Business

Court upholds BC Hydro right to not provide electricity to cryptocurrency mining

Court upholds BC Hydro right to not provide electricity to cryptocurrency mining

The Supreme Court of British Columbia, Canada, will not quash or set aside a recent order relieving BC Hydro of any obligation to provide electricity to Conifex Timber Inc.’s cryptocurrency mining projects.

Conifex’s previously filed a petition seeking judicial review of the Lieutenant Governor in Council of British Columbia’s Order in Council 692/2022. The OIC directed the British Columbia Utilities Commission to issue orders relieving the British Columbia Hydro and Power Authority (BC Hydro) of its obligation to supply service respecting cryptocurrency mining projects for a period of 18 months. In its decision, the Supreme Court declined to make an order quashing and setting aside the OIC as unauthorized or otherwise invalid.

Conifex alleged that the OIC exceeds the statutory powers granted to the LGIC under the Utilities Commission Act, is discriminatory and breaches statutory and common law restraints on the LGIC’s delegated powers. Conifex was seeking an order quashing and setting aside the OIC as unauthorized or otherwise invalid. As a result of the OIC, two of Conifex’s proposed high-performance computing (HPC) projects have effectively been paused, the company said.

Conifex issued a release saying it “is disappointed by, and disagrees with, the BCSC’s decision. Conifex continues to believe that the provincial government is missing out on several opportunities available to it to improve energy affordability, accelerate technological innovation, strengthen the reliability and resiliency of the power distribution grid in British Columbia, and achieve more inclusive economic growth.”

Conifex said it is considering its position in relation to the judgment, including potentially appealing the ruling, along with other legal avenues it may pursue.

More than 90% of BC Hydro’s generation is produced by hydroelectric power. The company generates more than 43,000 GWh of electricity annually to supply roughly 1.9 million residential, commercial and industrial customers.

Conifex and its subsidiaries’ primary business includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution. Conifex also produces bioenergy at its power generation facility at Mackenzie, BC.