1. FBC Resources
Dan Egolf
Manager, Power Supply & Planning

2. 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

3. FBC Resource Portfolio
Other includes Brilliant Expansion contract

4. FBC CPA Generation Resources
FBC owns: Corra Linn, Upper Bonnington, Lower Bonnington and South Slocan generating plants located on the Kootenay River between Nelson and Castlegar
FBC operates the plants in accordance with the Canal Plant Agreement. The CPA is a long-term agreement between BC Hydro and the Entitlement Parties. The entitlement parties include FBC, Teck, Columbia Power Corp (which includes Brilliant Power Corp and Brilliant Expansion Power Corp), and Waneta Expansion Limited Partnership (WELP, consisting of CPC, Columbia Basin Trust and Fortis Inc.).
The CPA was originally signed in the 1970’s when BC Hydro wanted to build the Kootenay Canal Plant. The CPA allows BC Hydro and the Entitlement Parties to generate more power from their combined resources than they could if they operated independently.
The CPA gives
BC Hydro the right to dispatch the generation of the Entitlement Plants in order to optimize provincial generation and water resources.
Under the CPA, BC Hydro takes all power generated by the parties’ plants into its system. In exchange, the Entitlement Parties receive a fixed set of energy entitlements and capacity entitlements for every hour that the plant is available to generate, similar to what they could have generated in absence of the Canal Plant.
Regardless of actual water flows, FBC receives these “entitlements” and is thereby insulated from the risk of water availability.

5. FBC-Owned Generation CPA Resources
Upgrade/Life Extensions completed for 12 of 15 units
CPA started in 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
Mention the time it took in 2005 to renegotiate—10 years.

6. 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

7. 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 renewal is not certain

8. 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

9. 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

10. 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

11. PNW Utilities Resources
Source: PNUCC Northwest Regional Forecast, April 2015, page 3
In 2016, another 440 MW natural gas‐fired plant Carty Generating Station is coming online. In addition, there continues to be gains in hydro generation with generator replacements. And we will see more than 420 MW of solar power and 50 MW of wind come into the system via the Public Utility Regulatory Policy Act (PURPA). Within the Forecast time frame, Boardman coal plant is scheduled for closure. It is yet to be determined how the power it supplies will be replaced.
PNUCC Northwest Regional Forecast (April 2015)

12. 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

13. Columbia River Treaty (CRT)
Canada or US can terminate most provisions on or after Sep 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
Source: NWGA 2015 Annual Energy Conference, Greg Delwiche (BPA) slide 8

14. 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

15. 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

16. Questions?