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British Apr 2 21112 Columbia BRITISH COLUMBIA APR 2 21112 Ms. Karen Goodings Chair Peace River Regional District Box 810 Dawson Creek, BC V1G 4118 Dear Ms. Goodings: Thank you for your November 29 and December 1, 2011 letters regarding British Columbia Utilities Commission (BCUC) oversight and natural gas generation. In your letters, you express concern regarding the change the Clean Energy Act (the Act) made to the role of the BCUC. The principal rationale for this change is that the development of critical electricity infrastructure in the Province can have a broader provincial benefit than is reflected in the narrower ratepayer interest normally considered by the BCUC. Section 7 of the Act set out a number of strategic projects, programs and contracts that support British Columbia’s energy objectives, and provides that these projects, programs and contracts will not be subject to further BCUC review. Going forward, the oversight role of the BCUC over BC Hydro continues. Recognizing the importance of BC Hydro’s plans for supporting British Columbia’s energy objectives, the Act requires that BC Hydro’s Integrated Resource Plans (IRP) be reviewed and approved by the provincial government. The expenditures, projects and contracts necessary to implement an approved IRP will be subject to BCUC oversight and approval (apart from those listed in Section 7). The Act also includes consequential amendments to the Utilities Commission Act providing that, in considering the ratepayer interest in projects, contracts or expenditures proposed by BC Hydro, the BCUC must “consider and be guided by” the IRP approved by the provincial government and British Columbia’s energy objectives. One of the energy objectives under the Act is to generate 93 percent of the electricity in British Columbia from clean or renewable resources. This objective was included because the terrain, climate, and forests of British Columbia give utilities, such as BC Hydro, a unique opportunity to generate electricity from renewable resources. The 93 percent objective ensures that British Columbia’s natural advantages for renewable generation support the provincial government’s commitment to climate action within the Province. The objective does not preclude the development of natural gas generation within the other seven percent. Exporting natural gas helps other jurisdictions without British Columbia’s unique opportunities generate electricity with the cleanest-burning fossil fuel. .12 Ministry of Office of the Minister Mailing Address: Energy and Mines P0 Box 9060 Stn Prov Govt and Minister Responsible for Housing Victoria BC V8W 9E2 -2- Thank you for writing. Sincerely yours, Rich Coleman Minister pc: Honourable Christy Clark Premier Honourable Blair Lekstrom, MLA Peace River South Mr. Pat Pimm, MLA Peace River North PEACE RIVER REGIONAL DISTRICT Office of the Chair December 1, 2011 The Honourable Rich Coleman Minister of Energy and Mines PC Box 9060 Stn Prov Govt Victoria, BC V8W 9E2 Via Email: EMHMinistergov.bc.ca Dear Minister Coleman: Re: Clean Energy Act Restrictions For Use Of Natural Gas For Electricity The Peace River Regional District is struggling with the Province’s stringent restrictions within the Clean Energy Act that restrict the use of natural gas as an energy source fuel primarily as it pertains to the production of electrical energy. Here in northeast BC natural gas has been used to produce energy to run the electrical components of most of the production facilities of the oil and gas industry for the past 70 years and natural gas will continue to be the most economical way to power their needs into the future. BC gas is being shipped across North America to feed electric generation plants and we have all heard about the plans to ship our resource worldwide through the liquid natural gas (LNG) processing facilities. Natural gas is recognized worldwide as efficient and has always been touted to be clean burning whether used in vehicles, furnaces, hot water tanks or grain dryers. We understand that natural gas is a non-renewable fossil fuel, but if we are willing to produce the gas and ship it for use around the world why would we restrict the use of our own resource in the production of our electricity. British Columbians should benefit from this resource and its electrical production capabilities. Please consider amending the Clean Energy Act renewable energy target for producing electricity to allow electric energy producers the opportunity to make use of BC’s Natural Gas. Thank you for considering our earnest request and please give serious consideration to British Columbian advantage by using BC’s own natural resources. Yours truly, Karen Goodings, Chair cc: The Honourable Christy Clark, Premier of British Columbia The Honourable Blair Lekstrom, MLA —Peace River South Mr. Pat Pimm, MLA — Peace River North North Central Local Government Association Union of British Columbia Municipalities PLEASE REPLY TO: BOX 810, DAWSON CREEK, BC V1G 4H8, TELEPHONE: (250) 784-3200 or 1-800-670-7773 FAX: (250) 784-3201 EMAIL: [email protected] 9505-100 STREET, FORT ST. JOHN, BC V1J 4N4, TELEPHONE: (250) 785-8084 FAX: (250) 785-1125 EMAIL: [email protected] , PEACE RIVER REGIONAL DISTRICT Office of the Chair November29, 2011 The Honourable Rich Coleman Minister of Energy and Mines PC Box 9060 Stn Prov Govt Victoria, BC V8W 9E2 Via Email: EMH.Ministergov.bc.ca Dear Mr. Coleman: Re: Clean Energy Act Restriction of Oversight by the British Columbia Utilities Commission The Peace River Regional District believes that the Clean Energy Act needs to be revised to allow the British Columbia Utilities Commission (BCUC) an opportunity to review any and all projects of significance to determine the cost effectiveness for all residents of our Province. The BCUC provides an objective overview to determine necessity. One such project that is of immediate importance would be Site C. The BCUC overview is a critical component in the promotion of open and transparent decision making for this and other projects. At its November 24, 2011 meeting, the Regional Board debated and passed the following resolution: WHEREAS the Clean Energy Act has exempted a British Columbia Utilities Commission overview of certain projects; AND WHEREAS the involvement of British Columbia Utilities Commission would bring another independent transparent overview of major energy initiatives; THEREFORE BE IT RESOLVED that the Board of the Peace River Regional District requests that the Minister of Energy and Mines amend the Clean Energy Act to re-instate the overview agency, British Columbia Utilities Commission, into this Act. Over the years the British Columbia Utilities Commission through the Utilities Commission Act has proven its wise and learned understanding of public need, public demand and corporate vision. The Commission’s recommendations are mandated to be in the best interests of British Columbians. We urge the Minister to look at removing Section 7 from the Clean Energy Act and make full use of the expertise available through the British Columbia Utilities Commission in reviewing these and future projects. Thank you for your attention to this matter. Yours truly, Karen Goodings, Chair cc: Christy Clark, Premier Blair Lekstrom MLA —Peace River South Pat Pimm, MLA — Peace River North North Central Local Government Association Union of British Columbia Municipalities PLEASE REPLY TO: Li BOX 810, DAWSON CREEK, BC V1G 4H8, TELEPHONE: (250) 784-3200 or 1-800-670-7773 FAX: (250) 784-3201 EMAIL: [email protected] LI 9505- 100 STREET, FORT ST. JOHN, BC V1J 4N4, TELEPHONE: (250) 785-8084 FAX: (250) 785-1125 EMAIL: [email protected].
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