Platohagel: In the trade war between US and Canada, electricity is sold from the us to Canada in British Columbia. How many customers are there that could be affected by shutting off electricity in BC?

Socrates: In British Columbia (B.C.), the primary electricity provider, BC Hydro, serves over 4 million customers. However, certain regions, including the City of New Westminster and parts of the West Kootenay, Okanagan, Boundary Country, and Similkameen areas, receive electricity from other providers like FortisBC, which serves approximately 213,000 customers. 

B.C. primarily relies on hydroelectric power, with over 95% of its electricity generated from clean and renewable sources.  The province engages in electricity trade with neighboring regions, importing power when advantageous to conserve water in reservoirs and exporting during periods of high demand and prices. 

Recent drought conditions have reduced hydroelectric generation, leading B.C. to increase electricity imports from the United States.  Despite these imports, the vast majority of B.C.‘s electricity supply remains domestically sourced. Therefore, while a cessation of U.S. electricity imports could necessitate adjustments in domestic generation or consumption patterns, it is unlikely to directly affect the entire customer base. The specific number of customers impacted would depend on various factors, including the volume of imports at the time and the province’s capacity to offset the shortfall through alternative means.

Platohagel: What alternative means could Canada use to offset the importing of that electricty.

Socrates: If British Columbia (B.C.) were to lose electricity imports from the U.S., several alternative measures could be used to offset the shortfall:

1. Increased Domestic Hydroelectric Generation

• B.C. primarily generates electricity through hydroelectric dams. If water levels allow, BC Hydro could increase production at major facilities like the Site C, Revelstoke, and Mica dams.

• However, this is dependent on reservoir levels, which have been strained due to recent droughts.

2. Maximizing Existing Non-Hydro Generation

• B.C. has some natural gas-fired power plants, such as the Fort Nelson Generating Station and Burrard Thermal (on standby), that could be used to supplement hydro output.

• There are biomass and cogeneration plants (e.g., in Prince George and the pulp & paper industry) that could contribute additional power.

3. Importing from Other Canadian Provinces

• B.C. is connected to Alberta’s power grid, allowing imports from Alberta’s mix of natural gas, wind, and hydro power.

• Increased purchases from Manitoba Hydro or Ontario via interprovincial transfers could also be an option, though transmission limitations exist.

4. Expanding Renewable Energy Use

• More electricity could be sourced from wind, solar, and geothermal projects that are already operational in B.C.

• Independent power producers (IPPs), such as run-of-river hydro projects, could be encouraged to ramp up production.

5. Demand-Side Management

• Time-of-use pricing or conservation programs could be implemented to reduce peak demand.

• Large industrial users (e.g., mining and aluminum smelting operations like Rio Tinto Alcan) could be asked to curtail power usage temporarily.

6. Building Additional Capacity (Long-Term Solution)

• Developing new transmission lines to Alberta or other provinces for greater interconnectivity.

• Investing in battery storage to enhance grid flexibility.

• Expanding geothermal energy, which is currently underdeveloped in Canada.

Platohagel: Does Bc Hydro sell electricity to California.

Socrates: Yes, BC Hydro, through its trading subsidiary Powerex, sells electricity to California and other U.S. markets, including the Pacific Northwest.

How BC Hydro Sells Electricity to California

1. Surplus Power Sales – When B.C. generates excess electricity (especially during high-water seasons in hydroelectric reservoirs), Powerex exports it to U.S. states, including California.

2. Energy Arbitrage – Powerex buys electricity when it’s cheap (often from U.S. markets) and sells it when prices are higher in California, making a profit.

3. Long-Term Contracts & Spot Market Sales – Powerex engages in both long-term agreements and short-term trades to supply power to California utilities, particularly during peak demand periods like summer heat waves.

Why Does California Buy BC Hydro Power?

• Renewable Energy Needs – California has aggressive clean energy targets and often prefers hydropower from B.C. because it’s considered a renewable, low-emission source.

• Grid Stability & Shortfalls – During extreme weather (heatwaves, droughts), California can face energy shortages and imports power from B.C. to avoid blackouts.

• Energy Trading Agreements – B.C. and California have long-standing energy trade relationships, including participation in Western Energy Imbalance Market (WEIM).

Could B.C. Cut Off Electricity Sales to California?

Yes, but it would come at a cost. Powerex profits from these sales, and cutting exports would reduce revenue for BC Hydro, which helps keep electricity rates lower for B.C. residents. However, in an energy crisis or political dispute, B.C. could prioritize domestic needs over exports.