A new era of prosperity through power : maintaining BC's competitive advantage

The availability of abundant low cost electric power has been a driving force behind British Columbia's economic growth. BC's low cost power resources can create a natural competitive economic advantage for the province. Electricity, as a publicly owned resource can offer many competitive advantages for business in British Columbia, if managed correctly. However, it was noted that meaningful economic advantages can only be realized if the existing power resources in the province are operated efficiently and priced at or close to cost. In the 1980s, the Joint Industry Electricity Steering Committee (JIESC) was formed following the regulation of BC Hydro by BC Utilities Commission. It became clear that maintaining low rates for electricity was a public issue that needed input from other governmental forums if JIESC was to be successful. The major sectors represented by JIESC include pulp and paper, mining, and electrochemicals. This paper listed each member company. In order to turn BC's economy around and re-establish the province as a leading economy in Canada, the following recommendations have been proposed for the short term: (1) maintain an ample supply of low cost power for the future, (2) remove the provincial sales tax on the purchase of electric power used for manufacturing and processing, (3) extend the current rate freeze, (4) initiate a long-term resource acquisition and transmission expansion strategy to assure the availability of ample supplies of low cost power. Recommendations for the long term include: (1) maintain regulated cost based rates, (2) develop ample low cost power, (3) utilize downstream benefits, (4) provide a role for the private sector, (5) maintain adequate transmission facilities, (6) reduce government revenues, and (7) instill customer driven management. 3 figs