THEREFORE BE IT RESOLVED that UBCM ask the provincial government to create legislation that will address the huge utility rates paid to independent power producers to allow the Province the ability to purchase electricity from the open North American market, in the same manner as previously, if those rates are competitive; AND BE IT FURTHER RESOLVED that the provincial government take action through legislation that would permit BC Hydro to produce power from existing public facilities as opposed to forcing it to buy expensive power from independent power producers at rates higher than BC Hydros; AND BE IT FURTHER RESOLVED that all independent power producers contracts that have yet to be built be frozen; AND BE IT FURTHER RESOLVED that the BC Utilities Commission investigate and produce a position on the impacts of independent power producers on businesses, residents and non-profits of British Columbia.
Ministry of Energy Mines Electricity purchase agreements EPAs with independent power producers IPPs ensure that BC Hydro will have clean, reliable power at predictable prices for the long term. New power projects are expensive compared to projects built decades ago, whether built by BC Hydro or IPPs. BC Hydro does purchase energy in the US and Alberta markets during low water years and to store for later re-sale at a profit, which creates ratepayer benefits. IPPs currently account for about 25 percent of BC Hydros domestic supply and will provide a large portion of power needs over the next several years. BC Hydro has signed legally binding contracts with IPPs and does not plan to abrogate its commitments. IPP projects add value for BC Hydro ratepayers by shifting project development, financing and operating risk to the private sector. The incremental cost of IPPs equates to approximately 0.2 percent of the 15.6 percent cumulative 20152016 BC Hydro rate increase. BC Hydro has EPAs with some UBCM members e.g., Capital Regional District; City of Nanaimo. Local governments continue to benefit from the tax revenues provided by IPP projects. BC Hydro has been working with some IPP developers with pre-operational EPAs awarded as part of BC Hydro calls to cancel, defer or downsize projects due to BC Hydros current energy surplus. Currently, BC Hydros procurement of energy from IPPs is limited to the Standing Offer Program, which is limited to projects with a capacity of up to 15 MW. Any EPAs that BC Hydro enters into are cost-effective compared to viable alternatives.