BC Hydro is delaying the awarding of clean power contracts until later this year as it seeks to comply with an appeal-court ruling that calls for additional First Nations consultation.
"We're just making sure that adequate consultation has been taking place and the reason is because there was an appeal court decision in the spring on that," Hydro spokesman Dag Sharman said yesterday.
There was some expectation that contracts might be awarded earlier this year for companies with clean power projects such as wind-generation initiatives.
There were two rulings. In one, the court turned down a licence to build a hydro transmission line from Merritt to Coquitlam, and the other involved an infringement of rights by the Carrier Sekani Tribal Council for consultation in the Kemano Power Project.
"B.C. Hydro, as a Crown corporation, was taking commercial advantage of an assumed infringement on a massive scale, without consultation," said the ruling.
Mr. Sharman said the goal is to seek allowances so that if Hydro does sign electricity purchase agreements with independent power producers, they can claim their spots for transmission.
He said there are 68 different proposals for power that are not signed at this point. "Generally, these are in First Nations' areas, so we are ensuring there is adequate consultation with first nations," he said.
Finavera Renewables Inc., which has submitted four proposals totalling 293 megawatts for clean power, said it accepted the delay.
"This update provides clarity for investors and the industry as a whole. We also welcome the increased scrutiny of First Nations consultations given our commitment to an ongoing and respectful dialogue with First Nations in our project areas," Jason Bak, the CEO for Finavera, said in a statement.
Mr. Sharman said the announcement, posted yesterday on the BC Hydro Web site, was not connected to a recent ruling by the B.C. Utilities Commission that rejected BC Hydro's long-term acquisition plan, part of a push for clean energy.
The plan is central to the B.C. government's drive to reduce greenhouse-gas emissions by 33 per cent below 2007 levels by 2020, enshrined in law last year with the passage of the Greenhouse Gas Reduction Targets Act.
Tom Hakney, vice-president for policy at the BC Sustainable Energy Association, said it appears BC Hydro is taking steps to make sure they cover off their obligations to consultations.
He said there is "additional pressure" on both Hydro and the B.C. Utilities Commission to make sure aspects of First Nations consultation in any significant energy decision is addressed.
Mr. Hakney said it was difficult to see any links to the commissions' earlier ruling on Hydro's energy acquisition plan.
"It's hard to say what BC Hydro will do. I think the commission's ruling has created, certainly, some uncertainty around the clean call and we will just have to wait and see if BC Hydro chooses to go ahead or not," he said.
Ian Bailey