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It’s impossible for Site C to compete with natural gas
Letter to the Editor
In late September, the Union of BC Municipalities (UBCM) met for its annual AGM and made an honourable attempt during its convention to lobby Energy Minister Bill Bennett regarding the building time line for Site C.
The request was simple: to have the BC Utilities Commission examine the need and cost for Site C before things get too far. This was not an unreasonable request under the circumstances.
For instance, the demand for electricity throughout North America has dropped dramatically as has the price per megawatt hour. This is in large part due to the use of natural gas powered turbines, which are remarkably cheap to build and maintain even in ‘green’ California, where 52% of the state’s electricity is produced by natural gas.
Minister Bennett rejected the request outright. Perhaps there is a good reason on his part as well. Your hydro utility costs per kWh of energy are sky rocketing in comparison to other natural gas run facilities, such as the Shepard Energy Centre in SW Calgary.
The natural gas powered Shepard facility is now up and running and will offer its best customers in Calgary the minimal pricing of eight cents per kWh until 2020! Natural gas is hard and firm power for any utility and not subject to a lack of wind or sun. It is cheap, the cleanest of any fossil fuel and readily available.
We, on the other hand, here in B.C. will be paying almost eight cents per kWh on the first 710 kWh and then 12 cents on any additional kWh of energy after the initial 710. (We have a two tier pricing regime whereas the natural gas powered Shepard remains on a single tier of eight cents/kWh).
Here are the other fiscal factors for B.C. customers:
Price increase in 2016 – 4%
Price increase in 2017- 3.5 %
Price increase in 2018 – 3 %
Price increase in 2019 and 2020- to be determined.
NO INCREASES for Shepard Energy Centre customers in Calgary until at least 2020.
If you are a typical household of four people you may well be consuming an average of about 2,000 kWh/ month. Doing some simple math, by the end of 2020, you will have paid $2,900 more than the same typical family in Calgary, using the Shepard Energy Centre’s natural gas powered system.
Perhaps it is time to ask our Energy Minister Bill Bennett why he is so determined not to use the natural gas option when it comes to producing our electricity here at home? It is impossible for Site C to be price competitive with natural gas. After all, that $2,900 could still be in your pocket if the Liberal government were to look at the natural gas powered option for electricity in lieu of a taxpayer funded Site C project.
Rick Koechl and Mike Kroecher,
Charlie Lake
