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B.C. expert warns against possible disruptions in U.S. energy trade

Tariffs would have 'profound implications' on energy issues impacting Canadians, Americans: Energy minister
barrypenner
Former B.C. environment minister Barry Penner (right) warns against disruptions to the energy trade with the United States.

An energy expert said it is "difficult to predict" the impacts of American tariffs on hydro rates, but British Columbians might have to drastically cut back on power use under one possible scenario.

"If it escalates into curtailment of electricity, which is something Premier (David) Eby has threatened, then British Columbia may have to embark on extreme conservation measures to reduce electricity demand," Barry Penner, B.C. former environment minister and current chair of the Energy Futures Institute, said in an interview Friday. Penner also served as B.C.'s attorney general. 

So what would trigger such a scenario? 

"The premiers of Ontario and B.C. have mentioned the possibility of using electricity sales as a form of retaliation 91裸聊视频 i.e. reducing or cutting off electricity sales in retaliation of tariffs," he said. "If B.C. is not going to serve the U.S. when they need electricity at peak periods, then it is entirely possible, the U.S. may do the same. Over the last two years, B.C. has imported eight more times electricity than what we have sold them."

He said that such a scenario could "seriously backfire on British Columbia" in pointing to figures shared through an earlier press release. 

It said that BC Hydro imported about 20 per cent of its electricity in 2024 (9,808 gigawatt hours) for the second year in a row, following 2023 imports of 10,739 gigawatt hours net, with the annual cost of imported electricity having reached $1.4 billion. 

91裸聊视频淔or two years, we91裸聊视频檝e imported an amount of electricity roughly equivalent to the output of two Site C dams, mostly from south of the border where 60 per cent of their electricity generation comes from natural gas or coal-fired power plants,91裸聊视频 Penner added.

Penner added that Alberta might be able to pick up some of the slack, noting that about 20 per cent of imports during the past two years came from Alberta, the rest from the United States. 

"Can Alberta can make up the difference for what we have been importing from the United States? I don't believe they can do that immediately," Penner said, noting that the transfer capacity between the U.S. and B.C. is more than three times larger than the transfer capacity between Alberta and B.C. Given the smaller transmission line connection compared to the United States, it is unlikely that they can provide us with as much electricity as the United States can, he added. 

"And then does Alberta have that much surplus?" Penner asked. "They have been selling us more electricity than we are selling them over the last few years, I doubt whether they could make up the amount of power we would lose if the United States retaliated us and stopped selling electricity to British Columbia." 

Penner added that "taken as whole, it is not a pleasant prospect to think about interfering with existing electricity trade -- it's very complicated and it is hard to fathom how negative the consequences would be." 

The question of how future tariffs might impact BC Hydro rates also came up Thursday when B.C.'s Energy and Climate Solutions Minister Adrian Dix announced the first of nine new wind farms. 

"In terms of rates, the immediate effect won't be felt instantly, but this change in the relationship in our countries, should it be pursued, will be profound," Dix said.  

According to EnergyHub.org, British Columbians pay the third-lowest rates in Canada with 11.4 cents per kilowatt-hour, behind Quebec (7.8 cents) and Manitoba (10.2). 

Dix noted B.C.'s ranking in crediting BC Hydro for keeping rates relatively low following its creation in 1962 by the Social Credit government of W.A.C. Bennett, which had nationalized the BC Electric Company.

"It's very rare that the life of a Crown corporation is synonymous with the economic and social history of a province," Dix said. "It's a massive advantage, but we got to use that advantage to, of course, keep rates low and we do that." 

He also noted that the process around any possible rates will be transparent, pointing to the role of the B.C. Utilities Commission. 

Dix also addressed B.C.'s electricity imports during the past two years against the backdrop of drought concerns impacting dam reservoirs in B.C. and looming tariffs. 

"This changes year-to-year," Dix said. "The majority of the last 15 years, we have been exporting (electricity). Over that period, we are net exporters. Some years, we are importing because of those (drought) conditions. We want to make sure our reservoirs are full, which increases the value of our resource. What you see is the normal practice at BC Hydro."

Dix added that B.C. is working closely with Alberta on energy issues.

"They are not our opponents 91裸聊视频 they are our fellow province," he said.

He also reiterated the need for B.C. to increase and diversify its own power supplies in light of population growth and economic opportunities, but also because of looming changes in the global energy market connected to larger geo-political changes.

"The stakes have always been high," he said, when asked about the need to move faster toward provincial energy independence. He added the U.S. would always remain B.C.'s "most important market just by geographic location," but added that the tariff threat adds to the urgency of diversifying B.C.'s energy sector. "I thought there was urgency before the American election -- there is more now."

Dix also touched on the 91裸聊视频減rofound implications" of tariffs on "all energy issues" for not only Canadians, but also residents of western U.S. states. 

"There is a lot at stake here, for both jurisdictions, as much or more at stake for the United States as for Canada," Dix said.  "But I don't want to see everybody lose or someone lose more than someone else. We all have to win in this process." 

Dix said B.C. will advocate for its interests, but also continue to work with Americans. 

Dix was also asked whether B.C. might use the water flow of the Columbia River and the electricity it generates as retaliatory tools. 
Dix said he would not talk about possible tactics or responses.

"That's being developed by lots of people," he said.

With respect to the Columbia River Treaty, he pointed to the existence of an "agreement in principle" as well as other provisions. 

"We are just going to continue that work," Dix said. "It's in the interest of the United and we have very strong support for the renewal of the treaty in the Republican caucuses and the Democratic caucuses. Our job is to do the work (and) come to a final settlement and give all of the advantages to First Nations, to communities, and our two countries." 

 



Wolf Depner

About the Author: Wolf Depner

I joined the national team with Black Press Media in 2023 from the Peninsula News Review, where I had reported on Vancouver Island's Saanich Peninsula since 2019.
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