From: Jean Hicks [ ] Sent: May 4, :55 AM To: SiteC Review / Examen SiteC [CEAA] Subject: Public Submission

Transcription

1 From: Jean Hicks [ ] Sent: May 4, :55 AM To: SiteC Review / Examen SiteC [CEAA] Subject: Public Submission Canadian Environmental Assessment Agency: Please find comments as attached. The second attachment is a BC Hydro document, attached only as a reference for BC Hydro s stated claims on projected power use. Jean Hicks,

2 Submitted as public comment on draft Environmental Impact Statement Guidelines, SITE C CLEAN ENERGY PROJECT Section 4.1. Need for and Purpose of the Project The 2007 British Columbia Energy Plan requires that each new electricity generation project possess zero net gas emissions. If the Site C project satisfies this requirement but at the same time allows increased production of gases through natural gas drilling/ LNG processing development that otherwise would not have proceeded because of reduced access to electrical power EIS Guidelines should include analysis of resulting gas emissions from enabled industries. In a planning document titled Generate 2011 Meeting New Power Needs * dated Sept 26, 2011, Warren Bell, Economic and Business Development, BC Hydro anticipates a growing demand for electric power in northern BC: Montney: MW Horn River basin: MW North coast LNG: up to 1700 MW If projections such as these are included as part of BC Hydro s justification for the Site C Clean Energy Project, the resulting situation (where a net zero gas emitting power source is used by industry to produce positive gas emissions) should be recognized as potentially undermining the intent of British Columbia s green energy plan. EIS Guidelines should direct the proponent to report projected gas emissions from subsequent industrial use, including hydrocarbon extraction /processing, of Site C power. Section 4.2 Alternatives to the Project A comprehensive environmental assessment should seek to examine pre existing assumptions, such as accepted need for increasing electrical power generation. Specifically, EIS guidelines should consider the possibility of continued operation with existing power assets. EIS Guidelines should require that BC Hydro include an alternative option of managing demand with rate restructuring, realization of Columbia River Treaty downstream benefits and further conservation efforts. Section Cumulative Effects Assessment The 2010 BC Clean Energy Act sets a target of reducing BC greenhouse gas emissions in 2020 by 33% less emissions than in 2007, and in 2050 by 80% less emissions than in Similarly, as stated in the draft EIS Guidelines, new natural gas fired electrical power generation must have zero net GHG emissions and any analysis of such a proposed alternative would have to include a discussion of GHG offset related costs. EIS guidelines should direct the proponent to prepare an accounting of how GHG offset costs from new industrial use will be allocated to the Site C project. *separate attachment with this e mail SUBMITTED: Jean Hicks, Chetwynd

3 GENERATE 2011: MEETING NEW POWER NEEDS Warren Bell Economic & Business Development BC Hydro September 26, 2011

4 MEETING DEMAND Unprecedented load growth potential in the North Driven by shale gas and mining developments Montney Horn River basin North coast LNG Mining MW MW up to 1700MW MW Key challenges Timing transmission and generation Ratepayer impacts Customers should approach BC Hydro early to ensure supply 2

5 MONTNEY / SOUTH PEACE Significant oil and gas developments driving need for rapid investment in infrastructure Adapted from: B.C. Ministry of Energy and Mines and the National Energy Board report: Ultimate Potential for Unconventional Natural Gas in Northeastern British Columbia s Horn River Basin, April,

6 MW MONTNEY BASIN: DEMAND GROWTH 900 Dawson Creek and Groundbirch Load Forecast CUSTOMER REQUEST HIGH BASE '10 '15 '20 '25 '30 '35 '40 Fiscal Year Existing transmission capacity 4

7 PHASE 1: DCAT Dawson Creek Chetwynd Area Transmission Project To Fox TXB GMS 5L1 5L2 5L3 PPS PCN 1L361 1L364 1L374 1L360 LAP SLS FJN TAY DCAT: 138kV Line (constructed at 230kV) 1L358 NGL FBC MCM MGP SEP 1L377 KIS 1L362 BMT DAW BMW Double circuit 230 KV Will increase firm transmission capacity from 70 to 185 MW 72 Km 2L309 To KDS CWD KGP 2L312 SNK KG2 2L313 DCAT: 230kV Line (double circuit construction to accommodate future needs) DCAT: New Substation - Sundance DCAT: Expand BMT Station BPE5 BPE2 BPE3 CPCN submittal Summer 2011 In-service date October L322 TLR 2L323 BLM 5

8 DCAT Commercial Model Customers pay same rates for electricity as all other industrial customers Customers also provide security (LoC, corporate guarantee, etc.) for their pro-rata share of transmission capacity Security protects BC Hydro and rate payers against risk of stranded investment Customers in queue have provided letters of intent to support regulatory process Security will be provided once technical studies are complete and Facilities Agreement is executed. 6

9 PHASE 2: GDAT To FOX TXB 1L364 FJN TAY NGL FBC MCM MGP Several options being considered SEP PPS 1L374 1L360 1L377 GMS to Sukunka GMS 5L1 5L2 5L3 PCN 1L361 LAP SLS SHELL KIS 1L362 1L358 BMT DAW BMW Sukunka to Sundance To KDS 2L309 CWD 2 x 230kV lines 2 x 230kV line SNK KGP Series Capacitor 2L312 2L313 BPN5 BPN2 Earliest in service date: Fall 2015 KG2 BPN3 BLM 2L322 TLR 2L323 Dawson Creek Area Transfer Capability N-0: 680 MW N-1: 600 MW 7

10 HORN RIVER BASIN Fort Nelson integrated with Alberta system via a single 144 kv transmission line. Electricity supply to the Fort Nelson area provided by the Fort Nelson Generating Station (FNG) with backup from Alberta. Horn River Basin is further north and has no interconnections. Adapted from: B.C. Ministry of Energy and Mines and the National Energy Board report: Ultimate Potential for Unconventional Natural Gas in Northeastern British Columbia s Horn River Basin, April,

11 HORN RIVER DEMAND GROWTH 9

12 HORN RIVER BASIN SUPPLY OPTIONS Interconnect with new transmission lines from the south Transmission line from BC integrated system to Fort Nelson / HRB Sub-transmission throughout the Horn River Basin Customers to self-supply No transmission line required Increase Fort Nelson s thermal generation Transmission line from Fort Nelson to the HRB Sub-transmission throughout the HRB BC Hydro is working with the HRB producers, pipelines, BC Hydro, BC Ministry of Energy to evaluate options 10

13 NORTHEAST TRANSMISSION LINE 500 km with capital cost = $1.5-2B Commitment from producers to take service and contribute capital In service date kv, 287kv and 500kv under consideration Mostly new right of way New station at Horn River Basin Connection at Fort Nelson 11

14 NORTHWEST BC NORTH OF TERRACE 6 mining projects load scenarios: up to 400MW 3 generation projects to date 0MW in winter to 305MW peak SOUTH / WEST OF TERRACE Major load development with LNG projects up to 1700MW 12

15 NORTHWEST TRANSMISSION LINE 13

16 NORTHWEST SUPPLY OPTIONS Existing 500kv line from Prince George to Terrace Current available capacity ~400MW Options: Transmission Upgrade existing line from 800 MW to 1380MW with series compensation equipment at substations. New 500kV line from Prince George to Terrace. Generation Clean energy province-wide (requires new 500kV line) Local generation without new transmission renewables firmed with SCGTs Industry self-supply (for LNG projects only) Gas turbine drives (mechanical) CCGT + electric drives Combinations of above options 14

17 BC HYDRO ANALYSIS UNDERWAY Load forecast, IRP System impact studies underway for: 4 mines 3 LNG projects (with multiple phases at each) Regional options Transmission solutions Generation solutions Combinations Rate impact analysis and potential mitigation measures Existing tariff New tariff LNG-specific rates Negotiated contributions Fixed rate/risk sharing agreement (under section 9 of CEA) 15

18 SUMMARY Natural gas and mining developments are driving unprecedented electric load growth in BC Major focus for BC Hydro in four areas: Montney / South Peace Horn River Basin Northwest Mining North coast LNG Timelines are tight for building new infrastructure Customers and potential customers should approach BC Hydro early in the planning stages 16

19 QUESTIONS WARREN BELL BC Hydro, Economic and Business Development