BACKGROUNDER |
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| Original News Release |
British Columbians will continue to own BC Hydro and benefit from its legacy of low-cost electricity under the province's new energy plan, Energy for Our Future: A Plan for BC.
BC Hydro’s core assets – generation, transmission and distribution facilities – will remain in the hands of the public, protecting the investments made by previous generations. At the same time, changes to BC Hydro’s operations will improve efficiency and help secure a reliable supply of low-cost power for the future.
Highlights include:
BC Hydro Transmission Corp.A new Crown corporation, BC Hydro Transmission Corp., will operate the transmission grid. The grid will remain a BC Hydro asset. Independent power producers will be able to access the transmission system and sell directly to large consumers. This will stimulate new investment in power generation and give producers the confidence they need to expand supply. BC Hydro will only upgrade it existing facilities; the private sector will provide new generation. The new investment is expected to create jobs and strengthen B.C.’s economy. The new corporation will ensure the province has sufficient transmission capacity, and that there is continued access to electricity trading opportunities in the U.S. Transmission rates and operating parameters will be set by the B.C. Utilities Commission to ensure B.C. residents have a safe, reliable supply of electricity.
Limiting BC Hydro’s role in new electricity generation. As demand continues to rise, this will create opportunities for independent power producers to come forward with innovative, economical new ways of meeting emerging needs. BC Hydro’s participation will be limited to upgrading and making key improvements to existing generating facilities. With the private sector taking the lead in new generation, taxpayers will be protected from many of the risks and costs involved in developing new power sources. The B.C. Utilities Commission will review and approve any new BC Hydro energy purchases.
Outsourcing non-core services. In areas where costs can be reduced while maintaining service levels, outsourcing may occur. For example, BC Hydro’s partnership with Accenture will help reduce costs for customer service, information technology, human resources and financial and procurement services. Cost savings from these changes will help to keep rates low.
Enhancing conservation and energy efficiency. BC Hydro will work towards acquiring 50 per cent of new power supply from clean sources over the next 10 years. Successful conservation programs like PowerSmart will continue, and new rate structures will be introduced for large customers. These structures will encourage conservation by providing power at lower rates in off-peak periods, and by encouraging reduced demand through rate structures without increasing costs to customers.
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Visit the province's Web site at http://www.gov.bc.ca/ for online information and services. |
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contact: |
Communications Director 250 952-0621 |
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