western issues update 9 07 2001 questions comments regarding report please contact g britt whitman ex 5 4014 kristin walsh ex 3 9510 executive summary british columbian government exploring energy issues bc hydro readies transmission line sale bpa aborts additional rate increase refutes california overcharge claims bc government bc liberals announced putting together new policy task force energy deal energy issues going forward looking province energy resources making recommendations less six months best way move forward task force includes jack ebbels deputy minister ministry energy mines chair peter meekison energy policy consultant john bechtold oil gas expert erik westergaard hydroelectricity expert brenda eaton deputy minister premier information policy task force look seriously offshore drilling exploration issue begin determine timetables start process additionally canadians becoming increasingly rancorous 19 4 us tariff softwood timber exports coming states bc cabinet minister made veiled threats tie canadian energy exports united states eliminating softwood timber tariff jean chretien backed away trade war talks intimated reduction elimination tariff critical moving oil natural gas pipeline projects northern bc along bc hydro bc hydro chair larry bell soft peddling bc liberals message deregulation coming intense scrutiny bell already gone public defend bc hydro rate freeze stated residential distribution powerex operations deregulated noticed however say whether information technology transmission assets would sold appears indeed going forth believe bc hydro process preparing accept bids assets round open negotiations begin short medium term two big players watch transmission privatization front trans elect corporation indicated watching british columbia market carefully already owns adjacent transmission lines calgary transconnect working rto west group could eventually plug bc hydro transmission systems rto west grid bell talking instituting tiered rate plan bc energy intensive industries allowing energy efficient plants maintain preferred rate increasing rates others considering allowing private sector generators sell directly industry bc however bell hot clean coal generation neufeld suggested yet seen application technology economically environmentally sound strategically hydro export plans likely look include new partners across border seeing new chairman position appears bc hydro attempt sever feeling entitlement bc energy intensive industries relied hydro snooping around states greener pastures taste california windfall last year commit providing cheap power local markets could selling power larger profits elsewhere bpa financial conditions everyone relief bpa last week announced would additional rate increase early august agency warned pre third quarter review showed possibility would trigger financial based cost recovery adjustment clause fb crac one three cracs bpa customers adopted supplemental rate case cope erratic power prices load based lb crac already driven 46 percent rate increase fb crac could added another 4 5 mills agency said fresh data put revenues trigger additional rate hike additionally also heard bpa still committed spending roughly 186 million next year fish wildlife issues ferc refunds although bpa issued official statement net supplier california likely bpa would opposed california attempt recoup 1 5 billion perceived overcharges pacific northwest earlier year bpa responded allegations overcharging issuing rebuttal letter entitled bpa response california iso study 13 april 2001 maintained operations reproach bpa look pursue insurance policy insulate cal iso allegations pacific northwest utilities energy using entities city tacoma port seattle also joined fray pursue 2 billion perceived overcharges name game west coast say net importer net exporter period time investigation ferc federal judge everyone beefing argument load data show actually buyers sellers spill issues power planning council recommended spending 7 million projects designed mitigate emergency power operations drought year funding would go buy spawning habitat along tributary john day river oregon 1 6 million pay irrigation screens yakima river 7 million addition 24 million council already recommended pay projects designed offset emergency hydro operations nearly stopped spill program main stem dams bpa agreed fund 9 3 million worth council list projects recommended include funding monitoring evaluation salmon production project south fork idaho clearwater river spending 300 000 improve fish passage tributary oregon umatilla river installing stream flow gauges entiat okanogan wenatchee rivers