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63'-[- BCUC Issues List for the IEP/L TAP Proceeding Theme Sub-Theme Issue 1A 1B 2 3 4 5 6 7 POLICY AND REGULATORY 1.1 Need, Timing and a) BC Hydro proposes a filing cycle of long-term plans that CONTEXT AND PLANNING Process of Regulatory includes: IEP, LTAP, and the 21-year Electric Load " " OBJECTIVES Review Forecast. Does this proposed cycle address stakeholders' needs? POLICY AND REGULATORY 1.1 Need, Timing and b) Will BC Hydro file its plans on a date certain rather than - - - - - - - CONTEXT AND PLANNING Process of Regulatory on an as-needed basis, and in a timeframe that allows for " " OBJECTIVES Review their adequate consideration by all parties? - - - - - - - POLICY AND REGULATORY 1.2 Engagement a) Has there been adequate engagement of First Nations CONTEXT AND PLANNING and stakeholders? How was the feedback integrated into " " OBJECTIVES Process the planning process and application? POLICY AND REGULATORY - - - - - -- - CONTEXT AND PLANNING 1.3 Linkages to a) Has there been adequate integration of transmission " " OBJECTIVES Transmission Planning information into the IEP planning process? --"'--"~-",._,-~."""',~,,,,,,,,,,,,-" ..., ..- - ." ~_......... ~ ........... -..._.~~._ ..._-_ ..... ..._ .._""._-,_ ........ _~_._---_._--------------~-----_.--"'~._-------_. __ .._.._~-,-" ...." .. ,.,. ... -~-_ .._. __....._-_._-- "..--- .'_n .. m_._ n __ ••. ___ ••• _ ...--.-- ------- ---- -- -~,-- POLICY AND REGULATORY 1.3 Linkages to b) Are there institutional issues regarding coordination of CONTEXT AND PLANNING " ,; OBJECTIVES Transmission Planning electricity and transmission plans? I POLICY AND REGULATORY • ___________ ,._.~ _____ .• __ . __ ._. ___________ .... m_~~ •• ___ __ •• __ •••• __ •. __ ._ •• ____ ._ ----- ------ - ---.----- -~._------- ..------ ------- CONTEXT AND PLANNING 1.3 Linkages to c) What is the relationship between the LTAP and BCTC's " ,; OBJECTIVES Transmission Planning Transmission Capital Plans? - - - - - - - POLICY AND REGULATORY 1.4 Planning Objectives CONTEXT AND PLANNING a) Is the 2006 IEP reflective of the public interest? " " ..J OBJECTIVES and Attributes - - - - - - - POLICY AND REGULATORY 1.4 Planning Objectives CONTEXT AND PLANNING b) Is the 2006 IEP reflective of the 2002 Energy Plan? " OBJECTIVES and Attributes - - -- - - - - POLICY AND REGULATORY 1.4 Planning Objectives c) What is the relationship between BC Hydro "Security of CONTEXT AND PLANNING " " OBJECTIVES and Attributes Supply" and provincial "Self Sufficiency"? - - - - -- -- - POLICY AND REGULATORY 1.4 Planning Objectives d) Are there conflicting objectives? Are the objectives CONTEXT AND PLANNING suitably prioritized and weighted for the purposes of " OBJECTIVES and Attributes ~~!~cting portfolios? . --~----------- ------ --- -- - -- --- --- - - - POLICY AND REGULATORY 1.4 Planning Objectives e) Does BC Hydro adequately take into account public CONTEXT AND PLANNING and Attributes interest objectives in its evaluation of alternative sources of " " OBJECTIVES ::>UI-'I-'IY! ,.-- ......,-.•.-....."......... -.•..•-....... .. ~ , ... , ................... -.....-...- -..•--- •____ ........ _m ____ ._·'" __ • __ ~_· __________ .. _._~ ____ ..-.-- --.-- ..-.--.. . --.. ---- - 1----- ~_._------ POLICY AND REGULATORY 1.4 Planning Objectives CONTEXT AND PLANNING f) Are reliability criteria objectives or constraints? ..J OBJECTIVES and Attributes .-..--..--...-.-- ...-............ - -.......... - .... ~-_._,~._ ..._ .._-~ .._._,- .-...-.--.-,--.-------.- .... ---..-.--- ..-...----......-...,- ...,...... " _.__.•_,,,_· ___ ~~ .. ____ .,__...____ .m __________ ._______ ._, ___ .._._..._____ ._._._.._.____ ._____ . - ----~_ .. -...-.--- ---..--...-.. -. -.- --- ._---~ ------- POLICY AND REGULATORY 1.4 Planning Objectives g) Are BC Hydro's selected attributes reasonably accurate CONTEXT AND PLANNING in portraying impacts on its planning objectives, e.g, Clean " OBJECTIVES and Attributes Energy and rate impact? - - 1 of 14 B-34A
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J4:;I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...forecasting? GAP - - - - - - - LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and FORECASTS, SUPPLY Peak Load e) Is the uncertainty in the

Jun 27, 2020

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Page 1: J4:;I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...forecasting? GAP - - - - - - - LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and FORECASTS, SUPPLY Peak Load e) Is the uncertainty in the

63'-[- A·BCUC Issues List for the IEP/L TAP Proceeding

Theme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

POLICY AND REGULATORY 1.1 Need, Timing and a) BC Hydro proposes a filing cycle of long-term plans that

CONTEXT AND PLANNING Process of Regulatory includes: IEP, LTAP, and the 21-year Electric Load " "OBJECTIVES Review Forecast. Does this proposed cycle address stakeholders'needs?

POLICY AND REGULATORY 1.1 Need, Timing and b) Will BC Hydro file its plans on a date certain rather than- - - - - - -

CONTEXT AND PLANNING Process of Regulatory on an as-needed basis, and in a timeframe that allows for " "OBJECTIVES Review their adequate consideration by all parties?- - - - - - -

POLICY AND REGULATORY 1.2 Engagement a) Has there been adequate engagement of First NationsCONTEXT AND PLANNING and stakeholders? How was the feedback integrated into " "OBJECTIVES Process

the planning process and application?POLICY AND REGULATORY

- - - - - -- -

CONTEXT AND PLANNING 1.3 Linkages to a) Has there been adequate integration of transmission

" "OBJECTIVESTransmission Planning information into the IEP planning process?

--"'--"~-",._,-~."""',~,,,,,,,,,,,,-" ..., ..- - ." ~_.........~........... -..._.~~._..._-_ ..... ..._ .._""._-,_ ........ _~_._---_._--------------~-----_.--"'~._-------_.__ .._ .._~-,-" ...." ..,.,. ... -~-_.._. __ ....._-_._--"..--- .'_n ..m_._ n __ ••. ___ ••• _ ...--.-- ------- ---- -- -~,--

POLICY AND REGULATORY 1.3 Linkages to b) Are there institutional issues regarding coordination ofCONTEXT AND PLANNING " ,;OBJECTIVES Transmission Planning electricity and transmission plans?

IPOLICY AND REGULATORY• ___________ ,._.~ _____ .• __ . __ ._. ___________ .... m_~~ •• ___ • __ •• __ •••• __ •. __ ._ •• ____ ._ ----- ------ - ---.----- -~._------- ..------ -------

CONTEXT AND PLANNING 1.3 Linkages to c) What is the relationship between the LTAP and BCTC's

" ,;OBJECTIVES

Transmission Planning Transmission Capital Plans?- - - - - - -

POLICY AND REGULATORY1.4 Planning ObjectivesCONTEXT AND PLANNING a) Is the 2006 IEP reflective of the public interest? " " ..J

OBJECTIVESand Attributes

- - - - - - -POLICY AND REGULATORY 1.4 Planning ObjectivesCONTEXT AND PLANNING b) Is the 2006 IEP reflective of the 2002 Energy Plan? "OBJECTIVES

and Attributes- - -- - - - -

POLICY AND REGULATORY 1.4 Planning Objectives c) What is the relationship between BC Hydro "Security ofCONTEXT AND PLANNING " "OBJECTIVES

and Attributes Supply" and provincial "Self Sufficiency"?- - - - -- -- -

POLICY AND REGULATORY 1.4 Planning Objectivesd) Are there conflicting objectives? Are the objectives

CONTEXT AND PLANNING suitably prioritized and weighted for the purposes of "OBJECTIVESand Attributes

~~!~cting portfolios?. --~----------- ------ --- -- - -- --- --- - - -

POLICY AND REGULATORY 1.4 Planning Objectives e) Does BC Hydro adequately take into account publicCONTEXT AND PLANNING and Attributes interest objectives in its evaluation of alternative sources of " "OBJECTIVES ::>UI-'I-'IY!,.-- ......,-.•.-....." ......... -.•..•-....... .. ~, ... , ................... -.....-...- -..•--- •____ ........ _m ____ ._·'" __ • __ ~_· __________ .. _._~ ____ • ..-.-- --.-- ..-.-- .. .--..---- - 1----- ~_._------POLICY AND REGULATORY 1.4 Planning ObjectivesCONTEXT AND PLANNING f) Are reliability criteria objectives or constraints? ..JOBJECTIVES

and Attributes.-..--..--...-.-- ...-............ - -..........- .... ~-_._,~._..._ .._-~.._._,- .-...-.--.-,--.-------.- .... --- ..-.--- ..-...---- ......-...,- ... ,...... "

_.__.•_,,,_· ___ ~~ ..____.,__...____.m __________ ._______ ._, ___ .._._ ..._____ ._._._.._.____._____ . - ----~_.. -...-.--- --- ..--...-..-. -.- --- ._---~ -------POLICY AND REGULATORY 1.4 Planning Objectives

g) Are BC Hydro's selected attributes reasonably accurateCONTEXT AND PLANNING in portraying impacts on its planning objectives, e.g, Clean "OBJECTIVES

and Attributes Energy and rate impact? - -

1 of 14

B-34A

bharvey
BCH-IEP
Page 2: J4:;I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...forecasting? GAP - - - - - - - LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and FORECASTS, SUPPLY Peak Load e) Is the uncertainty in the

BCUC Issues List for the IEP/L TAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

POLICY AND REGULATORY h) What is the relationship between the Provincial

CONTEXT AND PLANNING 1.4 Planning Objectives Government's Energy Plan and other related Provincial

" "OBJECTIVES and Attributes policy pronouncements and the Commission's statutorymandate?

- - - - - - -

PLANNING INPUTS AND 2.1 Reliability Criteria a) Are BC Hydro's energy planning criteria appropriate?

ASSUMPTIONS and Reserve Margin Should BC Hydro continue to rely on up to 2,500 GWh of "non-firm energy/market allowance to meet its criteria?

PLANNING INPUTS AND 2.1 Reliability Criteria b) Should domestic non-firm energy acquired in calls be- - - - - - -

ASSUMPTIONS and Reserve Margin treated differently from non-firm market imports? "- -- - -- - - -

PLANNING INPUTS AND 2.1 Reliability Criteria c) Should BC Hydro's capacity criterion continue to include '-IASSUMPTIONS and Reserve Margin 400 MW of reserves from neighbouring control areas?~--""""""-----------_.~-_ .._,,-_ .._.----_. __ ._.._._.__ ._..--------~._--,...,..,-, .._,--_._._----"- ---- --_.~ --- - ------ ---- .-.- ..-- -----

PLANNING INPUTS AND 2.1 Reliability Criteria d) What is the relationship between operational and

ASSUMPTIONS and Reserve Margin planning reserves and their respective impacts on Loss-of- ,;••....._._...·._·... ·._'"_m_~._.._.._..__ .._w,_ ____ .. _ . ____ ,_____ ~._,..• _~oad~E~~~ility_ (LOLPE___________ ________________

....---.- _ •• u. __ ._ -~-------_.- ---. ----.•... .--- ~._-----~.

PLANNING INPUTS AND 2.1 Reliability Criteria e) What is the appropriate process for reviewing and

"ASSUMPTIONS and Reserve Margin changing reliability planning criteria?-- --- - - -- -

PLANNING INPUTS AND 2.1 Reliability Criteria f) What are the appropriate definitions of dependable

"ASSUMPTIONS and Reserve Margin capacity and firm energy for reliability planning purposes?

g) Should frequency distribution curves for wind projects be- - - - - - -

PLANNING INPUTS AND 2.1 Reliability Criteria put directly into the LOL model to determine the incremental "ASSUMPTIONS and Reserve Margin ELCC for projects?------- - --- - - - - -

PLANNING INPUTS AND 2.2 Gas and Electricity a) Are base forecasts used in the portfolio analysisreasonable? Is the range represented by the scenarios "ASSUMPTIONS Price Forecasts adequate for risk analysis?

- - - -PLANNING INPUTS AND 2.2 Gas and Electricity b) How should gas and electricity price scenarios be " ..J "ASSUMPTIONS Price Forecasts weighted in evaluating overall risk?

- - - - - - -PLANNING INPUTS AND 2.2 Gas and Electricity c) Did the results of the F2006 Call change BC Hydro's view "ASSUMPTIONS Price Forecasts of market risk?__ •• ______ • ___ ._. __ ~_. __ n "------------.--------.-- ---_.- - ----- ------ - --- -- ---..- - -- -PLANNING INPUTS AND 2.2 Gas and Electricity d) Should BC Hydro reduce its exposure to natural gas and ,; "ASSUMPTIONS Price Forecasts ma~~~L~~Q.tricltyJ~!"i~~_~:?________________..__.___________________~-_.•.._.,,-~.._._-_ •.•._ ..•__ ......_. .......... -- ................................ ....... __.______ ·.._··~m.·_·_______.___.________ ¥ •• ,_. ---- --.-.----- - --------- ----

2.3 Green House Gas a) Is the range of GHG prices (offset costs) reasonable inPLANNING INPUTS AND (GHG) Emission light of the recent debates on the federal Clean Air Act and "ASSUMPTIONS Reduction or Offset GHG policy? Is the range adequate to capture GHG

F.2~g,=,iLE3_'!lE3r:!L____________emission risk?----------------------------.--.-------- ..---. -_._- -- ---- --- -2.3 Green House Gas

PLANNING INPUTS AND (GHG) Emission b) In the risk analysis, should some correlation be assumed "ASSUMPTIONS Reduction or Offset between GHG prices and market gas and electricity prices?Requirement -

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Page 3: J4:;I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...forecasting? GAP - - - - - - - LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and FORECASTS, SUPPLY Peak Load e) Is the uncertainty in the

BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

2.3 Green House GasPLANNING INPUTS AND (GHG) Emission c) Is BC Hydro's risk management strategy for GHG

"ASSUMPTIONS Reduction or Offset emissions reasonable and adequate?Requirement - - -- - - - --

PLANNING INPUTS AND 2.4 Regulatory and a) Is the development risk attributable to changes to public

ASSUMPTIONS Public Policy Risk policy and stakeholder expectations adequately captured in "the IEP analysis and LTAP?LONG-TERM ELECTRIC LOAD

-- - - - - - - -

FORECASTS, SUPPLY 3.1 Annual Energy and a) Is the methodology on annual forecasting acceptable?

RESOURCES AND RESOURCEPeak Load Are estimates of causal factors and input variables "GAPRequirements reasonable?

--_._-------~,._-~-_._------_ .._- ,_.~~. __ .._--------, --_.,.,_._---~- ..---- ....--- -_ .. - ---- - - ----. -- ---LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and b) Is the methodology on peak forecasting acceptable? AreFORECASTS, SUPPLY Peak Load the drivers assumed in peak forecasting reasonable?

"RESOURCES AND RESOURCE Requirements Should there be a link between peak and annual loadGAP f.~~~~~~~rl9.?__mm_____m ______m___ ____mm__________________

c) Should the increase in forecast sales (e.g., updates in the-- ------ ---- ..-.--.-- ----. --,-,-,_._ ... .- ... ..,,-,---- ---~--

LONG- TERM ELECTRIC LOADFORECASTS, SUPPLY 3.1 Annual Energy and F07/F08 RRA Evidentiary Update which are reflected in the

RESOURCES AND RESOURCE Peak Load Amended LTAP) be accepted as long-term (e.g., beyond ,;GAP

Requirements five years) increase instead of near-term need for additionalpower?

LONG-TERM ELECTRIC LOAD- - - - - - -

3.1 Annual Energy andFORECASTS, SUPPLY Peak Load d) Is the Update reasonable for use in long-term

..JRESOURCES AND RESOURCE Requirements forecasting?GAP - - - - - - -LONG- TERM ELECTRIC LOAD 3.1 Annual Energy andFORECASTS, SUPPLY Peak Load e) Is the uncertainty in the load forecast adequately "RESOURCES AND RESOURCE Requirements captured in the load forecast documents?GAP - - - - - --LONG-TERM ELECTRIC LOAD 3.1 Annual Energy andFORECASTS, SUPPLY Peak Load f) Is the uncertainty in the load forecast adequately "RESOURCES AND RESOURCE Requirements incorporated into the IEP analysis and proposed LTAP?GAP.-•.----- ...-...-..... -.-- ...-.-..... -.-.-- ..-...--.-.-_ ..-------- ..~----_...... _ •._ ..__ .._, .....__ .__ ._... _ ..-._------_.--------_._------~._~, _._-~_._._~~---_ ... __ ._._. ______ • __ . __ O •• _._m_m .. ____ ..--..-- --- __ .n ..----- _.~._--_._._.. .-".-- --- -.----LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and g) Is the impact of recently introduced rate structures (e.g.,FORECASTS, SUPPLY Peak Load stepped rates for transmission customers) adequately "RESOURCES AND RESOURCEGAP

Requirements captured?,_~, __ ,_._, __ ", •••• __ •• _._,.,.,~_,_, •• _____ ,_____ ._,. __ ._. __ ••••• ___ m •• ____ ---....--..----".----" ..------- ---- --_ ..__ .-~---- --- _.· •• _. __ n_ .. ---

LONG- TERM ELECTRIC LOAD 3.1 Annual Energy andFORECASTS, SUPPLY Peak Load

h) Is the load forecasting function enhanced by BC Hydro's ..JRESOURCES AND RESOURCE Requirements

new Statistically Adjusted End Use Models?GAP ----

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Page 4: J4:;I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...forecasting? GAP - - - - - - - LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and FORECASTS, SUPPLY Peak Load e) Is the uncertainty in the

BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

LONG-TERM ELECTRIC LOAD 3.1 Annual Energy andFORECASTS, SUPPLY Peak Load i) Is BC Hydro's assumption that there will be no real price..JRESOURCES AND RESOURCE Requirements increase a reasonable assumption in the Load Forecast?

GAP - - - - -- - - -LONG- TERM ELECTRIC LOAD a) Are uncertainties over the timing and magnitude of EE2FORECASTS, SUPPLY 3.2 Load Forecast with

and LD2 savings adequately captured and integrated in the "RESOURCES AND RESOURCE DSM savingsGAP

Load Forecast?- - - _. - - -

LONG-TERM ELECTRIC LOAD 3.3 Capabilities ofFORECASTS,SUPPLY Existing and Planned a1) Is estimated dependable capacity and firm energy of "RESOURCES AND RESOURCE existing and planned resources justified and acceptable?GAP

Resource.._ ..,~-----,-,-,--"'-"-_._".. . . '." ........................... ~....... .......__.._..._._.___..__.________ ~_. ____ ~."'."v~._...."._._-_. __ .__ ._._ ..---.._.~----------_._...•._------- ..~_._.._._.__ .._-_._-----,_._ ..._-----_ ..__ ...__ ..._-- ----,- .------ ._~------ --..--..-- _._._ •••• m •• --- . .-.--..--LONG-TERM ELECTRIC LOAD 3.3 Capabilities ofFORECASTS, SUPPLY Existing and Planned

a2) What consideration has been given to the impact of

" "RESOURCES AND RESOURCE Resource climate change on BC Hydro's hydrology?GAP

_ •• _ ... "_ ••• ~ •• _ .............. ", ...... ,, .............. _ W""'''' ._. ____ ~_ •• _.~ •• _ •••. __ •• _'._,. ___ ."""_ •._.,. __ •••• _____ .~~_~ •• m •••••• __ • ___ •________ ._ ....... _ .... ____ • ______ ..... ._ •• ___ •____ •._ ••• ______ •__

LONG- TERM ELECTRIC LOAD 3.3 Capabilities of b) Are Resource Smart projects achieving the statedFORECASTS, SUPPLY Existing and Planned results? Are the actual capital costs for the expected " "RESOURCES AND RESOURCEGAP

Resource electrical output in line with budgeted expectations?- - - - - - -

LONG- TERM ELECTRIC LOAD 3.3 Capabilities of c) How does BC Hydro use its storage to manage itsFORECASTS,SUPPLY Existing and Planned operations and what impact does this have on its selection " "RESOURCES AND RESOURCEGAP

Resource of resource options?- - - - - - -

LONG-TERM ELECTRIC LOAD 3.3 Capabilities ofFORECASTS,SUPPLY Existing and Planned

d) How is storage being used? Does storage have value for " "RESOURCES AND RESOURCE domestic purposes?GAP

Resource---~_._-_.~._~~-~~-_._. - - - -LONG-TERM ELECTRIC LOAD 3.3 Capabilities ofFORECASTS, SUPPLY Existing and Planned

e) Should IPP contracts be restricted for deliveries during " "RESOURCES AND RESOURCE the freshet?GAP

Resource--"'"-- ........--...-....-........--.--.-----.- .---.-----.-------.-----.--.- ..----- ... __________ •___________ •__ m ---------- -. ~-~---- --

LONG- TERM ELECTRIC LOAD 3.3 Capabilities off) Should firm/non-firm energy from recent call(s) be

FORECASTS, SUPPLY Existing and Plannedadjusted to reflect outages and/or attrition? If so, what are

"RESOURCES AND RESOURCE the appropriate outage factor and attrition assumptions?GAP

Resource How firm are the targets for the 2007 Call and 2009 Call?._~. ____ n ___ ._ ... ·._

_ _ ___ •______ •____ ..... ____ .•_____ .m _______ -_._-~-------_..__ ._-_._._._._._----- ------- --.--- ~---------~-------~- ...-- - - _ ... ____ n •• _ ------- ..... -.-

LONG-TERM ELECTRIC LOAD 3.3 Capabilities ofg) How have non-firm resources acquired in the F2006 Call

FORECASTS, SUPPLY Existing and Plannedbeen reflected in the Load/Resource Balance? Should non- "RESOURCES AND RESOURCE firm resources have any effect on the evaluation of firm

GAPResource energy and capacity for reliability planning purposes?

~- --40 T4-

Page 5: J4:;I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...forecasting? GAP - - - - - - - LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and FORECASTS, SUPPLY Peak Load e) Is the uncertainty in the

BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

LONG-TERM ELECTRIC LOAD 3.3 Capabilities of h) Are the Canal Plant Agreement Projects (includingFORECASTS,SUPPLYRESOURCES AND RESOURCE Existing and Planned Brilliant Expansion) treated as dependable capacity in the " "GAP Resource Load Resource Balance?

LONG-TERM ELECTRIC LOAD- - - - - -. --

FORECASTS, SUPPLY 3.4 Demand Side a) Will there be changes in the definition of DSM savings as

RESOURCES AND RESOURCE Management a result of the CPR Update? If so, what will the impacts be ..J

GAP on EE 2 and LD 2, and on EE 3, 4 and 5?

LONG-TERM ELECTRIC LOAD- ~ - -- - - - -

FORECASTS, SUPPLY 3.4 Demand Side b) Is it reasonable to include savings attributable to federal

"RESOURCES AND RESOURCE Management and/or provincial regulations in DSM cost tests?GAPLONG- TERM ELEC"I HIL; LOAD

~, __ ......... _._ •• ______ •_____ ,.·. _____ .m ______ • ___ ••.• _ •• _•• _. __ ,_, •. __ ~ ____ •• __..... _. _________ ._m ----- __ •__ ,n, __ .-------- ---- -_._ ..... ___ u -,-~--

c) How are the impacts of stepped rates being monitored forFORECASTS, SUPPLY 3.4 Demand Side purposes of designing incentive levels for industrial DSM

..JRESOURCES AND RESOURCE Management programs? What is the appropriate level of DSM incentivesGAP !2i_~!~pped ra!.~g.LJ~to~~~~_~______ _____..______m_,.,~ .... """, .... ,,~"" '. • •__,_u_"., ______ 'w ___,',', ... ___• __~~. ___ •___ •._._ .. ,",,,,,,, .. ,~_,_,. , ....... .. "' .........-....... " .....,-.-.. ---..---~--~.._--~---_._,--- -- _ •• __ .n _

_____ n ____ --- ---- ------- ---,,-- ~---------LONG-TERM ELECTRIC LOAD d) When considering conservation incentives offered byFORECASTS, SUPPLY 3.4 Demand Side different levels of government and their impact on B.C.

"RESOURCES AND RESOURCE Management Hydro's DSM program, are incremental costs and benefitsGAP evaluated?LONG-TERM ELECTRIC LOAD

- - - -- - - -

e) Are BC Hydro's evaluation criteria for DSM, such as TRCFORECASTS, SUPPLY 3.4 Demand Side and RIM, appropriate? DSM metrics for equity: RIM (Non- "RESOURCES AND RESOURCE ManagementGAP participant Test) versus ROI.--- - f- - - - - --LONG- TERM ELECTRIC LOAD f) Is BC Hydro's methodology in assessing "Free Riders" inFORECASTS,SUPPLY 3.4 Demand Side EE 2 and LD 2 programs reasonable? Is the evaluation of "RESOURCES AND RESOURCE Management "spill-over effects" and "re-bound effects" reasonable in EE2GAP programs? - - ~ - - - -LONG-TERM ELECTRIC LOADFORECASTS, SUPPLY 3.4 Demand Side g1) Is it reasonable for BC Hydro to use 2.5¢/kWh as the "RESOURCES AND RESOURCE Management utility cost threshold?GAP --.-- ----- --~. !- - -- - - -..__ ................. ~-~...... _ .......... -.-...._._-._-_. __ .__ .--..-.--..-..---.-.- ..--..-..---- .....--.--.,- ...-----. ••• _ •• ___ •• __ •• _. __ n_ •• __ ••• _m __________ • _____ --_._-~_. __ ._-_ .._ .._-_ .._-_._---

LONG- TERM ELECTRIC LOADFORECASTS, SUPPLY 3.4 Demand Side g2) Is it reasonable for BC Hydro to favour only the lowest

" -VRESOURCES AND RESOURCE Management cost DSM projects?GAP ----- ... -----------------._- --.-.-.- ------- ----..----..-.. -------------.-- -----------------.LONG-TERM ELECTRIC LOAD a) What is the Load Resource Balance given load forecastFORECASTS, SUPPLY 3.5 Need for New and committed resources? Why are differing Load "RESOURCES AND RESOURCE Resources Resource Balances presented in LTAP, Responses toGAP Intervenor IRs, and the F2006 Call Report?--- ------'-~-

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Page 6: J4:;I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!...forecasting? GAP - - - - - - - LONG-TERM ELECTRIC LOAD 3.1 Annual Energy and FORECASTS, SUPPLY Peak Load e) Is the uncertainty in the

BCUC Issues List for the IEP/L TAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

LONG-TERM ELECTRIC LOAD b) Why has the Load Resource Balance deteriorated inFORECASTS,SUPPLY 3.5 Need for Newrecent years? Is there something BC Hydro should have "RESOURCES AND RESOURCE Resources

GAP been doing earlier to address this situation?- - - - - -- - --

LONG- TERM ELECTRIC LOADFORECASTS,SUPPLY 3.5 Need for New c) The impact of call size targets on the need for precision

..J ..JRESOURCES AND RESOURCE Resources in load forecasting and on resource balance planning.GAP----- -- - -- - - - - -LONG-TERM ELECTRIC LOADFORECASTS, SUPPLY 3.5 Need for New d) What range of load forecast risks do the contingency

..JRESOURCES AND RESOURCE Resources plans cover?GAP__ .•,.•_.' ••••,.••_,_ •••_~__.•_.•_......_... '.'_..'. .••.•. ". "' .w~",_"~_~ ..•.•.•. .•. ...-....-....-.-----.---.--.-.-------------------.- ___...~._._...___..__ ..._______,.__.____._____..__._____ ...._.m~ _____ ---....-.... _.- .._-- i---- ----..--.. ... ' .....-- -- ..-- -~----LONG- TERM ELECTRIC LOAD a) Should BC Hydro's load curtailment programs be moreFORECASTS, SUPPLYRESOURCES AND RESOURCE

3.6 Regional Constraints extensive in some regions because of forecast regional ~

GAPload/resource imbalances?

..... ".- .."""" .."''''''. .' ........... ' .................. _., .._ .._~._. _.,_. __ ,..... _._ •• _____ ~~ .. ___ .. , ___ .. __ ._._ •••_____ •__ ._ ••••• m ••• _ .. _.'"_ •• _ ••• _____ •• __.... _____ •• __ -_.__ .~... -- i------ -....--.-.. -- -..--- - ...-.-..- ---LONG-TERM ELECTRIC LOADFORECASTS, SUPPLY 3.6 Regional Constraints b) Should Vancouver Island be treated as a special area for

" ,;RESOURCES AND RESOURCE the purposes of the Integrated Electricity Plan?GAP - - - - - - -LONG- TERM ELECTRIC LOADFORECASTS,SUPPLY 3.7 Net Imports a) Testing of BC Hydro's net import data. "RESOURCES AND RESOURCEGAP - - --- - - - -

4.1 Resourcea) Does IEP analysis adequately consider all feasible

RESOURCE OPTIONS Characterizationresource options? Are estimates of dependable capacity "and firm energy for each resource bundle reasonable?

- - - - - - -

4.1 Resourceb1) Are methodology and estimates for levelized cost of

RESOURCE OPTIONS Characterizationenergy (UEC) and capacity (UCC) for resource options "reasonable?-- - - - -- - -- ---

4.1 Resourceb2) How do they compare with the results of the F2006

RESOURCE OPTIONS CharacterizationCall? Should BC Hydro's UEC calculations include social ..J "I"'V"""~ : -- .. -.----- -----.--- .•.. --- ---c) Is the UEC approach comprehensive in assessingoperating costs and benefits such as dispatchability and

RESOURCE OPTIONS4.1 Resource ancillary services? Does it adequately reflect the costs of "Characterization integrating wind into BC Hydro's operations? What is the

appropriate pricing methodology for determining the costs ofintegrating wind gene~ation? ------------

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BCUC Issues List for the IEP/L T AP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

RESOURCE OPTIONS4.1 Resource d) Is BC Hydro's analysis of Burrard Thermal, Site C,

"Characterization Resource Smart, DSM and DSB (CE) options adequate?

-- - - f--- - - - - -

RESOURCE OPTIONS 4.1 Resourcee) Are emerging technologies adequately covered? "Characterization---- - - - -- - - -

RESOURCE OPTIONS 4.1 Resource f) How does BC Hydro propose to investigate the viability of

"Characterization emerging technologies for incorporation into future IEPs?- - - - - - -

RESOURCE OPTIONS 4.1 Resource g) Has pumped storage been adequately considered as a

"Characterization !~_~2~rcelype l!:1Jhe2QQ? ROR?_~-'--------_.~--- ------~-~---~-_ ..,-,-- -------------- -- - -- --- ._---------- --- -- -4.2 Interaction between a) Does the analysis adequately incorporate interaction

RESOURCE OPTIONS Capacity and Energy between capacity and energy benefits of individual "Benefits resources?..... _"_"w'w, __ ._".·,., ••·w"_,,,·,.'____ ~ __ ._~""·, __ ,W" •• _ .. _.,._w._,_ .. w,_,,. __ • ____ •• ___ ._~'· •• m"_·, ___ "w,~w, ____ .. _ ......... __ ... ww_.www_ •__ • .,----" •..---... ---...-.-- 1------·· ----,.-'--"--- ...

4.2 Interaction betweenb) Does the analysis adequately address the dispatchabilityRESOURCE OPTIONS Capacity and Energy ,;

Benefits of individual resources and of the portfolio as a whole?_____ ...... "w_ - ------------------- ____ ow ------ .-.----- -.----- --- -- - -- -.--- -- ---

5.1 Portfolio a) Do the 17 resource portfolios address the 2006 IEPRESOURCE PORTFOLIOS Construction planning objectives? Is scheduling of resources reasonable ,;

in the portfolio construction?- - - - - -- - -

a) Has BC Hydro adequately captured the impact ofresource diversification in the analysis of bundles and

5.0 RESOURCE PORTFOLIOS 5.2 Portfolio Evaluation portfolios? For example, are estimates of dependable "capacity and firm energy capabilities of each portfolioreasonable, assuming diversification effects amongindividual projects/resource types? - - - - - - -

5.0 RESOURCE PORTFOLIOS 5.2 Portfolio Evaluation b) Is B.C. Hydro using a suitable rate impact measurement

" "-- -methodology? - - - - - -- -c) Is a coherent risk measure such as TailVar90 a suitable

5.0 RESOURCE PORTFOLIOS 5.2 Portfolio Evaluation methodology for evaluating and characterizing portfolio "risk?____ •__ ",_o"_,.,_,,,, __ '.,_w __ ,__ ,_,'w._.ww " "·w·_.,, ..•. ·_·._._~._.M_._W._.·_, _____ ·.w __ ,. __ ._,_ •• _ ...

_.-.._ •••_.,, ____ .,.w_ ,, __w. _____ •________________ • ____ •.•••• w ••• _. ___ ---- --- -- -- --- - --- - --

5.0 RESOURCE PORTFOLIOS 5.3 Portfolio Results a) Are modeling results sufficiently accurate? "a) What mix and volume of resources should BC Hydro

._._~ _.w_ .._._ -----''' ...-"-- _,,_w_

TRADE-OFF ANALYSIS6.1 Resource Mix and acquire and how and when should these resources be

'"Security of Supply acquired? What are the trade-offs between cost, risk andother attributes? -

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BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

b) How does price discovery from the F2006 Call compare

6.1 Resource Mix and with the assumptions used in filing? Should price discoveryTRADE-OFF ANALYSIS

Security of Supply in the recent call affect any of the key inputs and "conclusions with respect to the costs/risks of each portfolio

- and/or contingency options?- - f-- - - - --

c) What is the merit of alternative strategies such as (a)

TRADE-OFF ANAL YSIS 6.1 Resource Mix and strictly green approach; (b) strictly green approach including

"Security of Supply moving Site C forward; (c) risk-averse approach, or (d)focus on continued cost-effectiveness?

-- - - - - - - - -

TRADE-OFF ANALYSIS 6.1 Resource Mix and d) Is there a role for competitive call processes in both..J

_ ................. __ ._ •••••_._ ••• _ .. ·.n __ ... ··m.·.·•• .. .. -- .......-....... -........ -.- ..-.-- §l?_~~~ity_()L?UeEIL____._ R~~·tfoli~_sell?ction and acq~is~t!g_':l_~_____ ~ __________.-- ---"- - -.---- '"--_ ..."-"-"-- --- -..---....

TRADE-OFF ANAL YSIS 6.1 Resource Mix and e) Treatment of intermittent resources in portfolio evaluation

" "of Supply and II...--,-.- ..----- "---"'--- ------ _n. __ • __

TRADE-OFF ANAL YSIS 6.1 Resource Mix and f) Treatment of technological diversification in portfolio " ,;of Supply l?_Y-~!ua~g_':l~l1d~~~qtJJsitio~______________________ . ----.•... ---------- ---~

TRADE-OFF ANALYSIS 6.1 Resource Mix and g) Implications of target mix on project definition and

" "_._ •• _ •• m •• ____ •__ • ______ •_____ ~_.~_. ____ ._. ___ .. _._ •• _ •••• Se~urity__of §.L!P2!L___ ~!ysis and competitive c~1Iprocess!?s. _____ --- --- - - - ----h) Should BC Hydro continue to use the wholesale spot

TRADE-OFF ANAL YSIS 6.1 Resource Mix and market as a component of its supply portfolio (Le., should..J " " " "Security of Supply part or all of the market allowance in BC Hydro's planning

criteria be included in the LTAP?)- - - -- - - -

TRADE-OFF ANAL YSIS 6.1 Resource Mix and i) Is it appropriate for the reliability criteria, whether energy "Security of Supply or capacity, to be held constant among portfolios?- - - - - - -

TRADE-OFF ANAL YSIS6.1 Resource Mix and j) Is the proposed prioritization of resources over the next 10 "Security of Supply years in the public interest? - - - - - - -

6.1 Resource Mix and k) Are the commercial results of a properly managed call toTRADE-OFF ANAL YSIS Security of Supply the private sector to be considered cost-effective by virtue " "of that fact alone?

- - - - - - -

TRADE-OFF ANAL YSIS 6.2 DSMa) What volume of energy and associated commitments in " "reducing demand should BC Hydro pursue?

..... ...' ..,.,.......... _'. __•. ~..... _._~_... _. _.__ ................. ·___,_'·__···_.m_ .. __ "0""-"'''- .n ......... _ .... _._. ______ ••••• ___ • ____ •• __ .... .. ..... n_ ~ __ ,_,~,~_, ______ ._ ••• __ m_m _____ .- .... !------------ -,~-_ ...-- --- --..--- --

TRADE-OFF ANALYSIS 6.3 Site C a) How does Site C compare as a future potential resource

"option?,',_,.,, ____·•.... _.m .._n_ ....... ---~--------,._._._----~~-~---~-_._.. _H_'_ 1---- --- -_._--~----- ---------. -~~~_.-

TRADE-OFF ANALYSIS 6.3 Site C b) Are the capital cost scenarios reasonable? "------- --- - - - - - -

TRADE-OFF ANAL YSIS 6.3 Site Cc) Are BC Hydro's development plans for Site C

" "reasonable?-------

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BCUC Issues List for the IEP/L TAP ProceedingTheme Sub-Theme Issue 1A 18 2 3 4 5 6 7

a) What are the impacts of a plan to (a) maintain BurrardTRADE-OFF ANALYSIS 6.4 Burrard (for capacity or energy); (b) replace Burrard; or (c) re-power " ..J

Burrard?1- -- - - - - -b) Are BC Hydro's plans for investigative phase work,

TRADE-OFF ANALYSIS 6.4 Burrard including studies, on repowering Burrard adequate? If not, " "- how should the plans change?- - - - - - -

c) Should BC Hydro establish a benchmark price, based onTRADE-OFF ANAL YSIS 6.4 Burrard the price of repowering Burrard, to be used in the 2007 " "Call?

~- - -

~- -

TRADE-OFF ANALYSIS 6.4 Burrard ~JUseful life for relying on Burrard.--- -- -- - - - - - - -

TRADE-OFF ANALYSIS 6.4 Burrard e) To what extent have market purchases in recent years..J

._._. ________ • ___ ._ •• _m ____________ ._. __ •__•• _._ ~!!~~~~E3-,y.dispJ~c~C!_g~ne.!:~~9n!~~~~!!C3.rd'? ___ ._._._____m_ --- ----- ~--_._ . ---- --..-..---- _._._ ...~~- .----.

TRADE-OFF ANAL YSIS 6.4 Burrard f) Is Burrard an effective physical hedge against high market

".PE!~E3~?_. __._ . ______.. m _____ ••••• m __ ...... _..... • •• __ .m ______ --..--.------- ................ -.- ..--... ------TRADE-OFF ANAL YSIS 6.5 Transmission a) What are the trade-offs between reliance on Burrard and

..J " "timinQ of ILM transmission? ...._~~---n_.~ ------ -----." 1---· ..-........- 1---- - ~-----

TRADE-OFF ANALYSIS 6.5 Transmission b) What is the relationship between Burrard, ILM and the

" ..JImplications 2007 and 2009 Calls?--- ...--..-.-- --- - m_ --- - - --- -- - -

TRADE-OFF ANALYSIS 6.5 Transmission c) Are there trade-offs to be made with respect to ILM vis-a-

"Implications vis CRP?-- - .- - - -- !- -- - -

TRADE-OFF ANALYSIS 6.5 Transmission d) Is the timing of ILM reinforcement independent of the..JImplications choices to be made with respect to generation options?

- -- - - -- - -

TRADE-OFF ANAL YSIS 6.5 Transmission e) Is ILM reinforcement economic in the absence of

"Implications approval of the CRP?- - - - - - -

TRADE-OFF ANALYSIS 6.5 Transmission f) Has there been adequate coordination and integration of

"Implications transmission information/impacts in analysis?- -- - - - - - -

TRADE-OFF ANAL YSIS 6.5 Transmission g) Trade-offs between optimized Generation and " "Jmplications Transmission reliability. - - - - - - -

TRADE-OFF ANAL YSIS 6.5 Transmission h) Reduction of transmission losses due to new supply

"J~e'i_<2~!l~~§.___m ________projects._._,~.._._._,_ ...._-~._.._" .._---~.._--- ---~~~~_ .._ ..._._._- -'---,------.------ .---- ._-_.~._--- - -- .--.- -.-.--- .--- -"7- ---- ,_L_LTAP 7.1 General a)_.!3_E?~~tio~~_hJp_~etweel"!.th~_.!E~_~':l_C!_t~~LT~P ..mm ••••••••• _ •• _ •• ______ •••• __ ._ •• 1------- 1---b) Is there an appropriate mix of short-term and long-term

LTAP 7.1 General commitments within the 10-year period targeted by the " ,fLTAP? ------ --.---------.--.~,_ ••• ,~_._ •• ______ •• _ •• _._ •• _~~ ___ ,__ ,_______ ,_"'_'".,".".~,_,_, __ ~_. ____ •• __ ._. __ •• _ .... _.. _.~._._ ••• ____ ._,·.,._.·,._" .. _'m.' __ '_~_, ___ •__ ._. --...---...--. .• ___ .n.___ ....---..-- ."-'.."-'-

LTAP 7.1 Generalc) Relationship among the LTAP, 2006 NITS Application,

..J•___ no_____ •. ____ , .• ____ .'____... ___._n ___.__ ______nm~_ ___~_.~ ____ ._._. __ ...._ ..oo._._..__ oo~. ----------~----- 8:~~1~~QI9_9~pit(~L~!~~: __________________________ .00.•00••.- - --- '--_00 ----_.- ... --- _._n_

d) Is early investment in resources critical to the flexible andLTAP 7.1 General staged approach? Is the flexible and staged approach "appropriate? --- -

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BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 18 2 3 4 5 6 7

e) Should the Commission accept the continuation of (and

LTAP 7.1 General risk mitigation for) previously committed and not yet fully..Jimplemented plans, e.g., EE 2 and LD 2, Resource Smart

definition and evaluation activities.- -- - - - - -

LTAP 7.1 General f) What information exists regarding a mountain pine beetle

"-----,--~. special call for Tenders?- -- - - - -

LTAP 7.1 General g) What changes have been made, or are required, in the

" ..J "IEP/LTAP as a result of the F2006 Call?7.2 Load Resource Gap a) What is the appropriate load resource gap assumption

- - - - - - -

LTAP and General Execution given expected load forecast, and committed and planned " "of LTAP resources?7.2 Load Resource Gap

- ----------------.--.--.-- -- - - ------ --..-. -.- _. --

b) Is the expenditure on incentives for the LD 2 micro-hydroLTAP and General Execution "of LTAP program reasonable given the LPI eligibility criteria?

d) I the proposed evaluation methodology for the.---- ..... - .-------- --"-,,. --...-.-.- ..--- __ m_ •• _~ • .-.---

7.2 Load Resource GapLTAP and General Execution identification and definition phases in future calls and "of LTAP Q!.<?22~~dproject~ in the LTA'=__?l?proprLCitel______________.____..__ .__.......__ ~._._.n____________ .__..___~_ ----- -- -- -- --- ------ .----.-- -

7.3 Lessons Learned

LTAPfrom the F2006 Call and a) Should future calls include a premium for Firm Energy? "the Impact on FutureCalls -- - - - - - - - -7.3 Lessons Learned

LTAPfrom the F2006 Call and b) Should future calls include Liquidated Damages for "the Impact on Future energy shortfalls?Calls - - - - - - -7.3 Lessons Learned c) Should an allowance for attrition and outages befrom the F2006 Call and

LTAP the Impact on Futureconsidered in future calls, and how should such an "Callsallowance be calculated?

- - - - - - -7.3 Lessons Learned

LTAPfrom the F2006 Call and d) The meaning and application of total energy acquisition

"the Impact on Future targets of future calls.Calls .--.- .---.- -.-- --- ~--------_.~.._ ......_-------_.-._---_._-----_._-------.-._._.----_.-. __ ._.._--_._-,~-,. --..-..•..-----.--- ....--. ._-_., ..~~,~,-,-,-,----------,---_. - -- ,-------- --,,--

7.3 Lessons Learned e) How will future calls ensure that risks are allocated to theLTAP

from the F2006 Call and parties most capable of assuming them and of mitigating ~the Impact on Future them in the most cost-effective manner?Calls --.--. _.~- --_. --,---,-_. _._-~-- ---_._._-

7.3 Lessons Learned f) How can BC Hydro reduce the risk that acquisitions under

LTAPfrom the F2006 Call and a current call may displace potentially more cost-effective "the Impact on Future resources that may have been bid into future calls orCalls acquisition processes? ----

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BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

7.3 Lessons Learned g) How should the structure and terms of future calls or

LTAPfrom the F2006 Call and acquisition processes address other factors in the F2006

"the Impact on Future Call such as valuation of capacity benefits; tiering of energy;Calls and discounting of spring deliveries?_._~ - - - - - - -7.3 Lessons Learned

LTAPfrom the F2006 Call and h) Are the proposed size, timing and structure of the "the Impact on Future proposed 2007 and 2009 calls in the public interest?Calls

- - -.- - - - -7.3 Lessons Learned

i) How should future calls define the size, technology/projectfrom the F2006 Call and

LTAPthe Impact on Future

type, timing, location, allocation of GHG liability, and "Callsallocation of gas price risk?

_ ... _._.,.,.,._.~. .._ ..... ~" •• ,_"..... ••.••• _ .•• ____ .• _•.• ____ _ ___.. m ____ .n _____ •• _.. _ ••• __ ..... ___ ._ ..... _ •• _,, ___ .. - , ....-.- ...-".-------- ----.---.--- ...----- ....---.--.------.- ..-.----- -..---- ...• ...---.--.- "' ___.·m~ __ •_ ____ u. ____ ..--. --- ----~~----7.3 Lessons Learned j) Has BC Hydro met the "onus" on it established by thefrom the F2006 Call and

LTAPthe Impact on Future

F2006 Call Decision (at pp. 27-78) with respect to residual ,; "Callsrisk? If not, for what volume has BC Hydro met the "onus"?

._ .... _ .... _, ...... ___ ._ ................. _ •• ___ •___ ••. __ •_____ •___ ~ _____ .. _.__ m. __ ._._ .. _. ________ -- ----- ..--....--- --.---- -. -------- --._.-.~ ------

LTAP 7.4 DSMa) Comparison of the terms of reference and scope in the ,;

._----_._._-,-----~- ---- ----- undertaking of the 2002 CPR and Updated .9J:B.____-

b) Definition of EE 3, 4, 5, including the use of rate

LTAP 7.4 DSMstructures and new meter technologies; and what

"methodology and process are required to complete theDefinition Phase of EE 3, 4 and 5?

- - - - - - --c) Are B.C. Hydro's proposed levels of DSM expenditures

LTAP 7.4 DSM and associated electricity savings too high, too low, or more ..Jor less right? - - - - - - -a) What is the appropriate staging and timing of capacity

LTAP 7.5 Resource Smart resources, in particularly of Resource Smart capacity "projects such as Mica and Revelstoke -- - - - - - 1-

LTAP 7.5 Resource Smartb) Resource Smart project evaluation issues, including the "-- ...-.-- ---seismic upgrade issue. - - - -

LTAP 7.6 Revelstoke Unit 5 a) Is the timing of Revelstoke Unit 5 appropriate? " "--.--.-- ..-.-.- ...-.--- ..... -.--- .-------- ---_._-- ..._--_ .._-_._ ..._~--_._-~._-._._---------------~-- --- ..- ----- -- --- __ m._' -- I- ------ ---

b) Are the costs and benefits of Revelstoke Unit 5 identified

LTAP 7.6 Revelstoke Unit 5appropriately, and does the evaluation of UEC and UCC " "accurately capture all costs and benefits, including potentialsystem, ILM and Burrard effects?

.-----" •..---..------ ....'.-----.-- -----,._~--- --------.--.- _________ ~ ._n_. __~_~ ___ ~ ___ ._~_· ___ .·_· _._._ .. _ .. _._..... _ ... _m_ .. _~.~ _____ .·_· __ · __ · ______ · _____ ._. ______ . __ ._____ ~ ___ ---. -- - --- - - ---

c) Are the benefits assigned to Revelstoke Unit 5 related toLTAP 7.6 Revelstoke Unit 5 its timing? Would a similar capacity-rich project attract the "same benefits if constructed elsewhere in the system?-- -- --

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BCUC Issues List for the IEP/l TAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

7.d) Should BC Hydro use a price benchmark to evaluate a

LTAP Revelstoke Unit 5 project such as Revelstoke Unit 5 and how should such a ,; ,;benchmark be established?a) Is BC Hydro able to set a date by which the Site C

~,~,----

LTAP 7.7 Site C resource will be required? For instance, is the timing " ,;U<::µ<::IIUdlll on the outcome of the 2007 and 2009 calls?

LTAP 7. Site C b) What transmission cost and effects should be assigned ,j....... to Site C in its overall evaluation?

LTAP 7.8 Burrard a) Is the value given to Burrard firm capacity appropriate ,jand sufficient relative to the value given to its firm energy?

---------~- -

b) How does the 2014 date to remove the reliance on

LTAP 7.8 Burrard Burrard affect the need and structure of the ILM path, the~CI=lPs,and other Revelstoke and Mica units? Is the date

.. by the results of the 2007 and 2009 calls?

a) Are there adequate contingencies and risk mitigationto address:

LTAP 7. Contingency Plans (i) IPP deliverability and cost risks (including attrition in ,;and future calls)? What is the most appropriate type

VI '"'VI '''''!-I'''' IvY to address this risk?,------ -

a) Are there adequate contingencies and risk mitigation

LTAP 7.9 Contingency Plans strategies to address: ,j(ii) DSM savings and costs? What is the most appropriatetype of to address this risk?a) Are there adequate contingencies and risk mitigation

to address:LTAP 7. Contingency Plans (iii) Risks to permitting and costs for Resource Smart and ,j

other BC Hydro projects? What is the most appropriate typeof Ilvy to address this risk?

-.--- ..--.-- ___ mmmm

a) Are there adequate contingencies and risk mitigation

LTAP 7. Contingency Plans strategies to address: ,;(iv) Changes in load forecast/consumption? What is themost appropriate type of contingency to address this risk?

a) Are there adequate contingencies and risk mitigationto address:

LTAP 7. Contingency Plans (v) Changes in gas and electricity price forecasts? What is ;/the most appropriate type of contingency to address thisrisk?

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BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 1B 2 3 4 5 6 7

a) Are there adequate contingencies and risk mitigation

LTAP 7.9 Contingency Plansstrategies to address:

..J(vi) Changes in GHG regulation and costs? What is themost appropriate type of contingency to address this risk?

__ u - - - - - - -a) Are there adequate contingencies and risk mitigation

LTAP 7.9 Contingency Plansstrategies to address:

"(vii) Changes in government policy? What is the mostappropriate type of contingency to address this risk?

- - - - -- - -

a) Are there adequate contingencies and risk mitigation

LTAP 7.9 Contingency Plansstrategies to address: ,;(viii) Transmission supply uncertainty? What is the mostappropriate type of contingency to address this risk?

--,~---,._~.-----~~ ~---_._-~---- ----~,_._,-,- ---.----"

b) Whether the contingency resource plans submitted byB.C. Hydro achieve the appropriate balance between theneed to plan for reasonably forecasted network load, andthe ability of other transmission customers to secure long-term firm capacity in the form of long-term firm point-to-point

LTAP 7.9 Contingency Plansrollover rights on the transmission system. "(i) Is the resource distribution (type and location) forContingency Resource Plans (CRP) 1 and 2 appropriate?(ii) Is the efficient or optimal use of existing transmissionconsidered?(iii) Are the 2007 Call and 2009 Call appropriately reflectedin the CRPs?

- - - - 1- - -c) Level of clarity required in the BCUC Decision with

LTAP 7.9 Contingency Plansrespect to the CRP(s), whether with respect to process "steps or content of the plans, so that BC Hydro can proceed

-.- ..--..-.".-- ......---- ..-.-.---.----- . --_._,-~.~_ .._._. __ .__ ...~,~,---'..-,-~ ~9_?-comple~ NITS ~ee~~~~!!_<:>E!:____n __ ~_ ,--- --- ------- ------- •• 0- __ ._ .. _ ••• ------- - ----

LTAP 7.9 Contingency Plansd) Is the treatment of CE as a contingency resource

..JaEE~.<:>P!!§l~?_I~i!~_~~~._.<:>e.t!!!l_~IL__________~~~~.__~~_~_______________~_._-_._-~..- .._ ....-.------- -._--.~-

PROJECT EVALUATION 8.1 Special Directiona) How does BC Hydro apply the Special Direction(s) to ,;

< evaluation? ----~ , ..--.-..-.-- _.~.•..,_ ..--_._ . .--.---------- -- ---

8.2 Project Evaluationa) What should be the basis for comparing BC Hydro

PROJECT EVALUATION projects, e.g., DSM, Site C, Resource Smart, BCTC- "Processconstructed transmission with private sector alternatives?

--- - - - --"

PROJECT EVALUATION8.2 Project Evaluation b) How should incremental taxpayer benefits such as water "Process rentals be considered in project evaluation? --

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BCUC Issues List for the IEP/LTAP ProceedingTheme Sub-Theme Issue 1A 18 2 3 4 5 6 7

PROJECT EVALUATION8.2 Project Evaluation IC) How should non-financial considerations be captured in

..J "Process project/portfolio evaluation framework?- -- - - - - -

PROJECT EVALUATION8.2 Project Evaluation d) How should environmental externalities be captured in

" "Process project/portfolio evaluation framework?-- -- - - - - -

PROJECT EVALUATION8.2 Project Evaluation e) How should risk be captured in project/portfolio

"Process evaluation framework?--------~-- - - --- - - -- -

PROJECT EVALUATION8.3 Perpetuity a) Should project analysis be conducted using the life of the

"Adjustments asset?--- --- - - - - - -

PROJECT EVALUATION8.3 Perpetuity b) Is this approach consistent with each project and

".~-~----- Adjustments portfolio? For example, VIGP, VITR, Revelstoke, etc. --- - - --- - - -

a) Is it appropriate to have two different methodologies for

8.4 Cost of Capital andcost-effectiveness test? One for the project evaluation (BC

PROJ ECT EVALUATION Hydro's WACC based on 80:20 debt equity) and another for "Discount Raterate making purposes (based on 100 percent debt to reflectBC Hydro's access to funds)?

b) What is the appropriate basis for BC Hydro to compare.~.__ . ... mm __ ~ ~~-_ .. 1--------- __ "_._._m ...- 1---------- - ---_._-

8.4 Cost of Capital andprojects: (a) impact of projects on BC Hydro or (b) impact of

PROJECT EVALUATION projects on the customers of BC Hydro who would be "Discount Rateexpected to pay BC Hydro for the additional services being

--- acquired? - - - - - - -

c) What is the appropriate discount rate for revenue

PROJECT EVALUATION8.4 Cost of Capital and requirement impact on customers? What is the appropriate

"Discount Rate discount rate for economic costlbenefit analysis? Are thediscount rates of BC Hydro and its customers synonymous?

- - - - - - -

8.4 Cost of Capital andd) Should "level playing field" be a consideration factor

PROJECT EVALUATION when comparing BC Hydro projects with IPP suppliers? Is it "Discount Ratenecessary to level the playing field to make comparisons?

------~~- - - - -- - - -

8.4 Cost of Capital ande) Does BC Hydro's use of real pre-tax cash flows

PROJECT EVALUATION discounted with real pre-tax discount rates lead to equitable "Discount RatecQf!lE§~i§~!l§_""i!~J?i~~!E?J?!s>jec!??________._.________________ ----- - --- ___ d ........_------ '----'- - ~_.__ ..-

PROJECT EVALUATION 8.5 Risksa) Has BC Hydro properly assessed the risk of non-BC ".....__ ._.,_ ...... -...-_ ..__ .' ..-~--_ ..,- - --- - -- - ----.-,---- ..-.- ..--.----- tty.g~~_e~~j§lg!§? ____________________________________________________-~-,---_._. ._ .....--~._..._-- ----,-.---_.-

PROJECT EVALUATION 8.5 Risksb) Allocation of risk with respect to capital projects. Do ..J_c::_LJ_§Jg_f!l§l!S_~~~rJb_e.!isk._~L~~Pl!~§~§_of t~2r:Qj~~?' ___________"---- --~---_._- ____ ._ m •• n • .....-....---- ------- t---- ~---

PROJECT EVALUATION 8.5 Risksc) Has BC Hydro properly assessed the inflationary risk of " "different types of BC Hydro projects?---- --- ----------- --------

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