BC Hydro Power Smart Presentation

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BC Hydro Power Smart Presentation

• Standing Senate Committee on Energy, the
  Environment and Natural Resources
• Kyoto Implementation
• Ted Ferguson
• BC Hydro
• June 14th, 2003

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BC Hydro Profile

• 3rd largest electric utility in Canada
• 1.6 million customers
• 52,000 GWh in 2002
• 94 hydro
• 5 natural gas
• 20 growth in demand expected over next 10 years
• Annual emissions 13 Mt (potential for 5Mt/yr
  during Kyoto)
• Significant trade with US

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Our Long Term Goal
To be the leading sustainable energy company in
North America
sustainability
We manage three bottom lines economic, social
and environmental
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Greenhouse Gas Emissions 1990-2010
Forecast
Emissions if no action taken
Mt
Actual emissions
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Greenhouse Gas Intensity
T/GWh
BC Hydro
Canada
USA
Alberta
2002
2010
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Climate Change Initiatives

• Power Smart helping our customers save
• Resource Smart getting more energy out of
  existing facilities
• Cleaner energy acquiring GHG-free or low
  GHG-intensity energy from private producers
• All 3 initiatives defer the need for new thermal
  generation in BC and avoid GHG and local air
  emissions

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Emission Reduction Power Smart

• Initiated in 1989
• Targeted all customers with info and incentives
• Spent 350 million over 10 years
• Energy savings to date worth 1 billion
• Current savings 2,600 GWh per year
• 5 reduction in domestic consumption
• GHG reductions 1.2 million tonnes per year
• Renewed in 2001
• Plan to spend 600 million over next 10 years
• By 2010, targeting additional
• 3,500 GWh per year of energy savings
• 5 reduction in domestic consumption
• 1.3 million tonnes per year of GHG reductions
• Most aggressive program in Canada

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Customers Power Smart

• Power Smart renewed in 2001
• The business climate today supports doing more
  rather than less Demand Side Management programs.
• It is an important piece of the resource
  acquisition strategy for BC Hydro
• We have set aggressive targets
• 3,500 GWh per year of energy savings
• 35 of energy required to meet load growth in
  next 10 years
• applications for incentives representing 500 GWh
  made by customers in response to competitive
  calls
• Plan to invest 600 million over 10 years
• It makes business sense
• It delivers value to our customers

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Power Smart - Industrial Incentive Examples

• Highland Valley Copper
• Incentive Request
• Amount Approved 882,000
• Estimated Energy Savings 20 GWh
• Estimated Install Cost 2.9M
• Project Details
• Extend 42 inch reclaim water pipeline
• Levelized Cost
• 0.65 cents per kWh

• Norske - Debarker
• Incentive Request
• Amount Approved 500,000
• Estimated Energy Savings 10 GWh
• Estimated Install Cost 1.3M
• Project Details
• Woodroom mechanical barker installation
• Levelized Cost
• 0.72 cents per kWh

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Power Smart - Industrial Customers

• Load Displacement Example

• Weyerhaeuser
• Incentive Request
• Amount Approved 18M
• Estimated Energy Savings 155 GWh
• Estimated Install Cost 28M
• Project Details
• hog fueled turbogenerator
• Levelized Cost
• 1.5 cents per kWh

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Power Smart - Customers

• LED traffic lights
• 90 energy savings
• 41 GWh per year from 3,500 traffic lights
• BC Hydro pays 100 of replacement cost, with
  municipality repaying 50 over 5 years from
  savings
• 95 of intersections Province-wide are scheduled
  for replacement
• City of Vancouver savings
• 7 GWh per year
• 250k electricity costs
• 110k maintenance costs

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Power Smart - Residential

• Vancouver Island Compact Fluorescent Light (CFL)
  program
• In the Greater Victoria area, 55 (over 60,000)
  of residential households participated in the CFL
  program over a 2 month period
• results over 126,000 CFLs distributed

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Power Smart Examples

• e.Points
• earned by customers improving their energy
  efficiency by 5 or more
• can be redeemed for further Power Smart
  improvements, thereby generating additional
  savings

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Suppliers Current Energy Calls

• We expect to meet the voluntary 50 clean energy
  target
• Demand growth net of Power Smart is estimated at
  6500 GWh per year by 2012
• Clean energy target is 3250 GWh per year by 2012
• We expect to meet the target through a
  combination of
• 980 GWh/year from 2001 Green call to Independent
  Power Producers
• 800 GWh/year from 2002 Customer Based Generation
  call
• 800 GWh/year from 2002 Green call to Independent
  Power Producers
• 1200 GWh/year through Resource Smart efficiency
  improvements at existing BC Hydro facilities

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Adjustments to Bid Prices for Green Power for
ranking purposes only
Adjusted Bid Price ( / MWh) (for bid comparison
only)
Bid Price ( / MWh)
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Emissions Trading

• BC Hydro expects to be a buyer in a Kyoto
  framework
• Trading system needs to be liquid, and targets
  need to be set equitably
• Efforts on conservation and green need to be
  incorporated in either the targets or emission
  credits.
• Issues around double-counting in the electricity
  sector need to be resolved so as to provide the
  proper signal for more renewable energy and
  energy efficiency

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Tradeable Energy Efficiency and Green Certificates

• BC Hydro already selling Green Power Certificates
  
• a national system of tradeable renewable energy
  certificates could be beneficial
• Energy efficiency certificates - representing I
  MWh of energy savings, could be traded to
  encourage efficiency.
• already used in UK and Italy

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• For Further Information
• ted.ferguson_at_bchydro.com
• 604-528-3116
• www.bchydro.com