Transcript FortisBC resources

FBC Resources
Dan Egolf
Manager, Power Supply & Planning
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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
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FBC Resource Portfolio
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FBC CPA Generation Resources
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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
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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
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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
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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
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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
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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
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PNW Utilities Resources
PNUCC Northwest Regional Forecast (April 2015)
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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
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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
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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
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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
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Questions?
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