Studies show that the environment is the most important issue to British
Columbians. We also know that British Columbia currently uses more power
than it creates. Yet the response from government leaders continues to be
reliance on increasing the use of antiquated fossil fuel technology.

Policies surrounding renewable energy sources and investment in new
technologies have been a cornerstone of Democratic Reform BC policy since the
party's founding. During the 2005 election campaign DR BC's environmental
policy was ranked second best of all the parties by an independent
environmental group, just marginally behind the Green Party. For this reason DR
BC has created this policy paper expanding on this tradition of environmental
stewardship. We outline how British Columbia can become not only energy self-
sufficient but an energy exporter and technology leader for clean, renewal energy
sources. British Columbia over the course of a decade could become a world
leader in green power; not only reducing our green house gas emissions but
creating jobs and economic growth.

The first issue which must be addressed is that of economic benefit. Current
government policy involves the gradual privatization of BC Hydro through
increased dependence on private power generation. Citizens of BC will no
longer own the means of electrical power generation and will become captive to
market fluctuations. This will mean increased costs for consumers and business.

While we understand the ideology being employed; that power generation could
be a growth industry and create new profits for BC business, we must also
recognize at whose expense this new profit layer will come. We believe energy,
is a basic infrastructure of society, no different than commodities such as water
and the road network. The benefit for public good must outweigh profit. For this
reason BC Hydro and power generation must remain in public hands to create
fair, affordable, and dependable prices for British Columbia consumers and
business. These low prices would continue to be well below prices in most other
areas of North America, they will become a catalyst for economic growth in itself.
Businesses will relocate to the province in order to take advantage of our
cheaper power. We believe such a policy, combined with existing conservation
efforts, will return more to the citizens of the province and our economy than
simple profit taking through private power generation.

The BC Liberal mandate that BC Hydro is forbidden to create any new publicly
owned generating capacity combined with the requirement that new energy
sources come only from within British Columbia is effectively a defacto
privatization over time. This policy runs counter to the proven facts that our own
public power generation has kept British Columbia electricity rates among the
lowest in North America. For this reason, sound public policy would be to
continue this historically beneficial trend of publicly owned and controlled power
generation.

With much of our future capacity coming from public resources such as rivers
and tides, under the BC Liberal policy British Columbians will shift over time from
owners of their electricity sources to renters.

Even worse for the public interest are the clauses contained in the long term
contracts being signed with private power generation companies. BC Hydro and
British Columbians are paying a premium above North American market prices
for power generated from these public resources. In effect public dollars are
being used to subsidize private enterprise development. When these contracts
do come up for renewal, there is no commitment power will necessarily be sold to
British Columbians. The operators could seek out higher returns selling
electricity to power hungry consumers in other parts of North America, using our
British Columbia renewable resources to do so.

The policies of Mr. Campbell remove control of power generation from British
Columbians and lessen our energy security in the future. A fact all British
Columbians should be extremely concerned about. Ultimately this policy could
backfire and leave British Columbians in the dark. It shows the consistent lack of
a long term vision by the BC Liberals.

Currently BC Hydro returns nearly half a billion dollars in profits to the provincial
government. This is invested in programs such as health and education. As
electricity purchase costs continue to rise from private generation facilities these
profits will be eroded. For this reason it would be DR BC policy that all of all BC
Hydro\u2019s royalties to the province be invested to new renewable power generation
projects for the next five years.