Just and Reasonable

Promoting good governance in BC's energy sector


News archive

Below are the news items from previous newsletters, from newest to oldest.

2026 03 12

The BC Court of Appeal upheld a decision by the BC Utilities Commission (BCUC) that Powell River Energy Inc. is a public utility. The company had argued it only sold energy to subsidiary companies, and therefore wasn’t selling to another person (which makes it bound by the Utilities Commission Act). The court disagreed.

Powell River Energy Inc. also failed to obtain an electricity export permit from the Canadian Energy Regulator (CER) for its hydroelectric generation, after the application was opposed by local residents and a First Nation. The CER is now considering granting an export licence, which may require a public hearing and may be denied.

The CER published a snapshot of residential electricity prices across Canada. Bills for a household consuming 1,000 kilowatt hours per month range from $83 to $375, excluding taxes.

US electricity generation hit another record in 2025, according to the Energy Information Administration (EIA). The 4.43 terawatt hours generated were up 2.8 percent on the 2024 figure. Growth is expected to continue in 2026 and 2027.

The EIA also reports that liquified natural gas (LNG) developers signed the largest volume of “sale and purchase” agreements in 2025 since 2022. These agreements are reportedly essential to investors reaching final investment decisions for new facilities; the rise of signings is attributed to increased LNG demand in Europe and Asia.

2026 03 03

The BC Utilities Commission (BCUC) approved new rates for customers of Dockside Green Energy, a thermal energy utility in Victoria, BC. Rates will increase 46 percent cumulatively from 2025 to 2028, an average annual increase of 9.9 percent. Among other issues, delays in the development of the real estate project has meant fewer customers than expected sharing the costs.

The Narwhal reports that the LNG Canada plant is flaring as much as 15 times the amount of gas its permits allow, owing to equipment problems. This will add to the greenhouse gas emissions from the plant, already expected to add more than 6 percent to BC’s total emissions.

The town of Olds, Alberta, has announced plans for a $10 billion data centre, to be built by Synapse Data Centre Inc. If approved, it would create 2,000 construction jobs during development and more than 1,000 jobs once operational. The 1 gigawatts of power required would come from on-site natural gas-powered generation; there would be no connection to the provincial electricity grid.

New Brunswick is reported to have imported a tanker of liquefied natural gas (LNG) from Australia, which travelled 25,000 miles to deliver it. New Brunswick sits on top of significant gas reserves, but bans the hydraulic fracturing process to extract it.

2026 02 24

The BC Utilities Commission (BCUC) approved a 6 percent increase in BC Hydro’s public fast charging rate for electric vehicles, effective April 1. The utility had only requested a 5 percent increase, but the BCUC concluded that the rate should be higher to ensure that its costs were properly recovered, following a forecast that the previous rate would only recover 45 percent of BC Hydro’s costs in the 2024/25 year.

The BCUC accepted an agreement for BC Hydro to purchase electricity from the Haida Solar North Project, a solar generating facility serving Masset, an area not connected to the provincial electricity grid. The BCUC was prevented by the Clean Energy Act from reviewing whether the contract was in the public interest, and the terms of the contract with the First Nations-owned facility remain confidential.

Amazon Energy is reported to have outbid Puget Sound Energy to purchase the bankrupt 1.2 gigawatt Sunstone solar project in Oregon for US$83 million. Amazon has faced power constraints in the Pacific northwest as it expands its data centres; the new project will also provide 7,200 megawatt hours of battery storage. Construction is expected to start this year.

The International Energy Agency released its Electricity 2026 report. The IEA predicts that global electricity demand is forecast to grow at a “brisk” average annual rate of 3.6 percent until 2030, driven by rising consumption from electric vehicles, air conditioning and data centres, among other uses.

The Richland nuclear plant in Washington State is back online after a 5-day safety shutdown. The state’s only nuclear plant produces 1.2 gigawatts of electricity, and was closed after both reactor water recirculation pumps “tripped” after a small electric filter failed.

2026 02 17

The BC Utilities Commission approved thermal energy rates for SUCCESS, an affordable housing society that leases space in the Cambie Gardens property development. The decision resolves a long-running dispute between SUCCESS and Cambie Gardens Energy, who lost its exemption from the BCUC’s rate setting powers in the process.

The BC government permanently scrapped its electric vehicle rebate program, which was paused in May last year. The Minister of Energy stated that BC would focus on building charging stations and leave rebates to the newly refunded Federal government program.

Meanwhile, the Federal government scrapped its requirement that all new vehicles had to be electric by 2035, replacing it with a new emissions standard that could lead to 75 percent of vehicles being electric by that date. BC scrapped its equivalent rule last November.

BC’s snowpack situation may be improving. As of February 1, the Peace and Columbia basins that BC Hydro relies on for most of its hydroelectric generation were at 122 percent and 112 percent of normal respectively. BC Hydro has been importing electricity for the last few years owing to a prolonged drought.

The Trans Mountain Pipeline is proposing a project to move more oil from Alberta to the BC coast. It has applied to the Canadian Energy Regulator for approval of a $9 million project to use drag-reducing chemicals in the existing pipeline, which could increase shipping volumes by 10 percent.

The Canadian Renewable Energy Association reports that Canada’s total wind, solar and storage capacity has grown 56 percent since 2020, and should increase by a further 32 percent by 2029. It also reports that renewable energy accounted for 9.7 percent of Canada’s total electricity demand in 2025.

Efficiency Canada released its 2025 Energy Efficiency Programs Report. The biennial survey estimates that active efficiency programs could deliver 69 petajoules of incremental energy savings over their lifetime.

The Energy Information Administration reported that electricity generation in the US in 2025 increased by 2 percent over 2024. Use of natural gas declined by 3 percent due to higher prices, but this was more than offset by the use of coal and, to a slightly lesser extent, solar energy.

The 1,200 megawatt New England Clean Energy Connect transmission line between Quebec, Maine and Massachusetts started operation in January with the intention of exporting clean electricity to the US. But within two weeks, an Arctic cold front engulfed the northeast, and Quebec ended up relying on the line to import electricity instead – generated largely from petroleum and natural gas.

2026 01 29

The latest quarterly opinion survey was released by the University of Ottawa’s Positive Energy program. It shows that Canadians are most likely to rank energy as the sector with the greatest potential to expand exports to non-US destinations. 57 percent think growth and creating jobs should be the top priority, even if the environment suffers to some extent (this compares to 44 percent with the same opinion in November 2024).

2026 01 22

BC Hydro has signed a memorandum of understanding to provide 600 megawatts of power to the Ksi Lisims liquified natural gas (LNG) facility on BC’s north coast. The memorandum apparently “provides clarity on how and when” the electricity will be delivered, although the press release itself provided few details.

BC Hydro also reports that its 2025 Call for Power received 14 proposals (13 for wind power, 1 for solar) totalling 9,100 gigawatts of electricity (the equivalent of nearly two Site C Dams). The proposals will be evaluated “in the coming months”.

Reuters reports that Shell and Mitsubishi, two of the owners of LNG Canada, are considering selling their stakes in the facility, representing as much as 45 percent of the business. There are no reports that sales of LNG from the facility would be affected

2026 01 13

The BC Utilities Commission (BCUC) accepted a 20-year agreement for BC Hydro to purchase electricity from a waste-to-energy facility owned by the Greater Vancouver Sewerage and Drainage District. The facility generates approximately 166 gigawatt hours of electricity per year from heat recovered from an incineration process. Letters of comment to the BCUC allege that waste incineration is a major emitter of pollutants, and that burning natural gas to generate electricity would produce fewer greenhouse gas emissions.

The US Energy Information Administration reported that country-wide natural gas spot prices rose last year from the 2024 record low. The one regional exception was the Pacific Northwest, where prices fell slightly due to lower demand for gas-fired electricity generation and record high gas production from western Canada.

2026 01 06

The BC Utilities Commission (BCUC) adopted its Cybersecurity Framework for Public Utilities on a permanent basis, effective January 1, 2026. The Framework, which had been piloted for the last two years, requires public utilities to have a cybersecurity program and to report serious incidents to the BCUC.

The BCUC granted permission for a lawyer representing the K’omoks First Nation to access confidential BC Hydro documents regarding the 2024 Call for Power. K’omoks argued it needed to see the documents to consider an appeal of the BCUC’s decision to approve BC Hydro’s electricity purchase agreement with the Brewster Wind Project.

BC Hydro opened six new electric vehicle charging ports in North Vancouver in December, bringing its province-wide total to 784. The program is funded in part by the province and Natural Resources Canada.

Ford Motor Company announced it will abandon fully electric trucks, such as the F-150 Lightning, and pivot towards gas and hybrid models, writing off US$19.5 billion as a result. Shares in the company rose on the announcement.

A power outage in San Francisco in late December led the City’s Waymo self-driving taxis to stop working. Non-working traffic lights caused the vehicles to stop in the middle of intersections with their hazard lights flashing.

2025 12 18

The BC government ordered that its proposed North Coast Transmission Line be paid for by all BC Hydro’s customers, overriding the rate-making authority of the BC Utilities Commission (BCUC). The order also relieves the line’s customers from paying for other system upgrades or new generation required to serve them, a protection that has been in place since the 1990’s.

The BCUC approved new rates for FortisBC Inc., the electrical utility serving Kelowna and the south east of BC. The 5.65 percent interim increase for 2025 was made permanent, and rates will increase again by 3.45 percent on January 1, 2026.

The BCUC also approved new rates for Creative Energy, Vancouver’s largest provider of thermal energy, effective January 1, 2026. Customers will pay $27.56 per thousand pounds of steam (M#), and an alternative renewable natural gas (RNG) rate of $40.68 per M# will come into effect for those customers who want low-carbon heat.

BC appointed a new Auditor General. Bridget Parrish replaces the acting Auditor General, Sheila Dodds, who had been in office since Michael Pickup left in November 2024.

BC Hydro announced that it has finished removing its overhead “H-Frame” electrical structures from downtown Vancouver, and moving the equipment underground. It has also reported a 300 percent increase in copper thefts from “maintenance holes” in the last 18 months.

An opinion poll finds that 48 percent of Canadians would “not support climate policies if they damage Canada’s economy”; 33 percent took the opposite view. The poll was taken immediately after the federal government announced support for a new oil pipeline between Alberta and the BC coast.

A report from the Canadian Chamber of Commerce finds that expanding Canadian liquified natural gas (LNG) and oil exports could “significantly reduce” global greenhouse gas (GHG) emissions. The report, which draws on analysis by Navius Research, notes that LNG from BC has “among the lowest life-cycle emissions in the world”.

The Canadian Energy Regulator extended the LNG export licence for Cedar LNG to 40 years. The previous licence, issued in 2016, would have expired after 25 years, the maximum length the law permitted at that time.

Port Moody is reported to have scrapped a refit project in a civic building, despite staff warning that it was needed to hit the municipality’s 2030 climate target. The new heat pumps would have reduced GHG emissions, but the electricity would have cost more than using natural gas. Different rules appear apply to the private sector; in 2024, the municipality decided that fossil fuels would be prohibited in new property developments

2025 12 09

The BC Utilities Commission (BCUC) approved delivery rate increases for Pacific Northern Gas’s customers in Fort St. John and Dawson Creek of around 9 percent for each of 2025, 2026 and 2027. Customers in Tumbler Ridge will enjoy a rate decrease of around 2 percent for each of those years.

The BCUC also approved delivery rate increases for FortisBC Energy Inc, BC’s largest gas utility. The interim increase of 7.75 percent for 2025 was made permanent, and rates will increase by 10.07 percent on January 1, 2026. The bill of the average residential customer will go up 7.5 percent in 2026 as a result.

The BC government released its 2025 Climate Change Accountability Report, containing data from 2023. Net greenhouse gas emissions (after subtracting “forest carbon offsets”) fell by nearly 4 percent in 2023, bringing them down 9 percent compared to 2007 levels. Without the offsets, emissions have reduced by just 6.4 percent since 2007.

Business in Vancouver reports that a recent federal government 25 percent tariff may affect BC Hydro’s upcoming wind power projects. While the utility’s 2025 Call for Power allows bidders to adjust their prices for such tariffs, winners of the 2024 Call for Power face increased costs with no ability to adjust their prices.

Transmountain Pipeline Corp.’s Alberta-to-BC pipeline is reported to be running at almost full capacity, and expects to be “consistently full” by 2027. Efforts are now underway to increase its capacity.

2025 12 01

The BC Utilities Commission (BCUC) approved rate rises for Pacific Northern Gas of approximately 17 percent every year from 2025 to 2027. The utility has struggled with falling demand for natural gas in recent years, and has been forced to do an exceptional amount of capital work.

BC Hydro has made an initial application to the BCUC to spend up to $1.4 billion to construct a new substation in the west end of Vancouver, pending a full application in December. It hopes to have a decision by October next year, and for the new substation to be in service by July 2032.

BC Hydro also released its second quarter results. Its costs are still running well ahead of inflation, and the utility continues to import electricity, although less than the same period last year.

The BC government announced the release of a report into its CleanBC program. The report calls for “renewal of CleanBC, not a retreat” after the program spent $7.5 billion in the last six years while leaving BC’s greenhouse gas emissions unchanged since 2005. The government promised to review its recommendations.

The federal government announced an agreement with Alberta to develop a new pipeline to carry oil to the BC coast for export. BC’s premier has been less agreeable, calling it a “figment in the mind of a communications person in Alberta”, but a new survey suggests a “slim majority” of British Columbians support the idea.

Another survey, from the University of Ottawa’s Positive Energy program, reports that 57 percent of Canadians would prioritize economic growth over the environment, up from 44 percent a year earlier. The proportion who think Canada should be ahead of other major economies in meeting climate targets has fallen to 34 percent from 42 percent in 2023.

2025 11 24

The BC government successfully passed Bill 31, enabling BC Hydro to share ownership of its proposed North Coast Transmission Line with selected First Nations. The bill also gives the government direct control over which new data centres will have access to electricity in the province.

The federal government added the North Coast Transmission Line to its list of “nation-building projects”. There does not, at present, appear to be any funding associated with this accolade.

BC is reported to have scrapped its 2035 target which required 100 percent of new vehicle sales to be “zero emission.” It also abandoned its “paused” rebate program, saying that it would be up to the federal government to provide a replacement. The province still appears to be “clinging” to its 2026 target that 26 percent of vehicles sold would be zero-emission, despite their falling sales.

FortisBC announced the “first sustained commercial demonstration” of a hydrogen-powered heavy truck in BC. The pilot project, in conjunction with Loblaw, a grocery chain, involved delivering freight from Vancouver to Squamish.

The BC Utilities Commission approved a rate rebalancing proposal from FortisBC Inc., the province’s second largest electrical utility. As a result, small commercial customers will see a one-time 2.4 percent decrease in rates, but irrigation customers will see rates increase by 3.7 to 4.8 percent for each of the next four years. Rebalancing should not affect the total revenue Fortis receives.

The Regional District of Central Kootenay opposes the 16 percent one-year increase in electricity rates for rural customers of Nelson Hydro, owned by the City of Nelson. They claim this is double the increase in rates for customers who live in the City.

The International Energy Agency (IEA) released its 2025 World Energy Outlook. For the first time since 2019, the IEA included a “current policies scenario” in addition to forecasts based on strategy documents and policies that have not actually been adopted (“stated policies”). Oil demand doesn’t decline by 2050 in either scenario.

The IEA also released its Energy Efficiency 2025 report. Global energy efficiency is set to improve to 1.8 percent in 2025 from the previous year’s 1 percent figure, but is still less than half what is needed to achieve the 2030 target set at the COP28 meeting in Dubai in 2023.

2025 11 10

The BC Utilities Commission (BCUC) approved a BC Hydro purchase agreement renewal for electricity from the Marion Creek hydroelectric plant. The BCUC dismissed an argument from the Tla-o-qui-aht First Nation that the renewal agreement interferes with the economic rights arising from its Aboriginal title to the land on which the plant resides.

BC Hydro, the province’s largest electrical utility, filed its 2025 Integrated Resource Plan. BC’s weaker economic outlook has lowered the forecast energy deficit, but the utility now faces a challenge to meet peak demand by 2035.

BC Hydro also announced it had acquired 88 electric vehicle charging ports at 28 sites from the provincial Ministry of Transportation and Transit. The acquisition takes BC Hydro’s total number of charging ports to over 700 provincewide.

Pembina Pipeline Corporation announced that it had signed a 20-year agreement to sell 1.0 million tonnes per annum of Cedar LNG’s liquefaction capacity to PETRONAS. Pembina, a partner in Cedar LNG, had previously committed to take 1.5 million tonnes per annum of capacity; it expects to offload the rest by the end of 2025.

The Canadian Energy Regulator recommended approval of a new pipeline in northern BC. The pipeline would take natural gas liquids from the Montney field to processing and storage facilities in Gordondale, Alberta.

2025 11 03

The BC Utilities Commission (BCUC) approved an upgrade of the Fortis liquified natural gas (LNG) storage facility at Tilbury in Delta, BC. The $873 million project will take seven years to complete, and will provide better protection in the event of a gas pipeline outage.

The BCUC also approved new rates for Corix’s district energy system at the University of BC. The Basic Charge will rise for the next three years by 18, 15 and 12 percent respectively, in part because revenues are “much lower than expected due to delays in construction” of new buildings on the site.

BC Hydro released its Site C Dam Lessons Learned Report, requested by the BCUC. There is no word yet on whether the BCUC will accept BC Hydro’s explanation, or conduct an inquiry into why the project was more than $7 billion over budget.

FortisBC reports that work has started to upgrade its Saucier substation. The $18.6 million project will be complete by the end of 2027 and will improve the ability to serve electricity customers in downtown and south-central Kelowna.

The BC Assessment Authority is reported to have proposed changes to how it values pipelines in the province, which may lead to lower property tax revenues for the municipalities through which they run. The changes could be implemented in 2026.

Business in Vancouver reports that the BC Energy Regulator has increased the levy charged on the oil and gas industry to pay for the cleanup of “orphan” wells left by bankrupt or otherwise unknown companies. The annual amount will rise to $24 million from the $15 million figure in place since 2019.

The International Energy Agency (IEA) issued its 2025 Gas Report. The IEA expects 300 billion cubic metres (bcm) per year of new LNG export capacity to be added worldwide by 2030. Decisions to add more than 90 bcm have been made in the US alone in 2025 so far.

Analysis by the Economist finds no association between electricity bill increases in US states and data centre additions. The newspaper points out that adding more demand can spread the fixed costs of the electricity system over a larger volume of customers.

The CBC reports that researchers are concerned about wind turbines “slaughtering” bat populations. Apparently they could be checking out the turbines “out of curiosity” – a classic case of curiosity killing the bat?

2025 10 27

The BC Utilities Commission approved a renewable natural gas program for Creative Energy, which provides district heating in Vancouver’s downtown core. The voluntary “bridging fuel service” allows buildings to pay extra for their thermal energy to be “low carbon.” The January 1, 2026 start date coincides with the effective date of the City of Vancouver’s greenhouse gas intensity limits by-law.

The City of Vancouver is reported to have “quietly rolled back” plans to charge a $10,000 fee to gas stations and parking lots that don’t install electric vehicle chargers. Companies that have invested millions in charging stations to avoid the fee are said to be “frustrated.”

The BC government announced plans for the North Coast Transmission Line, a new $6 billion project to deliver power to mining and liquified natural gas plants in the province.

The BC government also made permanent its earlier order temporarily banning BC Hydro, the provincially-owned electric utility, from providing electricity to any cryptocurrency projects. Four previously “paused” projects are included in the permanent ban.

The president of NERC, the North American Reliability Corporation, has warned of increased challenges to grid reliability. The bulk electric system, of which BC is a part, is seeing “an increasing number of small scale events and near misses” as it struggles to balance supply with increasing demand, not least from new data centres.

Maritime Electric has warned of winter blackouts in Prince Edward Island unless new generation is built on the island. Peak demand has grown 66 percent since 2010, driven by population growth and “the rapid switch from oil furnaces to electric heat pumps.”

US exports of natural gas to Mexico reached record highs, according to the US Energy Information Administration, averaging 7.5 billion cubic feet per day in May 2025. By coincidence, US imports of natural gas from Canada were around 8.5 billion cubic feet per day in 2024.

The Energy Institute at Hass recently analyzed a carbon pricing policy for shipping, intended to reduce greenhouse gas emissions. The proposal appears to be littered with compromises and perverse incentives. “No economist would design such a system intentionally” according to the author of the analysis.

2025 10 20

The BC Utilities Commission (BCUC) approved an expenditure request from BC Hydro to upgrade its hydroelectric facilities on the Campbell River on Vancouver Island. The $574.5 million will be spent on addressing dam safety issues “to reduce the risks to life, property, infrastructure and the environment.”

Business in Vancouver reports that the BC Premier is lobbying the federal government to retain the oil tanker ban on BC’s north coast. The Alberta Premier has been lobbying to remove it, as part of a project to build a new oil pipeline to the coast to export Albertan oil.

The City of Vancouver has completed a major project to expand its Neighbourhood Energy Utility. The $20 million project to recover 6.6 megawatts of heat from the sewage system was funded almost entirely by grants from the federal and provincial governments.

The US Energy Information Administration reports that North America’s capacity to export liquified natural gas (LNG) could more than double by 2029. The growth includes LNG plants in Canada and Mexico as well as in the US.

The International Maritime Organization reports it has “adjourned” discussions on how to achieve net zero carbon emissions from the world’s shipping. It was reported elsewhere that there was no consensus on the plan, which could increase global shipping costs by ten percent.

2025 10 14

The BC Energy Regulator published its 2024 Oil and Gas Reserves and Production Report. Reserves grew in all forms of hydrocarbon; gas by 8.4 percent and oil by a “remarkable” 21.4 percent. The Montney Basin continues to be the primary focus of development activity.

2025 10 07

The Vancouver Sun reports that the BC government is considering taxpayer funding for the cost of the proposed North Coast Transmission Line. The government hopes the Federal Government will contribute to the estimated $3 billion cost of the line, which could provide power to coastal Liquified Natural Gas (LNG) and mining facilities. BC’s Premier says taxpayer funding is required because “industry will not commit to investment unless the transmission line is there”.

Alberta is also looking to build connectivity to BC’s north coast. Alberta’s Premier is reported to have applied to the Federal Government’s Major Projects office for support for a new bitumen pipeline running across BC. Alberta’s proposed project has been criticized by BC’s Premier for being taxpayer funded and lacking a private sector sponsor, unlike the proposed North Coast Transmission Line, which isโ€ฆtaxpayer funded and lacks industry commitment.

The UN-backed Net-Zero Banking Alliance has voted to shut itself down. Initially championed by Mark Carney, now Canada’s Prime Minister, the alliance had sought to address climate change by influencing global banks and the projects they finance, but members had recently been leaving in droves. Canada’s largest five banks dropped out in January.

The International Energy Agency published its 2025 Renewables report. Global renewable power capacity is expected to double by 2030, 80 percent of the growth coming from solar energy. The forecast is down 5 percent from last year’s, mainly due to policy changes in the US and China.

Start-up emissions at BC’s LNG plants are being “systematically underestimated”, according to reporting from Business in Vancouver. The comments were based on a study which used infrared imaging to measure flaring, the burning of excess methane, during start-up and operational phases of 48 existing LNG plants.

2025 10 01

BC Hydro, the provincially-owned electric utility, has filed a request with the BC Utilities Commission (BCUC) to increase its public electric vehicle fast charging rate by 5 percent. The BCUC has scheduled a proceeding to review the proposal.

The BCUC rejected a complaint from a Vancouver strata townhouse complex regarding an adjacent BC Hydro pole-top transformer and distribution lines. The strata wanted BC Hydro to share the cost of additional safety measures required for the building to be painted, but since the utility met the (non-existent) clearance standards when the assets were installed in 1910, the BCUC ruled that this was not BC Hydro’s problem.

The government issued an order allowing BC Hydro to borrow up to $200 million from the Canada Infrastructure Bank. According to its most recent annual report, the utility had $32 billion in long-term debt, almost $3 billion more than the year before.

The CBC reports opposition to a plan to export electricity from Powell River to the US. Powell River Energy Inc. has applied to the Canada Energy Regulator to export the electricity, now that it is no longer needed by the local paper mill, which shut down in 2021. The application is for 700 gigawatt hours of firm electricity per year, by coincidence the same amount of energy that BC Hydro recently failed to purchase from an unknown supplier, increasing its need to buy from new clean energy facilities.

The Southwest Power Pool is one of two electricity markets in the US that still generates more electricity from coal than from natural gas in some months, according to the US Energy Information Administration. BC Hydro does not disclose the source of its purchases of electricity from the US.

Growth in global electricity demand is set to slow slightly, according to the International Energy Agency. After a “surge” of 4.4 percent growth in 2024, the forecasts are now for growth of 3.3 and 3.7 percent in 2025 and 2026 respectively. The Agency also reports that global investment in all forms of energy will grow by 2 percent in real terms in 2025.

The sale of Parkland, the Calgary-based company that owns a petroleum refinery in BC, to Sunoco is reported to have cleared an important regulatory hurdle. It appears the deal will not be subject to a review of whether it harms competition.

2025 09 22

The BC Utilities Commission (BCUC) has abolished the position of Commission Secretary, partially replacing the role with that of a Registrar. According to an email from the BCUC, the Registrar will not deal with proceeding-related communications, but will still handle requests for documents and freedom of information requests.

The BCUC also approved rate increases for Kyuquot Power, a small electric utility on Vancouver Island’s northwest coast. The BCUC denied recovery of some costs because the assets were not yet in service, and approved the recovery of other costs despite this being done retroactively, which normally violates regulatory principles.

The provincial and federal governments gave environmental approvals for the Ksi Lisims liquified natural gas (LNG) project in northwestern BC. The floating LNG plant would be capable of exporting up to 12 million tonnes of LNG annually, almost as much as LNG Canada, the country’s largest plant to date. Only two of the ten First Nations participating in consultations appear to have provided their consent, and environmentalists are reportedly “dismayed” that the $10 billion project may go ahead.

The latest survey from the University of Ottawa’s Positive Energy program shows that 72 percent of Canadians support expanding oil and gas exports for global energy security and reliability. This is the highest level since tracking began in 2022.

The survey also showed that Canadians remain unimpressed with energy decision making. Respondents were more likely to disagree than agree that we build public confidence in decisions or have developed a shared long-term vision for our energy future.

CBC reports that Metro Vancouver is unlikely to meet its target to cut greenhouse gas (GHG) emissions by 45 percent by 2030 (compared to 2010 levels). The latest numbers (2023) show the region had in fact increased its emissions by 7 percent, although municipal staff are reported to have “reason for hope” their actions will reduce emissions eventually.

Canada’s situation is not much better, according to a report from the Canadian Climate Institute. Early estimates of GHG emissions in 2024 suggest no reduction from the previous year, leaving reductions since 2005 at just 8.5 percent. The federal government target for 2030 is a reduction of 40 to 45 percent, which looks increasingly unachievable.

The federal government is ending its “green home” renovations program because it has run out of money (the program, not the government). The program provides interest-free loans of up to $40,000, but will not accept applications after October 1.

2025 09 15

Business in Vancouver reports that the Prime Minister’s list of “nation building” projects will include the second phase of LNG Canada’s facility in Kitimat, BC. These projects will enjoy a “streamlined federal review process that provides upfront certainty on federal approvals.” He also announced the membership of an Indigenous Advisory Council that will help ensure his nation building projects “create opportunities for equity ownership and responsible resource management”.

Natural gas prices in the Pacific Northwest are at historic lows, according to the US Energy Information Administration. Record high production in BC coincided with cooler summer temperatures in the western US, leading to lower demand for electricity to power air conditioners.

BC Hydro has launched a pilot project to test the use of electric school buses into mobile power sources, providing energy back to the grid at times of peak demand. The BC energy minister, Adrian Dix, said that the technology had the potential to make our electricity system “more resilient, efficient and sustainable for generations to come.”

Four days later, in what might be considered unfortunate timing, an electric school bus containing five children and a driver caught fire in Montreal. There were no injuries, but the bus appears to have burned to a crisp.

Stellantis, the maker of Vauxhall, Jeep and Peugeot, is reported to have abandoned its target to make only electric vehicles by 2030. It joins Volvo, Mercedes-Benz, Ford and General Motors in cutting back on short-term clean vehicle ambitions.

2025 09 09

The federal government is reported to have “paused” its plans to promote electric vehicle sales in Canada. The 2026 sales target has been scrapped, and there will be a 60-day policy review. According to Business in Vancouver, the BC Minister of Energy declined to say whether he is considering a similar move.

A new, shorter route for the Prince Rupert Gas Transmission pipeline has been approved by the Environmental Assessment Office (EAO). After consulting with eight First Nations the EAO added six new conditions, but was still unable to reach “consensus” with all of them.

The Vancouver Sun reports that the cost of the Woodfibre LNG plant in Squamish, BC is projected to rise from $5.1 billion to $8.8 billion. The plant is scheduled to start production in 2027, and is fully subscribed for the first 15 years of operation.

Hitachi has announced a US$1 billion investment in plants to produce electrical transformers and other grid equipment. Manufacturing backlogs mean that high-voltage transformers currently take up to three years to deliver.

2025 09 02

The BC Utilities Commission (BCUC) ruled that the City of Surrey must pay if it wants BC Hydro to move transmission lines to accommodate a new road. The City had claimed that the facilities were trespassing and that BC Hydro’s ratepayers should pay to move them.

The BCUC also approved BC Hydro’s electricity purchase agreements with ten new wind and solar farms. Some of the deals, which resulted from the utility’s 2024 Call for Power, had been challenged by indigenous groups.

BC Hydro released its annual report for the year ended March 31, 2025. Electricity imports were down 39 percent on last year, but the ongoing drought still required 8,356 gigawatt hours of energy to meet domestic demand, which rose 2 percent.

CBC reports that BC Hydro’s new Site C dam will produce more energy than originally forecast. BC Hydro has rejected calls from the local regional district to increase the index-linked $2.4 million per year that it will receive from the utility’s ratepayers until 2094.

The Vancouver Sun reports that enthusiasm for electric vehicles (EV) in the province has waned since government subsidies were removed. The top reason for not buying an EV is price, cited by 64 percent of the sample in a recent survey conducted by Ipsos for the Energy Futures Institute.

Dutch media reports that glare from a solar farm built near Schiphol Airport has been blinding pilots. The local council approved the construction, despite being warned of the risks. Judges have ordered that one third of the 230,000 solar panels must be removed.

2025 08 22

The BC Utilities Commission (BCUC) approved 2025 rates for Creative Energy, Vancouver’s largest thermal energy utility that delivers steam to buildings in downtown Vancouver. The steam rate fell by 2.6 percent, although operations and maintenance costs increased by nearly 15 percent.

The BCUC also accepted Creative Energy’s long-term resource plan. The utility expects total demand to decline up to 12 percent by 2040.

The BCUC approved rates for Nelson Hydro’s rural customers (rates for urban customers are excluded from BCUC regulation). The applied-for increase of 7.54 percent was approved, subject to some adjustments.

The BCUC updated its Rules of Practice and Procedure. Among other changes, the BCUC no longer accepts interveners with “experience, information or expertise” relevant to a proceeding; they must have a direct interest in the outcome. Also, parties must now disclose any use of generative artificial intelligence in submissions to the BCUC.

BC Hydro’s Site C dam has finally come into full operation; the sixth and final generating unit is now in service, less than a year after the planned date of November 2024. BC Hydro warns people to avoid the reservoir and surrounding slopes, as the shoreline continues to “stabilize.”

Reuters reports that Russian hackers took control of a dam in Bremanger, western Norway, earlier this year. 500 litres of water per second were released for four hours before the attack was detected and stopped.

2025 08 07

The BC Utilities Commission (BCUC) approved an application from Pacific Northern Gas (PNG) to spend $5.3 million on energy conservation between 2025 and 2027. The spending includes incentives for dual-fuel heating systems and natural gas heat pumps.

The BC government is kicking in $200 million to facilitate electrification of the north coastโ€™s Cedar LNG project, much to the consternation of the Green Party, who accuse the government of โ€œgreenwashingโ€. The terminal is expected to export LNG to non-US markets by 2028.

The US Energy Information Administration (EIA) reports that energy trade between the US and Canada remained steady in 2024 at an estimated US$151 billion, compared with $154 billion in 2023. Most of this trade is US energy imports from Canada – US$124 billion last year, compared to exports of US$27 billion.

New records were set for US electricity demand over 2 days in July, according to the EIA, mainly due to demand growth and more energy used for cooling due to hot weather.

An advisory opinion issued by the International Court of Justice in The Hague, Netherlands, ruled that countries have an obligation to protect the environment from greenhouse gas (GHG) emissions, and that failure to do so may incur legal challenges.

In contrast, the BBC reports the Trump administration plans to end the 2009 Endangerment Finding, which decreed that GHG emissions pose a risk to public health. If scrapped, it will effectively end the ability of the US Environmental Protection Agency to regulate carbon emissions. The move is subject to an interagency review and will likely face court challenges.

The plan for a tasty fish dinner didnโ€™t pan out for a tired osprey after it dropped its catch onto a BC Hydro power line. Sparks, caused by the unlucky fish bouncing off the wires, started a small brush fire and briefly knocked out power to the town of Ashcroft. The hapless (and hungry) osprey, which had flown approximately three kilometres with the fish, was uninjured. The fish, which was clearly having a worse day, was found deceased at the scene.

2025 07 24

The BC Utilities Commission (BCUC) approved an application from Pacific Northern Gas (PNG) to build a 650 metre gas pipeline to serve the Ridley Island Energy Export Facility in Prince Rupert, BC. The gas will be used to generate electricity for the facility, as there is insufficient reliable grid electricity available in the area.

The BC Ministry of Energy has launched a new program to subsidize the purchase of heat pumps in individual suites in condo and apartment buildings. The program applies to suites that are currently heated by electricity, but will be expanded in the fall to include those heated by fossil fuels.

The City of Vancouver reports that it is “unlikely” to achieve three of its five 2030 climate goals, and a fourth is “at risk”. It still hopes to achieve its goal of reducing “embodied emissions from new buildings and construction projects.”

CBC reports that nine Ontario First Nations have asked for a court injunction against the Federal Government’s Bill C-5 and the Ontario provincial Bill 5, both of which allow governments to “fast-track infrastructure projects” by sidestepping existing environmental and other reviews. No word yet of any challenges to the BC government’s Infrastructure Projects Act or Renewable Energy Projects Act.

Stellantis, the company that owns brands such as Chrysler, Dodge and Maserati, reports that it has discontinued its hydrogen fuel cell program. It does not anticipate adoption of hydrogen-powered light commercial vehicles before the end of the decade due to “limited availability of hydrogen refueling infrastructure, high capital requirements, and the need for stronger consumer purchasing incentives.”

The IEA’s 2025 Q3 Gas Market Report shows that global natural gas demand continued to expand in the first half of 2025, but at a slower pace than in 2024, and prices rose in European and Asian markets. Demand is forecast to accelerate in 2026.

A new report casts doubt on the projections for growth of electricity generation in the US. It suggests there is insufficient global capacity to manufacture the semiconductors needed for all the data centres that are currently in the queue, and that developers are submitting more requests for electricity service than they plan to build.

2025 07 11

The BC Ministry of Energy reports that BC Hydro’s price for connecting new homes and businesses will be reduced by more than 90 percent (this is a result of a BC Utility Commission (BCUC) decision in March). This is no free lunch, however – the costs will be paid for by other ratepayers.

The BCUC is trying, once again, to set a rate for thermal energy provided by Cambie Gardens Energy to SUCCESS, an affordable housing society. Last time, the BCUC kept its decision confidential. This time, the BCUC is taking a more transparent approach, for example by ordering Cambie Gardens Energy to publish information that is already public.

The BCUC has extended, again, its proceeding to review BC Hydro’s contracts to buy electricity from private sector companies following its 2024 Call for Power. This time, the K’omoks First Nation has challenged BC Hydro’s final argument and the BCUC has allowed BC Hydro to reply.

A final report on the substation fire that closed London’s Heathrow Airport for 24 hours in March says that an “imminent fault” discovered in a transformer in July 2018 was not fixed, and that Heathrow’s process to switch to its two alternative sources of electricity takes 10 to 12 hours. The electricity supplier apparently didn’t realize that Heathrow would shut down if its power supply was interrupted. Plenty of blame to go around, then.

2025 07 02

The BC Utilities Commission (BCUC) confirmed that Fortis Electric’s public safety shut-off policy is consistent with the utility’s terms and conditions and is intended “to safeguard life and property”. However, the BCUC criticized Fortis for “minimal” engagement with customers during development of the policy.

The BCUC is requesting feedback on proposed changes to its Rules of Practice and Procedure. Among other topics, the BCUC is looking for comments on an increase to the Participant Cost Award and the use and disclosure of Artificial Intelligence in submissions.

BC Hydro, the province’s largest electric utility, is included in the government’s ban on public sector procurement from US suppliers, ordered on June 27. The government will provide exemptions to the ban where necessary “to meet its operational requirements.”

LNG Canada, based near Kitimat, BC, exported the first cargo of liquified natural gas (LNG) from Canada’s west coast. The plant expects to export 14 million tonnes of LNG a year to Asian markets; a phase two project could double the output.

Global demand for energy rose 2 percent in 2024, according to a review by the Energy Institute. All-time records were reached for all forms of energy, including fossil fuels, renewables, hydro and nuclear.

BC’s electric vehicle (EV) sales are continuing to fall, according to the Energy Futures Institute, reaching 15.7 percent in April down from a peak of 24.9 percent in the second quarter of 2024. The report blames the termination of federal and provincial subsidies for the lack of demand.

2025 06 23

The BCUC approved a request from Fortis Gas, BC’s largest natural gas distribution company, to raise their renewable natural gas (RNG) rate rider from $0.301 per gigajoule (GJ) to $0.692 per GJ. The 130 percent increase in the rate rider is due in part to the blend of RNG for involuntary RNG customers increasing from 2 to 3 percent, and will cause an average residential customer’s bill to increase by 2.9 percent.

The BCUC also accepted the latest annual gas contracting plan from Fortis Gas, solving a regulatory mystery from last year. A confidential order issued by the BCUC last September turns out to be the approval of Fortis agreements connected to an expansion of the Mist natural gas storage facility in Oregon.

The BCUC issued minor revisions to its Long-term Resource Planning Guidelines. The changes include formalizing the BCUC’s practice of not generally requiring smaller utilities to file Long-term Resource plans.

BC Hydro is accepting applications for baseload power generation and conservation technologies, according to its owner, the BC government. This procurement complements the 2025 Call for Power that is seeking 5,000 GWh per year of additional clean electricity.

The District of North Vancouver has approved plans to build a $140 million plant to capture and liquify the hydrogen byproduct from an industrial plant. The hydrogen is expected to be used in zero-emission vehicles.

A public opinion survey conducted by Positive Energy and Nanos Research finds that only 37 percent of Canadians believe that now is the best time to address climate change, even if there are costs to the economy, the lowest score since tracking began.

Are your solar panels spying on you? Rogue communications devices have been discovered on power inverters on Chinese made solar panels, according to Reuters. Chinese companies are the biggest producers of power inverters, used worldwide by manufacturers of solar panels and other renewable power components.

2025 05 14

The BC government announced the terms of reference for a review of its CleanBC environmental program, which will make recommendations for updated targets and programs. The review, expected to be completed by October 2025, hints at funding limitations but doesnโ€™t appear to include a cost effectiveness study of existing or future programs. Pity.

The latest Snow Survey and Water Supply Bulletin indicates a possibility for widespread drought in BC this summer due to an early snowmelt, low snowpack and above normal temperatures in April. Drought conditions may lead to lower reservoir levels and the continued need for US electricity imports, not good news for BC Hydro.

BC Hydro has announced the appointment of Charlotte Mitha as its new President & CEO. The current Executive Vice-President of Operations assumes her new position August 1. She succeeds Chris Oโ€™Riley, who is retiring.

CBC reports that current oil prices of around $60 US per barrel may cause a decline in US oil production, as Texan shale producers cannot profitably withstand oil prices lower than $65 US. Not so in Canada, where oilsand companies can remain profitable with prices in the low to mid $40โ€™s US. A market share opportunity for Canada?

The US Energy Information Administration reports that sustainable aviation fuel (SAF) production doubled from December 2024 to February 2025. SAF, made from agricultural and waste feedstocks, is an alternative to petroleum jet fuel. While production is growing fast, it still only accounts for about 2% of all US jet fuel consumption.

An investigation has begun into the causes of the massive Iberian blackout on April 28. Spain has documented ongoing challenges with voltage regulation, according to a report in Power Magazine. The country’s high proportion of solar and wind energy, roughly half its installed capacity, is now in the spotlight.

2025 05 06

The BC government has introduced new legislation giving itself sweeping powers to streamline permits and fast track reviews of major projects. One critic described the proposed Infrastructure Projects Act as โ€œjust Bill 7 in a hard hatโ€, referring to an earlier “power grab” whose most authoritarian powers were toned down after widespread protests.

The BC government is also pausing electric vehicle rebates, pending a review of the program. This follows a similar decision by the Federal government in January. BC claims to have spent $650 million since 2011 supporting the transition to cleaner transportation.

BC’s long-awaited 2024 Climate Change Accountability Report was released by the provincial government. The report admitted that the province will only get half way to its 2030 greenhouse gas emissions reduction target, blaming increased population and economic growth.

BC Hydro and the provincial government have launched a Clean Power Action Plan. Initiatives under the plan include acquiring another 5,000 gigawatt hours of clean electricity per year; and plans to procure “firm, baseload” electricity to backup intermittent renewables.

The cause of a massive electricity blackout in Spain and Portugal is still under investigation. โ€œPure chaosโ€ was how one person described the ordeal, which is estimated to have affected around 60 million people.

One part of the Iberian peninsula was unaffected: Gibraltar, which is not connected to the European grid. While the sun may have set on the British Empire, it seems at least Gibraltarโ€™s residents were able to see after dark.

2025 04 28

The BC Utilities Commission (BCUC) has initiated an update of its Resource Planning Guidelines. The Guidelines, last updated in 2003, guide the BCUC’s review of utilities’ long-term plans. Comments may be submitted up to May 15, 2025.

The BCUC approved interim rate increases for customers of Pacific Northern Gas (PNG), effective May 1, 2025. The BCUC says that PNG West residential customers will experience a 19.9 percent bill increase from the interim rates approved on January 1, 2025.

Business in Vancouver reports that Canadians are largely in favour of a national grid powered by hydroelectricity, according to a recent poll conducted by EKOS and funded by Climate Caucus. The “massive national consensus” does not extend to agreement on how to pay for it.

CTV reports that Canadians’ interest in buying electric vehicles (EV) has fallen for the third year in a row. 42 percent are considering an EV as their next vehicle, down from 68 percent two years ago.

The North American Electric Reliability Corporation has filed a proposed new “cold weather” standard for utilities connected to the North American grid, including those in BC. The goal is improved reliability through โ€œconsistent implementation and timely remediation of freezing issues.โ€

The US Energy Information Administration reports that crude oil production rose by 2 percent last year. In spite of a lower rig count compared to 2023, technology advancements, such as artificial intelligence and improved drilling technologies, contributed to well productivity improvements.

The BBC reports that the US plans on imposing tariffs as high as 3,521 percent on imports of solar panels from Cambodia, Malaysia, Thailand and Vietnam. The proposed tariffs are a reaction to claims that the US market is being flooded with Chinese-subsidized products.

In other solar news from the BBC, the UK government has introduced legislation barring its state-owned energy company from buying solar panels linked to Chinese slave labour. Half the world’s supply of polysilicon โ€“ a key component in solar panels โ€“ comes from the Xinjiang region, which has been linked to alleged exploitation of Uyghur Muslims.

2025 04 15

The BC Utilities Commission (BCUC) denied a request from Creative Energy, who operates downtown Vancouver’s district heating system, to spend an extra $38.5 million to complete its new steam plant. The BCUC determined that the extra costs are the responsibility of the property developer in whose building the new plant will reside, and should not be passed on to Creative Energy’s ratepayers.

The CBC reports that the first LNG carrier has arrived at the new LNG Canada plant in Kitimat as the project prepares to come online. In an ironic twist, the Greek carrier was delivering LNG for equipment testing, not taking it away. Baby steps.

The BC government quietly dropped its requirement that liquified natural gas (LNG) facilities need to be โ€œnet zeroโ€ by 2030. In a letter to the Environmental Assessment Office, Energy Minister Adrian Dix clarified they merely need to โ€œprovide a credible plan for their Project to be net-zero-ready by 2030.โ€

The government is expanding BCโ€™s heat pump rebate program in an effort to make them more affordable for renters and low and middle income earners, according to a report by the CBC. BC will invest $100 million in the program over the next two fiscal years. Poverty reduction advocates argue that rebates benefit landlords, not renters, and low income earners will still struggle to afford heat pumps, with or without rebates.

BC’s Snow Survey and Water Supply Bulletin for April 1, 2025 reports that low snowpack combined with warmer seasonal temperatures indicate a risk for ongoing drought conditions throughout the spring and summer. The Peace region, home to some of BC Hydro’s largest hydroelectric facilities, is only at 76% of normal snowpack, with the snow season all but over.

A report from the International Energy Agency warns that global electricity demand for artificial intelligence (AI) is growing fast. โ€œA typical AI-focused data centre consumes as much electricity as 100 000 households, but the largest ones under construction today will consume 20 times as much.โ€ In the US, by 2030, data centres may consume more electricity than the production of “aluminium, steel, cement, chemicals and all other energy-intensive goods combined.โ€

CO280 Solutions, a Vancouver-based company, announced a deal with Microsoft to sell 3.7 million tonnes of carbon dioxide (CO2) removal over the next twelve years. CO280 Solutions will remove the CO2 from pulp and paper mills in the US and store it underground, Microsoft will claim the credit.

2025 04 04

BC’s provincial debt rating was downgraded by Moody’s and S&P, two global credit rating agencies. Moody’s cited “weakening in governance and risk controls” and forecast a $14.3 billion deficit this year, significantly worse even than the government’s own forecast of $10.9 billion. BC Hydro earned a special mention for its “consistently” rising debt, now approximately 30 percent of BC’s total.

A report in the Narwhal found that the BC Energy Regulator (BCER) had exempted more than 4,300 pipelines from the requirement to be decommissioned within 18 months of becoming inactive. The 2020 exemption, which the BCER has the power to grant, was not made public, preventing public comment or objections.

The BC Utilities Commission (BCUC) approved an exemption for BC Hydro’s need for approval for two diesel generating station extensions, with a total project cost of $40 million. While the BCUC held a public hearing, no parties were granted intervener status.

The CBC reports that BC government rebates for electric vehicles are “under review” as the province seeks to deal with the estimated $1.8 billion in lost tax revenue after it ended the carbon tax on April 1.

A report from the Energy Futures Institute recommends governments adopt a more flexible approach to the introduction of electric vehicles (EV). The report claims that BCโ€™s EV purchase incentives disproportionately benefit middle- and upper-income households, while the removal of the provincial sales tax exemption on used EVs disadvantages lower-income households.

The federal government reports that Canadian GHG emissions have dropped to their lowest level in 27 years (excluding pandemic years). Good news for BC – emissions in 2023 dropped to 60 megatonnes of CO2 equivalent, and are now 4.5 percent lower than in 2005.

According to a report issued by the US Energy Information Administration, exports to Asia made up more than 40% of Canadaโ€™s total propane exports in 2024, mainly due to competitive pricing and two new marine export terminals. A vessel from the terminals operating on BCโ€™s west coast can reach East Asia 15 days faster than one leaving from the US Gulf Coast.

April is Safe Digging Month in BC. According to FortisBC, landscaping was the top cause of damage to their lines in 2024 โ€”and the disruption can affect us all. Dig responsibly!

2025 03 28

The BCUC Utilities Commission (BCUC) approved BC Hydro’s rates application for the next two years without a hearing. The BCUC had been ordered by the BC government to approve the rates.

The BC government has announced it will scrap the provincial Carbon Tax on April 1; previously it had only confirmed that it would not raise the tax on that date. Consumers will save about 17 cents a litre on gasoline purchases. There is still no word on how BC will recoup the lost $1.5B in revenue that the carbon tax was expected to generate in the coming fiscal year.

Business in Vancouver reports that BC is no longer the Canadian leader in electric vehicle (EV) sales, a spot ceded to Quebec. Analysis suggests that “flat-lining” EV sales could be partly due to market saturation, but that increased incentives could still increase sales.

The CBC reports that at least seven “large-scale hydrogen projects” in BC are being cancelled or paused. Challenges include the cost of electricity supply and transportation safety issues.

Cedar LNG announced it is to receive $200 million in funding from the federal government. The floating facility, near Kitimat, BC, is expected to be in service by late 2028.

88 percent of Canadians rate oil and gas as “highly important” to Canadaโ€™s current
economy, an all time high since tracking began in 2020, according to a public opinion survey conducted by the University of Ottawa’s Positive Energy program and Nanos Research.

2025 03 20

The BC Utilities Commission (BCUC) approved a change to the price of FortisBC Energy Inc.’s renewable natural gas (RNG) service. The subsidized rate paid by voluntary RNG customers will increase from $13.216 to $13.963 per gigajoule effective April 1, 2025, an increase of 5.7 percent.

The BCUC also approved a new “rate setting framework” for FortisBC’s gas and electric utilities. The decision continues for three years the incentive-based scheme that is estimated to have saved ratepayers $40 million over the last five years (combined from both utilities).

The BC government announced it was by-passing the BCUC and setting rates directly for BC Hydro, the provincially-owned electric utility. Rate increases will average 3.75 percent a year for the next two years. The government order also requires the BCUC to approve $540 million spending on BC Hydro’s energy efficiency programs.

BC will end its provincial carbon tax, according to the CBC. This follows the promise by the incoming Canadian prime minister to do the same for Canada’s carbon tax. BC’s rate will not increase April 1, as had been planned, and the tax will be removed shortly thereafter. There’s no word yet on what the provincial government will do about the $1.5 billion of lost tax revenue.

The BC government’s CleanBC plan may be overhauled or scrapped, according to a report in The Narwhal. The $3.5 billion spent over 7 years has failed to reduce carbon emissions.

In an interview with CTV, the BC premier stated that he was “supportive” of a second phase of the LNG Canada project, phase one of which is expected to start exporting LNG this summer. He did not rule out “wiggle room” in the province’s 2030 greenhouse gas emissions reduction target.

The CBC reports that BC Hydro has excluded Tesla products from its electric vehicle charger rebate program. The move is in response to US tariffs being applied to Canadian goods.

The March 1 provincial bulletin on snow conditions and water supply was released. BC’s snowpack is 27 percent below normal, and the snow season is almost over.

The BBC reports that a new four-lane highway is being cut through the Amazon jungleโ€ฆso that 50,000 people may attend the COP30 climate summit in Brazil in November. I shake my head.

2025 03 12

The BC Utilities Commission (BCUC) accepted BC Hydro’s proposed long-term resource plan for the Fort Nelson area. Readers may recall that the BCUC barred
an experienced environmental advocate from participating in the proceeding, despite issues associated with the use of gas-fueled generation. The regulator did, at least, relent and change its process to let the two approved interveners submit a final argument.

However, the BCUC rejected BC Hydro’s request for an extra year to develop its next integrated resource plan. The utility itself had asked to submit the plan earlier, saying it would make the process more appropriate for addressing uncertainty and changing circumstances. The BCUC was “disappointed” and said that BC Hydro had “not provided sufficient justification” for a delay.

The BCUC approved changes to BC Hydro’s distribution extension policy, the terms and conditions that apply when new customer loads are added. The changes will eliminate the need for direct customer contributions towards most system improvement costs, and will increase BC Hydro’s contribution towards all distribution extensions.

The BC government published its latest inventory of greenhouse gas (GHG) emissions, adding the data for 2022 (this happened on December 30 last year with no announcement, but a kind reader alerted me to it). Since 2007, the baseline year for measurements, we have managed to reduce provincial GHG emissions byโ€ฆzero percent. This was no surprise.

The CBC reports that the BC government and BC Hydro have “stepped in” to ensure a power plant in Williams Lake will continue to operate. The 66 megawatt plant, operated by Atlantic Power Corporation, was “no longer profitable” owing to a lack of sufficiently cheap fuel (such as wood waste and logging debris). There’s no clarity as to who, if anyone, is now subsidizing the operation.

BC Hydro released its third quarter results, showing increases in domestic electricity sales (2.7 percent) and revenues (5 percent) compared to the prior year. Worryingly, the “trade income variance account” additions were only $17 million in the nine months to December 31, 2024, the lowest comparable figure since 2018. This represents the profits from the Powerex, BC Hydro’s trading subsidiary, that are used to subsidize electricity rates in BC.

BC Hydro also published its service plan for the next three years. Domestic sales are forecast to grow by 3.5 percent, reaching 58,798 GWh by 2027/28, but revenues are projected to grow much faster – by 23 percent. Export volumes are forecast to grow by 261 percent next year alone, which might prove a tad optimistic in the current trade climate. And the forecast assumes that water inflows to the river systems are back to 100 percent – let’s hope the drought really is over.

BC Hydro announced that its president and CEO has decided to retire after 35 years’ service, following the installation of a new board chair in December last year. The search is now on for his successor, before he leaves at the end of July.

The BC government extended the term of the BCUC chair until March 2030, even though his term wasn’t due to expire until September 2026. Curious.

2025 03 05

The BC Utilities Commission (BCUC) approved changes to how it regulates thermal energy systems. The size of systems qualifying for exemption from regulation has been expanded; the cap of $15 million in construction cost has been removed, and systems spanning more than one site may now qualify. The BCUC has also introduced stronger consumer protections, for example expanding the range of complaints it will consider.

The BCUC also approved a request from FortisBC Energy Inc., BC’s largest gas distribution utility, to build a new liquified natural gas (LNG) storage and vaporization facility in Kelowna, BC. Fortis will truck in LNG from its Tilbury storage facility during the summer, and inject it into the distribution system in the winter to meet peak demand. The need for the project arose because the BCUC
rejected an earlier application to expand the pipeline delivering gas to the region,
despite acknowledging that more peak capacity was needed.

The 20-year resource plan for Pacific Northern Gas Ltd. was accepted. The BCUC dismissed objections that PNG’s energy efficiency efforts were not aggressive enough, pointing out that it is the job of the legislature to mandate such requirements.

BC Hydro announced the cost of its recent call for power. The “weighted average levelized price” for the nine wind farms and one solar project is $74 per megawatt hour (2024 prices).

A report by the International Energy Agency highlights the effects of supply chain constraints in the electricity transmission sector. Rising demand has led to higher costs (power transformer and cables have doubled in cost since 2018) and longer lead times (two to three years for cables, for example).

The BC government announced its 2025/26 budget, with a record annual deficit of $10.9 billion. BC Hydro’s net income for the current (2024/25) year is forecast to be $140 million lower than planned owing to “various operating cost pressures.” You heard it here firstโ€ฆ

Slipped in a day before the budget, the BC government almost trebled the size of BC Hydro’s Customer Crisis Fund. The BCUC is now ordered to allow BC Hydro to record up to $13 million in the fund; the original figure was $5 million.

2025 02 26

The BC Utilities Commission (BCUC) approved an application from BC Hydro, the province’s largest electrical utility, to modify its residential rate design. The utility is moving away from its two-tiered variable rate, designed to encourage energy conservation, towards a flat variable rate. Instead of conserving electricity, the new rate structure is designed to encourage electricity use for “electrification and decarbonization.”

The BCUC also approved a total expenditure of $130.9 million for BC Hydro to upgrade its SAP software and to replace a non-SAP product used to manage its assets.

Business in Vancouver reports that the BC Energy Regulator approved NorthRiver Midstream’s NEBC Connector pipeline to transport natural gas liquids from BC to Alberta. The project had been approved by the federal Canadian Energy Regulator (CER) in 2023, but had failed to get provincial approval. A combination of an appeal to the CER to override the provincial regulator and the BC government’s new-found enthusiasm to “fast-track” selected energy projects seems to have done the trick.

A report from Efficiency Canada calls for utilities to change how they do long-range planning. The report calls for better coordination between electricity and natural gas utilities, and giving more weight to energy efficiency programs.

A survey conducted on behalf of the University of Ottawa’s Positive Energy program shows a decline in Canadians’ confidence that greenhouse gas (GHG) emissions will be reduced. Between 2021 and 2024, confidence in government GHG emission reduction policies fell from 35 to 24 percent. The survey also showed increasing skepticism that individuals or corporations would alter their behaviour to reduce GHG emissions.

The Energy Information Administration forecasts that the combination of solar and battery storage will account for 81 percent of new electricity generating capacity in the US in 2025.

Nikola Motors, a US-based electric truck company, announced it had entered Chapter 11 bankruptcy. The company, which uses the slogan “All science, no fiction” was famous for having faked a promotional video by towing a truck to the top of a hill and filming it rolling down using gravity for propulsion.

2025 02 18

The BC Utilities Commission (BCUC) received a request from BC Hydro, the province’s largest electric utility, to exempt two diesel generation projects from the need for approval. The BCUC has already allowed the state-owned utility to avoid developing a long-term resource plan for these areas, to the distress of the local First Nations. For the new request, First Nations and other interest groups will not be permitted to intervene in the proceeding.

The BCUC approved a $147 million request from BC Hydro to upgrade a transmission line to serve increased demand at the Highland Valley copper mine, owned by Teck Resources Limited. The BCUC noted that the current tariff for such upgrades, approved in 1991, may no longer be suitable for allocating the full costs to the customer, and that in 2012 it had recommended a review of the “significant and urgent issue”, which never took place. This time, the BCUC has directed BC Hydro to file an application to review the tariff by September 2025.

The BCUC made public a November 2024 decision approving rates for Wyse Meter Solutions Inc. The decision had not been disclosed earlier pending a decision on confidentiality.

A BC government report reveals that provincial snowpack is only at 72 percent of normal levels, indicating “early concerns for drought conditions.” Two thirds of the season’s snowfall should have arrived by now. This does not bode well for the province’s electricity generation in the coming year; BC Hydro has been forced to rely on imported electricity.

The International Energy Agency released its 2025 electricity report. Canada’s electricity demand grew 0.7 percent in 2024, and is forecast to grow 1 percent annually until 2027. Hydro electric generation dropped 6 percent, however, due to “severe drought conditions.”

The BC government announced plans to give the BC Energy Regulator (BCER) the role of deciding whether to issue permits for renewable energy projects such as wind and solar. This follows an earlier announcement that the BCER would become a “one-window regulator” for the proposed North Coast Transmission Line and other high-voltage transmission projects. The Energy Resource Activities Act gives the BCER no direct role in the electricity sector at present.

The Fraser Institute released a report on decarbonizing Canada’s electricity generation by 2050. The country will need the equivalent of 134 facilities like BC Hydro’s Site C dam, or 16 nuclear facilities like Ontario’s Bruce Power plant. The report describes this as a “daunting challenge” and suggests it might not be realistic.

2025 02 05

The BC Utilities Commission (BCUC) concluded its generic cost of capital proceeding. In the third and final stage of the proceeding, the BCUC decided not to conduct a comprehensive review of regulatory account carrying costs, but to continue its current practice of reviewing them on a case-by-case basis.

CBC reports that the BC government plans to “fast-track” 18 natural resource projects, in response to the threat of a trade war with the US. The list includes BC Hydro’s new wind energy projects (see Feature below), the Cedar LNG project, and a new transmission line from Prince George to the north coast, all of which have been previously announced.

A new report published by the Fraser Institute concludes that the federal government’s Emission Reduction Plan is not sufficient to achieve net zero greenhouse gas (GHG) emissions by 2050. Modelling shows that GHG emissions would fall by 70 percent, but that GDP would fall seven percent and the policies would cost each employed person more than $8,000 annually.

2025 01 28

The University of Ottawa’s Positive Energy program concluded that Canada currently lacks the investment environment needed to achieve its net zero emissions targets. They consider market factors to be far more influential than regulatory decision-making in determining how long it takes to deliver energy projects.

A survey conducted by the Canadian Automobile Association found that 8 of 10 electric vehicle owners in BC would buy another one next time, with most owners finding the costs of fuel and maintenance are lower. However, almost 60 percent find the lower battery range in cold weather is a problem.

The federal government has “paused” its subsidy program for electric vehicles, having run out of money (the program, not the government). The program was due to continue to March 31. The BC government declined to answer questions about the health of its own subsidy program, according to the CBC.

Western LNG LLC announced that it has secured $150 million in funding to take the Ksi Lisims LNG and Prince Rupert Gas Transmission projects through to a final investment decision, expected later this year.

The Energy Information Agency forecasts that natural gas prices will rise in 2025 and 2026 from a historic low in 2024.

2025 01 09

The BCUC approved the first ever permanent rates for thermal energy provided by Oakridge Energy Limited Partnership, which provides heating and cooling to the Oakridge Centre property redevelopment in Vancouver, BC. The BCUC rejected the utility’s assertion that operations and maintenance costs were uncontrollable, and insisted that the utility bear the risk of those costs increasing until at least the end of 2026.

The estimated annual cost for heating and cooling an Oakridge Centre residential suite in 2025 will be $3,141, compared to an estimate of $2,086 made when the BCUC originally approved the project.

The BCUC approved increased rates for Corix’s thermal energy services to Simon Fraser University and the UniverCity property development, where a typical end-user’s bill will increase by almost ten percent for each of 2024 and 2025. The BCUC maintains that, while challenging, the increase does not quite constitute rate shock.

The BCUC released a public version of a BC Hydro decision that had previously been confidential, “to satisfy the public interest of transparency and disclosure.” Among other things, the BCUC found that BC Hydro had violated a provision of the Open Access Transmission Tariff (OATT) by disclosing confidential knowledge to PowerEx, the energy trading company owned by BC Hydro, before making the information public. The BCUC determined that there was “no evidence of willful intent” and that the violation did not warrant penalizing the government-owned utility.

Business in Vancouver reports that the Canadian government has pushed its target of “net-zero electricity” from 2035 to 2050. Alberta immediately announced it would mount a legal challenge on the ground that this is provincial jurisdiction.

NERC, the North American Electric Reliability Corporation, released its December 2024 long-term reliability assessment. From 2027, BC may face “periods of insufficient operating reserves when neighboring areas are unable to provide excess energy” in the event of drought and extreme cold winter temperatures.

According to a report by Bloomberg, the cost of clean hydrogen will remain “far more expensive than previously thought for decades to come.” The firm tripled its previous 2050 cost estimate citing future costs for hydrogen electrolyzers.

2024 12 17

The BCUC approved a request from FortisBC Energy Inc. (FEI) to sell a property in downtown Prince George at a loss. The building had been used as a call centre, but the level of “crime and social disorganization” in the area had become so bad that the company moved its call centre away from the downtown core to ensure the health and safety of its employees. The BCUC emphasized that this was not a general ruling that ratepayers would pay for utilities’ stranded assets.

The BCUC also approved FEI’s charges for customers who choose not to use the utility’s new automated meter readers. The fee is $21 per meter read, plus a setup fee of $61 prior to commencement of the service or $105 thereafter.

Gas rates for Pacific Northern Gas will rise on January 1, 2025. Residential customers in the PNG West region will see an average annual bill increase of 8.2 percent.

According to a report from S&P Global, BC achieved an adoption rate of 24.9 percent for sales of zero emission vehicles in the third quarter of 2024, compared to a figure of 16.5 percent nationally. The figure in Vancouver was 29.7 percent.

Business in Vancouver reports that a renewable diesel refinery in Prince George could shut down by March 2025. Tidewater Resources says it can’t compete with subsidized American imports. The company received provincial government assistance to build the $450 million facility.

A survey conducted for the University of Ottawa’s Positive Energy program found that the proportion of Canadians who say the environment should be given priority over economic growth and jobs has fallen to an all-time low.

The International Energy Agency released a report on the future of geothermal energy – they believe it has one. The report claims that the technical potential for “next-generation geothermal systems” as a source of clean energy is second only to solar energy.

A reader suggested a clarification to a news item from last week’s newsletter. I had reported that FEI’s renewable natural gas is forecast to cost $23.647 per gigajoule (GJ) in 2025, compared to $2.23 per GJ for the regular kind. This cost does not apply to all customers, however. Residential customers, for example, will pay only $13.216 per GJ for voluntary use of renewable natural gas (the rate is subsidized by customers of regular natural gas). Sorry.

2024 12 11

FortisBC Energy Inc. says its gas rates will increase by 17.5 percent on January 1, 2025. The BCUC approved an interim increase to the utility’s delivery rate of 7.75 percent; another factor is that customers will start paying for two percent of their gas to be renewable, up from one percent at present. Renewable natural gas is forecast to cost $23.647 per gigajoule (GJ), compared to $2.23 per GJ for the regular kind.

The BCUC also approved an interim increase of 5.65 percent to the rates for electricity provided by FortisBC Inc.

The BC government announced that BC Hydro, the state-owned electrical utility, has selected nine wind energy projects as a result of its recent call for power. The successful bidders will be awarded 30-year contracts to provide a total of nearly 5,000 gigawatt hours of electricity per year. The government intends to exempt the projects from its environmental assessment requirements.

The BCUC determined that information on sales revenue and customer counts for regulated gas marketers in BC should be made publicly available. Easy Energy Inc. had applied to keep this data confidential.

Business in Vancouver reports that Natural Resources Canada will provide $12.5 million in funding for five clean energy projects in BC, including $5 million for Carbon Engineering’s direct air carbon capture technology.

A proposed $1 billion lithium-ion battery factory expansion in Maple Ridge has been “placed on hold”, according to reports. The Canadian and BC provincial governments had promised a combined $284.5 million in funding.

The Oxford Institute for Energy Studies released a study on the use of “green” hydrogen, concluding that the gas has a “potentially significant, but very uncertain” role to play in the energy transition.

2024 12 04

The BCUC issued a decision setting the cost of capital for fourteen small utilities. Their rate of return on equity is now set to 10.4 percent, 75 basis points above the benchmark utility (FortisBC Energy Inc.). The utilities each have a different “deemed equity component” to reflect their respective business risk, ranging from 46 to 52 percent (the lower-risk benchmark is set at 45 percent).

The BCUC granted a certificate of public convenience and necessity and approved rates for Wyse Meter Solutions, having found in a previous decision that the business was a public utility and subject to regulation. The reasons for the latest decision are confidential, pending a final submission by the utility.

The BCUC rescinded the safety reporting requirements it had previously imposed on Hemlock Utility Services, a small electrical distributor. The BCUC had previously expressed concern that the utility may not understand its safety responsibilities or have the capability to meet them. Hemlock must continue to file the standard BCUC annual safety declaration form.

The BCUC ordered that Lake Okanagan Resort must file an application for permanent rates should it wish to resume electricity service to its customers. The utility had failed to submit this application despite BCUC previous direction, and was already under a “cease and desist” order not to proceed with construction of its facilities following fire damage over the summer of 2023.

Efficiency Canada released its 2024 efficiency scorecard. Energy efficiency spending in Canada in 2023 was almost $1.6 billion, the largest since at least 2017. BC achieved the highest overall rating of all jurisdictions in Canada, and the highest rating for its buildings programs.

The City of Vancouver voted to retain its ban on natural gas heating for new homes in the city. In July it voted to overturn the 2020 policy; in November, it changed its mind again.

Final toll rates for the new Trans Mountain oil pipeline will not be set until 2025, an election year, according to Business in Vancouver. The $34 billion price tag, nearly five times the $7.4 billion estimate, will have to be paid for through higher tolls, which may affect gas prices, or a taxpayer write-off.

The Vancouver Sun reports that a lithium battery exploded in the home of a Vancouver Island fire chief. No-one was hurt, but the owner said this was “a good reminder to keep a watchful eye on lithium batteries.”

Northvolt, a Sweden-based battery company, filed for bankruptcy in the US, and its founder and CEO resigned. Earlier this month, the Canadian government announced Northvolt would invest $7 billion in a plant in Quebec, the company’s first electric vehicle battery plant in North America.

2024 11 20

The BC government appointed a new minister of energy, Adrian Dix, as part of a reorganization following the recent provincial election. The ministry is no longer responsible for mining (now in a separate ministry), but is now responsible for climate solutions, formerly under the environment ministry.

The BCUC issued a highly redacted order approving something for Wyse Meter Solutions Inc. under section 53 of the Utilities Commission Act (consolidations, amalgamations and mergers). The decision did not reveal whether it was approving a consolidation, an amalgamation or a merger.

The US Energy Information Agency reports that natural gas prices in the Pacific Northwest reached record lows in October, caused in part by “robust” production in Western Canada.

2024 11 12

The BC Utilities Commission (BCUC) issued its decision on which of BC’s two largest electricity utilities should play the Planning Coordinator role for the bulk electricity system in the province under the North America-wide Mandatory Reliability Standards program. Despite reservations about the effect on reliability, the BCUC directed that they will share the role.

An analysis by the Energy Institute at Haas concludes that time-of-use rates can induce “sizeable reductions” in peak period demand for electricity.

The International Energy Agency published its 2024 Energy Efficiency report. Global energy efficiency progress is set to see only “weak improvement” of 1 percent in 2024, the same rate as 2023.

Efficiency Canada released a report highlighting how Canada’s energy efficiency programs could be more effective if natural gas and electricity were not treated as separate “fuel silos”.

The Canadian government announced draft regulations to limit greenhouse gas emissions from the nation’s oil and gas production. The intent is to create a “cap and trade” system, with emissions capped at 35 percent below 2019 levels. Final regulations will be published next year.

The US Energy Information Administration forecasts that generation from US hydropower plants in 2024 will be 13 percent lower than than the 10-year average, largely due to droughts, especially in the Pacific Northwest.

The BCUC ordered Creative Energy to provide more information before it would review the utility’s application for thermal energy rates for the Butterfly property development in Vancouver. Among other issues, the proposed terms of service are for delivery of steam, while the service actually delivers hot water.

2024 11 01

The BCUC rescinded a 2023 order that BC Hydro file a long-term resource plan for its non-integrated areas. This was the latest in a series of reconsideration requests filed by the utility since the new chair was appointed last September, all of which have been approved.

The BCUC approved a request from BC Hydro to spend $379 million upgrading the Ladore dam on Vancouver Island. The work will address safety deficiencies that could lead to failure of the dam in an earthquake.

The BCUC approved BC Hydro’s proposed “expedited review framework” for pilot projects for its public electric vehicle (EV) charging network. The cost of the pilot projects is included in the utility’s previously-approved $6.5 million 10-year EV marketing budget. Prompted by a letter of letter of comment comment submitted in the proceeding, BC Hydro agreed to expand the amount of information it
makes public when applying for each pilot project.

BC Hydro announced that the first of six generators at its new Site C dam has started producing electricity. Construction started in 2015, and was scheduled to be fully complete by 2024, at a cost of $8.335 billion. The final generators are now expected to be in service by the fall of 2025, at a total cost of $16 billion.

The BCUC approved the revenue requirements for Creative Energy’s thermal energy system in downtown Vancouver. The BCUC denied the utility’s request to add $1.5 million of the cost of its remote metering project to its rate base because it declined to provide the requested supporting information. This information has apparently been requested in two separate proceedings.

On October 21, 2024, the City of North Vancouver approved new fixed charges for Lonsdale Energy Corporation, which provides thermal energy to buildings in the municipality. In addition to an increase of 3.3 percent for inflation, its capacity charge increased a further 3.9 percent to cover the cost of running new electric boilers to replace heating from natural gas. According to City staff, “Energy delivered from low-carbon energy sources is more expensive to construct and operate.”

CBC reports that drilling for oil in Western Canada rose in response to the opening of the Trans Mountain Pipeline extension this year. Drilling for gas is anticipated to increase when LNG Canada’s facility starts operation in mid 2025.

2024 10 22

The BCUC approved rates for a Creative Energy thermal energy system in Mount Pleasant, Vancouver. The BCUC denied recovery of depreciation expense for assets not in service at the beginning of the year, and recovery of income tax expense because the public utility is a partnership that does not pay income tax.

Google is reported to have signed a deal to acquire up to 500 MW of electricity for its data centres from new small modular nuclear reactors as early as 2030.

Amazon is reported to have signed agreements to support the development and deployment of small modular nuclear reactors in the US, including 320 MW of electricity generation by the early 2030s.

A report by Clean Energy Canada reported that barriers to entry for clean technologies such as electric vehicles (EV) and heat pumps are higher than a year ago thanks to reduced government subsidies and more expensive EVs.

The International Energy Agency issued its 2024 World Energy Outlook. The Agency believes that growth in global energy demand after 2030 can be met solely by clean energy. Until then, the growth will continue to be met by fossil fuels, as it was in 2023.

2024 10 14

BC Hydro has received 21 proposals from independent power producers in response to its April 2024 call for power. This represents the potential for more than 9,000 GWh per year, three times the utility’s target. Projects could start coming online as soon as fall 2028.

The BCUC issued its decision resolving a complaint filed against Cambie Gardens Energy Limited Partnership (CGE) by the City of Vancouver and SUCCESS Affordable Housing. The BCUC declined to rescind CGE’s exemption from rate regulation, and directed it to continue to negotiate rates with the complainants. The reasons for the decision were not published as the BCUC determined that they were confidential.

The BCUC rejected an application from Creative Energy for rates for a new low carbon service due to it being “materially deficient in information.” Creative Energy had been directed to file this application by June 30, 2023, and had requested and been given five extensions by the BCUC, the last one being to August 23, 2024.

Business in Vancouver reports that the $2 billion hydrogen plant announced by Fortescue Ltd., an Australian company, in September 2023 will no longer proceed.

The International Energy Agency released its Renewables 2024 report. It anticipates global renewable capacity will grow by 2.7 times from 2022 to 2030, short of the goal of 3 times established at the COP28 climate summit. 60 percent of the global expansion is accounted for by China.

2024 09 16

FortisBC announced it is seeking to acquire up to 1,100 gigawatt hours of electricity as soon as 2030. The utility is looking for lower-carbon and renewable energy projects of 5 megawatts or greater to supply its demand in the south interior region of BC.

The BCUC accepted an energy supply agreement submitted by FortisBC Energy Inc., but the supplier’s name and product were redacted from the acceptance order. Intriguing.

2024 09 10

The BCUC approved FortisBC’s request to build a new substation in Fruitvale, BC. The $19 million project replaces two aging substations in the area.

The BC government announced that its “electric highway” of public electric vehicle fast charging stations will be complete before the end of September. Spanning the entirety of the province, charging stations are located along all highways and major roadways located approximately 150 kms apart.

A survey conducted on behalf of the Energy Futures Institute finds that BC residents are strongly supportive of expanding renewable sources of energy, and also support reviewing restrictions on building new hydroelectric dams or nuclear power.

FortisBC announced a pilot program in Kelowna, BC to reduce gas demand. Participating customers will be asked to reduce consumption at certain peak times, and may receive incentives of up to $100 for being part of the program.

2024 09 04

The BC Utilities Commission (BCUC) exempted from active regulation those public utilities that are wholly owned and wholly operated by local governments and operate within their municipal boundaries. This is consistent with the Utilities Commission Act which entirely excludes such local governments from BCUC regulation. There is no word yet on stage 2 of the proceeding, which was adjourned pending the issuance of this exemption.

The BCUC approved BC Hydro’s request to spend $200.4 million upgrading ancillary equipment associated with four of Mica dam’s six generating units. In total, the Mica dam facility accounts for some 25 percent of BC Hydro’s generating capacity.

The BCUC approved BC Hydro’s request to increase its major project thresholds, below which the utility need not obtain a Certificate of Public Convenience and Necessity (CPCN) from the BCUC. BC Hydro can now proceed with power systems investments of up to $250 million without the scrutiny of a CPCN proceeding, a 150 percent increase over the former thresholds.

The BC Minister of Energy exempted BC Hydro from the need for BCUC approval for six projects to add or upgrade substations in the Greater Vancouver area. The exemption order provides no reason for exempting the projects from the need for a CPCN, and no estimate of the cost of the projects that are now exempt from BCUC scrutiny.

The BCUC approved a purchase agreement for BC Hydro to buy electricity from Atlantic Power’s Moresby Lake hydroelectric generating facility until 2043. The cost of the electricity remains confidential but BC Hydro claims it is less than its avoided cost of diesel generation, which is also confidential. The BCUC issued no reasons for the decision, which was unopposed.

The BCUC approved BC Hydro’s request to expand the scope of three regulatory deferral accounts, which now include such items as routine weather-related maintenance. The BCUC provided no reasons for the decision, and did not invite intervention by public interest groups in the proceeding.

FortisBC Energy Inc. announced it has signed a funding agreement with VulcanX Energy Corp. to develop zero-emission hydrogen and solid carbon from natural gas.

The BCUC summarily dismissed two requests from interveners (RCIA and BCSEA) to reconsider cuts to their BCUC funding for participating in the recent BC Hydro Integrated Resource Plan proceeding.

2024 08 06

The BC Utilities Commission (BCUC) approved Emanate Energy Solutions Inc. increasing its percentage of voting shares in the public utilities in the Creative Energy Group, but directed it to make further filings should the percentage increase further.

The BCUC approved rates and terms of service for CB PowerLine Ltd., the public utility providing electricity to community of Cosens Bay, BC.

The BCUC accepted a Resource Assessment Report for Kyuquot Power Limited, which operates an electrical distribution system on Vancouver Island, BC. The report anticipated a capacity upgrade to accommodate growth in peak demand.

FortisBC applied to the BCUC to build an LNG storage and send-out facility in Kelowna, BC.

The International Energy Agency issued its electricity mid-year update. Growth of 3 percent is predicted for US demand in 2024, driven by air conditioning and data centre expansions.

S&P Global reported that average US household electricity prices rose 21.9 percent between 2018 and 2023, compared to inflation of 22.2 percent in the same period.

2024 07 25

The BC government directed the BC Utilities Commission to approve two transmission service rates for BC Hydro, the electricity utility owned by the government. The Commission approved the rates.

The BC government directed that the BC Utilities Commission fix the net income of BC Hydro at $712 million per year for an additional two years. The Commission will not be able to conduct an independent review the utility’s rate of return until at least fiscal year 2028.

The BC government issued a regulation preventing BC Hydro from supplying electricity to cryptocurrency data centre projects for the next 18 months.

The Vancouver Sun reports that a green hydrogen project proposed for Prince George, BC may be put on hold. The developer, Australian-based Fortescue, has paused its plan for worldwide expansion blaming the cost of electricity.

The CBC reports that the City of Vancouver has reversed its long-standing bylaw banning natural gas for heating new homes.

The Fraser Institute issued a report estimating that by 2030, the Canadian government’s Emissions Reduction Plan will only achieve 57 percent of its target, and will reduce real GDP by 6.2 percent from its base case.

2024 07 15

The BCUC rejected an energy supply application from FortisBC Energy Inc. The nature of the application and the reasons for rejection were withheld.

The BCUC accepted an energy supply application from BC Hydro to buy solar power from the Ulkatcho Energy Limited Partnership. The BCUC had no power to reject the application because it was a prescribed undertaking under BC’s Clean Energy Act.

BC Hydro submitted its 2024 residential rate design application to the BCUC. The application includes proposed changes to the net metering rate, but the details won’t be provided until December 2024.

BC Hydro received a warning from the BC Environmental Assessment Office that the Site C project is not in compliance with its environmental certificate, and that penalties of up to $2 million may apply.

A report from the Canadian Climate Institute suggests that electrifying almost all building heat is the most cost-effective path to achieving net zero GHG emissions in Canada, but this will require between 2.6 and 2.9 times today’s electrical capacity.

FortisBC announced that the government of Canada has approved the construction of a jetty to facilitate the refueling of ships with LNG.

Deloitte, a consulting firm, forecasts increased drilling activity in BC to provide gas for LNG exports, despite a decline of 15 percent in the US and Canada overall in the last year.

A survey by the University of Ottawa’s Positive Energy indicates that 51 percent of Canadians believe now is the best time to be ambitious in addressing climate change, but the proportion who are not interested in transitioning has grown from 26 to 32 percent since 2023.

2024 07 02

The BC government published its Clean Energy Strategy.

Business in Vancouver reports that the BC government’s success in promoting electric vehicles has led to a drop in motor fuel tax revenue, leading to a $34 million drop in revenues for the public transit system and causing it to announce staff reductions.

The BCUC approved FortisBC Inc.’s energy-based rate for direct-current electric vehicle fast charging. Starting October 1, 2024, customers will pay $0.39 per kWh, replacing the former time-based rate.

The BC government announced new subsidies of up to $10,000 for residential customers to install solar panels and battery storage systems, with subsidies of up to $150,000 for larger electricity customers.

The BCUC approved final 2024 rates for Nelson Hydro’s rural customers. The applied-for rate increase of 6.2 percent was denied, replaced with an increase of 4.21 percent. Customers will still pay the larger increase in 2024, but will likely see the overpayment returned to them in 2025.

FortisBC Energy Inc. announced it is the first energy utility in North America to automatically supply renewable natural gas (RNG) to its customers. All customers will be designated RNG for one percent of their gas supply.

Cedar LNG announced a positive final investment decision. The $5.5 billion project is 50.1 percent owned by the Haisla First Nation, and 49.9 percent owned by Pembina Pipeline Corp.

The Oxford Institute for Energy Studies report into the future of natural gas concludes that LNG demand is likely to peak around 2030, declining thereafter. The LNG exporting regions most impacted by lower demand will be North America, southeastern Asian countries and Australia.

2024 06 17

The BCUC approved the 2024/25 annual contracting plan for FortisBC Energy Inc. (Fortis Gas), BC’s largest gas utility. The utility’s “forecast design peak day demand” is 1,452 terajoules (TJ) per day, an increase of 10 TJ per day over the previous year.

Global investment in energy technologies and infrastructure will reach US$3 trillion in 2024, according to the International Energy Agency, $2 trillion of which will be in clean energy.

The BC government announced that BC Hydro, the state-owned electrical utility, will spend more than $1.25 billion upgrading its distribution system in the municipality of Burnaby over the next decade.

The University of British Columbia (UBC) announced a $23 million integrated, on-campus hydrogen production facility and fueling station.

The Canadian federal government reports that the country’s electricity demand will at least double by 2050 to achieve net zero greenhouse gas emissions. It also acknowledges that the current policy environment is in “urgent need of additional clarity.”

A report by Deloitte, a consultancy firm, projects that distributed energy resources (DER) such as rooftop solar generation could make up for the expected growth in peak energy demand by 2035.

2024 06 03

The BCUC resolved a long-running complaint between TELUS Garden Thermal Energy System and FortisBC Alternative Energy Services.

Clean Energy Canada released a report assessing the progress of Canadian provinces in building “sustainable economies.” BC rated a “B” overall, and was let down by “a disconnect between its climate policy and its energy system planning.”

Navius Research released a report showing that peak electricity demand in BC will need to rise to 26,348 MW in order to achieve net zero greenhouse gas emissions by 2050, from 10,924 MW in 2015.

Nuclear power could be a “significant contributor” to achieving net-zero greenhouse gas emissions in Canada by 2050, according to a report from Clean Prosperity. The reports calls for “ambitious and stable” electrification and decarbonization policies extending beyond 2035.

The BC government announced that HTEC plans to build and operate a network of up to 18 hydrogen refueling stations in BC, with hydrogen provided by facilities in Burnaby, Nanaimo and Prince George.

A report from the Electric Power Research Institute (EPRI) suggests that data centres could reach 9.1 percent of total US electricity demand by 2030, compared to an estimated 4 percent today. Demand from artificial intelligence (AI) is predicted to grow quickly, with ChatGPT requests requiring 10 times the electricity of a traditional Google query.

The Fraser Institute published an essay by Distinguished Professor Emeritus Vaclav Smil concluding that “the world free of fossil carbon by 2050 is highly unlikely.”

2024 05 23

The BC legislature passed Bill 24, amending the Utilities Commission Act to allow cabinet rather than the BCUC to regulate electricity service to cryptocurrency businesses (this was the subject of an earlier Just and Reasonable article).

The BCUC granted BC Hydro’s request to rescind a previous decision requiring the utility to consider how it might improve its reporting of investment outcomes. The BCUC has now approved all four reconsideration requests made by BC Hydro in the three months following the government’s replacement of the BCUC chair in September 2023.

The BCUC approved BC Hydro’s request to spend an expected $119 million to service the new Surrey-Langley SkyTrain Line without a Certificate of Public Convenience and Necessity (CPCN). The BCUC chided BC Hydro for not applying for a CPCN in sufficient time, despite being an “experienced participant in the BCUC’s regulatory process” but approved the expenditure in order not to delay the construction of the SkyTrain extension.

The BCUC approved FortisBC Energy Inc.’s 2023 Cost of Service Allocation (COSA) and Revenue Rebalancing application. The decision results in “only marginal rebalancing” of Fortis’s gas rates; the next COSA is to be filed by January 1, 2029.

The BCUC granted exemptions from regulation for producers of hydrogen used for generating electricity or as a transportation fuel. Truckers and sellers of hydrogen as a transportation fuel were also exempted.

2024 05 17

The BCUC accepted Fortis BC Inc.’s annual electric contracting plan for 2024/2025. The utility is forecasting gaps in capacity in the peak months of June and July for the next four years, which it plans to meet through market purchases.

The North American Electric Reliability Corporation’s Summer Reliability Assessment for 2024 shows that BC’s electrical system faces “operational challenges on multiple fronts, including drought, wildfires, and rapid electrification.” BC had the second highest increase in peak demand (7.4 percent) since summer 2023 of all areas in north America (Alberta was highest at 8.9 percent).

The Federal Government’s latest greenhouse gas (GHG) emissions report shows that BC’s GHG emissions rose to 64 equivalent megatons of carbon dioxide (MtCO2e) in 2022. This is almost back to the pre-pandemic figure of 65.2 MtCO2e in 2019.

The California Public Utilities Commission approved a new income-graduated fixed charge for the state’s investor-owned electric utilities. The fixed charge varies from approximately $6 per month to $24.15 per month, and the revenues will be used to reduce volumetric rates for all customers.

According to a report by the International Energy Agency, battery storage is now the fastest growing commercially available energy technology in the power sector, with costs having declined 90 percent since 2010.

The 2024 Pacific Northwest Regional Forecast, covering the states of Washington, Oregon and Idaho, indicates a “surge in demand” for electricity of 30 percent over the next decade, largely due to the growth in data centres, high-tech manufacturing and electrification.

The International Energy Agency’s quarterly gas market report shows that natural gas use in the US spiked to an all-time high on January 16, 2024.

2024 05 04

The BCUC approved BC Hydro’s application to build four “off-grid” EV charging stations in northern BC using propane-powered generators. The BCUC has no power to review whether the investment is in the public interest.

The International Energy Agency’s annual Global EV Outlook says that sales could reach 17 million in 2024, and that every other car sold globally in 2035 is set to be electric.

The Canadian Energy Regulator announced that the Trans Mountain Expansion pipeline is now approved to carry crude oil from Alberta to the Westridge Marine Terminal in Burnaby, BC.

According to the Bank of Canada, the newly commissioned Trans Mountain Expansion project will add 0.25 percentage points to GDP in the second quarter of 2024.

Stats Canada reports that electricity imports to Canada in February 2024 were 124.1 percent higher than the previous ten-year average, due to prolonged dry conditions, exceeding exports for the first time since at least 2016. Imports to British Columbia rose 46.6% year over year, accounting for 71.7% of total imports.

2024 04 26

Fortis has filed a rates application for 2025 – 2027 with the BCUC. The application covers its gas and electric utilities in BC.

BC Hydro has requested permission to start construction of a $100 million+ project to service the new Surrey Langley SkyTrain line without the normal approval process. Current BCUC guidelines require BC Hydro to file an application for a Certificate of Public Convenience and Necessity (CPCN) prior to starting construction.

A survey shows that 70 percent of British Columbians agree with a net-zero goal for 2050, but this drops to 40 percent if average energy costs were to rise by 30 percent. In BC, 80 percent have positive views on hydro-electric power and 65 percent for natural gas, but only 42 percent for nuclear power.

The BCUC has determined that APT Utility Corp. is a public utility. APT Utility Corp. operates equipment or facilities for the provision of electricity and natural gas within the Holly Lodge residential property in Vancouver.

A report issued by the Brattle Group suggests that California could create $550 million in annual consumer savings by 2035 by deploying additional virtual power plant capacity.

2024 04 12

The BC government announced legislative amendments to enable regulation of electricity service for cryptocurrency miners.

Cedar LNG announced it has issued a “notice to proceed” to contractors involved in constructing its floating LNG facility in Kitimat, BC.

The BC government proclaimed April as Safe Digging Month. So dig safely.

2024 04 03

The BCUC approved a rate increase of 7.5 percent for thermal energy services provided by River District Energy, denying the requested increase of 3.94 percent. The approved rate is interim, pending the conclusion of the BCUC’s Generic Cost of Capital proceeding.

The BCUC denied a request from Powell River Energy Inc. to reconsider an earlier decision that found it to be a public utility.

The BC government announced it has issued an environmental assessment certificate for the Tilbury marine jetty in Delta, BC. The jetty will be used to fill carrier ships exporting liquified natural gas (LNG) from the nearby FortisBC LNG plant.

Clean Energy Canada released a report in which it concludes there may be insufficient global demand in future for BC’s LNG exports.

The Canadian Climate Institute issued a report concluding that industrial carbon pricing is the single biggest driver of Canadian greenhouse gas emissions reductions in 2030. The fuel charge (carbon tax in BC) was fourth.

An opinion survey conducted for the University of Ottawa’s Positive Energy program finds that 45 percent Canadians think governments are doing a poor or very poor job of regulating the country’s energy industry, compared to 9 percent who think they are doing a good or very good job.

2024 03 23

The BCUC approved changes to FortisBC Energy Inc.’s renewable natural gas program, but denied its request for a permanent 100 percent renewable natural gas rate for new buildings.

The BCUC approved BC Hydro’s request to rescind a 2021 decision. The utility is no longer required to file a rates application using a performance-based formula for fiscal years 2026 to 2028.

The BCUC approved BC Hydro’s request to vary a 2018 decision. BC Hydro is no longer directed to file a CPCN application for its Westbank Substation Upgrade Project.

The BCUC rejected the BC Sustainable Energy Association’s request to modify the exemptions for thermal energy systems providers the BCUC recently recommended to the BC government.

The BCUC accepted FortisBC Energy Inc.’s long term gas resource plan. The BCUC directed the utility to submit its next plan by March 31, 2026.

The Canadian Climate Institute released a report on the effectiveness of various Canadian government climate policies. The report concludes that market-based policies targeting industrial emissions are having the biggest impact.

2024 03 15

The Auditor General of BC published its Areas of Interest report for the 2022/23 year. The report warns of the risk of the cumulative impact of government directions to the BCUC regarding BC Hydro, and issued a reminder that the Auditor qualified the province’s 2016/17 and 2017/18 summary financial statements.

The BCUC approved BC Hydro’s application for time-based and energy-based electric vehicle charging rates. The BCUC found that the proposed rates fully recover the forecast costs of providing service, but rejected the request for an extended stay charge for level 2 charging.

The BCUC accepted BC Hydro’s Integrated Resource Plan, and ordered that its next plan be filed no later than October 31, 2025.

The BCUC approved BC Hydro’s application to finalize its residential rates for fiscal year 2025 (beginning April 1, 2024). While the utility’s rates have increased, all residential customers will experience a bill decrease thanks to three mitigating factors.

The BCUC approved FortisBC Energy Inc.’s permanent rates to provide compressed natural gas fueling services to GFL Environmental Inc. for its truck fleet. The BCUC ordered that FortisBC Energy Inc. refund the difference between the permanent rate and the previously-approved interim rates.

The American Clean Power Association released its Clean Power Annual Market Report for 2023. The US added a record 33.8 GW of utility-scale clean energy in 2023, bringing the total to 262 GW.

2024 03 06

The BCUC approved interim rates for Kyuquot Power Ltd, an electrical utility. Permanent rates for the utility will be set following the final outcome of the BCUC’s decision in the Generic Cost of Capital proceeding.

The BCUC issued its final Public Utility Safety Guidelines, following up on its earlier decision that established it has jurisdiction over “all aspects of public utility safety.”

The BCUC accepted six electricity purchase agreements between BC Hydro and independent power producers (IPPs). The six agreements, all renewals of earlier agreements, now have 20-year terms and a fixed price of $58/MWh (subject to certain project-specific adjustments), escalating at 50 percent of BC CPI annually. This compares to BC Hydro’s estimate of its long-run marginal cost of $70/MWh.

The BCUC approved an amendment to the transfer agreement between BC Hydro and its unregulated energy trading subsidiary, Powerex Corp. The provincial government prevents the BCUC from exercising its powers to determine whether this agreement is in the public interest.

The International Energy Agency issued its 2023 report on global CO2 emissions, which would have fallen in 2023 but for a global shortfall in hydro-electric generation.