VANCOUVER – Clean, reliable, low-cost electricity has been key to British Columbia's economic prosperity and our quality of life for generations. But, as our province continues to grow, the gap between electricity supply and demand is expected to increase.

That is the message contained in BC Hydro's 2006 Integrated Electricity Plan (IEP) which will be filed today with the BC Utilities Commission. It notes that in each of the last five years, British Columbia has been a net importer of electricity. Based on current demand forecasts, the province is expected to need significantly more electricity over the next twenty years.

"The 2006 IEP looks at the challenges we face in meeting the electricity demands of British Columbians going forward, along with the resource options available to help fill the emerging supply-demand gap," said BC Hydro President and CEO, Bob Elton. "With demand on the rise, we need to be planning now to ensure that we preserve the natural competitive advantage that reliable electricity has provided to British Columbians for generations."

Broadly speaking, the options available to British Columbia to fill the forecasted supply gap include conserving more, through conservation initiatives like Power Smart, buying more from Independent Power Producers (IPPs) and building more, either by investing in the heritage generating assets to extend their life and increase their capacity, or investigating potential new generating options.

In addition to the IEP, BC Hydro is filing its Long Term Acquisition Plan (LTAP) which outlines the proposed mix of resources it plans to use to meet the forecasted demand for the next 10 years. The LTAP recommends a resource mix that includes conservation, additional purchases from IPPs and significant investments in the province's heritage generating assets.

The LTAP and the supporting IEP will be filed with the BC Utilities Commission in accordance with the regulator's resource planning guidelines. These documents will be available for viewing on BC Hydro's website. A summary document entitled "Challenges and Choices" will also be available on the website. For a printed copy contact BC Hydro's Media Relations Manager, Elisha Moreno at 604 623-4099.

Contact:

BC Hydro Media Relations

Media Relations manager

Phone: 604 623-4022

2006 Integrated Electricity Plan (IEP) Backgrounder

• In each of the last five years, British Columbia has been a net importer of electricity. In 20 years, as demand grows, the province is expected to need significantly more electricity than it has now. BC Hydro estimates this gap ranges between 25 and 45 per cent, the equivalent electricity required to power 1.4 to 2.5 million new homes.
• BC Hydro's 2006 Integrated Electricity Plan (IEP) asks British Columbians to look at the challenges and choices that are fundamental to closing this growing supply-demand electricity gap so British Columbia's energy future can be secure.
• Three critical questions are reviewed in the 2006 IEP:
  • What resource options do British Columbians have to meet their growing electricity demands?
  • How much of these resources will be needed?
  • When will the resources be needed?
• The IEP examines the three fundamental ways that BC Hydro will work with British Columbians to fill the growing electricity gap:
  • Conserving more – through increased Power Smart activities
  • Buying more – from independent power producers (IPPs)
  • Building more – by investing in "Resource Smart" upgrades to BC Hydro's existing facilities and/or investigating new options for adding generating capability
• The resource options available in British Columbia range from conservation (Power Smart), natural gas, coal, run-of-river small hydro, wind, geothermal, biomass, customer generation and large-scale projects. All of these require choices to made, because each option represents has different benefits, challenges and potential for development.
• The decision about the resource options we choose to meet our needs going forward is an important one for all British Columbians. We need to begin the discussion about our energy future now as many options to meet demand in the years ahead will take time to put in place.We look forward to working with the provincial government to engage the people of B.C. in a dialogue about the resource options available now and in the future. By reaching out to customers, communities, stakeholders and First Nations, we can gain their insights and ideas on how to best deal with the choices and challenges that must be addressed to meet our long-term electricity needs.
• The development of the 2006 IEP, like all of BC Hydro's business activities, was guided by the provincial government's Energy Plan. The upcoming dialogue with British Columbians will be a timely one given that the Province is currently updating that Energy Plan.