From: Wendy Laluk [mailto:[email protected]] Sent: September 16, 2010 2:31 PM To: prrd dc Subject: BC Hydro Community Relations Annual Report

We are pleased to present you with BC Hydro’s 2010 Community Relations Annual Report. Our goal is to give you an overview of BC Hydro’s activities in your region and to highlight some of our broader programs that may be of interest to your community. Please call us directly if you have any questions or comments.

You are also invited to participate in a very short survey (under five minutes) that will give us a better indication of the value of this information to you and where we can improve our efforts. Click here to access the survey.

Please feel free to distribute this report and survey as needed.

Thank you.

Bob ______Bob Gammer Northern Region Acting Manager Phone: 250 561-4858 pax: 64858 Community Relations Cell: 250 961-0676 BC hydro Email: [email protected]

community relations 2010 annual report

NORTHERN: Peace rocky mountain REGION WAC Bennett Dam and west of Hudson’s Hope

Welcome to the 2010 Annual Report to Communities. Conservation remains a pivotal part of our planning for the future and I would like to thank our province’s communities for all the leadership you This is BC Hydro’s third annual report and my first as continue to show in this area. Today, with the in place, BC Hydro’s President and CEO. Clean Energy Act there are even more opportunities for communities to be part of the plan Following several years as Deputy CEO for the to build a stronger province. Organizing Committee for the 2010 Olympic and For example, BC Hydro is developing a new distribution extension policy to Paralympic Games, I joined BC Hydro in May just a few help connect rural and remote communities to BC Hydro’s clean months before the Clean Energy Act came into effect in grid. July. This ambitious plan marks a new way of thinking about our province’s abundant resources, and so I would like to take this Further, more than 36,000 jobs are expected to be created through opportunity to discuss the Act and how it relates to communities. investments in Site C, and the and upgrades. And the construction of the Northwest Transmission Line will create even The Act sets the foundation for the province to become a clean energy more regional economic opportunities. powerhouse. We will be a leader in reducing greenhouse gas emissions and we will continue to deliver clean renewable electricity to our This is an exciting time for all of us and I look forward to working together customers. Above all, the Act is a plan for the future prosperity of all with communities across the province. I encourage you to find out more British Columbians, including enabling economic growth and job creation about the plans ahead and opportunities available at www.powerofbc.ca. in every region. Sincerely, In last year’s report, we talked about the importance of communities embracing conservation and energy-efficiency measures to help B.C. David Cobb become electricity self-sufficient and meet future demand. We also President and CEO highlighted some of the BC Hydro programs that communities are BC Hydro engaging in to help make this happen—Sustainable­ Communities program, Team Power Smart, the Product Incentive Program and the Fridge Buy-Back Program.

BC HYDRO/BCTC INTEGRATION

One key component of the Clean Energy Act is the consolidation of BC Hydro and BC Transmission Corporation (BCTC) back into a single entity that will plan and deliver the clean energy required to meet ’s growing demand for electricity. The two companies have now integrated into a single organization with one board of directors and executive, and have transfered all of BCTC’s assets, liabilities and employees to BC Hydro. BCTC was originally created in 2003 in response to calls for increased independence of transmission, and the development of regional transmission organizations. Regional transmission organizations did not develop in the , and the movement towards greater independence for transmission was halted. This presented an opportunity to consolidate BC Hydro and BCTC to increase alignment and save ratepayers’ money. Local government and community leaders will continue to be served by BC Hydro community relations representatives in all parts of the province.

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THE CLEAN ENERGY ACT

The new Clean Energy Act establishes a long-term vision for British Columbia British Columbia. It will enable BC Hydro to maximize the value of its to become a clean-energy powerhouse. The Act sets the foundation for a energy resources for ratepayers and taxpayers. It will provide a new future of electricity self-sufficiency, job creation and reduced greenhouse model to secure long-term export power sales to other jurisdictions gas emissions, powered by unprecedented investments in clean, renewable seeking clean power by partnering with renewable power producers energy across the province. The Act builds upon British Columbia’s unique without risk or cost to B.C. ratepayers. heritage advantages and wealth of clean, renewable energy resources. The Act also creates a First Nations Clean Energy Business Fund to The new Clean Energy Act focuses on three priorities: provide the opportunity for First Nations to create investment and jobs in renewable power production. 1. Ensuring Electricity Self-Sufficiency at Low Rates 3. Strengthening Environmental Stewardship and Reducing Greenhouse The Act will strengthen B.C.’s legislated goal of electricity self- Gases sufficiency by 2016 with a new regulatory framework for long-term electricity planning, bold commitments to clean and renewable electricity The Act enshrines in law measures the Province will take to reduce generation, streamlined approval processes, and new measures to greenhouse gas emissions, help customers save money through promote electricity efficiency and conservation. It also strengthens conservation and protect the environment. protection for B.C. ratepayers with new measures to promote competitive The Environmental Assessment Act process will be strengthened rates and to ensure that all of the benefits from the province’s heritage to specifically provide for assessments of potential cumulative assets continue to flow to British Columbians. These objectives will environmental effects. In addition, the development or proposal of be accomplished through long-term planning; public investments and energy projects in parks, protected areas and conservancies will be conservation; and new investments in clean, renewable power and prohibited by law. energy security. The British Columbia Utilities Commission will continue The Clean Energy Act builds on the work of the Green Energy to ensure appropriate rates are set in advancing government’s energy Advisory Task Force, appointed in November 2009 to provide insights objectives and long-term resource plans. and recommendations on a comprehensive strategy to put B.C. at the 2. Harnessing B.C.’s Clean Power Potential to Create Jobs in every Region forefront of clean energy development. The Act will provide BC Hydro and renewable power producers the tools to enable economic growth and job creation in every region throughout

BC HYDRO’S ELECTRICITY GAP BC Hydro’s Supply and Demand Outlook Over the next ten years, the 80 000 80 000 Historical Data Forecasted Data population of 4.4 million in 75 000 75 000 BC Hydro’s service territory is

BC Hydro’s electricity demand expected to increase by approximately 70 000 is forecast to grow between 70 000 Energy (GWh) 505,000. This would increase our 20 and 40 per cent over the next 20 years. customer base by about 226,000 65 000 65 000 accounts. Beyond population DSM

60 000 60 000 growth, long-term expansion of the B.C. economy will also influence Energy (GWh) Energy 55 000 55 000 demand. Shifts in consumption The mid-forecast includes patterns and habits can lower projected demand side 50 000 Burrard reliance 50 000 management energy savings. the overall magnitude of demand reduced to 0 GWh per Government’s direction. growth. 45 000 Demand for F2010-F2012 will 45 000 be met with non-critical water, market or thermal resources. 40 000 40 000 1990 1995 2000 2005 2010 2015 2020 2025

Fiscal Year Forecast Customer Demand Range (year ending March 31) Total BC Hydro Supply Reflecting Clean Energy Act Historical Customer Demand Mid Forecast of Customer Demand 3,000 GWh per Year of Energy Insurance Requirement Reflecting Clean Energy Act Mid Forecast after DSM

DSM: Energy conservation and efficiency through Demand-Side Management.

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CAPITAL PROJECTS

We need to invest in renewing BC Hydro assets so that our ratepayers QUICK FACTS have reliable, clean energy well into the future. BC Hydro is embarking on BC Hydro generates over 43,000 gigawatt hours of electricity significant multi-year investments into our infrastructure. The dams and annually to supply more than 1.8 million customers equipment built in the 1950s, ‘60s and ‘70s are aging and need renovation or replacement. BC Hydro’s Electric Generation System consists of 30 integrated hydroelectric generating stations, two gas-fired thermal power plants The at Hudson’s Hope saw the completion of the and one combustion turbine station and has a total installed generating Generator Refurbishment Project on the fourth and final generating unit at capacity of over 11,000 megawatts (MW). the dam’s generating station. The four-year $115 million project was brought The BC Hydro high-voltage transmission system consists of 18,531 to a conclusion in September 2009 with a ceremony attended by the Energy kilometres of transmission lines, operating at voltages from 60 kV to 500 kV. Minister, the BC Hydro Board and Executive and dignitaries from Japan representing major equipment supplier Mitsubishi. 56,780 kilometres worth of distribution lines carry the electricity through our meters to our customers to power homes and businesses. At the W.A.C. Bennett Dam near Hudson’s Hope, eight projects are either Many of BC Hydro’s power-generating facilities were built decades underway, or about to start, the largest being the Units 1 to 5 Turbine ago, and needed additional refurbishment and expansion to continue Replacement Project. Starting in 2012 one turbine runner will be replaced providing reliable electricity to British Columbians. BC Hydro is investing each year. The turbine runner is the part of the generating unit that is pushed significant funds to address our aging infrastructure. by the water, causing the whole generating unit to turn. The project will be Last year’s net income was $366 million, compared with $369 million completed in 2017. These projects represent an expected investment the year before, resulting on a return on equity of 11.75 per cent. of $501 million. Power Smart conservation programs delivered cumulative energy In Fort Nelson, BC Hydro’s gas-fired generating station is receiving an savings of 983 GWh—equivalent to powering 65,700 homes for a year. upgraded turbine generator—described as a “jet engine in a box”. The new unit will operate more efficiently; waste heat that currently is vented into The average household in BC Hydro’s service area the atmosphere will be captured and used to generate additional power. uses 11,258 kWh per year. Together, the improvements at the station are a $149 million investment and will increase capacity from 47 megawatts (MW) to 72 MW. The new unit will be in service by November 2011.

Northwest Transmission Line Project—An application was submitted for an NEW INDUSTRY PROGRAM TO Environmental Assessment Certificate to the BC Environmental Assessment SAVE INDUSTRY MONEY Office for this 335km, 287 kilovolt transmission circuit, planned between A new program is expected to help B.C.’s industrial sector save about Terrace and Bob Quinn Lake. The estimated investment is approximately 400 gigawatt hours per year of electricity over the next four years. This $400 million. The public comment period for the Application was held this is enough to meet the annual power needs of close to 20,000 homes. spring. Three well-attended public meetings were held in Terrace, Smithers The Power Smart Partners Transmission program offers incentives and and Dease Lake. The responses to all submitted comments will be posted on rebates to help industrial customers. the EAO website. The Clean Energy Act directs BC Hydro to meet 66 per cent of the BC Hydro is also making investments in conservation programs, and we are province’s incremental electricity needs through efficiency and exploring future resource options that will involve significant investments if conservation by 2020. This is up from the 50 per cent target set in the they proceed. 2007 Energy Plan. The program offers up to 100 per cent funding for energy efficiency projects under $1 million and up to 75 per cent funding for energy efficiency projects over $1 million. Catalyst Paper is taking advantage of BC Hydro’s new offer. BC Hydro estimates that the industrial sector uses about one third of the total electricity consumed in B.C. each year, but is responsible for 45 per cent of the annual Power Smart savings.

Switchyard at the W.A.C Bennett Dam [breaker buildings (blue) and unit transformers]

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CALLS FOR POWER SMART METERING AND SMART GRID Bioenergy Call PROGRAMS • In June, BC Hydro released details of the second phase of the BC Hydro is upgrading the electricity grid system through the Bioenergy Call for Power. The request for proposals is for projects Smart Metering and Smart Grid Programs and these programs will utilizing any form of clean or renewable biomass. That includes transform how we think about and consume electricity. forest-based biomass and sawmill residue, and potentially dedicated The first step in the Smart Metering Program is installing over energy crops, organically sourced material separated from municipal 1.8 million smart meters across the province, enabling two- solid waste, and other fuels. way communications between the customer and the utility. The call for bioenergy proposals was issued province-wide. The Implementation of smart meters and their supporting infrastructure Ministry of Forests and Range has identified the following areas as is targeted to be completed by the end of 2012. having available fibre supply: the Smithers/Fort St. James corridor, Optional in-home feedback tools and conservation rates will provide Mackenzie, Northeast B.C., Central and Northern Vancouver Island, customers with more control over their energy use, enabling them Cariboo-Chilcotin, and Northwest B.C. to save energy and money. For example, an interactive web portal Clean Power Call will provide next day usage information and tools to help customers manage their energy use, and in-home displays will translate • The Clean Power Call RFP was completed in July 2010, and consumption into dollars and cents. Customers who take advantage of 27 projects have been awarded BC Hydro electricity purchase these new tools and rates will be able to save approximately $145 to agreements. In total these projects will deliver nearly 3,300 GWh of $450 per year. energy per year, of which 1,246 GWh per year is from wind. Together, the Smart Metering and Smart Grid Programs will give In total, these projects will deliver enough electricity to power more BC Hydro more visibility over the grid through the implementation than 290,000 homes. These 27 clean energy projects will create of advanced infrastructure and telecommunications, helping to 3,800 person years of employment during construction and more improve overall service, reduce outages, minimize theft and improve than $3.8 billion in capital investment in our province. The proposals operational efficiencies—all contributing to help keep rates low, include 19 run-of-river hydro projects, one redeveloped storage directly benefiting our customers. hydro project, six wind projects and one waste heat project in 17 communities across B.C. For example, there are instances when BC Hydro only knows of an outage when customers call to report it. Smart meters will send The Clean Power Call projects will complement electricity purchase a signal to BC Hydro when power goes out and when it has been agreements awarded in the last year-and-a-half under the Phase restored. This will help BC Hydro understand the location and One Bioenergy Call for Power, the Standing Offer Program, as well as extent of an outage before crews are dispatched, improving overall bilateral agreements that have enabled BC Hydro to acquire close to restoration times and service to customers and communities. 4,600 GWh annually of clean, reliable electricity. Additionally, advanced technology installed on power lines will help determine where theft of electricity is occurring. Reducing theft will The following projects have been selected in the Northern region: improve public safety and help to mitigate rate impacts for legitimate customers. Proponent Project Nearest Capacity Firm Energy Name Name Technology Community (MW) (GWh/year) The Smart Metering and Smart Grid Programs will contribute to economic development and innovation in British Columbia through: Swift Power Dasque- Corp. middle run-of-river terrace 20 46 the creation of more information-based jobs; freeing energy and Finavera capacity for their highest and best use; and creating new opportunities Renewables meikle Wind T tumbler for BC-based businesses. Inc. Energy Wind ridge 117 327 These steps will enable customers to actively manage their energy Tumbler Ridge Wind T tumber choices, adopt new energy conservation solutions, and benefit from an Energy Wind ridge 45 140 electricity grid that is modern, reliable, safe and cost effective. Wildmare Wind Energy Wind chetwynd 71 204 Bullmoose T tumbler Wind Energy Wind ridge 60 142 CP Renewable Energy (B.C.) Limited Partnership (formerly Quality T tumbler EPCOR) Wind WInd ridge 142 434

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GRANTS IN LIEU

BC Hydro pays net property tax and grant payments to local governments. The grant program is a Provincial Government initiative and the amounts paid are dictated under the current legislation. Listed below are the grants paid to each community within the Peace Rocky Mountain Region as of June 2010.

2010 Net Property Tax and Grant Payments as at June 30, 2010 Other Total Municipality/District School Taxes Grants Taxes Payments Chetwynd $57,222.96 $206,635.29 $575.21 $264,433.46 Dawson Creek $90,599.84 $159,663.01 $4,307.07 $254,569.92 Fort St. John $73,961.20 $176,331.10 $1,238.84 $251,531.14 Hudson’s Hope $1,593,048.61 $1,203,360.74 $10,518.39 $2,806,927.74 Northern Rockies Regional Municipality (Fort Nelson) $337,698.33 $187,864.56 $2,911.57 $528,474.46 Peace River Regional District $0.00 $966,450.00 $0.00 $966,450.00 Pouce Coupe $3,700.80 $4,219.76 $0.00 $7,920.56 Taylor $23,688.00 $246,287.76 $0.00 $269,975.76 Tumbler Ridge $176,729.76 $54,167.49 $0.00 $230,897.25

RELIABILITY PERFORMANCE

BC Hydro recognizes how important the reliable supply of electricity is to our customers. By continuing to invest in our electrical system, we expect to see enhanced levels of reliability for our customers. In 2009, the BC Hydro average interruption duration per customer was 2.5 hours compared to 2008, which was 2.45 hours. The average number of interruptions per customer in 2009 was 1.77 which is an improvement over 2008, which was 2.16.

The information below provides some comparisons for 2009 from the Peace Rocky Mountain Region region:

2009 2008 Average customer Average number Average customer Average number BC Hydro interruption of interruptions BC Hydro interruption of interruptions district durationS (hours) per customer district durationS (hours) per customer Chetwynd 6.28 2.61 Chetwynd 3.75 4.70 Dawson Creek 1.86 7.01 Dawson Creek 3.00 4.00

Fort Nelson 2.17 2.88 Fort Nelson 1.39 3.10 Fort St. John 2.40 1.99 Fort St. John 3.51 1.95 Tumbler Ridge 5.14 3.57 Tumbler Ridge 8.62 4.81 Taylor 2.32 1.10 Taylor 3.56 0.40 Pouce Coupe 2.36 8.79 Pouce Coupe 2.67 5.29 Hudson’s Hope 4.91 1.51 Hudson’s Hope 5.59 1.39

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COMMUNITY INVESTMENT & OUTREACH

BC Hydro is committed to supporting organizations and initiatives in the communities it serves. Through our donations and sponsorships we make monetary and in-kind contributions to support initiatives in our key funding areas: Environmental Sustainability, Youth Education, and Community Leadership. We would welcome applications from your area that meet the criteria, which can be found at www.bchydro.com/outreach. Organizations can apply online and are welcome to contact Wendy Laluk for more information, at [email protected] or 250 561 4929. The Northern region was supported with a donations and sponsorship budget of $125,000 for fiscal year 2009/2010. Listed below are some organizations within the Peace Rocky Mountain Region that BC Hydro has supported this year. Applicant Community Donation/Sponsorship Northern Lights College Scholarship Dawson Creek $10,000 Community Energy & Emissions Plan Fort St. John $3000 FSJ Summer Activities Program Fort St. John $1250 NENAS Go Karts 4 Girls Fort St. John $3000

Northern Environmental Action Team Fort St. John $3000 Power Smart Play School Initiative Hudson’s Hope $3000 Hudson’s Hope Public Library Hudson’s Hope $750 Double “H” Saddle Club Hudson’s Hope $750 2009 President’s Ball & Community Excellence Awards Fort Nelson $1000 Holiday Light Up Pouce Coupe $250

BC Hydro is also proud to support local regional government conferences. In 2009, we sponsored the NCMA, held last year in Dawson Creek, and we are a major sponsor of the UBCM conference.

Donations in Action BC Hydro Acting Community Relations Manager Bob Gammer enjoyed delivering a $2000 donation to The Prince Rupert Wildlife Rehab Shelter Society. “It was awe inspiring to see so many majestic birds being cared for by the dedicated staff members,” commented Bob. (L to R: Tobbi Gjelsvik, Society Chairman; Bob Gammer; Gunther Golinia, Wildlife Shelter Co-Manager).

BC Hydro Community Relations If you have questions or concerns, please contact: Bob Gammer Wendy Laluk Acting Manager, Community Relations Public Affairs Research Assistant 250 561 4858 250 561 4929 [email protected] [email protected]

To report a power outage call: 1 888 POWERON (1 888 769 3768) or *HYDRO (*49376) from your cell.

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