Requirement 9(a)

(a) the names of the applicant and any authorized representative of the applicant and their mailing address, address for personal service, telephone number and any other telecommunications numbers of the applicant or the authorized representative of the applicant;

Applicant

Columbia Power Corporation Suite 200, 445-13th Avenue Castlegar, B.C. V1N 1G1 Attention: Glenn MacIntyre Director, Regulatory & Government Affairs

250.304.6039 Tel 250.608.0965 Cell 250.304.6083 Fax [email protected]

Authorized Representative

Spilker Watson Pigott 2 – 609 Baker Street Nelson, B.C. V1L 4J3 Attention: Leon Pigott

250.352.6580 Tel 250.352.6581 Fax [email protected]

The Applicant requests that copies of all correspondence be directed to its Authorized Representative. Requirement 9(b)

(b) a description of the applicant’s power system, a copy of the applicant’s latest annual report and, if applicable, the applicant’s most recent publicly available generation or development plan;

Columbia Power Corporation (CPC) is a crown corporation of the Province of British Columbia. CPC develops and owns power plants in the Columbia-Kootenays region of southeastern BC through joint ventures with its partner Columbia Basin Trust (CBT).

CPC/CBT owns the Brilliant Dam and 145 MW power plant, the 120 MW Brilliant Expansion, the 125 MW Arrow Lakes power plant located at the Hugh Keenleyside dam and expansion rights on the Waneta dam owned and operated by Teck Cominco Ltd. (“Teck”).

The relationship between CPC and CBT is illustrated in the relationship chart attached as Appendix 3.

CPC/CBT System

Entitlement Agreement with BC Hydro

All of CPC/CBT’s generating facilities, including the Waneta Expansion project which is in the design phase, have been committed to an agreement with BC Hydro under which the operation of each of the facilities is controlled by BC Hydro. Under this agreement, BC Hydro is responsible to manage and control the flows on the Columbia, Kootenay and Pend d’Oreille river systems including flows through CPC/CBT’s facilities. BC Hydro has assumed this coordination role to fulfill its responsibilities as administrator of the Columbia River Treaty.

Under this agreement, CPC/CBT receives an entitlement in respect of each of its facilities from BC Hydro. This entitlement allocates to CPC/CBT a fixed amount of energy and capacity in each year for each facility, regardless of the actual water conditions or generation output of the facility. Under the agreement, CPC/CBT has only limited rights to affect physical operations at its facilities, including to protect local network stability or to prevent damage to a facility.

In the case of the Arrow Lakes facility and the Brilliant Expansion facility, the entitlement is sold back to BC Hydro under a separate contract.

Brilliant Power Plant

CPC/CBT owns the Brilliant hydroelectric powerplant, dam and switchyard located just northeast of Castlegar, BC on the Kootenay River. The Brilliant generating station was constructed by Cominco (now Teck) and commissioned in 1944. It is a run-of-the-river type hydroelectric facility, with four turbines and generator units installed in a close-coupled powerhouse located adjacent to the 45m high concrete dam. The present power output capability of the facility is 145 MW. The dam and powerhouse were purchased in 1996 by a joint venture of CPC and CBT. CPC/CBT upgraded the performance of the Brilliant Dam through replacing the turbine runner of each of the four units. The upgrade was commenced in 2000 and was completed in 2003. As part of its agreement with BC Hydro, CPC/CBT receives an entitlement of 150 MW and 985 GWh of electricity in respect of the Brilliant Power Plant.

The Brilliant Dam is connected through the Brilliant terminal station to FortisBC’s transmission system. Management of the facility, including operations and maintenance, is performed by FortisBC under long-term contract. FortisBC purchases the entitlement from the power plant under a separate long-term sales contract.

Brilliant Expansion

CPC/CBT owns the Brilliant Expansion hydroelectric powerplant located on the Kootenay River adjacent to and 160 metres downstream of the Brilliant Power Plant. The Brilliant Expansion was constructed by CPC/CBT and commissioned in 2007. It is a run-of-the-river type facility with a single turbine and generator unit. As part of its agreement with BC Hydro, CPC/CBT receives an entitlement of 139 MW and 477 GWh of electricity in respect of the Brilliant Expansion.

The Brilliant Expansion facility is connected through the Brilliant terminal station to FortisBC’s system. Management of the facility, including operations and maintenance, is performed by FortisBC under long-term contract. Approximately 90% of the Brilliant Expansion energy and capacity is sold to BC Hydro under two long-term agreements. The balance of the energy is sold under short-term arrangements.

Arrow Lakes Generating Station

CPC/CBT owns the Arrow Lakes generating station located on the Columbia River system. The facility is located adjacent to and 400 metres downstream of BC Hydro’s Hugh Keenleyside Dam, impounding the Arrow Lakes reservoir and discharging into the upper Columbia River. The Arrow Lakes generating station was constructed by CPC/CBT and commissioned in 2003. It is a two-unit hydroelectric facility with a maximum capacity of 185 MW. As part of its agreement with BC Hydro, CPC/CBT receives an entitlement of 190 MW and 770 GWh of electricity in respect of the Arrow Lakes generating station.

The Arrow Lakes generating station is connected through the Brilliant terminal station to FortisBC’s system. Management of the facility, including operations and maintenance, is performed by Fortis Pacific Holdings Inc., a corporation related to FortisBC Inc. BC Hydro purchases all of the output from the facility under a power sales contract. This contract expires in 2015.

Waneta Expansion

CPC/CBT is in the process of constructing a power plant adjacent to Teck’s Waneta Dam on the Pend d’Oreille River south of Trail, BC. This expansion project will share the existing dam’s hydraulic head and make use of water flows that would otherwise be spilled. The project will consist of two generating units and is in the process of design and engineering. The size of the project is subject to final design and engineering but is expected to be approximately 335 MW. As part of its agreement with BC Hydro, CPC/CBT will receive an entitlement of electricity. This entitlement may change but is currently expected to be approximately 335 MW and 665 GWh.

The Waneta Expansion was the subject of a comprehensive environmental review process involving local, provincial and federal stakeholders and agencies, including significant input from and consultation with the two first nations claiming aboriginal rights on the lands on which the project is located. The project received Provincial Environmental Approval in November 2007. In May 2008, the federal Environment Minister determined that no federal environmental review was required. The current significant outstanding permits for the Waneta Expansion are Fisheries and Oceans Canada (DFO) and Transport Canada’s Navigable Waters. CPC/CBT expects to have all permits by September, 2009.

The Waneta Expansion will be connected to BC Hydro’s Selkirk substation through a 10km 230kV transmission line. This line is not yet constructed.

Construction of the Waneta Expansion project is not dependent on CPC receiving an export permit. CPC/CBT is currently in negotiations to sell all of the output from the Waneta Expansion to a domestic customer under a long-term contract.

Transmission Facilities

CPC/CBT does not currently own any transmission facilities other than the Brilliant terminal station and the 49 km transmission line connecting the Arrow Lakes facility to BC Hydro’s Selkirk substation. As part of the Waneta Expansion project, CPC/CBT will construct a 10 km transmission line connecting the Waneta Expansion project to the Selkirk substation. No new transmission facilities will need to be constructed to facilitate the proposed export of power.

Annual Report

The Applicant’s latest annual report is included as Appendix 4. The Applicant has not prepared any publicly available generation or development plans.

Requirement 9 (c)

(c) a proof of publication of the notice;

The Notice of Application and Directions on Procedures will be placed in the Canada Gazette and the following newspapers in both official languages:

● Trail Times ● Castlegar Sun ● Nelson Daily News ● Cranbrook Townsman ● Revelstoke Times ● Arrow Lakes News

These newspapers have the largest paid circulation in the most populous communities in the region. Tear sheets and/or copies of the notice will be forwarded under separate cover. Requirement 9(d)

(d) the name of each person or agency outside Canada to be supplied with electricity and the nature of the business carried on by the person or agency or, if that information is unknown at the time of the application, a brief description of the markets to be served;

There are no specific customers to be served under the requested permits at this time.

CPC/CBT may potentially pursue opportunities in the Pacific Northwest. Targeted customers may include public utility districts, investor-owned utilities, large industrial customers, brokers and marketers. CPC/CBT may also sell energy or capacity on the spot market at a price based on the Mid-Columbia hub in eastern Washington State or other trading hubs.

CPC is a member of the WSPP, a marketing organization. WSPP facilitates trading between members primarily through the use of its standardized contract for use by members for power sale transactions. The vast majority of CPC/CBT’s potential counterparties for the export of electricity are WSPP members. Requirement 9(e) (e) in the case of a sale transfer, the period for which the permit is sought and, for each year in that period, an estimate of the following quantities, namely,

(i) the maximum quantity of firm power export and import,

(ii) the maximum quantity of combined firm power and interruptible power export and import,

(iii) the maximum monthly and annual quantities of firm energy exports and imports, and

(iv) the maximum monthly and annual quantities of interruptible energy exports and imports;

(i) The maximum quantity of firm power for which a permit for export is sought is 150 MW for the years 2009 through 2013 and 350 MW for 2014 through 2019.

(ii) The maximum quantity of combined firm and interruptible power export for which a permit is sought is 150 MW for the years 2009 through 2013 and 350 MW for 2014 through 2019.

(iii) The maximum monthly quantity of firm energy export is 65 GWh for the years 2009 through 2013 and 85 GWh for 2014 through 2019. In each 12 month period during the years 2009 through 2013, the estimated maximum energy exports for each year are 750 GWh. For the years 2014 through 2019, the estimate is 1000 GWh.

(iv) The maximum monthly quantity of interruptible energy export is 65 GWh for the years 2009 through 2013, 85 GWh for 2014 through 2019. In each 12 month period during the years 2009 through 2013, the estimated maximum energy exports for each year are 750 GWh. For the years 2014 through 2019, the estimate is 1000 GWh.

CPC does not expect to import any energy during the proposed license period. Requirement 9(f)

(f) in the case of an equichange transfer, storage transfer, adjustment transfer or carrier transfer, a statement of the annual quantities of energy for exportation and for importation for each class of transfer for the period for which the permit is sought;

The applicant currently does not intend to export or import electricity for the purpose of equichange transfer, storage transfer, adjustment transfer or carrier transfer. However, the applicant requests that it have this capacity authorized to allow it to be able to respond to emergencies, future opportunities or unforeseen circumstances.

Interruptible Equichange Transfer

Equichange is usually, but not exclusively, used to meet emergencies in the Applicant’s system or the systems of US utilities. The ability to make equichange transfers will increase the reliability of the Applicant’s system. Interruptible equichange transfer quantities cannot be estimated.

Miscellaneous Firm Equichange

Miscellaneous firm equichange can allow the Applicant to firm its load carrying capability, with no net export or import of energy over the total period of an equichange, typically 2-6 months. The amount of firm equichange required would depend on the timing of the Applicant’s projects, the shape of future power purchase agreements, and the shape of the Applicant’s surplus output. The Applicant does not anticipate firm equichange to exceed 200 GWh over a 12-month period. The Applicant has no current arrangements for firm equichange with parties in the US.

Storage Transfer

Authorization to deliver storage will enable the applicant to store in United States reservoirs certain quantities of electrical energy that may not be immediately economically usable, and at a later date recover such energy for additional sales. The amount of storage electric energy exported will depend on the anticipated requirements of the Applicant, storage space available in U.S. reservoirs, and the likelihood of any storage delivered. It is not possible to provide reasonable estimates of storage quantities over the term requested. Since the Applicant receives or will receive an entitlement of power from BC Hydro under existing contractual arrangements, the Applicant does not anticipate that there will be any imports of storage transfer energy.

Adjustment Transfer

The Applicant will be required to deliver electric energy to BPA to compensate for losses incurred on the BPA system arising from the Applicant’s schedules to US utilities. Adjustment transfers are related to the magnitude of export sales and the losses incurred on the system, and the sales would be reduced by these amounts. The Applicant does not anticipate that there will be any imports of adjustment transfers.

Carrier Transfer On occasion it may be necessary to deliver electric energy to Canadian markets via the US transmission system due to outages or limitations on Canadian transmission systems. The Applicant requests to have this capability authorized so it may respond to emergencies or unusual circumstances.

Requirement 9(g)

(g) a copy of any electricity transfer agreement that covers the proposed exportation of electricity;

The Applicant does not currently have any agreements for the export of electricity.

CPC is applying for “blanket” permits that are not specific to any particular agreement. CPC is a party to the WSPP Agreement. This agreement is used for the majority of power transactions in the Pacific Northwest. A copy of the WSPP Agreement is attached as Appendix 5. Requirement 9(h)

(h) where no agreement exists, a statement of

(i) the estimated maximum duration of specific exports and the basis for that estimation, and

(ii) the period of time for which the permit is sought and the basis for the selection of that period of time;

(i) The maximum duration of any individual export contract will be limited to five years, which is consistent with CPC’s existing permits and current NEB practice.

(ii) CPC seeks an export permit for the 10-year period beginning June 1, 2009 and ending May 31, 2019. This period is consistent with NEB precedents for blanket permits. Requirement 9(i)

(i) a list of the international power lines over which the applicant proposes to export or import electricity, setting forth in respect of each line

(i) the number of the certificate or permit issued by the Board,

(ii) the name of the holder of the certificate or permit,

(iii) the name of the owner of the power line outside Canada,

(iv) the voltage level and operating designation of each circuit, and

(v) the maximum power transfer capability of each circuit and the basis for that limit;

CPC currently has no arrangements for the export or import of electricity.

CPC requests authorization to export electricity over any of the international power lines located in British Columbia and Alberta that are directly interconnected with those of the United States for which the Board has issued or will issue a Certificate or a Permit. The names of the holders of the Certificates are: (i) British Columbia Hydro and Power Authority jointly with British Columbia Transmission Corporation, (ii) Teck Cominco Metals Ltd. and (iii) Montana Alberta Tie Limited (“MATL”).

CPC understands that the Board has files with information regarding the existing international power lines as well as information on their operating characteristics and capacities. Requirement 9(j)

(j) the total simultaneous power transfer capability under normal operating conditions for all of the international power lines listed in accordance with paragraph (i) and the basis for that limit;

The simultaneous power transfer capabilities of the international power lines over which CPC proposes to export power are included in the Certificates or Permits approved by the Board in respect of these power lines. The Applicant has no further information with respect to these lines. Requirement 9(k)

(k) a description of the approvals required for the importation of electricity into the United States, and a statement respecting the current status of the approvals;

CPC is not aware of any approval requirements for the import of electricity into the United States.

CPC will not be required to obtain any approvals from US authorities for sales of electricity at the Canada/US border. A Power Market Authorization (“PMA”) from the Federal Energy Regulatory Commission (“FERC”) would allow CPC to transact at market-based rates anywhere in the US. CPC does not currently hold a PMA but may apply for one in the future. Requirement 9(l)

(l) a description of the provincial approvals that are required to be obtained by the applicant, and a statement respecting the current status of the approvals;

No provincial approvals are required by the Applicant for the export of power from British Columbia. Requirement 9(m)

(m) a description of the review process applicable to each provincial approval that must be obtained, including

(i) a description of any public consultation provided for under the review process, and

(ii) a schedule for the review process;

Not Applicable. See Requirement 9(l) above. Requirement 9(n)

(n) whether new or modified facilities will be required to effect the proposed exportation of electricity and, if applicable, a detailed description of those facilities;

No new generation or transmission facilities will be required for the proposed export of electricity. All of the facilities that are involved in the generation, storage and transmission of power related to this export have been subjected to the required reviews by provincial and federal responsible authorities. The Applicant submits that no additional environmental assessments are required either in respect of this application or in respect of any transaction under these export permits.

Electricity for export under the blanket permit sought in this application will come from a portfolio of resources including, but not limited to, surpluses from the CPC/CBT system which may include pre-commissioning sales from the Waneta Expansion project, sales from the Waneta Expansion after commercial operation is achieved, energy from the Arrow Lakes Project following the expiry of the existing sales contract, excess generation from Arrow Lakes prior to the expiration of the existing sales contract and from the portion of the energy from the Brilliant Expansion that is not under contract. Other possible sources may include market purchases or sales from future CPC/CBT projects.

The Applicant expects no additional adverse environmental impacts from the export of power from the Arrow Lakes generating station. The existing power sales agreement with BC Hydro expires in 2015 and CPC/CBT may export this power if a domestic purchaser can not be found. Export of energy generated by Arrow Lakes will not affect the operation of the facility since CPC/CBT receives and will continue to receive an entitlement from BC Hydro and does not control actual generation.

The Applicant expects no additional adverse environmental impacts from the export of power from the Brilliant Expansion project. Approximately 90% of the power from this project is under long-term contract with BC Hydro. The balance of the energy may be exported if domestic purchasers can not be found or to pursue market opportunities. Exports of energy generated by the Brilliant Expansion will not affect the operation of the facility since CPC/CBT receives an entitlement from BC Hydro and does not control actual generation.

The Applicant expects no additional adverse environmental impacts from the export of power from the Waneta Expansion project. As noted in Requirement 9(b) above, the Waneta Expansion project has received its environmental approval for the project after a detailed and comprehensive review of the project by federal and provincial authorities. CPC/CBT’s decision to proceed with this investment is not dependent on receiving an export permit. CPC/CBT is currently in negotiations with a domestic client regarding the purchase of all of the output of the Waneta Expansion project under a long-term power purchase agreement (PPA). If CPC/CBT is not successful in finalizing a long-term PPA with a domestic customer, the Applicant may export some or all of the power generated at the facility. In any event, export sales will not affect the operation of the facility because CPC/CBT will receive an entitlement for power from BC Hydro and will have no control over the actual operation of the facility or the associated river system. No new transmission facilities have been or will be required to be upgraded or constructed to facilitate the export of power by the Applicant. Requirement 9(o)

(o) the adverse environmental effects resulting from the proposed exportation of electricity, and the measures to be taken to mitigate any of those environmental effects;

As described in the response to Requirement 9(n) above, the Applicant submits that there will be no environmental impact resulting from the export of electricity. As noted above, the operation of each of the Applicant’s facilities is controlled by BC Hydro and would not be affected by the export of the power generated by the facilities.

CPC/CBT’s generating capacity and energy capability from its facilities are determined by coordination agreements and entitlement with BC Hydro, not by physical generation. Since the Applicant’s power is based on an entitlement, and not actual generation, exports by the Applicant will have no impact on the management of the river system by BC Hydro. The Applicant has only a limited ability to control generation at the facilities in the event that generation may cause damage to the facility or as needed to promote local system stability.

The proposed export can be accomplished using existing BC Hydro/BCTC and/or Teck and/or MATL transmission lines. No new transmission capacity is required to make the proposed exports. Requirement 9(p)

(p) a description of any adverse effects that the proposed exportation of electricity could have on the operation of any power system in neighbouring provinces;

The Applicant does not expect that the proposed exports will have any significant impact on the Alberta power system. Any exports by CPC/CBT would be made in compliance with all system operating parameters and constraints which the Applicant understands to be sufficient to protect the stable operation of the British Columbia and Alberta power systems. Under the terms of its access to the transmission system, the Applicant will comply with all directives issued by the transmission authorities in the two provinces to ensure that each province’s power system may be operated in a stable and reliable manner. Requirement 9(q)

(q) where the application specifies the terms and conditions of the proposed exportation of electricity, a description detailing the manner in which the applicant

(i) has informed those persons who have declared an interest in buying electricity for consumption in Canada of the quantities and classes of service available for sale, and

(ii) has given those persons who have demonstrated an intention to buy electricity for consumption in Canada after having been so informed, an opportunity to purchase electricity on terms and conditions, including price, as favourable as the terms and conditions specified in the application

Not Applicable. Requirement 9(r)

(r) where the application does not specify the terms and conditions of the proposed exportation of electricity a description, including supporting documentation, detailing the manner in which the applicant

(i) will inform those persons who declare an interest in buying electricity for consumption in Canada of the quantities and classes available for sale, and

(ii) will give those persons who demonstrate an intention to buy electricity for consumption in Canada after having been so informed, an opportunity to purchase electricity on terms and conditions, including price, as favourable as the terms and conditions of the export.

The Applicant’s system is interconnected directly with the BCTC and FortisBC system and indirectly with the Alberta power system.

Deliveries of electricity to Alberta will be made into the wholesale real-time electricity market which is accessible by all purchasers of wholesale electricity in Alberta, including retail providers.

British Columbia has two power utilities, BC Hydro and FortisBC. Within the BC Hydro service territory, the City of New Westminster is the only wholesale customer of BC Hydro. FortisBC has 5 municipal utility wholesale customers. The Applicant will regularly inform BC Hydro and FortisBC of the quantities and classes of service the Applicant intends to make available at large. In addition, by providing copies of this application to the five municipal utilities within the FortisBC service territory, the Applicant submits that it has provided sufficient notice to these other entities that it is a potential exporter of electricity, and should be contacted if there is an interest in power purchases. If a serious intent to purchase is expressed, the Applicant will ensure that the party has the opportunity to negotiate terms and conditions no less favourable than those proposed to export customers.

If a serious intent to purchase is not expressed by BC Hydro, FortisBC or other eligible domestic customers, the Applicant will assume that the electricity offered to US purchasers is surplus to Canadian requirements. Appendix III, Memorandum of Guidance to Interested Parties Concerning Full Implementation of the September 1988 Canadian Electricity Policy

1. (a) Whether any new facilities are required in regard to the Applicant’s proposed electricity export, and a detailed description of those facilities;

The Applicant is currently in the development stage of the Waneta Expansion Project. There is no export contract in place for this facility and the construction of the project is not dependent on any anticipated contract for the export of electricity. The Applicant is in negotiations with a domestic customer to purchase all of the output of the Waneta project. If these negotiations are unsuccessful, the Applicant may pursue export opportunities for the output of the plant. No changes will need to be made to the design or construction of the facility to pursue export opportunities.

The proposed export of power would be accomplished using existing transmission facilities and no additional transmission facilities would need to be constructed.

(b) Whether modifications to existing facilities would be undertaken in regard to the Applicant’s proposed electricity exports, and a detailed description of those modifications;

No modifications to the Applicant’s existing facilities would be required to facilitate an export of power.

(c) Whether there would be any changes to the operation of existing facilities in regard to the Applicant’s proposed electricity exports, and a detailed description of those changes;

No modification to the operation of the existing facilities would be required to facilitate the export of power. BC Hydro controls the generation of electricity at the facilities owned by the Applicant and the Applicant has only limited ability to change the operation of these facilities. The Applicant receives an entitlement of energy from BC Hydro and the volume and parameters of this entitlement are not affected by the export or other usage of the entitlement energy.

(d) the adverse environmental effects of the new facilities, modifications or changes in operation described in (a), (b) and (c); and

Not applicable.

(e) Any measures to be taken to mitigate the adverse environmental effects described in (d).

Not applicable. 2. If the Applicant is unable to provide information in response to any of 1(a) to (c) the Applicant should explain why not, and if it will be able to provide this information at any time in the future, and if so, when.

CPC has provided all relevant information in response to 1(a) through (c).