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FBC Resources Dan Egolf Manager, Power Supply & Planning 1 FBC Resources • FBC-owned generation resources under the Canal Plant Agreement (CPA) • Brilliant Plant • BC Hydro Power Purchase Agreement (PPA) • Waneta Expansion • Brilliant Expansion • Regional power markets • International Joint Commission Order for Kootenay Lake • Columbia River Treaty potential impacts • Climate change potential impacts to resources 2 FBC Resource Portfolio 3 FBC CPA Generation Resources 4 FBC-Owned Generation CPA Resources • Upgrade/Life Extensions completed for 12 of 15 units • CPA started in 1976 - earliest it can terminate is Jan.1, 2036 • Entitlements will not change provided the generation is available to operate and the generation characteristics haven’t changed • Not impacted by actual water flows • Minimal ability to store water from month to month • After Jan.1, 2036 it is much more likely that changes to entitlements could occur 5 Brilliant Contract • Brilliant Plant constructed as part of the WWII war effort • Sold to CPC and CBT in 1996 with West Kootenay Power (FBC) taking a 60-year contract for power • Potential price adjustment in 2026 depending on market conditions • Power is take-or-pay • Full CPA plant, but regulated flow benefit is about 60 GWh/yr • Fully Upgraded/Life Extended 6 Power Purchase Agreement with BCH • Renewed in 2013 for 20 years • 200 MW and 1,041 GWh of embedded cost power • Additional energy at BCH LRMC • Can nominate the energy up or down to respond to requirements • Reliable and flexible reasonably-priced resource • Terminates in 2033 - renewal is not certain 7 Waneta Expansion • Owned by Waneta Expansion Limited Partnership • Began April 2015 for 40 years • Renewal right for additional 40 years • Capacity only, all energy is going to BCH • Full CPA Plant • Excellent regulating resource for a potential FBC renewable portfolio • 50 MW RCA WAX Surplus Capacity sale to BCH for 10 years • FBC/BCH seek to maximize overall provincial values 8 Brilliant Expansion • Owned by Brilliant Expansion Power Corporation • Majority of power sold to BCH • Full CPA Plant • FBC small capacity and energy contract through 2017 • Power may become available at some time over the next 20 years 9 Regional Power Markets • Wind is maturing • Saturated • Forecasting and integration improving • Solar is growing fast in southern US • Rooftop solar • Community solar • Inverted market prices starting to occur • FBC/Powerex CEPSA Agreement to Sep.30, 2018 • All WAX surplus • All FBC market purchases • Guaranteed supply 10 PNW Utilities Resources PNUCC Northwest Regional Forecast (April 2015) 11 International Joint Commission • 1938 IJC Order • Protects US farmers from higher water levels • Rule curve ensures flood control benefits from Grohman Narrows Excavation • Has never been seriously reexamined since 1938 • If it were to be reopened, the resultant order may impact FBC CPA entitlements 12 Columbia River Treaty (CRT) • Canada or US can terminate most provisions on or after Sep. 2024 with 10 years notice • US has provided its recommendations on bringing greater economic and environmental benefits to the Northwest • How or if the CRT changes is not yet determined • Potential salmon restoration issues 13 Climate Change Potential Impacts to Resources • It is not well understood what the climate change impacts may be • Issues with respect to generation resources are: • Timing of precipitation • Not as serious unless more rainfall early Spring • Amount of precipitation • If precipitation outside of freshet period is reduced, available energy is reduced • FBC-owned plants are fairly small in size, reducing the impact • Earlier freshets would likely mean less intense run-off as the days will still be short • Not expected to potentially impact FBC entitlements until 2036 14 Summary • CPA could undergo revision in 2036, FBC expects there will be significant discussions up to 10 years before then • Brilliant Contract price review in 2026 could increase costs • PPA expiry in 2033 • RCA expires in 10 years - additional 50 MW will then be available • BRX power may become available - if so, it is likely to be an opportunity that may not repeat for some time • Solar power is gaining significant importance to the south and may grow into more northern latitudes in time • Potential impacts to existing resources due to IJC and CRT • Changing climate conditions impacts are not yet clear 15 Questions? 16
