Electric energy supply and non-utility generation: A comparative analysis of B.C. and Wisconsin (British Columbia)

I examine B.C. Hydro's pricing policies and buy back rates and their effectiveness in encouraging the efficient use and development of power. B.C. Hydro's encouragement of self-generation is determined by examining the ratio of the industrial rate for the pulp mills to the utility's long-run marginal cost (LRMC) of power. B.C. Hydro's buy back policies are also examined to determine the level of encouragement they provide for increased self-generation. Comparisons are made with similar data obtained from utilities and pulp mills in Wisconsin because this state has long been regarded as a leader in rate design in the U.S.; There is a significant difference between the two regions in terms of pulp mill self-generation. The Wisconsin mills generate substantially higher levels of their own energy requirements than do the B.C. mills. The principal benefit demonstrated by these comparisons is that B.C.'s pulp mills have considerable potential to increase their levels of self-generation.; The comparison of electric utilities does not reveal a clear leader between regions. The Wisconsin utilities provided greater mark-up through their industrial rates. With respect to buy back policies, it is the Wisconsin utilities that provide the greatest encouragement for increased self-generation. B.C. Hydro, however, is the only utility which offers a load displacement policy. While the Wisconsin utilities do not lead in all areas of comparison, they do provide a greater level of encouragement for power producers to generate and market surplus power. (Abstract shortened by UMI.)...