Vancouver, BC - The BC Progress Board released a discussion paper today on British Columbia's energy sector. The paper, "Strategic Imperatives for BC's Energy Future", was prepared for the Board by Sage Group Management Consultants of Victoria, BC. The document surveys BC's current energy situation and makes a number of suggestions for action.

"Energy is an essential ingredient in the economic growth process and is central to our quality of life and to maintaining and improving our high standard of living", noted David Black, BC Progress Board Chair and President of Victoria-based Black Press Ltd. "BC faces the significant near to medium term challenge of planning and building for future electricity requirements", Black remarked. "BC has added almost no electricity capacity since the early 1980s, despite population growth of over one-third since then", Black continued.

Among the key strategic energy sector imperatives outlined in the report:

• BC should be self-sufficient in electricity again. The province should end its reliance on electricity imports from Alberta and Washington State.



• Sensible electricity pricing is key to self-sufficiency. Prices should reflect - to the greatest extent possible - the real cost of new electricity supply in order to promote conservation and efficient use, and the development of new sources.



• BC has enjoyed a secure electricity supply for the last few decades, but this position will erode unless government develops and implements a new plan aimed at building and maintaining self-sufficiency. This requires hard choices by British Columbians about the best way to meet our electricity needs from clean sources.

"British Columbia is blessed with a number of electricity options ranging from building the Site C dam on the Peace River, to various smaller hydro projects, natural gas (depending on the price) and new sources such as wind, tidal, wood, and geothermal", Black stated. "The province must act now to address BC's looming electricity capacity shortfall and to upgrade transmission capacity, given the long lead-times involved in new project development", Black noted.

The report also addresses BC's energy export advantages, and makes suggestions on how to make the most of them. Among the suggestions:

• The primary focus of the oil and gas industry should continue to be natural gas development in the northeast. This region has extensive natural gas reserves, as well as infrastructure and support services. At the same time, the provincial government should provide more detailed information on both on- and off-shore opportunities in other areas of BC, along with clear direction on environmental safeguards, actions, and time-frames to move forward.



• BC and Alberta have joint energy interests, which include the development and transmission of electricity and the transportation of oil and natural gas for domestic use and export. The development of the Alberta oil sands and the need to transport both electricity and oil and gas to market provide an unparalleled opportunity for cooperation to the mutual benefit of both provinces.



• Bilateral (and in some cases trilateral) arrangements between the governments of British Columbia, Yukon, Alaska, and the Northwest Territories should be reached on potential transport, gathering, and processing of natural gas from Alaska and the Northwest Territories.

"British Columbia's strategic energy advantage rests with many options for additional electricity supply and the growing discovered reserves of natural gas at a time when domestic demand and export opportunities will continue to increase", noted Tim McEwan, Executive Director of the Progress Board. "The Progress Board's report is a 'call to action' to get on with the task of adding more electricity generating capacity to return BC to self-sufficiency, while encouraging balanced development and export growth in all energy resources to help improve government finances and enhance BC's ability to fund public services such as health care and education", McEwan continued.

David Black concluded with a comment on the need for greater public information on and understanding of energy issues: "Orderly development of BC's energy sector requires public knowledge and participation in the many choices now facing British Columbia".

"Strategic Imperatives for BC's Energy Future" is available on the BC Progress Board's website: www.bcprogressboard.com. The BC Progress Board is an independent Panel of 18 senior business and academic leaders formed by Premier Gordon Campbell in July 2001 to benchmark BC's economic, innovation, education, environment, health and social performance over time and relative to other jurisdictions. The Board also advises on ways to improve provincial performance.