningful discussion and dialogue, and • Emphasize two-way communication and mutual respect. We are here today to: Provide First Nations an opportunity to influence plans for future electric system development by: • Sharing key information about the B.C. electricity sector and planning processes • Listening and learning from you about what you believe should be considered in planning (values) • Hearing from you why those values are important • Keep building our dialogue and relationship with First Nations Today’s Agenda • Introductions and Workshop Overview • Review BC Hydro Resource Options and Attributes BREAK • Value Exercises – Setting Preferences LUNCH • Value Exercises – Review and Discussion • BC Transmission Corporation discuss impact assessment criteria • Next steps IEP Process and Links Regional Provincial Meeting (Dec) Meeting (Feb) Workshop 1 RO / Attributes Preferences First Nations Information Meeting RO Technical Workshops Resource Option Characterization Meeting (Mar) Meeting (Jun) Workshop 1 RO / Attributes Preferences Workshop 2 Portfolio Analysis Questions Meeting (Sep) Workshop 2 Portfolio Questions Optional Overview – 2005 IEP • The Integrated Electricity Plan is a long term plan that describes how BC Hydro will meet its customers demands for electricity. • We want to ensure that First Nations have the opportunity to express their preferences about the type of energy options that should be used in the future so they can be considered in the plan. • The Provincial IEP Committee will draw all the information together to develop a consensus for a preferred set of options (called a preferred portfolio). IEP Overview • First IEP in 10 years: – Filed with the BC Utilities Commission on March 31, 2004 • Provided general direction to pursue: – – – – Power Smart, Call for Tenders on Vancouver Island Investigation of Burrard, Site C options 400 GWh open call for tenders • First Nations and Stakeholder Engagement: – Inform and solicit feedback on the 2004 IEP 2004 IEP - Feedback First Nations Input: • Needed earlier engagement • Historical grievances • Remote electrification and reliability of service to First Nation Communities • Impacts of transmission lines • Revenue sharing • Environmental impacts must be addressed and full cost accounting (social, cumulative, environment) should be used 2004 IEP - Feedback Stakeholder Input: • Consider social, environmental and financial cost in planning • High value on the environment but have a higher priority for maintaining reliability, and low cost power • Support independent power producers and economic development in B.C. • Public ownership of BC Hydro 2005 IEP • Will need a lot of dialogue and learning to balance sometimes contradictory views • Is striving to meet the regulators requirements for a transparent, inclusive process for planning • Provincial IEP committee will take what was heard in 2004 and 2005 to develop a preferred portfolio to meet B.C.’s future needs 2005 First Nations Information Sessions • Identify opportunities for First Nations to participate in and benefit from electricity development such as Independent Power Producers (IPPs) • Support capacity development of First Nations through involvement in planning and economic and employment activities • Develop more opportunity to bring community members into the process Overview - Definitions What is a resource option (RO)? • A resource type (or option) to meet electricity needs (such as wind, hydro, thermal, solar, etc.) • These are the building blocks (like a buffet) for creating portfolios What is an (energy) portfolio? • A portfolio is a combination (the plate you choose) of resource options • It identifies the size, location, and timeline for when new resource options are required What is an attribute? • An attribute is a characteristic that allows you to make comparisons between resource options (like cost, emissions, area) What is a value? • A value is a belief or view you hold about something that is fundamentally important to you. Overview - Portfolio Illustration Yr 0 Yr 10 Yr 20 IEP presentation Presentation on Resource Options and Attributes IEP Workshop BREAK IEP Workshop Exercises IEP Workshop Exercises Purpose of today’s IEP Exercises: To get people to begin to think about what is important to them in identifying preferred energy options. To help frame subsequent discussions and provide more insights into the strengths and weaknesses of the resource options and how they are characterized. The resulting discussions will serve as input to help generate ideas for how the resource options should be mixed together to create portfolios for the provincial committee. IEP Exercises The Exercises we are going to do: • Primarily use attributes based on the information from the 2004 IEP • These attributes are currently being reviewed and refined and should be considered a work in progress. • For the mock exercises the resource options have been turned into 1000 GWh Bundles to better allow for comparisons between different sized projects IEP Bundles • Because all projects are not the same size, in order to be able to fairly compare them against each other it was necessary to create bundles so all the alternatives could be included. • This is not perfect as the 1000 GWh bundles do not fully reflect all factors accurately e.g., remoteness, transmission availability, capacity and age • These factors will be taken into account during the portfolio analysis IEP Bundles The 1000 GWh Bundles and exercises: Provide a relative means to compare resource options Provide a window to discuss people’s preferences Highlight areas of improvement needed for the attributes Highlight which differences in attributes are important Highlight which resource options appear to serve people’s interests Provide a reasonable starting point to begin to develop portfolios IEP Exercises A few words about the exercises: These exercises are a discussion tool to help participants begin to discuss their preferences There is no right answer, as everyone’s rankings and preferences will be unique based on their values The resulting discussions from these exercises will be summarized for input to the Provincial IEP Committee as they develop portfolios and included in the 2005 IEP First Nations and Stakeholder Engagement Report Exercises Go to spreadsheet to compare between resource options using the available attributes IEP Exercises We will do 2 exercises today: 1. Direct Ranking of Resource Options 2. Swing Weighting using the Attributes Note: If time allows, you will be able to revise your ranking values during the facilitated discussions. Exercises - Direct Ranking STEP 1: STEP 2: STEP 3: Rank each of the Resource Options from #1 (best) to #8 (worst). No ties allowed. Distribute 100 points for the #1 (best) ranked resource option Distribute a lesser amount of points for the next best ranked (#2) resource option relative to #1. Repeat for remaining resource options (#3 through #7) Do a check on the relative difference between points with other rankings (e.g. #2 versus #5, etc.) Check: Exercises - Direct Ranking Alternative Biomass Coal Geothermal Large Hydro Natural Gas Wind Small Hydro Power Smart 3 4 Rank Weight 1 6 8 7 5 4 2 3 100 24 5 25 50 70 75 74 Exercises - Swing Weighting Purpose: • Provides an alternative means to assess resource options according to their attribute values • Provides a way to gain insight into the relative importance of each attribute according to the improvements (worst to best) that can be made • “Swing” refers to the importance of moving one attribute from its worst to best value Exercises - Swing Weighting STEP 1: Rank #1 the attribute that is most important to you to change from worst to best. Repeat for #2, #3, ………. For example…. Exercises - Swing Weighting Worst Adjusted UEC # of Projects GHG Local Emmissions (Nox) Impacted Area - Water Footprint Area - Land Temporary Jobs Created Permanent Jobs Created $ 70 26 900,000 360 920 4,540 0 0 Best $ 3 35 5 0 1 0 4 0 6 0 2 0 7 1,670 8 120 Rank Exercises - Swing Weighting STEP 2: Distribute 100 points to the Rank #1 attribute. Distribute whatever proportion less than 100 to the Rank #2 Attribute according to its importance relative to Rank #1. Distribute proportion for Rank #3, must be less than Rank #2. Repeat for all the attributes…e.g. Exercises - Swing Weighting Worst Adjusted UEC # of Projects GHG Local Emmissions (Nox) Impacted Area - Water Footprint Area - Land Temporary Jobs Created Permanent Jobs Created $ 70 26 900,000 360 920 4,540 0 0 Best $ 35 0 0 0 0 0 1,670 120 Rank Weight 3 5 1 4 6 2 7 8 95 78 100 90 75 99 65 60 Exercises - Swing Weighting STEP 3: Check relative swing rankings to ensure consistency. Exercises Go to spreadsheet to fill in ranking values….(should be lunch time) Transmission Planning British Columbia Transmission Corporation Discussion on Criteria for assessing environmental and social impacts of transmission projects. Next Steps • The information from today’s IEP workshop on your preferences on Resource Options will be shared with the provincial committee and will be included in our final report. Your input of assessment criteria for transmission will go to their planning group. Workshop # 2 will be held in the early fall and you will see the preliminary results of the planning group work and be able to input on key questions. Other matters you have raised will be followed up by the Aboriginal Relations group. • • •