1

BC Generation OverviewCentral Asia Delegation

30 January 2013

Doug RobinsonCanadian Entity SecretaryBC Hydro - Generation

2

System Reservoirs

Williston (Peace River):• 18,600 GWh Water License

storage (historic min at 5,700 GWh)

• Top foot: 270 GWh of energy

Kinbasket (Columbia River):• 10,400 GWh Water License

storage (historic min at 700 GWh)

• Top foot: 100 GWh of energy

3

• 3500 MW capacity (4400 MW with Site-C)

• 17 000 GWh average energy (22 000 GWh with Site-C)

• Multi-year storage• Constrained by

downstream winter ice restrictions

• Provides approximately 30% of BC Hydro’s energy resources

Generation Resources - Peace

4

• Kinbasket Reservoir, Mica and Revelstoke GS, Arrow Lakes Reservoir

• 4300 MW capacity• Net 15,500 GWh average

energy• Multi-year storage• Constrained by rules of

Columbia River Treaty and Non-Treaty Storage Agr.

• Provides about 27% of BC Hydro’s energy resources

Generation Resources – Mainstem Columbia

5

• South Interior, Bridge, Coastal, & Vancouver Island facilities

• 1600 MW capacity• 7000 GWh average energy• Hourly to seasonal storage• Constrained by flood

control, fisheries, recreation, and industrial requirements

• Provides 13% of BC Hydro’s energy resources

Generation Resources – Small Hydro

6

• Burrard Thermal Single-cycle gas-

fired steam turbine 910 MW (6 units)

nominal capacity Now used only for

emergency capacity

• Island Cogen Combined-cycle gas-

fired turbine Contract IPP 275 MW capacity Vancouver Island

Generation Resources – Thermal

7

• Alcan Long-Term Energy Purchase Agreement

• Entitlement Re-purchase Agreements (Arrow Lks Hydro, Brilliant Expansion)

• Independent Power Producers

• Increasing proportion of

BC energy supply• Provided ~ 20% of BC

Hydro’s energy resources in F2011 (including ICG, Alcan, etc)

Generation Resources – IPPs

8

Co-ordination Agreements

• Columbia River Treaty Approximately $200M in annual Downstream Benefits

• Non-Treaty Storage Agreement

• Canal Plant Agreement Estimated $40-50M in annual Benefits

• Keenleyside Entitlement Agreement

• Alcan Long-Term Purchase Agreement and Co-ordination

• Skagit Treaty

9

• BC Hydro, via Powerex, buys and sells energy in liquid markets at 3 regional trading hubs US Mid-C (Pacific NW) Alberta Power Pool (hourly) California Power Pool

• Mid-C index price is often used as a contract benchmark

• Daily division into two periods: Heavy Load Hours (HLH) and Light Load Hours (LLH) … with hourly prices in the Alberta Pool.

Generation Resources – Markets

10

•77%

•8%

•2% •3%•5%

•5%

Fiscal 2014 / 2015

BC Hydro’s Resource Mix: Capacity

Hydro

Thermal

Green & Clean

Powersmart

VIFCT Call TBD

New Resource AdditionsTBD

11

BC Hydro Facilities

BC Hydro FacilitiesRanked by Installed Capacity

0

500

1000

1500

2000

2500

3000

Hugh Ke

enleys

ide

Dunca

n

Alou

ette

Punt

ledg

e

La Jo

ieAs

h

Clow

hom

Lado

re

Seto

n

Wha

tsha

n

Wah

leac

h

Stra

thco

na

Bunt

zen

Stav

e Fa

lls

Rusk

in

John

Har

t

Chea

kamus

Jord

an R

iver

Bridge

River

Koot

enay

Can

al

Peac

e Ca

nyon

Seve

n Mile

Site

-CMica

Reve

lstok

e

G.M. S

hrum

Inst

alled C

apaci

ty (

MW

)

12

BC Hydro Facilities

BC Hydro FacilitiesRanked by Reservoir Storage Volume

0

50

100

150

200

250

300

350

400

450

500

John

Har

t

Peac

e Ca

nyon

Jord

an R

iver

Rusk

in

Chea

kamus

Clow

hom

Seve

n Mile

Site

-C

Wah

leac

hAs

h

Punt

ledg

e

Wha

tsha

n

Seto

n

Alou

ette

Reve

lstok

e

Bunt

zen

Lado

re

Stav

e Fa

lls

La Jo

ie

Stra

thco

na

Bridge

River

Koot

enay

Can

al

Dunca

n

Hugh Ke

enleys

ide

Mica

G.M. S

hrum

Rese

rvoir

Sto

rage (

kcm

sd)

13

BC Hydro Facilities

BC Hydro FacilitiesRanked by Annual Average Energy Production

0

2000

4000

6000

8000

10000

12000

14000

Dunca

n

Hugh Ke

enleys

ide

Alou

ette

Wha

tsha

n

Clow

hom

Bunt

zen

Punt

ledg

e

La Jo

ieAs

h

Stra

thco

na

Jord

an R

iver

Lado

re

Wah

leac

h

Seto

n

Stav

e Fa

lls

Rusk

in

Chea

kamus

John

Har

t

Bridge

River

Koot

enay

Can

al

Peac

e Ca

nyon

Seve

n Mile

Site

-CMica

Reve

lstok

e

G.M. S

hrum

Annual Energ

y Pro

duct

ion (

Gw

h)

14

BC Hydro Facilities

BC Hydro FacilitiesRanked by Average Annual Inflow

0

200

400

600

800

1000

1200

1400

Wah

leac

h

Wha

tsha

n

Jord

an R

iver

Ash

Alou

ette

Bunt

zen

Punt

ledg

e

Clow

hom

La Jo

ie

Chea

kamus

Stra

thco

na

Bridge

River

John

Har

t

Lado

re

Dunca

n

Seto

n

Stav

e Fa

lls

Rusk

in

Koot

enay

Can

alMica

Reve

lstok

e

Seve

n Mile

G.M. S

hrum

Peac

e Ca

nyon

Hugh Ke

enleys

ide

Site

-C

Avera

ge A

nnual In

flow

(cm

s)

15

Annual Inflow Volumes Vary

16

BC Hydro Climate & Streamflow Networks

- BC Hydro operates about 150 climate and streamflow stations and 65 snow survey stations- Annual cost of C$ 1 million- Supports runoff forecasting as well as regulatory & environmental compliance checking

Remote Climate Station with Snowpillow

17

Operational Objectives

• “Keeping the lights on” at least cost

• Flood protection

• Maintenance requirements … can be longer-term issues

• Non-power constraints (may be regulatory & water licence) Minimum fish flow requirements Recreation water-level requirements Heritage site protection Industrial needs Water Use Planning has helped to better define

these requirements

• Peace River Ice flow constraints

• Columbia River Treaty constraints

• Possible limits on spending within a fiscal year

18

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

ly E

ner

gy

(GW

h)

Total System Inflow toHydro Reservoirs

Domestic Load +Entitlement Obligations

LOAD

INFLOWS

Benefits of System Storage

System storage allows BC Hydro to reshape inflows in excess of the load into future periods when inflows are less than the load

19

Historic System Storage Energy Content (Williston + Kinbasket)

5000

10000

15000

20000

25000

30000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Sys

tem

Sto

rage (

GW

h)

Historic Envelope

FY79-88 Historic Average

FY01-10 Historic Average

Source: Historic System Storage.xls (jdb\data)

Historic Minimum6900 GWh

Historic Maximum29000 GWh

Annual Cycle of System Storage

20

21

WATER USE PLANNING PROCESS (2000 to 2005)

Provincial Direction (1994) to initiate WUP, and address: • Incremental Loss in Operational Flexibility• Risk Adverse Constraints by Federal (& Provincial) Fisheries • Provincial License Audit • NAFTA Challenge • Civil Lawsuits• Loss of Provincial Control over a Provincial Asset• Market Opportunities

Water Use Planning engaged public stakeholders, Provincial and Federal agencies, and First Nations in reviewing water management.

The process explored incremental changes to operations to better address economic, social, and environmental interests.

Process based on trade-offs using structured decision making. Inherent tension between non power or consumptive use vs energy

generation.

22

WATER USE PLANNING: SCOPE Structured decision making and trade offs were limited to:

• Dam Safety requirements;• Incremental operational changes to diversion and flow at the

facilities;• Operational changes based on capabilities of existing facility

works;• Footprint issues (e.g. original dam construction and reservoir

formation) were considered outside the scope of Water Use Planning;

Program Scope Limited to an overall $50 million system cap; and Individual projects limited to $ Water Rental Fees paid for that

project.

Limits were fundamental in reaching consensus decisions.

23

Examples: WUP Interests & Performance Measures

Fisheries Interests

• Effective Littoral Zone • Habitat Area• Spawning Success• Hydrograph Shape• Total Gas Pressure • Thermal Budget • Fish Entrainment• Tributary Access• Fish Stranding• Cottonwood Recruitment

Hydroelectric Interests

• Value of Energy• Green House Gases• Plant Availability

Recreation Interests

•Surfing•River Recreation Days•Reservoir Recreation Days•Log Haul Costs•Kayak Flows

Social Interests

•Dust Control Measures•Debris Migration•Heritage Site Erosion•Industry Outage Days•Water Supply Efficacy•Flood Days•Mosquito Breeding Success

2424

WATER USE PLANNING: Process Outcomes

WUP engagement for the BC Hydro fleet completed 1998 to 2004:

• ~$20 million information and planning process

Recommendations summarized in a Water Use Plan (WUP).

The WUP contains three components:

• Incremental changes (750+) to diversion and reservoir management;

• Physical works in lieu of an operational changes; and

• Monitoring studies to affirm decisions.

WUP becomes regulatory requirement via Water Act Order:

• BC Hydro has received Orders for 22 of 23 WUPs.