British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3

www.bchydro.com

Joanna Sofield Chief Regulatory Officer Phone: 604-623-4046 Fax: 604-623-4407 bchydroregulatorygroup@bchydro.com March 7, 2011 Ms. Erica M. Hamilton Commission Secretary British Columbia Utilities Commission Sixth Floor – 900 Howe Street Vancouver, BC V6Z 2N3 Dear Ms. Hamilton: RE: Project No. 3698623

British Columbia Utilities Commission (BCUC) British Columbia Hydro and Power Authority (BC Hydro) Ruskin Dam and Powerhouse Upgrade Project (Project) Application for a Certificate of Public Convenience and Necessity (CPCN)

Attached as Exhibit B-2 is BC Hydro’s presentation from the Ruskin Dam and Powerhouse Upgrade Project CPCN Application Information Session held on February 28, 2011. For further information, please contact Geoff Higgins at 604-623-4121 or by e-mail at bchydroregulatorygroup@bchydro.com. Yours sincerely,

Joanna Sofield Chief Regulatory Officer sh/rh Enclosure Copy to:

Kwantelen First Nation Sto:lo Tribal Council Matsqui First Nation BCUC Project No. 3698592 BC Hydro F11 RRA Registered Intervener Distribution List

B-2

1

Rus

kin

Dam

and

Pow

erho

use

Upg

rade

Pro

ject

CP

CN

App

licat

ion

Info

rmat

ion

Ses

sion

Febr

uary

28,

201

1

2

INTR

OD

UC

TIO

N

WO

RK

SH

OP

AG

EN

DA

In

trodu

ctio

n (G

eoff

Hig

gins

);

CP

CN

App

licat

ion

Ove

rvie

w (C

raig

God

soe)

;

Faci

lity

and

Pro

ject

Ove

rvie

w (C

hris

O’R

iley)

;

BC

Hyd

ro’s

Loa

d Fo

reca

st a

nd L

oad/

Res

ourc

e B

alan

ce (R

andy

Rei

man

n);

A

ltern

ativ

es A

naly

sis

(Dea

n C

ardn

o);

Fi

rst N

atio

ns C

onsu

ltatio

n an

d P

ublic

Eng

agem

ent (

Boy

d M

ason

);

Pro

ject

Ris

k an

d R

isk

Miti

gatio

n (B

oyd

Mas

on);

R

ate

Impa

ct a

nd B

CU

C R

egul

ator

y Ti

met

able

(Geo

ff H

iggi

ns).

3

CPC

N A

pplic

atio

n O

verv

iew

RE

GU

LATO

RY

AP

PR

OV

ALS

P

roje

ct d

oes

not t

rigge

r CE

AA

or B

CE

AA

:

BC

EA

A: m

odifi

catio

n to

an

exis

ting

faci

lity

belo

w 5

0MW

thre

shol

d;

EA

O re

ject

ed B

C H

ydro

’s v

olun

tary

opt

-in re

ques

t.

CE

AA

:

DFO

con

clud

ed n

o H

AD

D if

miti

gatio

n m

easu

res

are

follo

wed

;

Tran

spor

t Can

ada

advi

sory

opi

nion

that

Pro

ject

will

not

incr

ease

inte

rfere

nce

with

na

viga

tion.

N

o am

endm

ents

to C

ondi

tiona

l Wat

er L

icen

ses

or W

ater

Use

Pla

n;

Onl

y m

ater

ial r

egul

ator

y ap

prov

al is

Cer

tific

ate

of P

ublic

Con

veni

ence

and

N

eces

sity

(CP

CN

) fro

m th

e B

CU

C.

4

CPC

N A

pplic

atio

n O

verv

iew

AP

PLI

CA

TIO

N S

TRU

CTU

RE

A

pplic

atio

n st

ruct

ure

larg

ely

follo

ws

BC

UC

CP

CN

Gui

delin

es;

C

hapt

er 1

–In

trodu

ctio

n:

Ord

er s

ough

t and

why

BC

Hyd

ro is

app

lyin

g fo

r a C

PC

N (S

ectio

n 1.

1);

Im

plic

atio

ns o

f Cle

an E

nerg

y A

ct(S

ectio

n 1.

1);

B

C H

ydro

’s p

ast p

roje

ct e

xper

ienc

e (S

ectio

n 1.

3);

Li

st o

f App

endi

ces

(Sec

tion

1.5)

.

Cha

pter

2 –

Pro

ject

Des

crip

tion

and

Impa

cts:

E

xist

ing

Faci

lity

(Sec

tion

2.1)

;

Pro

ject

Sco

pe (S

ectio

n 2.

2);

C

ost E

stim

ate,

Sch

edul

e an

d R

ate

Impa

ct (S

ectio

ns 2

.4 –

2.6)

;

Env

ironm

enta

l and

Soc

ial I

mpa

cts

(Sec

tions

2.7

and

2.8

).

5

CPC

N A

pplic

atio

n O

verv

iew

AP

PLI

CA

TIO

N S

TRU

CTU

RE

(Con

tinue

d)

C

hapt

er 3

–P

roje

ct J

ustif

icat

ion:

C

ondi

tion

of D

am a

nd P

ower

hous

e (S

ectio

n 3.

2.1)

;

Pro

ject

nee

ded

to m

eet L

oad/

Res

ourc

e G

ap (S

ectio

n 3.

2.2)

;

Pro

ject

Alte

rnat

ives

(Sec

tion

3.3)

:

Long

-Ter

m:

5 A

ltern

ativ

es (2

De-

Rat

e an

d 3

Dec

omm

issi

onin

g);

S

hort-

Term

Def

erra

l to

impl

emen

t eith

er th

e P

roje

ct o

r 2 D

e-ra

te o

r 1 D

ecom

mis

sion

ing.

A

ltern

ativ

e M

eans

of C

arry

ing

Out

the

Pro

ject

(e.g

. 2 v

ersu

s 3

units

) (S

ectio

n 3.

4).

C

hapt

er 4

–Fi

rst N

atio

ns C

onsu

ltatio

n an

d P

ublic

Eng

agem

ent

C

hapt

er 5

–P

roje

ct R

isks

and

Ris

k M

anag

emen

t:

Def

initi

on P

hase

(Sec

tion

5.2)

;

Impl

emen

tatio

n P

hase

(Sec

tion

5.3)

;

Ope

ratio

n ph

ase

(Sec

tion

5.4)

;

Sum

mar

y (S

ectio

n 5.

5).

6

CPC

N A

pplic

atio

n O

verv

iew

OR

DE

R S

OU

GH

T

S

et o

ut in

App

endi

x A

; rep

ortin

g re

quire

men

ts s

imila

r to

othe

r pro

ject

s;

Pur

suan

t to

subs

ectio

n 46

(1) o

f the

Util

ities

Com

mis

sion

Act

, BC

Hyd

ro fi

led

its a

pplic

atio

n fo

r the

BC

UC

to g

rant

a C

PC

N to

con

stru

ct a

nd o

pera

te th

e R

uski

n D

am a

nd P

ower

hous

e U

pgra

de P

roje

ct (P

roje

ct);

B

C H

ydro

see

ks a

CP

CN

on

the

basi

s of

, am

ongs

t oth

er th

ings

, the

A

utho

rized

Am

ount

. Thi

s is

als

o co

nsis

tent

with

BC

Hyd

ro’s

Cap

ital P

roje

ct

Filin

g G

uide

lines

:

The

form

of t

he B

C H

ydro

Boa

rd o

f Dire

ctor

s au

thor

izat

ion

info

rms

the

App

licat

ion.

7

Faci

lity

Ove

rvie

wH

ISTO

RY

OF

RU

SK

IN

D

am a

nd P

ower

hous

e U

nit 1

or

igin

ally

con

stru

cted

in 1

930;

S

econ

d an

d Th

ird U

nits

co

nstru

cted

in 1

938

and

1950

;

No

maj

or re

furb

ishm

ents

ha

ve b

een

carr

ied

out s

ince

or

igin

al c

onst

ruct

ion;

S

eism

ic a

nd s

truct

ural

de

ficie

ncie

s re

quire

that

ex

tens

ive

inve

stm

ent i

s re

quire

d to

ens

ure

safe

ty a

nd

relia

bilit

y of

Rus

kin.

Orig

inal

193

0 C

onst

ruct

ion

8

Faci

lity

Ove

rvie

wR

US

KIN

TO

DAY

Rig

ht A

butm

ent

Dam Po

wer

hous

e an

d Sw

itchy

ardLeft

Abut

men

t

9

Faci

lity

Ove

rvie

w

D

epen

dabl

e ca

paci

ty o

f 105

MW

;

Aver

age

annu

al e

nerg

y ou

tput

of 3

48 G

Wh,

88

per c

ent o

f whi

ch is

firm

;

Loca

ted

in th

e Lo

wer

Mai

nlan

d, w

hich

acc

ount

s fo

r abo

ut 7

0 pe

r cen

t of B

C

Hyd

ro’s

Loa

d;

With

the

bene

fit o

f the

com

bine

d st

orag

e ca

paci

ty o

f the

Sta

ve R

iver

Sys

tem

re

serv

oirs

, Rus

kin

is a

ble

to p

rovi

de th

e fo

llow

ing

addi

tiona

l ben

efits

:

Dis

patc

habi

lity,

whi

ch c

an b

e us

ed to

mee

t pea

k lo

ad re

quire

men

ts a

nd to

resp

ond

to s

hort

term

var

iatio

ns in

load

or r

esou

rce

bala

nce;

O

n-ca

ll re

serv

e su

ppor

t or t

he a

bilit

y to

redu

ce o

utpu

t for

BC

Hyd

ro a

s it

seek

s to

in

tegr

ate

incr

easi

ng a

mou

nts

of in

term

itten

t cle

an o

r ren

ewab

le e

nerg

y.

Pro

vide

s de

pend

able

vol

tage

and

loca

l rea

ctiv

e po

wer

(VA

r) s

uppo

rt fo

r the

Lo

wer

Mai

nlan

d69

kV tr

ansm

issi

on n

etw

ork

and

elec

trica

l sys

tem

.

BE

NE

FITS

PR

OV

IDE

D B

Y R

US

KIN

10

Faci

lity

Ove

rvie

w

Rig

ht A

butm

ent

C

onsi

sts

of h

ighl

y er

odib

le s

oils

;

Bot

h se

ism

ic a

nd s

tatic

def

icie

ncie

s ha

ve b

een

iden

tifie

d:

Effo

rts to

dat

e to

miti

gate

san

d er

osio

n ha

ve o

nly

been

par

tially

suc

cess

ful;

D

amag

e to

the

Rig

ht A

butm

ent s

eepa

ge b

arrie

r of c

ould

occ

ur a

t an

earth

quak

e re

turn

per

iod

of le

ss th

an 1

in47

5 ye

ars.

Left

Abu

tmen

t

Por

tion

behi

nd th

e P

ower

hous

e is

ste

ep a

nd u

nsta

ble

and

coul

d fa

il fo

llow

ing

a m

ajor

ear

thqu

ake

with

a re

turn

per

iod

of le

ss th

an 1

in2,

475

year

s, w

hich

is

belo

w C

DA

guid

elin

es fo

r an

earth

em

bank

men

t. S

pillw

ay G

ates

S

eism

ic d

efic

ienc

ies

in th

e ex

istin

g sp

illw

ay g

ates

, pie

rs, a

nd ro

adw

ay o

f the

D

am w

here

cra

ckin

g of

stru

ctur

es c

ould

occ

ur w

ith g

roun

d m

otio

ns o

f 0.1

2g

(an

even

t with

an

expe

cted

retu

rn p

erio

d of

1in

100

year

s).

RU

SK

IN D

AM

DE

FIC

IEN

CIE

S

11

Faci

lity

Ove

rvie

w

Th

e R

uski

n da

m is

cat

egor

ized

as

“Ver

y H

igh

Con

sequ

ence

”, m

eani

ng th

at

the

dow

nstre

am im

pact

s of

a d

am b

reac

h m

ay in

clud

e lo

ss o

f life

, and

si

gnifi

cant

fina

ncia

l and

env

ironm

enta

l dam

age;

A

seis

mic

eve

nt c

ould

resu

lt in

dam

or a

butm

ent d

amag

e. T

he le

vel a

nd

exte

nt o

f dam

age

coul

d in

clud

e da

m o

r abu

tmen

t fai

lure

and

unc

ontro

lled

rele

ase

of th

e re

serv

oir;

If

Spi

llway

gat

es o

r spi

llway

gat

e pi

ers

are

dam

aged

in a

n ea

rthqu

ake,

BC

H

ydro

cou

ld lo

se th

e ab

ility

to p

ass

wat

er d

urin

g a

post

-ear

thqu

ake

draw

dow

n

or d

urin

g a

MD

E, w

hich

cou

ld le

ad to

ove

rtopp

ing

and

dam

failu

re;

B

C H

ydro

has

und

erta

ken

a nu

mbe

r of a

ctio

ns in

rece

nt y

ears

to m

itiga

te

dam

risk

(sec

tion

2.3)

; in

parti

cula

r, an

ope

ratin

g re

stric

tion

was

put

in p

lace

in

200

5 to

lim

it th

e m

axim

um o

pera

ting

leve

l of t

he re

serv

oir t

o E

l 41.

4 m

(a

1.5

m re

duct

ion)

whi

ch im

pact

s bo

th th

e en

viro

nmen

t and

pub

lic u

se o

f the

re

serv

oir.

RU

SK

IN D

AM

–C

ON

SE

QU

EN

CE

S O

F FA

ILU

RE

12

Faci

lity

Ove

rvie

w

Def

icie

ncie

s

Pow

erho

use

stru

ctur

e an

d/or

Lef

t Abu

tmen

t (be

hind

the

Pow

erho

use)

do

not

mee

t sei

smic

sta

ndar

ds a

nd c

ould

col

laps

e in

a la

rge

earth

quak

e;

Maj

or g

ener

atin

g co

mpo

nent

s, in

clud

ing

the

turb

ines

and

gen

erat

ors,

ex

cite

rs, g

over

nors

and

tran

sfor

mer

s (lo

cate

d be

twee

n th

e P

ower

hous

e an

d Le

ft A

butm

ent)

are

in p

oor t

o un

satis

fact

ory

cond

ition

;

Sw

itchy

ard,

loca

ted

on th

e P

ower

hous

e ro

of is

a c

irca

1930

’s d

esig

n an

d do

es n

ot a

llow

mai

nten

ance

wor

k to

be

perfo

rmed

at t

he s

witc

hyar

d w

ithou

t a

full

stat

ion

and

trans

form

er li

ne o

utag

e, a

nd p

oses

saf

ety

risks

to w

orke

r sa

fety

(lim

its o

f app

roac

h);

Th

ird p

arty

con

sulta

nt R

W B

eck

foun

d th

at th

e m

ajor

gen

erat

ing

com

pone

nts

“[hav

e] w

ell e

xcee

ded

[thei

r] ex

pect

ed u

sefu

l life

” and

that

the

perfo

rman

ce o

f th

e P

ower

hous

e eq

uipm

ent h

as b

een

decl

inin

g.

CO

ND

ITIO

N O

F TH

E P

OW

ER

HO

US

E

13

Faci

lity

Ove

rvie

w

Con

sequ

ence

s of

Fai

lure

C

olla

pse

of th

e Le

ft A

butm

ent o

r Pow

erho

use

build

ing

coul

d re

sult

in

inju

ry/d

eath

, the

loss

of g

ener

atin

g ou

tput

from

Rus

kin,

and

env

ironm

enta

l co

nseq

uenc

es;

A

failu

re in

one

or m

ore

of R

uski

n’s

thre

e ge

nera

ting

units

will

likel

y re

sult

in

an o

utag

e of

mor

e th

an a

yea

r with

incr

ease

d co

sts

and

coul

d re

sult

in

envi

ronm

enta

l im

pact

s;

RW

Bec

k fo

und

that

“the

re is

a h

igh

likel

ihoo

d of

a m

ajor

equ

ipm

ent f

ailu

re

that

cou

ld c

ause

per

sona

l inj

ury

as w

ell a

s ex

tend

ed o

utag

e an

d re

sult

in

exte

nsiv

e re

pair

and

repl

acem

ent c

osts

”.

CO

ND

ITIO

N O

F TH

E P

OW

ER

HO

US

E

14

Proj

ect O

verv

iew

Th

e S

cope

of t

he P

roje

ct is

to c

orre

ct d

am s

afet

y de

ficie

ncie

s an

d re

plac

e or

re

habi

litat

e po

wer

hous

e eq

uipm

ent a

nd a

ncilla

ries

to e

xten

d th

e fa

cilit

y lif

e by

at

leas

t 50

year

s;

Giv

en th

e ex

tent

of w

ork

bein

g un

derta

ken

by th

e P

roje

ct, B

CH

ydro

has

not

cu

rren

tly id

entif

ied

any

need

to u

nder

take

sig

nific

ant f

utur

e ca

pita

l ex

pend

iture

s at

the

Rus

kin

Faci

lity

in th

e sh

ort t

o m

ediu

m te

rm.

PR

OJE

CT

OB

JEC

TIV

E

15

Proj

ect O

verv

iew

Dam

Saf

ety

Upg

rade

s

Com

plet

e w

ork

to a

ddre

ss s

eism

ic d

efic

ienc

ies

iden

tifie

d at

the

Rig

ht

Abu

tmen

t;

Add

ress

Lef

t Abu

tmen

t, S

pillw

ay G

ates

and

Spi

llway

Pie

rs s

eism

ic

defic

ienc

ies;

R

ebui

ld a

nd w

iden

road

cro

ssin

g ov

erto

p of

Rus

kin

Dam

.

Pow

erho

use

Upg

rade

s

Add

ress

Pow

erho

use

stru

ctur

al a

nd s

afet

y de

ficie

ncie

s;

Rep

lace

and

refu

rbis

h tu

rbin

e an

d ge

nera

tor e

quip

men

t;

Rep

lace

bal

ance

of p

lant

, anc

illary

equ

ipm

ent;

R

eloc

ate

and

repl

ace

Sw

itchy

ard;

U

pgra

de p

ower

hous

e ac

cess

brid

ge.

PR

OJE

CT

SC

OP

E

16

Proj

ect O

verv

iew

Rig

ht A

butm

ent

2012

-20

13

Dam

Late

201

3 -2

017

Pow

erho

use

Stru

ctur

e: 2

012

-201

3G

ener

ator

s: 2

014-

2017

Switc

hyar

dB

etw

een

2014

an

d 20

17

Left

Abut

men

t20

16 -

2017

17

LON

G-T

ER

M P

LAN

NIN

G

N

eed

for R

uski

n in

Loa

d R

esou

rce

Bal

ance

:

F201

7 fo

r Firm

Ene

rgy;

F2

017

for D

epen

dabl

e C

apac

ity.

N

eed

is d

eter

min

ed b

y:

Net

Loa

d Fo

reca

st a

fter D

eman

d S

ide

Man

agem

ent (

DS

M);

Le

ss E

xist

ing,

Com

mitt

ed a

nd P

lann

ed S

uppl

y.

Th

e C

lean

Ene

rgy

Act

is a

key

Inpu

t

Load

Res

ourc

e Ba

lanc

e

18

ME

THO

DO

LOG

Y A

ND

CH

AN

GE

S

M

etho

dolo

gy fo

r the

201

0 Lo

ad F

orec

ast i

s su

bsta

ntia

lly u

ncha

nged

;

Use

d m

ost r

ecen

t (20

10) L

ong

Term

Rat

e Fo

reca

st;

O

il &

Gas

and

Min

ing

sect

or g

row

th;

E

lect

ric V

ehic

les

(EV

s) a

re in

clud

ed in

201

0 Fo

reca

st;

A

djus

tmen

t to

load

pro

ject

ions

for D

SM

/ Lo

ad F

orec

ast (

DS

M/L

F)

Inte

grat

ion:

Res

olut

ion

of th

e ov

erla

p w

ith th

e P

ower

Sm

art C

odes

and

S

tand

ards

;

Th

e ne

ed fo

r the

pro

ject

’s fi

rm e

nerg

y an

d de

pend

able

cap

acity

is

base

d on

the

2010

Loa

d Fo

reca

st w

ithou

t the

incr

ease

d lo

ad im

pact

s of

El

ectr

ic V

ehic

les

and

DSM

/Loa

d Fo

reca

st d

oubl

e co

untin

g.

2010

Loa

d Fo

reca

st

19

2010

Loa

d Fo

reca

stTO

TAL

INTE

GR

ATE

D G

RO

SS

RE

QU

IRE

ME

NTS

BE

FOR

E D

SM

AN

D W

ITH

RA

TE

IMP

AC

TS* –

2010

FO

RE

CA

ST

VS

. 200

8 LT

AP

EU

FO

RE

CA

ST

* Rat

e Im

pact

s re

fer t

o lo

ad re

duct

ions

from

fo

reca

st e

lect

ricity

rate

cha

nges

but

do

not i

nclu

de

load

redu

ctio

ns fr

om tw

o-tie

r rat

e de

sign

B

etw

een

F200

8 an

d F2

010,

tota

l req

uire

men

ts h

ave

decl

ined

by

appr

oxim

atel

y 3,

500

GW

h or

6.0

per

cen

t.

Tran

smis

sion

sal

es h

ave

decl

ined

by

2,40

0 G

Wh

or 1

5.0

per c

ent o

ver t

he s

ame

time

perio

d. T

his

refle

cts

a nu

mbe

r of

perm

anen

t clo

sure

s, c

urta

ilmen

ts a

nd ra

pid

decl

ine

in d

eman

d fo

r BC

’s ra

w e

xpor

ts. S

ecto

r mos

t effe

cted

by

glob

al s

low

do

wn

incl

udes

fore

stry

and

min

ing.

Rec

ent t

rend

s in

dica

ted

that

com

mod

ity p

rices

and

dem

and

have

sta

biliz

ed.

C

urre

nt lo

ad g

row

th p

roje

ctio

ns re

flect

agr

eem

ents

reac

hed

for N

orth

wes

t Tra

nsm

issi

on L

ine

(NTL

); an

d in

crea

sed

inqu

iries

and

nom

inat

ion

for e

lect

ricity

ser

vice

for m

inin

g an

d oi

l gas

. How

ever

thes

e lo

ads

can

be v

olat

ile –

up o

r dow

n.

The

2010

Loa

d Fo

reca

st in

clud

es th

e im

pact

of E

Vs

(2,1

00 G

Wh

in F

2030

) and

adj

ustm

ents

for D

SM

/LF

Inte

grat

ion

Ove

rlap

of e

ffici

ency

est

imat

es a

ssoc

iate

d w

ith c

odes

and

sta

ndar

ds (1

,000

GW

h in

F20

30).

2010

Fo

reca

st

with

out

EV

or

DS

M/L

F In

tegr

atio

n (G

Wh)

2008

LT

AP

E

U

Fore

cast

(G

Wh)

2010

Le

ss

2008

LT

AP

EU

(G

Wh)

2010

Le

ss

2008

LT

AP

E

U (%

) F1

1 56

,818

60

,490

(3

,672

) (6

.1%

) F1

2 59

,295

61

,362

(2

,067

) (3

.4%

) F1

7 68

,326

66

,172

2,

154

3.

3%

F21

70,6

58

68,4

80

2,17

8

3.2%

F2

5 74

,248

72

,080

2,

168

3.

0%

F29

77,5

06

75,9

37

1,56

9

2.1%

55,0

00

60,0

00

65,0

00

70,0

00

75,0

00

80,0

00

85,0

00

F11F12F13F14F15F16F17F18F19F20F21F22F23F24F25F26F27F28F29

GWh

2010

For

ecas

t20

10 F

orec

ast w

ithou

t EV

or D

SM

/LF

Inte

grat

ion

2008

LTA

P E

U F

orec

ast

20

2010

Loa

d Fo

reca

stIN

TEG

RA

TED

TO

TAL

PE

AK

BE

FOR

E D

SM

AN

D W

ITH

RA

TE IM

PA

CTS

–20

10 F

OR

EC

AS

T V

S. 2

008

LTA

P E

U F

OR

EC

AS

T

* For

ecas

t exc

lude

s Fo

rt N

elso

n an

d in

clud

es c

apac

ity

trans

fers

from

BC

Hyd

ro to

oth

er U

tiliti

es in

clud

ing

Forti

s BC

, Sea

ttle

City

Lig

ht a

nd th

e C

ity o

f New

Wes

tmin

ster

.

C

urre

nt P

eak

dem

and

proj

ectio

n is

bel

ow 2

008

fore

cast

in th

e sh

ort t

erm

. Ref

lect

s hi

stor

ical

dec

line

in tr

ansm

issi

on p

eak

dem

and

from

redu

ced

load

s an

d cl

osur

es.

M

iddl

e an

d lo

ng te

rm fo

reca

st a

bove

200

8 fo

reca

st. R

efle

cts

antic

ipat

ed h

ighe

r pea

k de

man

d fro

m o

il an

d ga

s an

d m

inin

g lo

ads.

E

V im

pact

refle

cted

in la

ter 1

0 ye

ars

of th

e 20

10 L

oad

Fore

cast

. EV

pea

k im

pact

refle

cts

a ch

argi

ng p

rofil

e th

at b

uild

s up

th

roug

h th

e da

y. P

rofil

e ba

sed

on b

atte

ry d

eple

tion

rate

s an

d dr

ivin

g pa

ttern

s an

d da

ta is

sup

porte

d by

EP

RI s

tudi

es.

10,0

00

11,0

00

12,0

00

13,0

00

14,0

00

15,0

00

16,0

00

F11F12F13F14F15F16F17F18F19F20F21F22F23F24F25F26F27F28F29

MW

2010

For

ecas

t20

10 F

orec

ast w

ithou

t EV

or D

SM

/LF

Inte

grat

ion

2008

LTA

P E

U F

orec

ast

2010

Fo

reca

st

with

out

EV

or

DS

M/L

F In

tegr

atio

n (M

W)

2008

LT

AP

E

U

Fore

cast

(M

W)

2010

Le

ss

2008

LT

AP

EU

(M

W)

2010

Le

ss

2008

LT

AP

E

U (%

) F1

1 10

,562

11

,144

(5

82)

(5.2

%)

F12

11,0

44

11,2

79

(234

) (2

.1%

) F1

7 12

,362

11

,761

60

1

5.1%

F2

1 12

,754

12

,241

51

3

4.2%

F2

5 13

,354

12

,891

46

4

3.6%

F2

9 13

,912

13

,604

30

8

2.3%

21

CLE

AN

EN

ER

GY

AC

T

Sel

f Suf

ficie

ncy

by F

2017

and

Insu

ranc

e by

F20

21:

C

ritic

al W

ater

;

The

2,50

0 G

Wh/

year

of n

on-fi

rm e

nerg

y/m

arke

t allo

wan

ce a

nd 4

00 M

W o

f mar

ket

relia

nce

is re

mov

ed a

fter D

ecem

ber 3

1, 2

015.

D

eman

d S

ide

Man

agem

ent:

20

08 L

TAP

Evi

dent

iary

Upd

ate

Opt

ion

A -

79%

in F

2021

.

Bur

rard

:

No

plan

ned

relia

nce

for e

nerg

y;

Up

to 9

00 M

W o

f cap

acity

unt

il al

l of t

he fo

llow

ing

proj

ects

are

com

plet

ed a

nd th

e re

sulti

ng fa

cilit

ies

are

prov

idin

g se

rvic

e:

Mic

a U

nits

5 a

nd 6

;

the

Inte

rior t

o Lo

wer

Mai

nlan

d Tr

ansm

issi

on P

roje

ct, a

nd

the

Mer

idia

n su

bsta

tion

trans

form

er p

roje

ct.

Th

erea

fter,

no p

lann

ed re

lianc

e:

Sm

art M

eter

ing

Initi

ativ

e –

Ene

rgy

Thef

t Los

s R

educ

tion:

E

nerg

y –

64 G

Wh

in F

2017

up

to 5

55 G

Wh

in F

2025

;

Cap

acity

–9

MW

in F

2017

up

to 7

7 M

W in

F20

25.

Load

Res

ourc

e Ba

lanc

e

22

Load

Res

ourc

e Ba

lanc

e

CO

MM

ITTE

D R

ES

OU

RC

ES

Th

ose

reso

urce

s fo

r whi

ch

mat

eria

l reg

ulat

ory

appr

oval

s ha

ve

been

sec

ured

(BC

UC

, eith

er

secu

red

or th

roug

h ex

empt

ion;

an

d en

viro

nmen

tal a

sses

smen

t-re

late

d), a

nd th

e B

oard

has

au

thor

ized

.

EXI

STI

NG

& C

OM

MIT

TED

RE

SO

UR

CE

S

Her

itage

Hyd

roel

ectri

c;

Her

itage

The

rmal

;

Res

ourc

e S

mar

t;

Wan

eta

Tran

sact

ion;

M

ica

Uni

ts 5

and

6;

E

xist

ing

and

Com

mitt

ed IP

Ps:

Pre

-Cle

an P

ower

Cal

l;

Cle

an P

ower

Cal

l;

Alc

an;

Is

land

Gen

erat

ion;

B

ioen

ergy

Pha

se 1

;

SO

P (s

igne

d E

PA

s);

IP

O (s

igne

d E

PA

s);

A

lta G

as (s

igne

d E

PA

);

Wan

eta

Exp

ansi

on.

23

Load

Res

ourc

e Ba

lanc

e

PLA

NN

ED

RE

SO

UR

CE

S

Thos

e re

sour

ces

for w

hich

m

ater

ial r

egul

ator

y ap

prov

als

have

be

en s

ecur

ed a

nd th

e B

oard

has

no

t aut

horiz

ed.

PLA

NN

ED

RE

SO

UR

CE

S

Alta

Gas

(2 w

ithou

t EP

As)

;

Bio

ener

gy P

hase

II;

IP

O (w

ithou

t EP

As)

;

2010

SO

P.

24

Load

Res

ourc

e Ba

lanc

e: E

nerg

y

50,0

00

55,0

00

60,0

00

65,0

00

70,0

00

75,0

00

F2012

F2013

F2014

F2015

F2016

F2017

F2018

F2019

F2020

F2021

F2022

F2023

F2024

F2025

F2026

F2027

F2028

F2029

F2030

F2031

Fisc

al Y

ear

(yea

r en

ding

Mar

ch 3

1)

Firm Energy Capability (GWh)

Exis

ting

and

Com

mitt

edPl

anne

d IP

Ps

2010

Mid

Loa

d Fo

reca

st A

fter

DSM

+ In

sura

nce

2010

Mid

Loa

d Fo

reca

st A

fter

DSM

With

out E

V +

Insu

ranc

e20

10 M

id L

oad

Fore

cast

Aft

er D

SM

With

out E

V an

d D

SM/L

F In

tegr

atio

n +

Insu

ranc

e

Ope

ratin

gPl

anni

ng

25

Load

Res

ourc

e Ba

lanc

e: C

apac

ity

11,0

00

12,0

00

13,0

00

14,0

00

15,0

00

F2012

F2013

F2014

F2015

F2016

F2017

F2018

F2019

F2020

F2021

F2022

F2023

F2024

F2025

F2026

F2027

F2028

F2029

F2030

F2031

Fisc

al Y

ear

(yea

r en

ding

Mar

ch 3

1)

Capacity(MW) Ex

istin

g an

d Co

mm

itted

Plan

ned

IPPs

2010

Mid

Loa

d Fo

reca

st A

fter

DSM

2010

Mid

Loa

d Fo

reca

st A

fter

DSM

With

out E

V20

10 M

id L

oad

Fore

cast

Aft

er D

SM

With

out E

V an

d D

SM/L

F In

tegr

atio

n

Ope

ratin

gPl

anni

ng

26

Valu

e of

Rus

kin

Prod

ucts

VA

LUE

OF

EN

ER

GY

B

ased

on

the

Cle

an P

ower

Cal

l in

F201

1$

Firm

:$1

29/M

Wh

N

on-F

irm:

$50/

MW

h

Wei

ghte

d A

vera

ge:

$120

/MW

h

VA

LUE

OF

CA

PA

CIT

Y

Bas

ed o

n R

evel

stok

e U

nit 6

in F

2011

$:$5

5/kW

-yea

r

Cap

acity

Cos

t Sen

sitiv

ity:

$37

-$10

7/kW

-yea

r

Cap

acity

C

redi

tN

one

Low

Mar

ket,

Tran

s-Li

mite

d$3

7/kW

-yea

r

Dom

estic

$55/

kW-y

ear

Hig

h M

arke

t

$107

/kW

-yea

rU

nit E

nerg

y C

ost (

$/M

Wh)

67.5

56.3

50.9

35.3

27

Alte

rnat

ives

Ana

lysi

sG

EN

ER

ATIN

G A

LTE

RN

ATIV

ES

Proj

ect –

Ret

ain

3 (r

ecom

men

ded

alte

rnat

ive)

:The

spi

llway

ga

tes

and

pier

s w

ill b

e re

plac

ed. A

ll th

ree

gene

ratin

g un

its

repl

aced

/refu

rbis

hed.

Cur

rent

41.

5m o

pera

ting

rest

rictio

n is

re

mov

ed.

Alte

rnat

ive

A –

De-

Rat

e 2:

The

spill

way

gat

es w

ould

be

rem

oved

an

d sm

all (

appr

ox 2

.5m

in h

eigh

t) au

tom

ated

cre

st g

ates

inst

alle

d on

the

Dam

cre

st to

pro

vide

eno

ugh

spill

cap

abili

ty to

ens

ure

that

a

plan

t trip

doe

s no

t dew

ater

the

low

er S

tave

Riv

er.O

nly

two

of th

e th

ree

gene

ratin

g un

its w

ould

be

repl

aced

/refu

rbis

hed.

Alte

rnat

ive

E –

De-

Rat

e 3:

As

in th

e P

erm

anen

t De-

Rat

e A

ltern

ativ

e, th

e sp

illw

ay g

ates

wou

ld b

e re

mov

ed a

nd s

mal

l (a

ppro

x 2.

5 m

) aut

omat

ed c

rest

gat

es in

stal

led

on th

e D

am c

rest

. A

low

er u

nit 3

inta

ke w

ould

be

inst

alle

d. A

ll th

ree

gene

ratin

g un

its a

nd

thei

r anc

illar

ies

wou

ld b

e re

plac

ed/re

furb

ishe

d.

41.4

m R

eser

voir Cre

st G

ates

37.0

m R

eser

voir

41.4

m R

eser

voir

42.9

m R

eser

voir

New

Spi

llway

Gat

es

Cre

st G

ates

41.4

m R

eser

voir

37.0

m R

eser

voir Cre

st G

ates

28

Alte

rnat

ives

Ana

lysi

sD

EC

OM

MIS

SIO

NIN

G A

LTE

RN

ATIV

ES

(NO

GE

NE

RAT

ION

)

Alte

rnat

ive

B –

Ove

rflo

w:T

he s

pillw

ay g

ates

wou

ld b

e re

mov

ed a

nd

flash

boar

ds in

stal

led

on th

e cr

est o

f the

five

inte

rior s

pillw

ay b

ays.

The

P

ower

hous

e w

ould

be

rem

oved

dow

n to

the

gene

rato

r flo

or a

nd n

ew

disc

harg

e va

lves

wou

ld b

e in

stal

led

in a

new

ly-c

onst

ruct

ed v

alve

-ho

use

whe

re th

e po

wer

hous

e ex

iste

d.

Alte

rnat

ive

C –

Rem

ove:

The

Dam

wou

ld b

e re

mov

ed a

nd th

e H

ayw

ard

Lake

Res

ervo

ir w

ould

be

retu

rned

, to

the

exte

nt p

ract

icab

le,

to it

s or

igin

al c

ondi

tion.

The

Pow

erho

use

wou

ld b

e re

mov

ed to

the

gene

rato

r flo

or, a

nd a

ll th

ree

pens

tock

s w

ould

be

fille

d w

ith g

rave

l and

ca

pped

with

con

cret

e at

bot

h en

ds, a

s w

ould

all

thre

e dr

aft t

ubes

. Thi

s al

tern

ativ

e w

ould

requ

ire d

ewat

erin

g H

ayw

ard

Lake

Res

ervo

ir pr

ior t

o re

mov

al o

f the

Dam

.

Alte

rnat

ive

D –

Tunn

el: T

his

alte

rnat

ive

is s

imila

r to

the

aban

donm

ent

with

dam

rem

oval

; rat

her t

han

rem

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g th

e D

am, a

larg

e op

enin

g w

ould

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vate

d th

roug

h th

e ba

se o

f the

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to a

llow

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er

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age.

41.4

m R

eser

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37.0

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voir

No

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with

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29

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uce

to

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e to

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al E

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yG

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379

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/a

n/a

32

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f Ene

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4,39

3

3,56

6

n/a

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/a

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acity

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120

70

n/a

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/a

n/a

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5

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epen

dabl

e C

apac

ity11

4

70

n

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100

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30

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lysi

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e 3

Proj

ect B

enef

itsE

nerg

y ($

129

& $

50/M

Wh)

NPV

$M52

5.1

42

6.3

-

-

-

446.

3

Cap

acity

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72.7

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-

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-

63

.6

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tal B

enef

its59

7.8

47

0.9

-

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509.

9

Proj

ect C

osts

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ecte

d A

mou

nt)

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ital C

osts

385.

2

314.

5

146.

9

219.

9

215.

6

374.

2

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ratin

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53

.9

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tal C

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219.

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215.

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11

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15.6

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f Dec

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229.

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l Cos

ts (A

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ount

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45

2.7

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0.6

27

5.2

26

9.9

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.6)

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31

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lysi

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V C

OM

PAR

ISO

N

Auth

oriz

ed

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oriz

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oriz

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pect

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cted

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mC

redi

tDe-

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redi

t

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mC

redi

t

050

100

150

200

250

300

Proj

ect

Ret

ain

3

Alt A

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Rat

e 2

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Rat

e 3

$M N

PV*

32

Alte

rnat

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lysi

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ES

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D C

OS

T C

OM

PAR

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N

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ject

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ain

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lt A

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t (Ex

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mou

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ital C

osts

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l Sun

k &

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ard)

87.7

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nerg

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er R

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.5

59

.4

11

9.5

13

5.9

13

4.9

75

.0

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5

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9

134.

9

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lized

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t (A

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139.

8

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-

-

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(1

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Wh

59.6

63.8

119.

5

141.

0

139.

8

80.0

33

Alte

rnat

ives

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lysi

sA

LTE

RN

ATIV

ES

LE

VE

LIZE

D C

OS

T C

OM

PAR

ISO

N

Cap.

Cr.

Cap.

Cr. Ca

p. C

r.

Expe

cted

Expe

cted

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cted

Expe

cted

Auth

oriz

ed

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oriz

ed

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cted

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cted

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oriz

ed

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oriz

ed

Auth

.

Auth

.

3060

9012

015

0

Proj

ect -

Ret

ain

3

Alt A

- De

-Rat

e 2

Alt B

- O

verfl

ow

Alt C

- Re

mov

e

Alt D

- Tu

nnel

Alt E

- De

-Rat

e 3

$/M

Wh

34

Alte

rnat

ives

Ana

lysi

sS

UM

MA

RY

•Th

e P

roje

ct is

the

high

est c

apita

l cos

t opt

ion.

The

low

est c

apita

l cos

t al

tern

ativ

e is

aba

ndon

men

t of t

he P

ower

hous

e w

ith o

verfl

ow o

f the

exi

stin

g da

m (A

ltern

ativ

e B

);•

Whe

n co

mpa

red

with

the

alte

rnat

ives

, the

Pro

ject

(upg

rade

of a

ll th

ree

units

) pr

ovid

es:

•Th

e hi

ghes

t net

pre

sent

val

ue;

•Th

e gr

eate

st e

nerg

y an

d ca

paci

ty b

enef

its; a

nd•

A co

mpe

titiv

e un

it en

ergy

cos

t.•

The

next

bes

t alte

rnat

ive

is A

ltern

ativ

e A

(Upg

rade

onl

y 2

units

and

low

er

rese

rvoi

r);

•Th

e ea

rlies

t tha

t any

of t

he a

ltern

ativ

es c

ould

be

impl

emen

ted

is N

ovem

ber

2015

;•

Env

ironm

enta

l and

Soc

io-E

cono

mic

impa

cts

of th

e P

roje

ct a

nd A

ltern

ativ

es

are

disc

usse

d in

the

App

licat

ion

at S

ectio

n 3.

3.1.

5.

35

Firs

t Nat

ions

Con

sulta

tion

CO

NS

ULT

ATIO

N O

VE

RV

IEW

•N

otifi

catio

n pr

ovid

ed to

five

Firs

t Nat

ion

grou

ps;

•S

to:lo

Nat

ion

Cou

ncil

dire

cted

BC

Hyd

ro to

con

sult

with

Kw

antle

n (s

ee

follo

win

g sl

ide

for K

wan

tlen

cons

ulta

tion)

;•

Pro

ject

info

rmat

ion

has

been

pro

vide

d to

Mat

squi

and

Sto

:lo T

ribal

Cou

ncil

(STC

); to

dat

e, n

eith

er M

atsq

ui n

or S

TC h

ave

rais

ed a

ny is

sues

or c

once

rns;

•A

lthou

gh th

e P

roje

ct a

ppea

rs to

be

outs

ide

the

terr

itory

of H

ul’q

umi’n

um

Trea

ty G

roup

(HTG

), H

TG w

as p

rovi

ded

with

Pro

ject

info

rmat

ion

and

to d

ate

have

not

rais

ed a

ny P

roje

ct is

sues

or c

once

rns;

•C

opie

s of

the

App

licat

ion

wer

e pr

ovid

ed to

Kw

antle

n, M

atsq

ui, a

nd S

TC.

36

Firs

t Nat

ions

Con

sulta

tion

CO

NS

ULT

ATIO

N W

ITH

KW

AN

TLE

N•

Kw

antle

n w

as n

otifi

ed o

f the

Pro

ject

in N

ovem

ber 2

006;

•K

wan

tlen

prov

ided

feed

back

and

BC

Hyd

ro re

spon

ded

to in

form

atio

n re

ques

ted

rega

rdin

g th

e P

roje

ct, i

nclu

ding

alte

rnat

ives

and

env

ironm

enta

l im

pact

s –

thes

e di

scus

sion

s co

ntin

ue;

•C

apac

ity F

undi

ng A

gree

men

t rea

ched

in 2

010;

•P

artie

s co

ntin

ue to

dis

cuss

a b

enef

its a

gree

men

t and

con

tract

ing/

empl

oym

ent

oppo

rtuni

ties

for K

wan

tlen.

FUTU

RE

CO

NS

ULT

ATIO

N•

Con

sulta

tion

will

be o

ngoi

ng th

roug

h th

e Im

plem

enta

tion

phas

e of

the

Pro

ject

;•

BC

Hyd

ro w

ill as

sess

the

adeq

uacy

of c

onsu

ltatio

n as

par

t of F

inal

Arg

umen

t.

37

Publ

ic E

ngag

emen

tP

UB

LIC

EN

GA

GE

ME

NT

PR

OC

ES

S

Initi

ated

in 2

006;

Le

tters

of s

uppo

rt re

ceiv

ed fr

om D

istri

ct o

f Mis

sion

and

Mis

sion

Cha

mbe

r of

Com

mer

ce;

P

artic

ipan

ts in

BC

Hyd

ro’s

eng

agem

ent p

roce

ss u

nder

stan

d th

e ne

ed a

nd

just

ifica

tion

for t

he P

roje

ct;

D

iscu

ssio

ns a

re o

n-go

ing

rela

ted

to m

anag

emen

t of c

onst

ruct

ion

impa

cts.

38

Proj

ect R

isks

DE

FIN

ITIO

N P

HA

SE

•Is

suan

ce o

f a C

ertif

icat

e of

Pub

lic C

onve

nien

ce a

nd N

eces

sity

;

OP

ER

ATIO

NS

PH

AS

E

Com

plet

ed u

pgra

de o

pera

tiona

l ris

ks, i

nclu

ding

relia

bilit

y, s

afet

y an

d en

viro

nmen

tal r

isks

, are

low

er w

hen

com

pare

d w

ith c

urre

nt o

pera

tion;

Fu

ture

ben

efits

follo

win

g th

e co

mpl

etio

n of

the

Pro

ject

incl

ude:

Im

prov

ed u

nit r

elia

bilit

y an

d ef

ficie

ncy;

Fe

wer

exp

ecte

d re

serv

oir d

raw

dow

ns;

A

dditi

on o

f aut

o-sp

ill fu

nctio

nalit

y.

39

Proj

ect R

isks

IMP

LEM

EN

TATI

ON

PH

AS

E•

Sch

edul

e R

isk;

•E

nviro

nmen

tal R

isk;

•C

ost R

isk.

40

Proj

ect S

ched

ule

IDTa

sk N

ame

Sta

rtFi

nish

2012

2013

2014

2015

2016

2017

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

120

13-0

7-17

2012

-01-

27R

ight

Abu

tmen

t

220

17-0

3-16

2013

-11-

25D

am S

pillw

ay P

iers

and

Gat

es

320

15-0

2-27

2013

-11-

25P

iers

and

Gat

es 1

and

2

420

16-0

6-20

2015

-03-

02P

iers

and

Gat

es 3

and

4

620

17-0

6-30

2012

-03-

08Po

wer

hous

e U

pgra

de

720

13-0

6-13

2012

-03-

08P

ower

hous

e S

uper

Stru

ctur

e

820

15-1

1-18

2014

-12-

30G

ener

atin

g U

nit 1

920

16-0

9-14

2015

-11-

27G

ener

atin

g U

nit 2

1120

17-0

6-30

2014

-03-

31 S

witc

hyar

d R

e-Lo

catio

n an

d U

pgra

de

520

17-0

3-16

2016

-06-

21P

iers

and

Gat

e 7

1020

17-0

6-30

2016

-09-

15G

ener

atin

g U

nit 3

Firs

t tur

bine

shi

pped

, rec

eive

d at

si

te, a

nd re

ady

for i

nsta

llatio

n

Bul

khea

d fa

bric

atio

n, b

ridge

foot

ing,

and

da

m a

cces

s co

mpl

ete,

firs

t Spi

llway

G

ates

read

y fo

r ins

talla

tion

41

Sche

dule

and

Env

ironm

enta

l Ris

ks

SC

HE

DU

LE R

ISK

Thre

e ke

y sc

hedu

le d

elay

risk

s du

ring

cons

truct

ion:

1.E

xcav

atio

n w

ork,

and

mat

eria

ls c

halle

nges

;2.

Adv

erse

wea

ther

; and

3.In

flow

con

ditio

ns.

EN

VIR

ON

ME

NTA

L R

ISK

Two

key

area

s of

env

ironm

enta

l ris

k in

clud

e:1.

The

pote

ntia

l for

a s

igni

fican

t spi

ll to

mai

ntai

n flo

w c

ontin

uity

; and

2.Th

e po

tent

ial f

or lo

ss o

f flo

w c

ontin

uity

.

42

Sche

dule

and

Env

ironm

enta

l Ris

ksS

CH

ED

ULI

NG

AN

D E

NV

IRO

NM

EN

TAL

RIS

K M

ITIG

ATIO

NIn

add

ition

to im

plem

entin

g co

ntra

ct a

nd p

roje

ct m

anag

emen

t bes

t pra

ctic

es, t

heP

roje

ct h

as b

een

sequ

ence

d as

follo

ws

to m

inim

ize

sche

dulin

g an

den

viro

nmen

tal f

low

-rel

ated

risk

s:

1.Th

e ge

nera

ting

unit

repl

acem

ents

will

take

pla

ce s

eque

ntia

lly o

ne u

nit a

t a

time,

allo

win

g gr

eate

r wor

k ar

ea to

the

cont

ract

ors

and

miti

gatin

g en

viro

nmen

tal d

owns

tream

flow

con

tinui

ty a

nd s

pill

risk

by le

avin

g tw

o ge

nera

ting

units

ava

ilabl

e fo

r ser

vice

to m

itiga

te th

e ris

k im

pact

of a

n un

plan

ned

gene

ratin

g un

it ou

tage

.

2.W

ork

that

requ

ires

a re

serv

oir d

raw

dow

n is

sch

edul

ed to

occ

ur d

urin

g th

e Fr

aser

Riv

er fr

eshe

t so

that

tailw

ater

ele

vatio

ns c

an b

e m

aint

aine

d do

wns

tream

from

the

Dam

for f

ish

habi

tat i

n th

e ev

ent o

f a fo

rced

uni

t out

age

at th

e R

uski

n Fa

cilit

y.

3.Th

e R

ight

Abu

tmen

t wor

k is

bei

ng p

erfo

rmed

firs

t as

it re

pres

ents

the

high

est

risk

expo

sure

for t

his

proj

ect.

43

Proj

ect C

ost

PRO

JEC

T C

OM

PON

ENT

Am

ount

($

mill

ion)

Pre-

Impl

emen

tatio

n Ph

ase

Cos

ts (L

oade

d)

87.0

Dire

ct C

onst

ruct

ion

Cos

t 32

5.2

Proj

ect M

anag

emen

t and

Eng

inee

ring

40.3

Oth

er In

dire

ct C

onst

ruct

ion

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F2012

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15F20

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F2018

F2019 F20

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22F20

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F2025

F2026 F20

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47

Que

stio

ns?