western update 5 7 01 executive summary likely outcome 16 may elections victory bc liberal party currently holding polls 70 pro business right center party led gordon campbell major changes british columbia energy policy likely liberal government low snow pack return regulation bc utilities commission public concern outstanding debts owed us power consumers could force bc hydro stop province power sales existing contracts expire bc hydro additional generation williston likely undeliverable liberal party platform income tax cut would make bc income tax lowest canada independent audit province books amid allegations ndp mismanagement incompetence review crown corporations including bc hydro enhance efficiency management quality campbell also said wants scrap corporate capital tax machinery equipment tax corporate income tax energy agenda according sources liberal party rule significant changes bc government energy policy could include move toward privatization bc hydro assets perhaps including transmission assets well increased government support independent power producers coal fired production time rate review attempts establish broad electricity strategy province could lead lack clarity province overall energy strategy next years campbell reportedly proponent deregulation expanding coal fired production campbell calls thermal coal asset want able move forward encourage bc high ranking ndp source believes campbell take province back along path natural resources extraction rather promoting new technology source expects lead strong protests environmentalists confrontational moves people streets campbell likely choice energy minister richard neufeldt though caution decision depends make legislature election neufeldt responsible liberal party energy mining northern development portfolio sources speculate right wing liberals dissatisfied party performance may election neufeldt could defect opposition however gives campbell even greater incentive name neufeldt energy minister high profile position liberals win election gordon campbell indicated would return bc hydro regulation bc utilities commission bc government derived 5 5 billion revenue bc hydro since 1991 roughly 85 percent profit critics say undermined utility ability pay approximately 7 5 billion debt invest future also left hydro without rate stabilization fund something sources feel may needed year campbell reportedly intends address issues one expect lead calls change electricity export policy currently bc utilities commission demanding information bc hydro province sales commission warned given low snow pack utility could net importer power year supporting view northwest power planning council representing bc hydro key trading partners us said would able rely upon british columbia alberta peak consumption periods next years customers face 25 percent chance making winter without power losses combination low snow pack return regulation bc utilities commission public concern outstanding debts owed bc hydro us consumers may force bc hydro stop province power sales existing contracts expire bc hydro privatization key campaign energy issue liberal party privatization bc hydro campbell urged greater electricity competition saying need ensure transmission infrastructure available producers consumers equal non discriminatory basis stated independent power producers discouraged every turn want change big time told canadian institute energy campbell also urged natural gas development including pipelines co generation plants campbell backtracked stance last week challenged ndp leader ujjal dosanjh campbell stated 25 april intention selling bc hydro intentions selling transmission lines intention selling dams intention selling reservoirs liberal party spokesman mike morton also reiterated 29 april bc hydro would sale high level ndp source commented campbell extremely careful choice words regarding bc hydro essentially saying would privatize dams transmission lines generating stations favor opening sector competition however local sources believe parts bc hydro might sold part overall review bc crown corporations enhance efficiency likely sale prospects include bc hydro distribution channels energy trading subsidiary powerex addition gary farrell collins liberal finance spokesperson possible second choice energy minister neufeldt stated public ownership bc hydro non core businesses westech systems division customer billing could come review bc hydro williston generation current reservoirs levels bc hydro williston hydro generation facility 2 150 ft allows bc hydro drop levels another 35 ft 170 gwhs ft current permit one drawback plan additional generation involves mackenzie pulp mill would cease operation water levels fall 2 140 ft sources close minister mines energy elect richard neufeldt indicate levels williston probably drawn mackenzie operational limits due concern political backlash