bc hydro > standing offer program information session presentation
TRANSCRIPT
Standing Offer ProgramInformation Session
Power Acquisitions
Power Acquisitions 2
Agenda
Introduction & Overview of the SOP
Key Eligibility Requirements
PriceNetwork Upgrade Costs & ThresholdElectricity Purchase AgreementApplication Process & OfferRegulatoryNext Steps and Wrap Up
Power Acquisitions 3
Overview of the Standing Offer Program
The provincial government’s Energy Plan: A Vision for Clean Energy Leadership directed BC Hydro to implement a Standing Offer Program to:
Facilitate the development of distributed clean electricity generating projects in British Columbia
Alleviate concerns about the size of administrative burden for small projects to bid into BC Hydro calls
Support our goal of self-sufficiency
Help promote B.C. innovation
Power Acquisitions 4
The Energy Plan guidelines for the SOP include:
Competitive pricing based on the results of the most recent call
Contractually non-firm energy
No initial quota
Projects must be not more than 10 MW
Projects must be clean, renewable or high-efficiency co-generation
Overview of the Standing Offer Program
Power Acquisitions 5
BC Hydro’s desired outcomes:
Simplified contract
Streamlined and clearly defined application process
Minimize attrition
Cost effective energy (price paid for energy and cost to interconnect projects)
High degree of regulatory certainty for EPA approval
An open window for applications
Overview of the Standing Offer Program
Power Acquisitions 6
Overview of the Standing Offer Program
On June 20, 2007, BC Hydro issued the Standing Offer Program documents on its website (www.bchydro.com/standingoffer).
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Key Eligibility Requirements
Proven technologies
Nameplate capacity of greater than 0.05 MW but not more than 10 MW
Clean, renewable or high efficiency co-generation
Located in British Columbia
Target Operation Date must be within three years of signing the EPA
Projects with EPAs signed in 2006 and after are not eligible
Power Acquisitions 8
Key Eligibility Requirements
Stage of Development Well Advanced
> Permits - “key” construction and operating permits to be obtained
> Site Control – developer to demonstrate it has obtained the right to use the project site
> Zoning - all or any part of the project site must be appropriately zoned for the applicable project use
Power Acquisitions 9
Key Eligibility Requirements
Eligible Generation Not Associated with a Customer Load
> Greenfield
> Existing projects without a BC Hydro EPA are eligible
Eligible Generation Associated with a Customer Load
> Customer load must first be displaced before energy can be sold to BC Hydro
> Customer generation not associated with an existing BC Hydro EPA or Load Displacement contract is eligible
> Projects that are eligible to receive a BC Hydro incentive are not eligible
Power Acquisitions 10
Key Eligibility Requirements
Key Interconnection Requirements
> Projects must be able to interconnect to the Integrated System.
> Indirect Interconnections are eligible.
> Projects in the Fort Nelson service area are not eligible.
Key Eligibility Requirements – Discussion/Questions
Power Acquisitions 11
Proposed Regional Prices (2007$)
Region
Energy Price
($/MWh)
Envir. Attribute
Price ($/MWh)
Price ($/MWh)
Vancouver Island 79.00 3.05 82.05 Lower Mainland 78.00 3.05 81.05 Kelly Nicola 75.00 3.05 78.05 Central Interior 72.00 3.05 75.05 Peace Region 65.00 3.05 68.05 North Coast 66.00 3.05 69.05 South Interior 67.00 3.05 70.05 East Kootenay 71.00 3.05 74.05
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Illustrative Map of Regions
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Energy Price
Price paid for energy is based on the F2006 Open Call for Power
Region-specific prices for energy to account for regional transmission impacts
Time of delivery adjustments will be applied
50 per cent of the energy price is escalated at CPI annually
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Environmental Attributes Price
Paid separately from energy price
Based on market prices for renewable energy certificates/credits in western North America
100 per cent of the Environmental Attributes price is escalated at CPI annually
Energy & Environmental Attributes Price – Discussion/Questions
Power Acquisitions 15
Network Upgrade Costs & Threshold
Interconnection cost will be provided by interconnection study
Interconnection cost has two components:
> Direct Assignment or BCTC equivalent to be paid by interconnection customer
> Network Upgrade
> BC Hydro is responsible for all network upgrade (NU) costs up to $200 per kilowatt of nameplate capacity
> Developer is responsible for all costs in excess of the NU threshold
NU Costs & Threshold – Discussion/Questions
Power Acquisitions 16
Electricity Purchase Agreement
Electricity Purchase Agreements (EPAs)> Based on the F2006 Open Call Small Project EPA> Non-firm energy> Developer is required to sell all energy from the project to BC Hydro at a pre-
determined price> Plant capacity cannot be altered without BC Hydro’s consent> Environmental Attributes must be transferred to BC Hydro> Term of 20 to 40 years with two renewal options of 5 years> Price during renewal term to be based on “estimated cost of service”> BC Hydro is considering buy-out right at end of Term
EPAs - Discussion/Questions
Power Acquisitions 17
Application Process & Review
Preliminary Application Review
> BC Hydro will review the Application for completeness and to assess whether the developer and project meet eligibility requirements and other criteria
Interconnection Study and Statement of Project Changes
> If the project passes the Preliminary Application Review, the appropriate Interconnection Study will be requested by BC Hydro
> Developers are encouraged contact BC Hydro GITS or BCTC early inthe planning process to better understand the interconnection process and requirements
> BC Hydro will review the Interconnection Study and the Statement of Project Changes
Power Acquisitions 18
Application Process & Offer
Project EPA Offer and Acceptance> After receipt of a valid Interconnection Study and Statement of Project Changes, BC
Hydro will send either:> Offer of Project EPA or> Notice of Rejection
> Developer will return the signed Project EPA to BC Hydro along with the NU Security.
Application Process & Offer - Discussion/Questions
Power Acquisitions 19
Regulatory
Section 45 application> Comments from BCUC with respect to the draft Program Rules and EPA> Increased regulatory certainty that Program Rules and EPA are acceptable to BCUC
Section 71 filing> Executed EPAs filed for BCUC acceptance> Greater regulatory certainty that executed EPAs will be acceptable to BCUC
Regulatory - Discussion/Questions
Power Acquisitions 20
Next Steps
Phase TimelineStakeholder and First Nations information sessionsand Written Comments on draft documents
June 20 to August 3, 2007
Intervenor review and input for section 45 application September/October 2007
Submission of section 45 application to BCUC October 2007BCUC regulatory review process TBDNegotiated Settlement Process TBD
Phase TimelineStakeholder and First Nations information sessionsand Written Comments on draft documents
June 20 to August 3, 2007
Intervenor review and input for section 45 application September/October 2007
Submission of section 45 application to BCUC October 2007BCUC regulatory review process TBDNegotiated Settlement Process TBD
Power Acquisitions 21
Next Steps
Next Steps - Discussion/Questions
Stakeholders and First Nations are asked to provide written comments directly into the interactive Program Rules and EPA, located at www.bchydro.com/standingoffer
Go to “How to Get Involved.”
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Key Contacts
Program Website: www.bchydro.com/standingofferEmail: [email protected]
Interconnection Information:> GITS (for projects connected to the Distribution System)
> [email protected]> Phone: 604-623-4138 or 604-623-3755
> BCTC (for projects connected to the Transmission System)> [email protected]> Phone:
> Jim Ko 604-699-7389> Ryan Hefflick 604-699-7382> Bryan Corns 604-699-7368