BC Hydro spokesman Robert Smith said to Regional District of Bulkley Nechako (RDBN) board members that the company is contemplating building new transmission lines and potentially adding more renewable energy projects to meet a growing demand for power in the Northwest.

He said Kitimat based LNG projects that are expected to come on line in the next few years will bump up the region's electricity requirements and BC Hydro want to be ready for the increased demand.

While Smith said BC Hydro has enough supply to power the Kitimat LNG and BC LNG plants from existing resources, that won't be the case for the Canada LNG plant.

Shell Canada has confirmed that, with three Asian partners, it is developing Canada LNG, a large liquefied natural gas export facility, also to be based at Kitimat.

The project could see up to 12 million tonnes of LNG exported from Kitimat each year and will require a new transmission line as well as new power sources.

Smith said, "We are looking at possible upgrades to the existing line from Terrace to Kitimat in response to these LNG projects."

Shell Canada has not yet determined if it will be electrifying the project through power supplied from BC Hydro and they are currently investigating other options such as self supply through gas turbines.

"There will be no decision on this until later this year, but we need to work ahead. If they decide to electrify we would be ready. It takes a long time to work through the planning and regulatory stages," Smith said.

If Canada LNG opts to self supply, Smith said the BC Hydro upgrades would be put on hold.

The Skeena substation South of Terrace and the Minette substation near Kitimat will play key roles in the upgrades.

Skeena substation is a regional distribution point for power coming into the area via the Williston substation near Prince George. A variety of other lines then feed out from the substation to communities around the region.

"One of those lines connects the provincial grid to Kitimat but it's incapable of providing sufficient power to two planned LNG plants at Kitimat," Smith said.

He said BC Hydro will also potentially be adding capacitors along the line, but are not sure on the locations at this point.

"We could also be looking at a brand new line that would parallel the existing line all the way to Kitimat," he said.

He explained that more electricity cannot be pushed through the existing lines because with more electricity, the lines heat up and expand, causing them to sag closer to the ground.

As an interim solution, BC Hydro will be replacing some of the line poles with taller ones and re-contouring the ground in places to ensure the clearance between the lowest point of the wires and the highest point of the ground is adequate.

"Ultimately we would be looking at replacing the line and looking at increasing capacity, or building two lines if all LNG plants come on line,鈥� he said.

Roseanne Murray, RDBN鈥檚 alternate director for area E, Francois/Ootsa Lake rural asked if there would be load along the line, or would the additional supply be strictly for the LNG plants at Kitimat.

鈥淲e are still looking at a whole load forecast and there will be increased capacity at the Glenannan and Telkwa substations, but there may still be some limits [to how much electricity will be accessible],鈥� Smith said.

Murray said, 鈥淚t is a chicken and egg situation that we find ourselves in because we can鈥檛 attract industry to the local area without a sufficient power supply.鈥�

鈥淚t is a yes and no answer as to whether there will be more power available to communities along the line,鈥� Smith added.

鈥淭here may be limited loads that could come off the line, but we are still looking into that possibility,鈥� he said, adding that preliminary engineering designs and studies are still underway.

鈥淲e will also be doing site visits and First Nations consultations are already underway.鈥�

Based on current construction costs, Smith said the upgrades will come with a $1.1 billion price tag.

BC Hydro is also spending $561 million to extend power North of Terrace, via the 344 kilometre long Northwest Transmission Line.

The federal government is chipping in $130 million for the line in return for access.