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Draft Integrated Resource PlanFirst Nations WorkshopsJuly 13, 2012Ramada Inn – Abbotsford, BC
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Dan GeorgeIndependent / Neutral Facilitator
The role of Four Directions Management Services is to facilitate an inclusive, respectful and safe process where community voices can be heard concerning the Draft Integrated Resource Plan.
The role of Four Direction Management Services does not include the promotion or marketing of BC Hydro’s
Draft Integrated Resource Plan.
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Opening Thought
• Dialogue can help you uncover the un-discussed thinking of the people in your group.
• The problems we face today are too complex to be managed by one person. We require more than one brain to solve them.
• Dialogue seeks to harness the “collective intelligence” of the people around you; together we are more aware and smarter than we are on our own.
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Rules of Engagement
• Challenge ideas, not people• Participate• Stay focused and in process• Be positive and open• Be solution-oriented • One conversation at a time• Listen generously• Encourage new ideas; build on the ideas of others• Observe time limits; stick to the agenda• Ensure that everyone gets heard• See situation from a perspective other than your own
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How Did We Get Here?
Provincial Clean Energy Act requires BC Hydro to develop an Integrated Resource Plan
BC Hydro seeks input on key planning topics from First Nations, Public, and Stakeholders
BC Hydro considers input along with other planning and legislative requirements and develops the Draft Integrated Resource Plan
BC Hydro seeks feedback on the Draft Integrated Resource Plan
2010
2011
2011/2012
2012
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Why Are We Here Today?
• Review the input we received from you in developing the Draft Integrated Resource Plan
• Review the Draft Integrated Resource Plan
• Seek your feedback on the Recommended Actions in the Draft Integrated Resource Plan
• Listen generously and respectfully to your feedback
• Engage in a solution-based dialogue
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Agenda for Today
• What is an Integrated Resource Plan
• Review of Input received from First Nations
• Development of the Draft Integrated Resource Plan
• Recommended Actions in the Draft Integrated Resource Plan
• Next Steps before the Integrated Resource Plan is submitted to Government for approval
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What Is An Integrated Resource Plan
• A plan to meet customers’ needs for electricity in British Columbia over the next 20 years
• Updated at least every 5 years to be responsive to change in circumstances, such as legislation, policy direction, forecast demand for electricity, and other drivers
BC Hydro’s Integrated Resource Plan does not, by itself, commit BC Hydro to any specific capital projects. Recommended action items will be subject to subsequent approval and consultation requirements.
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Why Is An Integrated Resource Plan Needed
• To ensure British Columbians continue to receive cost-effective, reliable electricity over the long term
• To meet future electricity demand, BC Hydro needs to plan ahead
• Generation facilities can take 5-7 years to build; transmission even longer
• Provides strategic direction for BC Hydro
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Building Blocks of an Integrated Resource Plan
Updated planning context
The peak capacity & energy gap forecasts
Recommended Actions to close the gap between existing supply and forecast demand
Plan
2011 Dialogue Framework 2012 Dialogue Framework
Planningcontext
How muchelectricity is
needed?
How can needsbe met?
What Optionsbest meetneeds?
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First Nations Input
We received input on the following topics:
• Conservation & Efficiency
• Electricity Generation Options
• Electrification
• Transmission Planning
• Export Market Potential
• Clean or Renewable Energy Development in First Nation Communities
• Consultation Process
Additional information is available in the BC Hydro Integrated Resource Plan First Nations Consultation Interim Report at: www.bchydro.com/irp
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First Nations Input on Planning Topics –General Themes
• Participation in Economy• Creating jobs/revenue through participation in clean/renewable energy
development• Interest in procurement and employment opportunities with BC Hydro
• Environmental Protection• Support for actions that reduce greenhouse gas emissions• Widespread support for conservation and efficiency• Minimize environmental footprint• Perceived conflict between conservation and economic development
• Cultural Continuity• Importance of maintaining traditional way of life• First Nations identity is inextricably intertwined with the land
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• Local Decision Making• Perception that development benefits urban areas at the expense of First
Nations’ communities• Site C development not supported, needs consent of First Nations in
project area• Preference for planning from a First Nations’ territory view
• Affordable & Reliable Electricity• Preference for low electricity rates• Need for affordable energy efficiency upgrades• Reliable electricity service in First Nations communities
• Consultation Process• Significant concern and disagreement with BC Hydro’s characterization of
this process as ‘consultation’
First Nations Input on Planning Topics –General Themes
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These inputs considered alongwith technical, financial,
environmental and economicdevelopment inputs
Draft Integrated Resource Plan
Development Of The Draft Integrated Resource Plan
First NationsInput
Public & Stakeholder
Input
TechnicalAdvisory
CommitteeInput
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The Draft Integrated Resource Plan:• Seeks greater conservation and efficiency• Maintains competitive rates• Fosters economic development through clean or renewable
energy development• Includes dependable & flexible sources of electricity
The Draft Integrated Resource Plan does not address:• Energy planning from a First Nations territorial view• Specific energy acquisition strategies• The design of Power Smart programs
BC Hydro’s Integrated Resource Plan does not, by itself, commit BC Hydro to any specific capital projects. Recommended action items will be subject to subsequent approval and consultation requirements.
What’s In The Draft Integrated Resource Plan
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• Consultation on capital projects• Electricity supply to remote communities• Aboriginal employment• Training opportunities• Enhanced Aboriginal customer care• Aboriginal procurement• Internal cross-cultural training• Sponsorships & donations• Aboriginal scholarships• GIS data on Resource Options available on BC Hydro website*
*see handout for website link
First Nations Influence BC Hydro’s Business
[email protected]@lakebabine.com
Planning Context
Demand for Electricity
Reliable, cost effective, electricity service for BC Hydro Customers
Legislation/Policy
Global Economy & Market Trends
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B.C.’s Clean Energy Act• Self-sufficient by 2016• 93% of all electricity from clean or renewable
resources• Keep rates competitive• 66% of increased demand through
conservation/efficiency• Use renewables to help achieve GHG reduction
targets• Foster development of First Nations and rural
communities through use of and development of clean or renewable resources
Planning Context
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The Draft Integrated Resource Plan
Planningcontext
How muchelectricity is
needed?
What is the gap?
How can the gap
be closed?
New since 2011 that influences the plan• legislative change:
self-sufficiency requirement changed from critical water to average water
• annual long term load forecast updated in December 2011, shows energy demand to increase by 50% over the next 20 years
• planning context continues to evolve
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Energy and Peak Capacity
• BC Hydro must plan to meet both future “energy” and “peak capacity” needs
• “Energy” is the total amount of electricity that can be generated over a certain period of time
• “Peak Capacity” is the maximum amount of electricity that can be generated at any one time
• Sources of dependable peak capacity include:
Large Hydro with Reservoir Pumped Storage Natural Gas
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The Draft Recommended Actions
Recommended actions to address the forecast energy and peak capacity gaps• Conserve More• Build and Reinvest More in Existing Assets• Buy More
Prepare for Potentially Greater Demand
BC Hydro’s Integrated Resource Plan does not, by itself, commit BC Hydro to any specific capital projects. Recommended action items will be subject to subsequent approval and consultation requirements.
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The Draft Recommended Actions
Considerations:
• Technical Specifications (e.g., Reliability)
• Cost
• Effect on Provincial Energy Objectives
• Environmental Attributes
• Economic Development Attributes
• First Nations, Stakeholder, Public and Technical Advisory Committee Input
……………………………………………………RECOMMENDED ACTION #1: a) Increase our energy savings target to 9,800
gigawatt hours per year by 2020 (1,000 gigawatt hours more than the current plan) through conservation and efficiency programs, incentives and regulations.
b) Explore more codes, standards and rate options for savings beyond the annual target of 9,800 gigawatthours
……………………………………………………
Reduce Energy Consumption
• Clean & cost-effective compared to other options
• Program effectiveness is linked to behaviour
CONSERVE MORE
• See feedback form p. 3
……………………………………………………RECOMMENDED ACTION #2: Pursue voluntary conservation programs that encourage residential, commercial and industrial customers to reduceenergy consumption during peak periods.
………………………………...........................
Encourage Less Consumption During Periods of Peak Demand
• Improve voluntary programs designed to reduce peak demand or shift demand away from peak hours.
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CONSERVE MORE
• See feedback form p. 4
BUILD AND REINVEST MORE
………………………………………………………RECOMMENDED ACTION #3: Build Site C to add 5,100 gigawatt hours of
annual energy and 1,100 megawatts of dependable capacity to the system for the earliest in-service date, subject to environmental certification and fulfilling the Crown’s duty to consult and, where appropriate, accommodate Aboriginal Groups
..........................................................................
Site C
• Lower cost clean energy and capacity
• Dependable and flexible resource to backup wind and run-of-river hydro
• Supports self sufficiency and climate change goals
• Projected to provide 35,000 direct and indirect jobs
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• See feedback form p. 5
……………………………………………………..RECOMMENDED ACTION #4: Begin work to allow the sixth generating unit at Revelstoke Generating Station to be built by 2018, adding 500 megawatts of peak capacity to the BC Hydro system.………………...................................................
RECOMMENDED ACTION #5: Continue to investigate and advance cost-effective Resource Smart projects to utilize the remaining untapped capacity within BC Hydro’s existing hydroelectric system.........................................................................
Resource Smart
• Upgrades the existing system
• Cost effective energy and peak capacity
• Generally low or no incremental environmental footprint
BUILD AND REINVEST MORE
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• See feedback form p. 5-6
………………………………………....................RECOMMENDED ACTION #6: Fill the short term peak capacity gap from 2015 to 2020 with a combination of market purchases first, power from the Columbia River Treaty second, and extending the existing backup use of Burrard Thermal Generating Station, if required and as authorized by regulation ...……………....................................................
BUILD AND REINVEST MORE
Combine Readily Available Resources to Fill Short Term Capacity Gap
• Short-term capacity gap emerges in 2015 before new projects such as Revelstoke 6 and Site C come online
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• See feedback form p. 6
…………………………....................................RECOMMENDED ACTION #7: Reinforce the existing 500-kilovolt line from Prince George to Terrace to meet new demand on the north coast……………………............................................
BUILD AND REINVEST MORE
Transmission Requirements
• The existing 500-kilovolt line from Prince George to Terrace will need to be reinforced to meet new demand on the north coast
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• See feedback form p. 7
BUY MORE Made-in-B.C. Power
……………………………………………..........RECOMMENDED ACTION #8: Develop energy procurement options to acquire up to 2,000 gigawatt hours per year from clean energy producers for projects that would come into service in the 2016–2018 time period.…………………………………………………....Final decisions on the timing, and the volume of energy will be made once there is more certainty regarding projected new electricity loads.………………………………………...................
• Helps further close the gap
• Supports economic development through clean or renewable energy development
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• See feedback form p. 7
Facilitated Discussionon
Buy More Made-in B.C. PowerRecommended Actions
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BUY MORE Made-in-B.C. Power
…………………………………………….................RECOMMENDED ACTION #9: Continue to work with Liquefied Natural Gas developers to understand their electricity requirements, and keep options open until further certainty on future requirements can be established. Specifically: a. Undertake work to maintain the earliest in-
service date for a new 500-kv transmission line from Prince George to Terrace and Kitimat and from the Peace River region to Prince George.
b. Develop procurement options for additional clean energy resources, backed up by gas-fired generation (located only in the north coast, or in both the north coast and across the province) for electricity that could be delivered in the 2019–2020 time frame, should it be needed.
............................…...................................................
North Coast: Liquefied Natural Gas Development
• Two Liquefied Natural Gas facilities are included in base resource plan
• This recommended action addresses what if a third Liquefied Natural Gas facility requests service or a number of new mines come online.
PREPARE FOR POTENTIALLY GREATER DEMAND
47• See feedback from p. 8
……………………………………………………RECOMMENDED ACTION #10: Continue to monitor the northeast natural gas industry and undertake studies to keep electricity supply options open, including transmission connection to the integrated system, and local gas-fired generation..………………………………………..…………
Northeast: Natural Gas Extraction
• The Horn River Basin: a large area northeast of Fort Nelson not currently connected to BC Hydro’s integrated transmission system
• Potential large, new natural gas extraction could emerge in the Horn River Basin in northeast B.C. and seek electrical power from BC Hydro
PREPARE FOR POTENTIALLY GREATER DEMAND
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• See feedback form p. 9
……………………………………………………..RECOMMENDED ACTION #11a: Working with industry, explore pumped storage capacity options to reduce the lead time to in-service dates and to develop an understanding of where and how to site such future resources in the province, should they be needed. …………………………………………………....
Peak Capacity Resource Options
PREPARE FOR POTENTIALLY GREATER DEMAND
• Clean source of peak capacity• Located close to demand• Reduces need for new
transmission• Not previously developed in
BC
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• See feedback form p. 9
…………………………………………………..RECOMMENDED ACTION #11b: Working with industry, explore natural gas-fired generation options to reduce the lead time to in-service dates and to develop an understanding of where and how to site such future resources in the province, should they be needed.......................................................................
• Cost effective• Located close to demand• Reduces need for new
transmission• Provides backup for clean
intermittent resources, such as wind and run-of-river
PREPARE FOR POTENTIALLY GREATER DEMAND
Peak Capacity Resource Options
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• See feedback form p. 10
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Next Steps - Schedule
June 26th to July 13th 2012
• Regional Workshops for First Nations
2 weeks following workshop • Meeting Summaries Sent to Participants
August 13th 2012 • Closing Date for Written Comment Period
Fall 2012 • Consultation Report Posted to Website
December 2012 • Integrated Resource Plan to Government for Approval
Send your comments by August 13th 2012:[email protected] or fax to 604.528.2822
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• Engage your citizens and members
• Review the information on BC Hydro’s website: www.bchydro.com/irp
• We invite you to send written comments to:
Email: [email protected]
Fax: 604.528.2822
Call us:
Phone: 1.877.461.0161 ext. 3
Next Steps – Other Ways to Provide Your Feedback
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How would you like BC Hydro to engage you on its 5 – 10 year outlook of activities?
BC Hydro is also seeking your written comments on the following question:
See Page 10 of the First Nations Feedback Form on the Draft Integrated Resource Plan