The story so far:
The Liberal government passed the Clean Energy Act in June to inject investment into the province’s green energy industry, with a key goal of increasing such clean-energy exports as hydroelectric, solar and wind. Under the act, BC Hydro could serve as a clean energy middleman, buying power from private producers and selling it to provinces and U.S. states. (No contracts have been signed yet.) Pursuing private-sector energy partnerships was a minefield for the governing Liberals. The NDP ran on a moratorium on private power production in the 2009 election. The Liberals had already called for clean power through contracts with private energy producers, but the plan was rejected by the British Columbia Utilities Commission as “not in the public interest” in July of 2009. In response, the Liberals passed the Clean Energy Act, which includes export-oriented private power projects that will no longer be subject to utilities commission regulation.
Political calculations:
The Liberals have promised that a clean energy export market supported by the private sector will create jobs, keep prices low and help achieve the legislated goal of becoming electricity self-sufficient by 2016. To protect ratepayers, the government has said it will only acquire energy to export when there will be a financial return.
NDP energy critic John Horgan said the Liberals are trying to create an artificial export market and that BC Hydro customers will be left footing the bill. Buyers are not guaranteed and are unlikely to offer the full cost of the privately produced power, which will force the province to eat the difference, he said. The NDP would also like to see B.C.’s energy market firmly in the hands of public-sector BC Hydro, which could continue to buy and sell energy strategically to ensure the lowest prices and highest returns for taxpayers.
The Players:
We want British Columbia to become a leading North American supplier of clean, reliable, low-carbon electricity and technologies that reduce greenhouse-gas emissions while strengthening our economy in every region. — Premier Gordon Campbell, April 28
We are creating an opportunity to give shareholders a return when we should be creating opportunities to make the [public] utility more efficient and more attuned to the needs of British Columbians. — NDP energy critic John Horgan, July 28
The debate (click the headlines to read each argument):
Export opportunities
Bill Bennett, B.C. Energy Minister: "We are in a unique position."
California dreamin’
Jock Finlayson of the Business Council of British Columbia: "Temper your enthusiasm."— John Lehmann/The Globe and Mail
