B.C. government orders Burrard Thermal writeoff

By Scott Simpson, Vancouver Sun, October 29, 2009

VANCOUVER — The British Columbia government has written off the aging Burrard Thermal generating plant as a reliable source of electricity.

Energy Minister Blair Lekstrom announced late Wednesday that BC Hydro can no longer include the 50-year-old, gas-fired plant on its roster of power generating facilities.

At full operation, Burrard is one of the largest sources of greenhouse gas in the province, but has been increasingly relegated by BC Hydro to a role backing up the province's sprawling network of hydroelectric facilities — due to its age and the relatively high cost of natural gas.

However, despite limited use Hydro has been listing Burrard on its books as part of its primary electricity supply.

That policy effectively diminished the amount of new, private sector power development deemed necessary to enable Hydro to reach its government-mandated target of making B.C. electricity self-sufficient by 2016.

The policy helped minimize the rate increases that are necessary to cover the cost of development of new power generation.

But it also cramped the government's plans to expand private power development in hopes of creating enough surplus power for expanded export sales to the United States and Alberta.

In an interview, Hydro vice-president Bev Van Ruyven said Thursday that Hydro is now 6,000 gigawatt hours per year short of the generating capacity needed to meet the self-sufficiency target and is now looking at its options for hitting the government's target on schedule.

Hydro has a number of options including a pending deal with Teck Cominco for expanded power supply from private generating facilities in southeast B.C., development of a new biomass-powered generation sector — and expanding its call for green power generation bids.

ssimpson@vancouversun.com

Check out Scott Simpson’s blog: www.vancouversun.com/energy

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