b 2
play

B-2 Janet Fraser Chief Regulatory Officer Phone: 604-623-4046 - PDF document

Feb 19, 2024 •438 likes •950 views

BC H YDRO PPA - RS 3808, TS N O . 2 & 3 E XHIBIT B-2 Janet Fraser Chief Regulatory Officer Phone: 604-623-4046 Fax: 604-623-4407 bchydroregulatorygroup@bchydro.com June 17, 2013 Ms. Erica Hamilton Commission Secretary British Columbia

  1. BC H YDRO PPA - RS 3808, TS N O . 2 & 3 E XHIBIT B-2 Janet Fraser Chief Regulatory Officer Phone: 604-623-4046 Fax: 604-623-4407 bchydroregulatorygroup@bchydro.com June 17, 2013 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Sixth Floor – 900 Howe Street Vancouver, BC V6Z 2N3 Dear Ms. Hamilton: RE: Project No. 3698720 British Columbia Utilities Commission (BCUC) British Columbia Hydro and Power Authority (BC Hydro) Application for Approval of Rates between BC Hydro and FortisBC Inc. with regards to Rate Schedule 3808, Tariff Supplement No. 3 – Power Purchase and Associated Agreements, and Tariff Supplement No. 2 to Rate Schedule 3817 BC Hydro writes to provide, as Exhibit B-2, BC Hydro’s presentation from the Workshops held on June 11, 2013 in Vancouver and June 13, 2013 in Castlegar. For further information, please contact Gordon Doyle at 604-623-3815 or by email at bchydroregulatorygroup@bchydro.com. Yours sincerely, Janet Fraser Chief Regulatory Officer jm/tn Enclosure Copy to: BCUC Project No. 3698720 (BC Hydro PPA - RS 3808, TS No. 2 & 3) Registered Intervener Distribution List Workshops Registered Attendees British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3 www.bchydro.com

  2. BC Hydro Application for Approval of Rates re: New PPA and Associated Agreements with FortisBC Inc. WORKSHOP PRESENTATION June 11, 2013 – Vancouver, B.C. June 13, 2013 – Castlegar, B.C. 1

  3. INTRODUCTION  Existing 1993 PPA between BC Hydro and FortisBC expires on Sept. 30, 2013  New PPA and associated agreements (dated May 21, 2013) replace the expiring PPA  Agreements were filed by BC Hydro on May 24 th for approval by BCUC  Revised General Wheeling Agreement expected to be filed on July 16  BC Hydro application is fully endorsed and supported by FortisBC  Two workshops are being held to provide an understanding of how the new agreements were developed  Provide information to ratepayers, BCUC staff, interveners and other parties  Provides an opportunity for participants to ask clarifying questions  Discussions at the workshops will not be recorded or transcribed 2

  4. AGENDA Topic Presenter Timing Introduction Gordon Doyle 9:00 Opening Comments Doug Little 9:05 Historical Context Doug Robinson 9:15 Post-1993 Developments Doug Little 9:30 The Agreements Doug Little / Doug Robinson 9:50 Impact on FortisBC Resources Ron Zeilstra / Jamie King 10:30 and Operational Practice Benefits for BC Hydro Doug Little 11:15 Regulatory Process Gordon Doyle 11:25 3

  5. OPENING COMMENTS  Integrated relationship between BC Hydro and FortisBC began in 1950s  Under various agreements, each party is customer and supplier of the other  New PPA and associated agreements reflect the culmination of several years of discussions between BC Hydro and FortisBC  Basic service parameters are unchanged from past 20 years  BC Hydro will continue providing 200 MW of capacity to FortisBC  The parties negotiated the agreements as a “package” deal  New agreements modernize the terms and conditions of service being provided by BC Hydro to FortisBC  Introduce improvements for current industry practice and circumstances  Enable improved system optimization and operation  Provide limited export rights to FortisBC while taking PPA energy  New PPA and associated agreements represent a mutually beneficial arrangement for both utilities and their respective ratepayers 4

  6. HISTORICAL CONTEXT Canal Plant Agreement (CPA)  Columbia River Treaty between Canada and U.S. ratified in 1964.  Required construction of 15.5 MAF of Treaty storage in Canada e.g., Mica dam  Provided the U.S. with an option to build Libby (which they exercised)  Directed Canadian storage be operated to maximize power and flood control benefits in both countries  Established BC Hydro as the Canadian Entity for Treaty implementation  To address diversion of water flow by Kootenay Canal Plant (KCL), the CPA was signed in August 1972 by BC Hydro, West Kootenay Power and Teck  CPA provides water to KCL and holds the other parties whole for their historical, pre-Treaty average generation  CPA provides for the coordinated operation/optimization of the generating resources and system integration of the Entitlement Parties and BC Hydro :  Parties receive defined amounts of energy and capacity entitlements that do not vary with actual stream flows  BC Hydro sold electricity to FortisBC under the CPA during 1978-85 5

  7. Basin Diagram M MICA CA [ [BC H C Hydro] 1805 M 1805 MW Purple S e Shading = = C Col olumbia R River T Trea eaty P Project Yellow S Sha hading = = C CPC / / C CBT J Joint V Venture P e Project Green s sha hading = = F For ortis B BC P Proj oject Blue S e Shadi ding = = T Teck / / B BCH P Project R REVEL EVELSTOKE [ E [BC H Hydro] 1980 MW 1980 M WHA HATSHA HAN [BC H Hydro] D U N C A N R I V E R U UPPE PPER ARRO A RROW 50 M 50 MW L LAKE KE S O U T H S L O C A N R I V E R DUNCA DUN CAN [ [BC H C Hydro] LO LOWER 0 M 0 MW A ARRO RROW L LAKE KE Keenl eenley eyside D de Dam [BC H Hydro] [For ortisBC G Gener enerating P ng Proj ojec ects] [CP CPC/ C/ CB CBT] Arrow L Lake kes H s Hyd ydro [CP CPC / C / CB CBT] SOUT S UTH LO LOWER UPPE PPER CO CORRA RRA 186 M 186 MW BRIL B ILLIA IANT S SLOCA CAN BONNI NNING NGTON LIN L INN G GROHMAN K KOOT OOTENAY K O O T E N A Y R I V E R L LAKE KE 55 MW 55 M 45 M 45 MW 59 M 59 MW 40- 40-56 M 56 MW N NARRO RROWS 149 MW 149 M Exp I Incr.: 127 M 127 MW Total al.: 276 M 276 MW City of Nelson KOOTEN ENAY AY C CAN ANAL AL [ [BC H Hydro] 580 M 580 MW [Teck / / B BC H Hydr dro] o] WAN ANET ETA SEVEN EVEN M MILE [ E [BC H Hydro] K O O T E N A Y R I V E R P E N D D' O R E I L L E R I V E R S A L M O R I V E R 493 M 493 MW 794 MW 794 M Expan ansion 335 M 335 MW C A C A N N A A D A D A [CP CPC C / CB CBT] - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - U N N I I T T E D E D S S T T A T A T E S E S B BOUN UNDA DARY RY C O L U M B I A R I V E R 1055 M 1055 MW [Seattl ttle C City ty L Light] t] LIBBY [ [Army C Corps of of E Engine neers] 604 MW 604 M PEND OREILLE R I V E R 6

  8. HISTORICAL CONTEXT Canal Plant Agreement Generation and Interconnection to BC Hydro System South To Arrow Kootenay Slocan Creston Lakes Canal (BCH) FortisBC Kootenay Brilliant River plants Brilliant Expansion Terminal Station Brilliant Selkirk (BCH) Warfield To Terminal Okanagan Station Nelway (BCH) WAX Legend: Emerald Switching FortisBC Waneta To Bonneville Station BC Hydro Power To Bonneville Power Teck Metals Ltd. Generators are denoted with an oval. Transmission stations are denoted with a square. Columbia Power Corp. affiliates 7

  9. HISTORICAL CONTEXT BCUC Decisions (1986 and 1993)  In 1985, differences between BC Hydro and FortisBC regarding power supply and wheeling rates were referred to the BCUC  Direction provided by the 1986 BCUC decision ultimately led to the PPA and General Wheeling Agreement (GWA)  PPA required to help FortisBC meet is load obligations  GWA required for wheeling of FortisBC’s resources from South Slocan to remote load centres (Princeton, Okanagan and Creston)  In its 1993 decision regarding BC Hydro’s RS 3808 application, the BCUC concluded that there is a unique inter-utility relationship, with FortisBC being both a BC Hydro customer and an independent utility  Demand and energy charges for FortisBC purchases within the 200 MW demand limit were aligned with BC Hydro’s RS 1821 charges applicable to other transmission service customers  For electricity above the 200 MW demand limit, prices would be negotiated based on fair market arrangements reflecting BC Hydro’s opportunity cost 8

  10. HISTORICAL CONTEXT 1993 Power Purchase Agreement (PPA)  BC Hydro supplies FortisBC with 200 MW of capacity and associated energy  Energy charge: Equivalent to RS 1827 blended rate (currently $37.24/MWh)  Demand charge: Equivalent to RS 1827 rate ($6.353/kVA per month)  FortisBC provides an annual Nominated Demand 5 years in advance for each point of delivery  FortisBC provides hourly preschedules of take-or-pay energy purchases twice a week  Excess energy fills the gap after (a) scheduled PPA electricity is fully used, and (b) other available resources are fully used  PPA electricity can only be used for FortisBC’s load requirements and cannot be exported or stored 9

  11. POST-1993 DEVELOPMENTS  Columbia Basin Accord  Open Access Transmission  Regional Electricity Markets  Pacific Northwest  Alberta  Trends in FortisBC PPA Purchases  Short term variability  Long term variability  Use of PPA and GWA to serve load  BCUC Decisions re: Customers with Self-Generation Facilities  Inclining Block Rate Structures 10

Recommend

More recommend