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Scott Simpson

BC Hydro proposes to spend almost half a billion dollars by 2011 for an unprecedented and far-reaching program to ratchet down electricity consumption, according to documents filed Friday with the B.C. Utilities Commission.

Virtually every essential and luxury household item sold in British Columbia would be subject to tougher energy efficiency standards - every new hot tub, ice maker, fan, fridge, light bulb and TV tuner would have to be demonstrably more efficient than most current models.

Hydro plans to encourage a rollover to more efficient appliances - including funds for home renovations and appliance rebates for residential customers, commercial product incentives and partnerships with industry.

Money would also go to community engagement and public awareness campaigns and Power Smart partnership programs.

 Hydro has been ordered by the provincial government to meet 50 per cent of electricity demand growth through 2020 by conservation, and documents show that curtailing consumption is vastly cheaper than adding new power generation.

Since 2002, energy efficiency programs saved Hydro 1,828 gigawatt hours of power - about three per cent of total annual electricity production in B.C.

The province wants annual savings to jump to 12,000 gigawatt hours by 2020.

According to documents, an efficiency drive would save B.C. $7.8 billion in new generation infrastructure and deliver electricity savings at an average unit cost of $41 per megawatt hour compared with new electricity supply costing an average of $125.

Documents filed as part of Hydro's long term electricity acquisition plan, a 2,800-page forecast of B.C.'s future power needs, state that both the federal and provincial governments are expected to implement new manufacturing codes and standards that will help Hydro meet its objectives.

  However, Hydro warns that its forecasts could be compromised by a surge in development, consumer adoption of electric-powered vehicles, and the possibility of fuel-switching if natural gas and heating oil prices are elevated to a level that makes it cheaper to heat homes and hot water with electricity.

BC Hydro president and CEO Bob Elton noted in an interview that a new two-tiered rate structure, which rewards customers who cut back on electricity consumption, is also part of the drive to self-sufficiency.

Hydro has also issued three calls for private sector generation of new power to add to the B.C. grid, and Hydro itself is planning additional generation at its Mica and Revelstoke dams in addition to preparatory work for development of the proposed Site C dam on the Peace River in northeast B.C.

ssimpson@png.canwest.com