Striking a balance between energy demand, environmental concernsBC Hydro endeavours to provide energy solutions to its customers in an environmentally and socially responsible way by balancing British Columbians' energy needs with the concerns of the environment. Through the efficient and reliable supply of electricity, BC Hydro supports the development of British Columbia and has constructed a world-class integrated hydroelectric system. Due to this efficient, reliable system, British Columbians enjoy some of the lowest electricity rates in North America.
 A change in the definition of electricity self-sufficiency in B.C.
Through previous legislation, the Province of B.C. has asked BC Hydro to ensure that B.C. is electricity self-sufficient by 2016. The government review of BC Hydro in 2011 recommended a change to the definition of self-sufficiency to help keep rates affordable for British Columbians. The change requires BC Hydro to plan for average water conditions instead of historically-low critical water conditions. This means that BC Hydro must have, by 2016, enough B.C.-based energy to meet customer demand in an average water year. What is self-sufficiency?Self-sufficiency means that BC Hydro has the ability to meet the energy needs of our homes and businesses with electricity supply from sources that are right here, in B.C. Why is self-sufficiency important?B.C.’s electricity grid connects to Alberta and Washington State. This interconnection gives us flexibility – it provides us with the ability to import power when our provincial demand is high and sell power when it makes sense to do so for the benefit of ratepayers. While we will continue to benefit from opportunities to electricity trade in this way, we cannot continue to rely on imported electricity to plan for our future energy demands on a net basis. Electricity is the backbone of our economy and essential to our way of life. Knowing how our electricity needs will be met and where the electricity comes from ensures our province’s energy security. What does the change in the definition of self sufficiency mean?
 The new definition of self sufficiency means that BC Hydro must ensure that the province is self-sufficient for a year with “average water conditions.” The old definition meant that BC Hydro had to be self-sufficient during a year with “critical water conditions.” Water condition refers to how much water we have in our reservoirs. Since most of our electricity is generated using water, the amount of electricity we are able to produce each year varies depending on how much water is in our reservoirs. According to the new self-sufficiency definition, BC Hydro must plan to meet its energy supply based on average water conditions in our reservoirs. Under the old definition, BC Hydro would have had to plan for the future assuming critical water conditions – or the lowest water years based on historical records. Simply from a planning perspective, the new definition will result in a reduced requirement to acquire power to supplement existing electricity supplies. With this policy as a guide, BC Hydro must also look at upcoming additional, new electricity demand that is forecast to emerge in coming years as a result of growth in the province. Although B.C. continues to focus on energy conservation, B.C.’s overall electricity use is expected to increase as a result of projected population growth and economic development. What’s next?How will BC Hydro plan for future energy needs?BC Hydro is preparing a long-term Integrated Resource Plan (IRP) for submission to the Ministry of Energy by December 2012. The Plan will meet the self-sufficiency requirement, establish BC Hydro's strategy for conservation and set the course for acquiring sufficient generation and transmission resources to reliably and cost-effectively meet customers' anticipated future electricity needs over the coming decades. How will the new definition of self-sufficiency affect rates?The new policy will help keep rates affordable for British Columbians and among the lowest in North America. The conditions under which the original self-sufficiency policy was developed have changed. The move to average water will result in less long-term requirements to acquiring power, translating into lower costs and therefore helping to keep rates low. Related links:
| 
