A Critical Analysis of BC Hydro’s Delivery Model for Meeting the Clean Energy Act’s Requirements

On June 3, 2010, the BC Government’s Clean Energy Act, Bill 17, became law. This new legislation set out a framework through which the province is to achieve ‘electricity selfsufficiency’ by the year 2016. BC Hydro is responsible for delivering initiatives within this framework through a series of projects that include building new power generation infrastructure; connecting independentpower producers; and promoting energy conservation through demand side management. This paper provides an analysis of BC Hydro’s financial and organizational ability to deliver the requirements mandated by the Act. The utility’s resource constraints will be evaluated in terms of building new assets (such as new generation facilities), purchasing power through IPPs and managing energy conservation initiatives. Finally, recommendations for future revenue rate increases and project forecasts are suggested in order for BC Hydro to sustain itself through 2016 and for generations.