- 2 3. How would B.C. Hydro's firm power surplus change if the following projects were not completed: d. Any subsequently planned large hydro or fossil fuel projects As indicated in Tables 1 and 2 provided in response to Question 1, the Peace Site C, Keenleyside and Murphy Creek projects will not be scheduled until they are needed to serve domestic loads in British Columbia. With this planning criteria, B.C. Hydro would not normally have a firm energy surplus. Therefore, if the above projects were not completed, B.C. Hydro could experience firm energy deficits by about 1990. 4. How much firm power and non-firm energy has B.C. Hydro sold to the United States during each year since completion of the Pacific Intertie? How much revenue have these sales generated for B.C. Hydro? Table 3 illustrates the amount of non-firm energy sold to the United States since the 1976/77 fiscal year, and the gross revenue to B.C. Hydro in U.S. dollars. Information was not readily available for years prior to 1976/77, but except for the 1972/73 and 1973/74 fiscal years, such sales were quite small, and the gross revenues were significantly less than in the recent 7 year period shown on Table 3. Except for small amounts of firm power sold to Point Roberts, Washington and Hyder, Alaska, B.C. Hydro has not entered into firm power sales to the United States. 5. What laws, regulations, and policies of British Columbia and Canada govern export of B.C. Hydro power to the United States? B.C. Hydro must obtain an export licence from the National Energy Board (NEB) in order to export power to the United States. Such licences are normally granted for a 5-year period, but in the case of firm exports, licences of up to 25 years may be granted. B.C. Hydro must also receive approval from the British Columbia Government for export of power to the United States. .../3 - 3 6. Is B.C. Hydro interested in selling additional firm power and non-firm energy to the United States? B.C. Hydro has traditionally sold surplus energy, that may be available under average or above average streamflow conditions, to the United States on an interruptible basis. B.C. Hydro hopes to continue this mode of operation, and in the short term it appears that it will have greater amounts of non-firm energy available for export than in the past. In addition, for the next few years surplus firm hydroelectric energy will also be available which B.C. Hydro would consider selling as a short term firm sale. Present policy of the British Columbia Government does not permit long term firm exports to the United States. However, B.C. Hydro is interested in exploring such opportunities so that it may keep the B.C. Government advised of the benefits that could flow from such sales. 7. What is the impact on B.C. Hydro of the current surplus of firm power in the Northwest United States? Are B.C. Hydro's export sales revenues declining? Is B.C. Hydro experiencing difficulty in obtaining transmission to markets in California? Is B.C. Hydro delaying the installation of turbines at hydroelectric projects nearing completion because there is no available market for the additional power? Because of the current surplus of firm power in the Northwest United States the main market for surplus energy from the B.C. Hydro system is in California. B.C. Hydro has experienced difficulty this year in obtaining transmission access to markets in California and consequently has not been able to market all the surplus energy that was available. However, as shown on Table 3, B.C. Hydro was still able to sell a significant amount of energy to the United States during the 1982/83 fiscal year. The only hydroelectric project under construction by B.C. Hydro is the Revelstoke Project on the Columbia River. The current construction schedule indicates the first 4 units at this project will be completed during 1984, and this schedule is not likely to change significantly due to the short term market situation. B.C. Hydro would not schedule the remaining 2 units at Revelstoke until there is a need for additional peaking capacity in the system, which is unlikely to occur until after the year 2000. System Operations 29 June 1983 IN THE MATTER OF THE UTILITIES COMMISSION ACT and IN THE MATTER OF BRITISH COLUMBIA HYDRO AND POWER AUTHORITY DECISION February 28, 1983 25-181 0-83-42 Before: J.D.V. Newlands, Deputy Chairman, and Chairman of the Division M.W. Mulligan, Deputy Chairman (Deceased December 15, 1982) F.E. Walden, F.C.A. Commissioner |