1. Manitoba Hydro’s Emission Management Perspectives
Bill Hamlin

2. Emission Management Perspectives
Period
Voluntary Commitment - VCR ’s to ?
Chicago Climate Exchange - CCX to 2006
Canadian Domestic Emission Trading ?

3. Manitoba Hydro Actions - Voluntary Commitment to keep emissions 6%lower than 1990 from 1990 to 2012
1330 MW Limestone hydro plant
Retired four 33 MW coal units
Conversion of 132 MW coal to natural gas
Connect diesel to grid
Demand Side Management
Environmental Dispatch Premium

4. Greenhouse Gas Emissions
- Electricity Options
Note: IEA actually reports a range (the chart shows the top end of the range)
Mercury: Natural Gas = 1; Hydropower with reservoir = 0.07 (all other options not apparent on bar chart = 0)
On a lifecycle basis, wind would be equivalent to run-of-river hydro.
This slide demonstrates that the reason electricity is a good target for emission reductions is that there are multiple options available (some with very low emissions)
Source: IEA Technical Report, May Hydropower and the Environment: Present Context and Guidelines for Future Action. Vol. II: Main Report, Ch.3: “Comparative Environmental Analysis of Power Generation Options”

5. What Manitoba Hydro as a LIE and potential credit purchasers wants:
Clear rules.
What are our emission reduction obligations?
System that provides clear incentives for Canada’s low cost domestic emission reductions.
No concerns or liability with respect to offsets (no liability for purchaser).
Simple, low cost transactions.
Liquid market for emission trading so that they can buy and sell freely.

6. What large industrial emitters don’t want:
to create credits (unless reductions are related to core part of their business)
liability, complications and costs associated with credit creation, validation etc.

7. Considerations for MH Re: Brady Landfill Project
Reductions available offer a good fit with our current offset requirements.
Economy of scale - big project
Landfill gas project is close to our core business
Landfill gas is an energy product similar to natural gas.
Potential for electrical generation.
Close to our core business.
Reasonable chance recognition in the longer term.

8. Concerns
To date, not enough consideration given to the potential positive economic impacts and how to incent them.
Timelines too long.
Projects take time to develop
Need clearer idea of the rules in the near term (2005 to long for negotiations).
Too many of Canada’s best opportunities are on hold.

9. THANK - YOU