Former B.C. Attorney General highlights BC Hydro’s growing need for imported power

“As the City of Vancouver debates requiring the use of more electricity instead of natural gas, it’s important to note the cost of depending on imported electricity,” noted Penner. “Accounting manoeuvrers known as “deferral accounts” can shelter ratepayers temporarily but bills eventually need to be paid. The $16 billion Site C dam and $36 billion for upgrades to BC Hydro transmission and distribution lines will also need to eventually be factored into electricity rates.”

Over two years of below-average precipitation has reduced output from hydroelectric facilities in British Columbia and the Pacific Northwest, Penner said. BC Hydro forecasts that demand for electricity will increase by at least 15 per cent by 2030, and possibly more. This is being accelerated by population growth, economic development, and provincial government policies such as the 2030 electric vehicle sales mandate of 90 per cent, as well as restrictions on the use of natural gas for residential and commercial heating.

“BC needs to recalibrate our electrification targets, as it takes time to significantly increase made-in-BC electricity supply,” concluded Penner. “Otherwise, British Columbians may end up paying the price.”

In June 2024, Penner said the release of another report about the reliability and dependability of electricity systems in North America heightened concerns about pressures faced by BC Hydro.

In their 2024 Summer Reliability Assessment, the North American Electric Reliability Corporation (NERC – a non-profit international regulatory authority) says “above-normal demand that coincides with low hydro output could result in a reserve shortage” this summer. The report concludes British Columbia faces operational challenges on multiple fronts, including drought, wildfires, and rapid electrification in the residential, commercial, industrial, and transportation sectors.

“BC Hydro has imported more than twice as much electricity this year than it did last year at this time,” said Penner. “Last year, net electricity imports reached record levels, amounting to 1/5th of domestic electricity demand. To put this in greater perspective, BC Hydro has already imported 7,165 gigawatt hours (GWh) of electricity this year, nearly the same amount as the Site C dam and recent 3,000 GWh hour call for power are hoped to produce in an entire year.”

While BC is expected to have “sufficient resource availability to meet reserves at the peak demand hour (5:00–6:00 p.m.) under most conditions,” the report says that “above-normal summer peak load and outage conditions” could require “operating mitigations”, such as the type of electricity emergency alerts utilized in Alberta earlier this year to quickly reduce consumption.

“Relying on our neighbours to bail us out of an electricity crunch is risky as they might have their own shortages,” continued Penner. This risk has been confirmed by NERC, which says “external assistance can be at risk during wide-area heat events.”

According to NERC, BC’s forecasted peak electrical demand has increased by 7.4% in just the past 12 months, or by more than 600 megawatts. This is more than half the maximum output of the still unfinished Site C dam, first announced 14 years ago.

“BC needs an updated energy plan that acknowledges our current challenges,” Penner asserted. “We need to significantly increase made-in-BC electricity supply while tempering policies which add strain and costs to our energy systems, such as the 90% electric vehicle mandate by 2030 and restricting the use of natural gas for new residential and commercial buildings.”

by Mike Vanden Bosch

Former B.C. Attorney General highlights BC Hydro’s growing need for imported power

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