current electricity purchase agreements with bc hydro...kokish river 2010cpc post-cod 2.2-apr-10...

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Notwithstanding the energy was not needed when Government told BC Hydro to buy, at some point load growth will

catch up and the energy will no longer be surplus. BC Hydro expects to be in energy surplus into the 2030s, so this

report expects the annual impact of the over-buy will be felt for some 20 years and the impact of the policy directives

would be estimated as:

($850 million " 20 years) = $17 billion over 20 years.

In interviews, both the Ministry and BC Hydro advise that Government was made aware of the risks inherent in its

directives (Section 2.3). Government was purposeful in the selection of the parameters it directed BC Hydro to use in its

planning process and must have understood those parameters would create the appearance of a capacity shortfall, which

BC Hydro would then be forced to fill with incremental Firm energy. Government was also purposeful when the only

option it left BC Hydro was to buy that energy from IPPs.

Over purchasing 8,500 GWh/year does not mean BC Hydro would sell that amount into the Mid-C market. IPPs are

subject to variations in water and wind conditions and often the actual power presented is less than the contracted

amount. Also, BC Hydro tries to manage its dispatchable resources to reduce the surplus so it can avoid selling expensive

IPP energy into a Mid-C market that is depressed during Freshet.

At the end of 2009, the world was feeling the consequences of the 2008 financial downturn, and shale gas and £racking

had depressed the natural gas market and market prices for energy with it. The B.C. forest industry had seen major

closures, which impacted industrial demands for electricity and overall BC Hydro load by 6.4%.

If Government had reacted to the market events, changes in load/demand, or the advice of staff, direction to BC Hydro

could have changed and BC Hydro could have avoided buying 8,500 GWh of energy it didn't need.

The list following shows the existing IPPs sorted by EPA signing date, with the newest EPAs at the top. The government

direction impacting BC Hydro's energy planning occurred in 2007. BC Hydro attempted to comply by issuing five calls

over two years, including the 2.010 Clean Power Call and the Standing Offer Program. Logically, BC Hydro's response to

Government's directions would be the IPP projects from those five calls. Accordingly, there is an illustrative break in the

listing showing the EPAs from those five calls. While there is no way to prove direct causation, it appears reasonable to

assume these EPAs represent BC Hydro's response to government's directions (the "Response EPAs").

Current Electricity Purchase Agreements with BC Hydro Exemptions from BCUC review are highlighted yellow

Cumulative BCUC Review (post

Project Name EPA Annual Annual Minister's Order

Call Project Status Resource Type Effective Date Energy (GWh) Energy M-22-9801-Ai) or

(GWh/y) Existing E>


EPA Annual Annual Minister's Order Project Name Call Project Status Resource Type M-21.-9801•Al) or Effective Date Energy (GWh) Energy

(GWh/y) Existing Exemption

Clemina Creek Hydro 2010SOP Pre•OOD 18-Apr-16 Non-Storage Hydro 36 So Exempt: Clean Energy Act,

s. 7 (l)(h}

Hunter Creek Exempt: Clean Energy Act, Run-of-River 2010SOP Post.COD 31-Mar-16 Non-Storage Hydro 37 117 s.J(l)(h) Hydroelecrric Project

Winchie Creek Hydro 2010SOP Post-COD 24-Feb-16 Non-Storage Hydro 11 128 Exempt: Clean En

..

Cumulative BCUC Review (po•t

Project Name Call Project Status EPA Annual 'Allnual Minister's Order

Effective Date Resource Type

Energy (OWb) Energy M-22.-9801-Ai) or

(GWb/y) Existing Exemption

South Cranberry zo10SOP Post•COD 29•&p•11 Non-Storage Hydro 6 1,946

Exempt: Clean Energy Act,

Creek - R s. 7 (1)(h)

Greater Nanaimo Exempt, Clean Energy Act,

PCC Cogenerarion 2010 SOP Post•COD 16-Jun-11 Biogas 2 1,948

s. 7 (l)(h)

Conifex Reviewed: BCUC Order No.

Green Energy 2011 NEPA Post, COD lO•JUn•ll Biomass 2.20 2,168

G-40•1'.l.

Kamloops ZOIO IPO Pou•COD 6•Jun•n Biomass 288 2,456


Green Energy 5.7 (•)(t)

LP Golden Biomass zo10 SOP Post-COD 6-May-11 Biomass 4 2,460 Exempt: Clean Energy Act,

s. 7 (1)(h)

Powell Exempt: Clean Energy Act, 2010 IPO Post-COD tS•Feb-11 Biomm ! $ti z,617

River Generation 5.7(1)(t)

Cariboo Pulp 2010 lPO Post•COD 13-Dec-10 Biomasi 2,789

E"empt: Clean Energy Act,

and Paper 172

5.7(1)(t)

Waneta Expansion 2010 NEPA Post-COD l•Ot t-10 Non-Storage Hydro 627 Exempt: B.C. Reg

3.417 254/2010 (M-z30)

Howe Sound Exempt: Clean Energy Act,

Green Energy 2010 IPO Po11t•COD 7•Sep•lO Blon,oss 400 3,817

$.?(l)(t)

Box Canyon zo 10 CPC Po.st-COD 13-Aug-10 Non-Storage Hydro 47 3,864 Exempt: Clean Energy Act,

s. 7 (1)(g)

Castle Cre~k

(formerly 20 10CPC Pott•COD 13•JUl•lO Non•Sto:rage Hydro 34 3,898 Exempt: Clean Energy Act,

Benjamin C~ ek) s . 7 (1)(g)

Bremner .. Trio 20 10 CPC Prc•COD 25•Jun•lO Non--Stor.ige Hydro 163 4,066 Exempt: Clean Energy Act ,

$, 7 (l)(g)

,i Crowsnest Pass zo to CPC Post-COD 25-Jun-10 ERG 65 4,131 Exempt: Clean Energy Act,

5.7(1)(g)

Long Lake Hydro 2010CPC Post-COD 25-Jun-10 Storage Hydro 153 4,284 Exempt: Cleon Energy Act,

5.7(1)(g)

Forrest Exempt: Clean Energy Act, ZOIONEPA Post-COD 28-Moy-10 Non-Storage Hydr 935 5,219 Kerr Hydrnelectric $.7(l)(a)

Culliton Creek 2010CPC Post-COD 3-May-10 Non-Storage Hydro 74 5,293 Exempt: Clean Energy Act,

5.7(1)(g)

Cape Scott (formerly 2010CPC Post-COD 30-Apr-10 Wind 316 5,609


Knob Hill Wind) s. 7 (1)(g)

Skook11m Power (aka 2010CPC Post-COD 30-Apr•IO Non-Storage Hydro


Mamquam Skookurn) 102 5,711

5.7(t)(g)

Boulder Creek 2010CPC Post-COD z,,-Apr-10 Non-Storage Hydro 92 5,803 Exempt: Cleon Energy Act,

$. 7 (l)(g)

Big Silver-2010CPC Post-COD 22-Apr-10 Non-Storage Hydro 5,962

E,cempt: Clean Energy Act,

Shovel Creek 159

S, 7 (l)(g)

Dasque - Middle 2010CPC Post-COD 22-Apr-10 Non-Sto111ge Hydro 81 6,043 Exempt: Clean Energy Act,

5.7 (1)(g)

Jamie Creek 2010CPC Post-COD 22-Apr-to Non-Storage Hydro 6,117 Exempt: Clean Energy Act,

74 s. 7 (1)(g)

Kokish River 2010CPC Post-COD 2.2-Apr-10 Non-Storage Hydro 175 6,z92 Exempt: Clean Entrgy Act,

S. 7 (l)(g)

Meikle Wind 2010CPC Post-COO u -Apr-10 Wind 541 6,833 Exempt: Clean Energy Act,

s. 7 (t)(g)

Northwest Non-Storage Hydro

Exempt: Cleon Energy Acr, 2010CPC Post-COD zz-Apr-10 65 6,898

Stave River s . 7 (t)(g)

Quality Wind zo10CPC Post-COD 22-Apr -10 Wind 477 7,37S Exempt: Clean Energy Ac t,

J.7 (1)(g)

Zapped: A Review of BC Hydro's Purchase of Power from Independent Power Producers I So

Cumulative BCUC Review {post

EPA Annual Annual Minister's Order Project Name Call Project Status Resource Type Energy (GWb) Energy M-2.2-9801-At) or Effective Date

(GWb/y) Existing Exemption

Narrows Inlet 2010CPC Pre-COD 22-Apr-10 Non-Storage Hydro 148 Exempt: Clean Energy Act,

7,522 s. 7 (1)(!:)

Tretheway Creek :1-0IOCPC Post-COD 22-Apr-10 Non-Storage Hydro 81 7,603 E> 2008SOP Post-COD 7-Aug-09 Non-Storage Hydro 16 8,687 s. 7 (1)(h); EPA origtnal!y

reviewed BCUC Order

E-6-10


Fitzsimmons Cre-ck 2008 SOP Post-COD 18-Jun-09 Non-Storage Hydro 36 8,723 s. 7 (1)(h); EPA originally

reviewed BCUC Order

E•ll-09

PGPBio 4-Feb-09 Reviewed: BCUC Order

2C>Olj Bio Energy Post-COD Biomass 123 8,846 Energy Projttt Mo. E·B-09

Reviewed: BCUC Order Celgar Green Energy 2008 Bio Energy Post-COD 2.7-Jan-09 Biomass 242 9,088 Mo. E-8-09

Cypreu Creek 2()08 SOP Post-COD 21-Jan-09 Non-Storage Hyd.-o 12 9,100 Exempt: Clean Energy Act,

s. 7 (1)(h)

Reviewed: BCUC Order No. DokieWind 20('.lj NEPA Post•COD 31-Aug-06 Wind 375 9,475 E-14-09

Reviewed: BCUC Order Kemano 2007NEPA Post-COD 13-Aug-07 Storage Hydro 3,307 12,782, No.E-3-08

Reviewed: BCUC Order Barr Creek 2006Call Pos


EPA Annual Annual Minister's Order Project Name Call Project Status Resource Type

M-22-9801-Ai) or Effective Date Energy (GWh) Energy

(GWh/y) Existing ExemptloD

Eldorado Reservoir Storage Hydro 13,306 Reviewed: BCUC Order

2006Call Post-COD 31-Aug-06 4 No.E-7-06

EastToba

and Montrose 2006Ca1l Post-COD 31-Aug-06 Non-Storage Hydro 715

Reviewed: BCUC Order 14,021

No.E-7-06

Reviewed: BCUC Order 150 Mile House ERG 2006Call Post-COD 31-Aug-06 ERG 34 14,055 No. E-7-06

Kwoiek Non-Storage Hydro

Reviewed: BCUC Order

Creek Hydroelectric 2006Call Post-COD 31-Aug-06 n3 14,278

No. E-7-06

Kwalsa Energy 2006Call Post-COD 31-Aug-06 Non-Storage Hydro 384 14,662 Reviewed: BCUC Order

No.E-7-06

Lower Clowhom 2006Call Post-COD 31-Aug-06 Non-Storage Hydro 48 Reviewed: BCUC Order

14,710 No.E-7-06

Reviewed: BCUC Order Raging River 2 2006Call Post-COD 31-Aug-06 Storage Hydro 30 14,740

No. E-7-06

Cranberry Non-Storage Hydro


Creek Power 2006Cal1 Post-COD 31-Aug-06 9 14,749 No. E-7-06

Sakwi Creek Run Non-Storage Hydro

Reviewed: BCUC Order 2006Call Post-COD 31-Aug-06 21 14,770

No.E-7-06 of River

14,811 Reviewed: BCUC Order

Savona ERG 2006Call Post•COD 31-Aug-06 ERG 41 No. E-7-06

Reviewed: BCUC Order Tyson Creek Hydro 2006Call Post-COO 31-Aug-06 Storage Hydro S4 14,865 No. E-7-06

Non-Storage Hydro 48 Reviewed: BCUC Order

Upper Clowhom 2006Call Post-COD 31-Aug-06 14,913 No.E-7-06


Upper Stave Energy 2006Call Post-COD 31-Aug-06 15,177 No. E-7-06

AshluCreek Non-Storage Hydro 269 15,446

Reviewed: BCUC Order 2003GPG Post-COD s-Nov-03

No.E•2•04 Water Power

Brilliant Expansion 1 2003GPG Pose-COD s•Nov-03 Storage Hydro 203 15,648 Exempt: e.c. Reg 254/2010 (M-230)

China Creek Reviewed: BCUC Order

Small Hydroelectric 2003GPG Post-COD 5-Nov-03 Non-Storage Hydro 25 15,673

No.E-2-04

South Non-Storage Hydro 26 15,699


Cranberry Creek 2003GPG Post-COD 5-Nov-03

No. E-2-04

Vancouver Land61l Reviewed: BCUC Order 2003GPG Post-COD s-Nov-03 Biogas 15 15,715 No.E-2-04 Gas Utilization - Ph 2

Storage Hydro Reviewed: BCUC Order

Zeballos Lake 2003GPG Pose-COD s•Nov-03 93 15,807 No.E-2-04

Hartland Landfill Post-COD Biogas 15,822

Exempt: Minister's Order

Gas Utilization 2.oooRFP 1-May-03 15

M-22-.9801-At

Upper Non-Storage Hydro

Reviewed: BCUC Order No. 2001 GT 40 GWh Pose-COD 27-Sep-02 108 15,930

Mamquam Hydro E-1-04

Rutherford Non-Storage Hydro 16,102

Reviewed: BCUC Order No. 2001 GT 40 GWh Post-COD 12-Jun-02. 172

E-1-04 Creek Hydro

Non-Storage Hydro Reviewed: BCUC Order No.

Pingston Creek 2001 GT 40 CWh Post-COD 10-May-02 193 16,2.95 E-10 -03

Brandywine Creek Non-Storage Hydro

Reviewed: BCUC Order No.

Small Hydro 2001 LT 40 CWh Post-COD 4-Jan-02 34 16,329 E-10-03

Non-Storage Hydro 16,369 Reviewed: BCUC Order No.

Furry Creek 2001 LT 40 GWh Post-COD 21-Dec•Ol 40 E-10-03

Hauer Creek Non-Storage Hydro 16,381

Reviewed: BCUC Order 2001 LT 40 GWh Post-COD 21-Dec-01 13

(aka Tete) No. E-2-04


Marion 3 Creek 2001 LT 40 GWh Post-COD 21-Dec-01 16,399 No.E-2-04

Zapped: A Review of BC Hydro's Purchase of Power from Independent Power Producers I 52


EPA Annual Annual Minister's Order Project Name Call Project Status Resource Type

Effective Date Energy (GWh) Energy M-a2-9801-A1) or

(GWh/y) Existing Exemption

Reviewed: BCUC Order No.

Eagle Lake Cz 2001 LT 40 GWh Post-COD 21-Dec-01 Non-Storage Hydro I 16,400

E-11-18; EPA originally

Micro Hydro reviewed BCUC Order

E-10-03

Reviewed: BCUC Order South Sutton Creek 1.001 LT 40 GWh Post-COD 21-Dec-01 Non-Storage Hydro :,,6 16,426 No. E-1., 04

Vancouver Landfill 2001 LT 40 GWh

Reviewed: BCUC Order No. Post-COD 21-Dec-01 Biagas 40 16,466

Gas Utilization - Ph 1 E-10-03

Mears Creek 2001 LT 40 GWh Post-COD 19-Dec-01 Non-Storage Hydro 20 16,485 Reviewed: BCUC Order No.

E-1-04

McNalr Creek Hydro 2001 LT 40 GWh Post-COD 18-Dec-01 Non-Storage Hydro 38 16,523 Reviewed: BCUC Order No.

E•l•04

Hystad Creek Hydro Non-Storage Hydro Reviewed: BCUC Order

2000RFP Post-COD 3-Aug•OI 20 16,543 No. E-20°07

Miller Creek Power 2000RFP Post-COD 28-Mar-01 Non•Storagc Hydro 118 16,661 Exempt: Minister's Order

M-22-9801-Al

Arrow Lakes Hydro 1998NEPA Post-COD 16-Dec-98 Storage Hydro 767 17,428 Exempt: B.C. Reg

254/2010 (M-230)

Island Generation 1994RFP Post-COD 29 Sep, 98 Gas Fired Thermal 2,300 19,728 Exempt: Minister's Order

M-22-9801-At

Robson Valley 1989LT5MW Post-COD 18-0ct-91 Non-Storage Hydro 26 19,755


(Ptarmigan Creek) M-22-9801-AI

Mamquam Hydro 1988GT5MW Post-COD 29-Aug-90 Non-Storage Hydro 250 20,005 Exempt: Minister's Order

M-22-9801-A1


M-22-9801-At;Sect ion 71

Walden North 1989!.T5MW Post-COD 16-Aug-90 Non-Storage Hydro 54 20,059 application currently

before BCUC for new replacement EPA

Section 71 application

NWEWi\liams currently before BCUC;

1988GT5MW Post-COD 30-Jun-90 Biomass S4S 20,604 original EPA reviewed but Lake WW superseded by Minister's

Order M-21-9801-At

McMahon 1988GT5MW Gas Fired Thermal 840

Exempt: Minister's Order Post-COD 10-Apr-90 21,444

Generating M-21-9801-AI

Coats !PP 1985NEPA Post-COD 10-May-85 Non-Storage Hydro I 21,444 Exempt: Minister's Order

M-22-9801-Ai

The right-hand column confirms whether or not the decision to enter into the EPA was subject to BCUC review or

exempted from BCUC oversight. This table clearly shows the impact of Government's decision to "modernize" BCUC as

discussed in Section 25.

The Response EPAs represent approximately 9,500 GWh of additional contracted energy. These EPAs act as a proxy for

the impact. Of note, total energy contracted for under the Response EPAs includes both Firm and non-Firm energy,

whereas the policy directive demanded BC Hydro deliver 8,500 GWh in Firm energy. BC Hydro was trying to buy 8,500

GWh of Firm energy, but likely managed to buy only 9,500 GWh of blended energy, equivalent to approximately 8,0757

GWh of Firm energy.

7 based on a BC Hydro planning assumption that the IPP portfolio is BS% Firm

Zapped: A Review of BC Hydro's Purchase of Power from Independent Power Producers I 5)

current electricity purchase agreements with bc hydro...kokish river 2010cpc post-cod 2.2-apr-10...

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