Victoria Chamber of Commerce March 13, 2002

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Victoria Chamber of CommerceMarch 13, 2002
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Current Vancouver Island Electricity Supply

• 80 of Vancouver Islands electricity is supplied
  by sub-marine cables from the mainland
• 20 is supplied by six Hydro plants on the Island
• High Voltage Direct Current (HVDC) cable system
  to the Island is deteriorating (scheduled for
  complete retirement by 2007 - this transmission
  capacity needs to be replaced)

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The Proposed Pipeline (contd)

• 140 km natural gas transmission pipeline from the
  Sumas supply hub to an interconnect with the
  Centra transmission system on Vancouver Island
  near Duncan
• Canadian segment
• 60km - 44km marine and 16 km on -island

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Growing Demand for Electricity

• Forecasted growth 30-40 Megawatts per year on
  Vancouver Island
• Increase in electricity intensive technologies
  businesses
• Increased square footage of residential
  structures
• Increased disproportionate use of electrical
  heating systems versus gas, wood and oil (BC 20
  - VI 40)
• Need for secure reliable power to attract new
  businesses
• Population growth 21 since 1991

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Vancouver Island Electricity Supply Demand
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Options 2002 - 2007
Option 1 Repair/Replace HVDC cables 230
million New mainland generation 600 (VIGP
1 2 equiv. ) New mainland transmission
upgrades 50 Centra Gas System
upgrades 110 Total 990 million
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Options 2002 - 2007
Option 2 Demand Side Management 75
million (300 million province wide) Green
Alternative Energy 3.4 billion Biomass,
Wind, Wave, Micro-Hydro No transmission
costs considered Centra upgrade 110
million Total 3.585 billion Capacity Only
(i.e.) no guarantee the power is there when you
need it
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Options 2002 - 2007
Option 3 GSX Pipeline 260 VIGP 1 (Duke
Point) 300 VIGP 2 (unknown) 300 Total
860 million Shared joint-venture costs
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Options 2002 - 2007
Option 4 GSX Pipeline 260 million VIGP
(Duke Point) 300 Demand Side Management
75 Green and Alternative Energy 525
Total 1.16 billion Objective to defer VIGP
2 (third plant) 5 to 10 years. Shared joint
venture costs
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Georgia Strait Crossing Project

• New natural gas marine pipeline connection
  between the mainland and Vancouver Island
• BC natural gas
• Safest environmental and seismic route
  
• Joint project between BC Hydro and Williams -
  share cost
• Approx. cost - 260 million Cdn.
• NEB oral hearings begin June 17, 2002
• In-service date - Oct. 2004

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Vancouver Island Generation Project

• Replacement project for the Project Alberni
  Generation Project
• Site acquisition complete April 2002
• Submit Application to BC Environmental Assessment
  Office (BCEAO) late Spring 2002
• Anticipated construction period - Spring 2003-Nov
  2004
• In-service date of November 2004 is critical

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Site Criteria

• Social, environmental and economic considerations
• Industrial zoning
• Community support
• 10 acres flat plus 10-15 acres construction
  staging
• Fresh water and waste
• Access to gas pipeline and transmission corridor

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Site Selection Process

• 12 sites shortlisted to 4
• City of Nanaimo, Duke Point (2)
• Nanaimo Regional District (1)
• District of North Cowichan(1)
• Duke Point is the preferred option at this time

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Delay Consequences Beyond 2004

• Peak season November - February curtailments
• major customers, shutdowns, economic dislocation
• location specific brownouts - North Island, West
  Island, South Island
• Large customers switch to high polluting fuels
• Purchases from market - more expensive, more coal

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Vancouver Island Alternative/Green Generation

• Wind 10 megawatts
• Micro-hydro 7-9 megawatts
• Wave 3-4 megawatts
• Biomass 200 MW
• Challenges
• cost
• location
• connection
• reliability
• volume

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Demand Side Management/ Power Smart

• 1990-2000
• annual reduction of 2500 GWh of consumption or
  would require 500 MW additional generation
• 350 million
• 2002 - 2012
• annual reduction of 3500 GWh
• 600 million
• examples - energy audits, LED, SUCH

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Questions