Policy & Positions Manual

Policy Priority Area - A Vibrant Resource Sector

Dependable Power for the Asia Pacific Transportation Corridor (APTC) (2010)

The northern BC economy is resource rich, but it is also resource dependant. In order to remain economically sustainable into the future, the region must continue to diversify and increase the depth of its resource development. This economic development, and the businesses committed to developing the resources, require critical infrastructure such as transportation and electric power. Creating products and moving them to markets involves service delivery and production cycles, which need these reliable transportation corridors and stable and dependable electric power grid access.

The Asia Pacific Transportation Corridor (APTC), along highway 16 and the CN rail line, links the port of Prince Rupert with Winnipeg and points east. The APTC passes through the Rocky Mountains by way of Yellow Head Pass, east of Tete Jaune Cache. This corridor has all the needed components for economic development except a stable power supply.

The area is currently served by 25 KV distribution power lines, which are typically long radial lines spanning out from a higher voltage power grid. Extensions of the 25 KV power lines throughout the North of BC, and the addition of more customers, has resulted in an increase in both the number of power outages and the frequency of poor power quality in the form of low voltage periods and voltage sags and spikes. These power quality issues can damage electrical and electronic equipment.

BC Hydro has advised the local area residents and business interests that improvement to power reliability and power quality would next come from development of 138 KV power supply to the area, through upgrading the transmission power supply grid, which would be done by the BC Transmission Corporation.

Dependable power supply will help facilitate local economic development, such as;

  • Local meat processing and the opportunity for increased pork, beef and poultry production.

  • Establishment of a root crop industry, including growing, storing, processing, packaging and shipping.

  • Expansion of forestry industry activity and bio-energy production from wood waste.

  • Development of the tourism and recreation industry, allowing access to the natural beauty of the area.

  • Creation of small hydro power development and electrical energy supply.

  • Creation of wind energy development and power supply.

The raw materials, processing capabilities, and entrepreneurial business interests exist to support the economy in the north of BC. The transportation corridors also exist, but power supply and grid access are weak.

The BC Government is encouraging the development of a green energy industry. Significant untapped resources exist along this APTC corridor in the form of run of the river hydro projects, bio-energy projects and wind generation projects.
These independent power producer (IPP) projects cannot proceed without adequate access to the higher voltage power grid. These IPP projects add green power to the provincial grid and contribute to the provincial treasury proportionately for years to come through license fees, development, investment, substantial water license fees, construction employment, and on-going operation and maintenance employment.

For example:

  • In the Robson Valley (Tete Jaune Cache to Slim Creek) alone, creek diversion hydro projects have the potential to create jobs and taxable incomes for the province during construction. Such projects along with the construction of a 138 KV transmission line and substation facilities would result in an estimated $300,000 to $500,000 in tax revenues for the provincial economy.

  • In McBride a biomass project planned for a non-operating mill site is projected to cost about $45 million to develop and build. This project would generate estimated net revenues of about $14.79 million and would provide employment in direct jobs as well as for the local logging firms. The heat generated as a by-product would make a seedling greenhouse operation viable and provide for regeneration and renewal of forestry resources.

  • The construction of a 138 KV transmission line and substation would help ensure vital economic development in this rural area of British Columbia. The 138 KV power line access to the provincial power grid would enable this area to contribute green power to support the environmentally sustainable future of the BC economy. The construction of the transmission lines and substation would provide 150 jobs over a three year period and help put local contractors to work, and allow these businesses to upgrade and reinvest in their equipment.

The planning for transmission lines in the Province is conducted by the BC Transmission Corporation and is done in concert with BC Hydro’s resource planning staff in regard to potential IPP project clusters. BCTC has advised the local residents and businesses that the upgrading of transmission in the area to 138 KV is not a priority, and is not currently scheduled for development. The Chamber of Commerce has previously recommended to the BC Government the advance development of transmission capabilities to ensure that transmission facilities are available on a timely basis to support economic development throughout the province. The BC Government has initiated a Section 5 Inquiry before the British Columbia Utility Commission to review transmission planning to ensure its timely development. The Section 5 Inquiry has been on hold for the last year while the BC Government deals with its duty to consult with First Nations. Once the Section 5 Inquiry recommences the transmission planning criteria will come under review. At this point the importance of economic development particularly to rural communities throughout the province and including the APTC corridor can be asserted. This can be done directly with the BCTC, BC Hydro and the BCUC, and can be augmented by expressions of the importance of these economic development priorities from the BC Government. 

THE CHAMBER RECOMMENDS

That the Provincial Government:

  1. through its supervision of  BC Hydro ensure that criteria for providing reliable supply of electric power to rural areas of British Columbia, including along the Highway 16 APTC are given greater weight in the planning for transmission line upgrades; and

  1. through its supervision of  BC Hydro and the BC Utilities Commission and the proposed Section 5 Inquiry and or the Integrated Resource Planning process, aimed at providing direction for the 30 year transmission plans for British Columbia, ensure that the transmission planning criteria used includes the objectives of supporting rural economic development and are sufficiently geared to anticipate the economic potential which can be achieved through the provision of higher voltage power supply and access to the higher voltage power grids, including the economic potential available along the APTC.