"In the plan, the utility proposes to spend more than $50 billion over 15 years to build a series of hydro-electric megaprojects" A journalist recently pointed out to me that our Gentilly-2 nuclear plant "only supplies 3% of electricity in the province" -- while that certainly doesn't sound like much, one should also look at the amount of real-estate used to produce that power. I worked on James Bay hydro projects in the past, and let me tell you, the difference between the size of the G-2 reactor building and the hydro reservoirs impounded by giant dams is pretty damned impressive. If I could just find the numbers on dam reservoir areas & power production, it should make for an interesting comparison to the 0.25*? *(40m)^2 footprint of G-2.... Jaro ^^^^^^^^^^^^^^^^^^^^^ http://www.canada.com/montreal/specials/business/story.html?id=C8DB11FF-B287 -4A23-9426-C73238D619FF Hydro sees rate hikes in each of next 5 years Despite big profits. Utility aiming to build series of hydro-electric megaprojects DON MacDONALD The Gazette, Friday, October 24, 2003 Hydro-Québec expects to increase its rates by up to three per cent in each of the next five years, utility executives indicated yesterday in releasing a 2004-2008 strategic plan. Hydro is currently seeking permission from the provincial Régie de l'énergie to impose a three-per-cent rate hike before the end of this year and another three-per-cent increase in 2004. Hydro-Québec president André Caillé said increasing demand in Quebec will make rate hikes of two to three per cent each year necessary from 2005 to 2008. In the plan, the utility proposes to spend more than $50 billion over 15 years to build a series of hydro-electric megaprojects and increase the reliabilty of its transporation and distribution networks. Caillé said Hydro's investments in new electricity production practically ground to a halt in the mid-1990s and now need to be boosted to $3.5 billion a year until 2020. "Our duty is to ensure that we're never in the situation of Ontario and California," Caillé told a news conference. "We never want to take the risk of saying one day, 'We need to buy electricity on external markets because we don't have enough.' I guarantee you wouldn't like the price we would get." Electricity consumers in California and Ontario have experienced sky-rocketing prices for electricity because of tight supplies. In a Board of Trade speech, Caillé said the investment plan will also allow Hydro to boost net exports to neighbouring provinces and the northeastern United States to between 15 and 20 terawatt-hours (TWh) a year from less than five this year. The investment program will also create 30,000 person/years of work, he said. The five-year plan shows that Hydro is expecting a net profit of $1.7 billion this year, a 12-per-cent increase over last year's $1.5 billion. The utility is forecasting its profits will increase to $2.2 billion by 2008 for a 26-per-cent increase over the five years. Half of those profits will be paid to the Quebec government in dividends. But Caillé conceded Hydro's profit projections for this year suggest the utility isn't going to meet Finance Minister Yves Seguin's order to produce a dividend of $2.1 billion for the fiscal year ending March 31. "It's going to be difficult," he said. "But we haven't thrown in the towel." Caillé pledged to keep a tight rein on operating expenses at Hydro-Québec, promising to maintain them at their current level for the next three years. He mapped out an aggressive dam-building plan for the next five years and beyond. Between 2004 and 2008, the utility wants to increase its hydro production by 10 TW by accelerating construction of facilities already under construction or awaiting authorization. These projects include facilities on the Toulnustouc River on the North Shore, the Eastmain River in the James Bay region and the Peribonka in the Lac-St.-Jean region. Hydro also wants to boost the productivity of its existing facilities to help meet the 10 TW goal. Over the long haul, the utility is looking at two huge megaprojects - one to build a second phase of the Eastmain complex, a project that would involve the diversion of the mighty Rupert River. And, second, the construction of dams on the Romaine and Petit Mécatina Rivers on the Lower North Shore for investments that could total $10 billion. The utility wants to begin preliminary studies on the Romaine in the spring. Caillé, who refused to rule out also taking another run at developing the Great Whale River in James Bay, was quick to say that Hydro-Québec isn't interested in putting a dam on every river in the province with a waterfall, which he referred to as a popular belief among Quebecers. Caillé retirated that no project will be built unless it meets economic and environmental standards and is accepted by the local community. Environmentalist Alain Saladzius called on the Liberal government to put Hydro-Québec's development plans on ice until there is a full public debate on the province's energy policy. Hydro could achieve its 10 TW of new electricity over the next five years "with an energy savings program that would have a much lower economic and environmental price," said Saladzius, co-director of the Rivers Foundation. dmacdonald@thegazette.canwest.com
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