Standing Offer Program Information Session. Power Acquisitions

Transcription

1 Standing Offer Program Information Session Power Acquisitions

2 Agenda Introduction & Overview of the SOP Key Eligibility Requirements Price Network Upgrade Costs & Threshold Electricity Purchase Agreement Application Process & Offer Regulatory Next Steps and Wrap Up Power Acquisitions 2

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 3

4 Overview of the Standing Offer Program 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 cogeneration Power Acquisitions 4

5 Overview of the Standing Offer Program 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 Power Acquisitions 5

6 Overview of the Standing Offer Program On June 20, 2007, BC Hydro issued the Standing Offer Program documents on its website ( Power Acquisitions 6

7 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 7

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 8

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 9

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 10

11 Proposed Regional Prices (2007$) Energy Price ($/MWh) Envir. Attribute Price ($/MWh) Price ($/MWh) Region Vancouver Island Lower Mainland Kelly Nicola Central Interior Peace Region North Coast South Interior East Kootenay Power Acquisitions 11

12 Illustrative Map of Regions Power Acquisitions 12

13 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 Power Acquisitions 13

14 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 14

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 15

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 predetermined 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 16

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 in the 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 17

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 18

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 19

20 Next Steps Phase Timeline Stakeholder and First Nations information sessions and 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 2007 BCUC regulatory review process TBD Negotiated Settlement Process TBD Power Acquisitions 20

21 Next Steps Stakeholders and First Nations are asked to provide written comments directly into the interactive Program Rules and EPA, located at Go to How to Get Involved. Next Steps - Discussion/Questions Power Acquisitions 21

22 Key Contacts Program Website: Interconnection Information: > GITS (for projects connected to the Distribution System) > > Phone: or > BCTC (for projects connected to the Transmission System) > > Phone: > Jim Ko > Ryan Hefflick > Bryan Corns Power Acquisitions 22