western issues update 7 27 01 weekly western issues update sent tim earlier questions please feel free contact x 39510 executive summary bc hydro british columbia energy politics bpa developments forestry issues smelter update bc hydro crown jewel bc government arsenal bc hydro holding pattern name new chair head corporation brian smith replaced interim chairman robert fairweather expect fairweather long tenure word gordon campbell company seeking replacement fill mr smith shoes early mid august expect key changes occur hydro executive board directors following appointment new chair although senior management bc hydro relatively comfortable company financial position competitiveness pursuing strategy expanding generation capability new dams oil gas exploration pending environmental approvals part bc hydro move look additional generating capacity turning pair mega projects scrapped decade ago bc hydro commissioned new technical review studies 900 mw site c hydroelectric project near fort st john 2 000 mw coal fired hat creek project near kamloops terms rate hearing expect bc hydro conduct rate hearing new chairman appointed difficult get rates raised although government budget deficit looming considerable pressure begin looking direction another key revenue challenge bc hydro responding recent price caps imposed ferc western power markets potential power purchase refunds california though contributions immense still significant bc energy politics things really heated victoria new campbell administration settling earlier reported office premier taken control agencies political staffing decisions 77 79 elected members bc legislature sources close premier indicate change fast furious offset local coverage volatile media bc government primary focus stimulate economy trying restrain government spending extent instituted across board 25 stimulus tax cut deal deficit issues cut entails one ways looking balance things outsource crown assets look areas generate revenue new sources government revenue oil gas exploration energy top priority minister energy mines richard neufeld one main drivers behind current fast tracking offshore oil natural gas exploration great deal pressure bc liberals balance budget looking ways delivering revenue sources oil gas exploration permitting short term solution neufeld reviewed backhouse report northern development commission regarding need continued local public input basically tossed aside report gone far enough please liberals things minister energy agenda oppose sumas 2 power project phase burarrd thermal sumas serious bone contention washington state canada core review protect bc hydro core assets including dams reservoirs power lines public ownership restore independent bc utilities commission regulate bc hydro electricity rates maintain longstanding ban bulk water exports encourage mineral exploration promote clean renewable alternative energy sources review make recommendations regarding allocation funding frozen power jobs initiative bpa senator patty murray moved last week drop review provision senate bill would opened additional 2 billion bpa borrowing authority senator murray successful measure could substantial impact bpa financial solvency exception approximately 5 million spill dalles bonneville dams bpa already foregone major summer spill protect endangered salmon species representatives four northwest governors ventured washington dc last week express concerns new hydro biop implemented states concerned lack input implementation process plan developed action agencies spearheaded bpa plan put hold pending review headed interior department lawyer ann klee idaho washington representatives showed concern biop could overturned court concerned nmfs underestimated risk extinction snake river stocks illegal rely site mitigation help satisfy hydro system esa obligations administration said plans double past expenditures implement biop nobody meeting could come previous biop costs salmon plan pure lip service smelter curtailments kaiser faced declining aluminum prices decreased 9 last year kaiser difficult position due fact maintaining level infrastructure personnel readiness allow restart 4 3 4 lines operations fly curtailment last longer year would cost prohibitive continue incurring infrastructure expense kaiser gone record say still open signing load curtailment agreement bpa unclear time whether bpa foresees benefit signing agreement considering short term perceived mid term electricity price decreases continuing monitor situation develops although agreement short term seems doubtful alcoa recently mentioned press canada newfoundland government u aluminum giant alcoa inc announced thursday would conduct feasibility study possibly revive stalled lower churchill hydroelectric project remote labrador region generating station gull island could produce 2 000 mw electricity costs project estimated c 4 billion 2 6 billion far c 10 billion originally thought 16 drop net income due slackening global aluminum demand higher energy prices alcoa suffered along rest aluminum industry find cheaper less volatile sources electricity along ongoing negotiations bc hydro appears alcoa making determined push work canadians play sides competitive electricity market forestry issues number fuel management projects going right bitterroot national forest ecosystem management burn burnt fork ecoburn completed 7 01 fuels reduction sheafman fuel project completed fuels reduction darby ranger district trapper overlook 10 01 expected decision date como restoration 9 01 expected decision date como campground 9 01 expected decision date fuels reduction sula ranger district springer memorial fuel hazard reduction project completed multi forest ecosystem management burn west fork ranger district salmon river canyon project ongoing preparing supplemental draft fuels reduction sula ranger district sam billings camp ground fuel reduction completed steep creek fuel reduction 10 01 expected decision date