Kelowna乌鸦传媒檚 real estate development industry is facing major uncertainty as FortisBC warns it may not be able to guarantee power for new projects in the coming years.
乌鸦传媒淚n recent weeks, several developers have been informed that power cannot be assured for projects until 2027 to 2029,乌鸦传媒� states an Urban Development Institute (UDI) media release. 乌鸦传媒淲ithout a reliable electricity supply, development in the region is at risk of stalling, with some projects potentially being abandoned altogether.乌鸦传媒�
UDI chair Dave Sargent told Black Press Media that while the organization has been working with FortisBC on the issue for some time, the situation remains unclear.
乌鸦传媒淲hat we乌鸦传媒檙e being told right now is temporary construction power can be provided,乌鸦传媒� he said. 乌鸦传媒淏ut certainty on a date as to when a project could be energized is up in the air right now. We wanted to ensure people are aware that there is a potential issue in the short-term乌鸦传媒攖he next two to three years is our understanding.乌鸦传媒�
Sargent noted that FortisBC is upgrading resources in some areas of the city. 乌鸦传媒淏ut we aren乌鸦传媒檛 sure when those upgrades are coming and how to plan in the interim,乌鸦传媒� he said.
One of UDI乌鸦传媒檚 biggest concerns is potential development in the area served by the Saucier substation, which includes Kelowna General Hospital and the city乌鸦传媒檚 central core.
乌鸦传媒淭he implications that come with that are if you were to build a building today, would some of those substation issues be resolved by the time the building is done? That乌鸦传媒檚 a significant risk.乌鸦传媒�
Sargent added that UDI has faced frustration when trying to determine how much power FortisBC can provide for a project.
乌鸦传媒淢aybe we can change our heating system,乌鸦传媒� he said. 乌鸦传媒淢aybe we can make a difference in the envelope of the building to reduce the energy乌鸦传媒攁nd not being able to get an answer to that.乌鸦传媒�
Gary Toft, senior advisor for corporate communications with FortisBC, acknowledged the concerns and said the company is working to address them as quickly as possible.
乌鸦传媒淎s power providers across North America are expanding their electricity systems, FortisBC is seeing an increase in the amount of time it takes to receive important equipment and supplies, such as transformers, breakers, specialized equipment and new technology,乌鸦传媒� Toft said.
He noted that a transformer for a substation that once took a year could now take up to three years for delivery.
乌鸦传媒淔ortisBC has taken action to help mitigate delays wherever possible, including purchasing and pre-ordering these key materials and equipment,乌鸦传媒� Toft said.
In 2024, FortisBC requested approval from the British Columbia Utilities Commission (BCUC) to upgrade substations in Kelowna and several smaller communities, as well as transmission lines serving the South Okanagan. A decision is expected this spring.
Toft added that the company continues to work with the development community and the City of Kelowna on requests for large buildings with significant and concentrated electricity demand to ensure they can be connected as quickly as possible.
He pointed out that over the past five years, 乌鸦传媒渃lose to 6,000 families and businesses have been connected to electricity service, and nearly 8,000 multi-unit homes and businesses will be connected in the future.乌鸦传媒�
The UDI media release acknowledged FortisBC乌鸦传媒檚 commitment to invest $157 million in new electricity infrastructure projects but stated it is 乌鸦传媒渘either sufficient nor timely to accommodate Kelowna乌鸦传媒檚 rapid population growth.乌鸦传媒�
Ian Grannary, an electrical engineer, UDI board member, and principal with Smith + Andersen in Kelowna, helps coordinate the energizing of projects with FortisBC.
乌鸦传媒淲here I think they乌鸦传媒檝e seen issues is with some of the smaller buildings,乌鸦传媒� he said. 乌鸦传媒淭he 50 or 80 units. If they can乌鸦传媒檛 get power for two or three years that does impact their schedule.乌鸦传媒�
Grannary said he is aware of at least one development in the city that has run into power availability issues. He also pointed to other factors affecting electricity demand.
乌鸦传媒淚t乌鸦传媒檚 the provincial government changing the building code to decarbonize and use less natural gas, which drives the electrical load up,乌鸦传媒� he said. 乌鸦传媒淭he City of Kelowna requires us to put energized stalls (EV) into every parking space for a condo and 25 per cent for a rental building. So FortisBC has to allow for all that day one.乌鸦传媒�
Sargent stressed that two-to-three-year delays are serious and must be addressed.
乌鸦传媒淚f you can乌鸦传媒檛 guarantee power to these sites, most people won乌鸦传媒檛 move forward with the project in the interim.乌鸦传媒�
He noted that stalled or abandoned projects could affect Kelowna乌鸦传媒檚 housing targets as determined by the province.
乌鸦传媒淭he reason for that is because the areas identified are areas that would be looking to have additional density.乌鸦传媒�
UDI plans to meet with local Conservative MLAs Kristina Loewen and Gavin Dew to relay their concerns, as well as reach out to city council before approaching the provincial government.
Sargent said discussions with FortisBC are ongoing.
乌鸦传媒淭he communication continues,乌鸦传媒� he said. 乌鸦传媒淩eally what this was about was to ensure that anyone looking to do a project in these areas is keenly aware of the issue.乌鸦传媒�
