Customer Based Generation
EPA OVERVIEW
The following is a summary only, and has no legal effect. Refer to the Standard EPA for a complete
understanding of the EPA terms and conditions.
Customer Based Generation Workshop November 4, 2002 1
Topic
AGENDA
Presenter
! Introduction & Welcome Bev Van Ruyven
! CFT Process Selection Terry McCullough
! Break
! EPA Terms & Conditions Myran Wallace
! Eligible Electricity Examples Al Boldt
! Lunch
! EPA Price & Examples Greg Simmons
! Green Criteria & GHG Estimating Jim Scouras
! Interconnection Process/Issues Ken Miyazaki
! Break
! Q&A Panel
! Closing Remarks Bob Elton
Customer Based Generation Workshop November 4, 2002 2
Introduction
! Thank you all for coming today, it is good to see such an
overwhelming response to this program.
! Customer Based Generation represents a very important step for
BC Hydro in terms of resource acquisition.
! We want to invite you to participate in today’s workshop by asking
questions and providing feedback.
! The structure for today is:
! about 5 minutes for several burning questions directly after
each speaker
! then the remainder of the day for a question and answer session
! We may not have all the answers
! Look to this workshop to explain the EPA and move forward
Customer Based Generation Workshop November 4, 2002 3
Purpose of Today’s Workshop
! Review the EPA in detail
! All material presented today will be available on the
web site
! The workshop will be recorded and the Q&A will be
transcribed, edited for clarity and accuracy with
respect to the CFT and EPA and posted on the web
site within 1-2 weeks
Customer Based Generation Workshop November 4, 2002 4
Customer Options for
Generation
! Customer Based Generation Call
! Competitive call with ceiling price
! BC Hydro Power Smart
! For self generation load displacement
! Competitive incentive based
! Green and Alternative Energy
! Competitive call with ceiling price
! Selling to Power Marketer
! Competitive market based
Customer Based Generation Workshop November 4, 2002 5
CBG Program Objectives
! Purchase, from our customers, 800 GWh per year with
Generation on line by 2005 November
! Transparent process
! Low transaction cost - standardized EPA
! Ceiling price to reflect
! our long term energy price
! firm energy and associated risks
! Firm energy and capacity supply to meet domestic load
growth.
Customer Based Generation Workshop November 4, 2002 6
Energy Acquisition Strategy
10000
(Illustrative)
Load Growth - GWh 9000
8000
7000
6000
5000
4000
3000
2000
1000
0
03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12
Vanc. Is Generation Project New Green
Add'l Resource Smart Customer Based Generation
Energy Demand Growth Demand Growth less Planned Power Smart
CBG is a key component of our Energy Acquisition Strategy, which includes
Power Smart, Resource Smart, CBG and Green resources. Current targets (i.e
800 GWh for CBG) are illustrated above.
Factors such as energy and peak demand growth, results of current acquisition
programs will influence timing and size of future CBG/Green resource calls.
Customer Based Generation Workshop November 4, 2002 7
CBG Schedule
Award Purchase
Qualification Selection for Tender Call For Tender
Agreement
Request for qualification
Period
RFQ Workshop Review of CFT Workshop Tender Due
Jun 21 Submissions and Nov 4 Jan 15
Selection
Call For Tender Period EPA due - June 6/03
Tender Evaluation,
Selection and
Signing
May 31 to July 12 July 12 to Sep 6 Sep 6 to Jan 15 Jan 15 to Mar 4
to 2003 June 6
Customer Based Generation Workshop November 4, 2002 8
RFQ Response
! Target of 800 GWh 8000
per year
7000
6000
GWhs per year
! Submissions 5000
totaling 6800 GWh 4000
per year 3000
2000
! 37 projects 1000
0
Target Submissions
Customer Based Generation Workshop November 4, 2002 9
Call For Tender
! Target of 800 GWh 3500
per year
3000
2500
GWhs per year
! Call for Tenders
2000
issued to
proponents of 3100 1500
GWh per year 1000
500
0
Target Tenders
Customer Based Generation Workshop November 4, 2002 10
QUESTIONS?
Customer Based Generation Workshop November 4, 2002 11
AGENDA
Topic Presenter
! Introduction & Welcome Bev Van Ruyven
! CFT Process Selection Terry McCullough
! Break
! EPA Terms & Conditions Myran Wallace
! Eligible Electricity Examples Al Boldt
! Lunch
! EPA Price & Examples Greg Simmons
! Green Criteria & GHG Estimating Jim Scouras
! Interconnection Process/Issues Ken Miyazaki
! Break
! Q&A Panel
! Closing Remarks Bob Elton
Customer Based Generation Workshop November 4, 2002 12
CFT Stage: Confirmation
! Must be Short-Listed at the RFQ Stage Page 2
Reassess: Page 25, 27-31
! Customer Eligibility
! Project Eligibility
! Owner/Operator Experience
! Financial Capability
! Project Status
*Page numbers in this section reference the Revised CBG/CFT 2002 Call for Tenders Document
Customer Based Generation Workshop November 4, 2002 13
Eligibility: Customer
Review Mandatory Requirements:
! Customer class, use for normal operations, period
of service
! Customer involvement, proximity to customer
! New or incremental, proven technology
! Met the time lines:
! Tender submission: 4 PM, Jan. 15, 2003
! Target COD on or before: Nov. 1, 2005
Customer Based Generation Workshop November 4, 2002 14
Eligibility: Owners/Operators
Project-Related Requirements:
Must Indicate Page 16, 25, 31
! Changes in owner/operators
! Changes in financial capability
! If there are significant changes
provide evidence there is no
significant impact on ability
to finance, develop and operate
the project
Customer Based Generation Workshop November 4, 2002 15
Project/Seller’s Plant Description
! Description of the Project Page 32
! Description of Seller’s Plant
! Description of Energy Source for Seller’s Plant
! List key facilities and equipment that will be
installed or added to Seller’s Plant to complete
the Project
! Nameplate capacity for each electrical
generator within the Seller’s Plant - existing or
new
Customer Based Generation Workshop November 4, 2002 16
Information Requirements
! BC Hydro requires information in submission:
! Declaration of customer involvement Page 36
! Material changes in project information Page 31
from RFQ
! Project specific adjustments Page 28
! Existing generating capacity and energy Page 11, 13
! Electric one-line and steam flow diagram (if Page 11, 13
applicable) for metering
! Bidder may request information on CFT Page 22
process: direct all inquiries to BC Hydro
Purchasing Manager
! Q&As will be posted on the website
Customer Based Generation Workshop November 4, 2002 17
Contracted Capacity Table
Make no allowance for outages: Page 26
! Average Annual Capacity for each year of
Contract Term (MWh/h)
! Monthly Percentage of Average Annual
Contracted Capacity (%)
Customer Based Generation Workshop November 4, 2002 18
Contracted Capacity Selection
Other Outages and
Plant Operational
100%
90%
% Contracted
80% Non-Winter Month
Capacity
70% Planned Outage
60% 90%
50%
80%
40% Transmission
30% Constrained
20%
10%
Force Majeure
0%
Average Average
Annual Monthly
Capacity Capacity Hardship Hours
Minimum % deliveries apply to yellow bars only
Some ability to mitigate using 110% capacity
Customer Based Generation Workshop November 4, 2002 19
Tenders
! Tender Security submitted with Bid:
! $10,000/MW of Contracted Capacity with $5,000 Page 28
minimum
! Will Reject all Tenders containing material Page 21
amendments, modifications or conditions to Tender
Forms or EPA or do not conform
! Bid Price envelopes of rejected, non-conforming Page 16
bids will be returned unopened
! Tenders may not be withdrawn or amended from Page 21, 30
Tender Closing Time to 4 PM, June 30, 2003
Customer Based Generation Workshop November 4, 2002 20
Potential Tender
Disqualification
Reasons Tenders may be disqualified include:
! Late submission of information Page 6, 12, 13
! Tender submission with non-material Page 21
amendments, modifications or conditions
! Incomplete or unsigned Tenders Page 8, 12, 13,
26, 30
! No or insufficient Tender Security Page 28
! Discrepancy in Green qualification, adjustments Page 12, 13, 15,
or Generator Baseline between Tender and 20, 25, 26, 41
those provided by BC Hydro
Customer Based Generation Workshop November 4, 2002 21
Tender Security
! In form of cash, bank draft, certified cheque or Page 8, 28
letter of credit
! Forfeited if bidder is successful and fails to Page 8
execute and deliver EPA
! Returned if bidder:
! Executes and delivers EPA and development Page 8
security
! Bid is unsuccessful and no EPA is awarded Page 6
Customer Based Generation Workshop November 4, 2002 22
Other Tender Requirements
! Contracted Capacity Information Page 33, 34
! Confirmation of Customer Involvement Page 16
! Adjusted Bid Price: must be less than the ceiling Page 17, 18
price
! Agree to Adhere to BC Hydro’s Code of Conduct Page 20, 27
Guidelines Applicable to 2002 CBG Call for
Tenders
Customer Based Generation Workshop November 4, 2002 23
Tender Selection
! Tender must be signed by a person who Page 7, 8,
30
has authority to bind
! Once through Part I, EPAs will be Page 27-29,
38
awarded based on lowest Bid Price
adjusted for ranking purposes
! Selection of successful Tenders will be Page 6
March 4, 2003
Customer Based Generation Workshop November 4, 2002 24
EPA Options
! Can bid flat, increasing or decreasing Contracted Capacity Page 9, 26
over contract term :
30
25
20
MWh/hour
15
10
5
0
Year 1 2 3 4 5 6 7 8 9 10
Increasing Decreasing Recall 1 Recall 2
! One time, irrevocable option to recall 20% of Contracted Page 9, 11, 26
Capacity - price reduction of $2.00/MWh adjusted by 50%
of CPI on subsequent deliveries to BC Hydro
Customer Based Generation Workshop November 4, 2002 25
EPA Price
Price paid by BC Hydro:
! Bid Price with adjustments for:
! Delivery time
! Non-compliance with the Green Criteria (if applicable)
! Recall option (if exercised) and
! Inflation
Pages 7, 9-11, 13-14, 18-21, 28-29, 38, 120
Customer Based Generation Workshop November 4, 2002 26
EPA Signing
! EPA Awards will be made March 4, 2003 Page 6
! If EPA unsigned by expiration date (June 6, 2003), Page 19
BCH may offer EPA:
! To successful bidders with unbid capacity
! To unsuccessful bidders:
! In each case starting with lowest cost Tender
! Tenders must be less than the ceiling price
! Bidder may accept or reject the offer
! If project is terminated on or before end of Initial Page 19
Period, BCH may offer EPA as above
Customer Based Generation Workshop November 4, 2002 27
CFT Pricing Examples and
EPA Terms & Conditions
To be addressed by subsequent speakers:
! Pricing Examples: qualifying vs non-qualifying bid prices,
ranking
! Specific Terms & Conditions of the EPA including:
! Development and Operating Security
! LDs
! Delivery priorities
! Metering
Customer Based Generation Workshop November 4, 2002 28
Other Calls for Proposals
! Bidders may also submit the same project to the Page 21
October Green RFQ if they meet qualifying
criteria
! If awarded an EPA under the CBG Tender Page 21
process, same project to the Green Call will be
automatically withdrawn by BC Hydro and
Green Call Tender Security Refunded
Customer Based Generation Workshop November 4, 2002 29
Electricity Supply
Future Electricity Supply:
! BC Hydro increasingly dependent on independent
generators for capacity and firm energy
! BC Hydro bears market risk if non delivery
! BC Hydro has a continuing obligation to serve
! Therefore contracted energy must deliver be delivered
Customer Based Generation Workshop November 4, 2002 30
Objectives of the CBG EPA
Objectives of the EPA for the CBG Program:
! Move towards more commercial terms
! Ensure a degree of reliability while allowing for
events beyond the Seller’s control:
! Force Majeure Provisions
! Hardship and Hydrology Limitation Provisions
! Recall Option
! 80% / 90% Capacity Factor Provisions
Customer Based Generation Workshop November 4, 2002 31
EPA Flexibility
Provide flexibility for the Seller:
! Split Bid
! Flat, Increasing or Decreasing Capacity Profile by
year and a monthly profile
! Recall Option
! 10 - 20 Year Contract Term
! Green or Non-Green
Customer Based Generation Workshop November 4, 2002 32
QUESTIONS?
Customer Based Generation Workshop November 4, 2002 33
AGENDA
Topic Presenter
! Introduction & Welcome Bev Van Ruyven
! CFT Process Selection Terry McCullough
! Break
! EPA Terms & Conditions Myran Wallace
! Eligible Electricity Examples Al Boldt
! Lunch
! EPA Price & Examples Greg Simmons
! Green Criteria & GHG Estimating Jim Scouras
! Interconnection Process/Issues Ken Miyazaki
! Break
! Q&A Panel
! Closing Remarks Bob Elton
Customer Based Generation Workshop November 4, 2002 34
EPA Introduction
! Move towards a more commercial contract
! Tender Process
! Delivery commitment and risk sharing in the form of:
! Liquidated Damages for non-delivery
! 90% and 80% month/annual “thresholds”
! Economic Hardship recognition
! Force Majeure recognition
! A longer, more complex document
! Standard form for all projects
! reduced transaction costs
! Options / Flexibility
! capacity profile
! recall option
! ability to sell to multiple Buyers
! Green or not Green
Customer Based Generation Workshop November 4, 2002 35
EPA Schedule
Issue CFT September 06, 2002
Issue EPA October 4, 2002
Bidders apply for Interconnection October 18, 2002
Bidders Meeting November 04, 2002
Bidders submit Green Evidence December 02, 2002
BCH provides Green/GHG/GBL Info December, 17, 2002
BCH provides Interconnection Estimate
and Area Locations Adjustments December 17, 2002
Bidders submit Tender January 15, 2003
BC Hydro announces successful Tenders March 04, 2003
Bidders return signed EPA June 06, 2003
Customer Based Generation Workshop November 4, 2002 36
Term / Quantity
Parties: BC Hydro as Buyer
Customer or IPP as Seller
Term: 10 to 20 years from COD (Appendix 5), as bid by
Seller
Target COD not subject to change for any reason
Quantity: Contracted Capacity (CC), which may be:
! Fixed for term
! Variable over term, but minimum CC must be not less
than 50% of maximum CC
! Entire project capacity (Cp)
! Part only, with balance committed to a self generation
hosting facility or third party purchase (Split Bid)
Customer Based Generation Workshop November 4, 2002 37
Quantity cont’d
Recall Option:
! Seller has one-time irrevocable option to reduce CC by 20%
! 365 days notice required
! No Recall prior to COD
! $2.00/MWh (adjusted by 50% of CPI) price reduction
effective on Recall
Customer Based Generation Workshop November 4, 2002 38
Definitions / Key Terms (Appendix 1)
! Contracted Capacity (CC): The quantity of electricity the Seller
commits to deliver on an hourly basis, as bid by the Seller
! Eligible Electricty (EE): The quantity of electricity the Buyer is
obliged to accept and pay for on an hourly basis– generally a
maximum of 110% of CC
! Metered Electrity (Mg): The quantity of eletricity metered at the
generator
Customer Based Generation Workshop November 4, 2002 39
Definitions / Key Terms
! Generator Baseline (GBL): Existing plant capacity, if any,
determined during tender period based on nameplate capacity
and historical generation
! Plant Capacity (PC): The total capacity of the generating plant
(including existing GBL capacity and new capacity resulting from
the project)
! Project Capacity (CP): New or incremental capacity (I.E.
excluding generator baseline)
Customer Based Generation Workshop November 4, 2002 40
Definitions cont’d
! Initial Period: 180 days (extendible to 270 days) after EPA
signing– time permitted for fulfillment of specified conditions
subsequent
! COD: Commercial Operation Date (as per Appendix 5)
Customer Based Generation Workshop November 4, 2002 41
Definitions cont’d
! Force Majeure: Usual events of Force Majeure – beyond the
control of parties (excluding Economic Hardship)
! Hardship Event To be addressed later in the presentation
Customer Based Generation Workshop November 4, 2002 42
Conditions Subsequent (Section 3)
! Mutual right of termination for failure of conditions subsequent
within Initial Period (180 days after Term commencement):
! Permits
! Land Tenure
! Regulatory Exemption - not a “public utility”
! Interconnection & Facilities Agreements (Seller may waive)
! Financing (Seller may waive)
! Seller confirms the above
Customer Based Generation Workshop November 4, 2002 43
Conditions Subsequent cont’d
(Section 3)
! Seller must use commercially reasonable efforts to satisfy the
conditions
! Initial Period - 90 day extension possible
! Mutual right of termination for adverse regulatory intervention
during initial period
! Development security (Cash or L/C) refunded if, despite Seller’s
reasonable commercial efforts, the EPA is terminated
! If reasonable prospect of meeting conditions
Customer Based Generation Workshop November 4, 2002 44
Delivery/Acceptance
! From COD Seller obligated to deliver uninterrupted hourly
Contracted Capacity (CC) subject to:
! Force Majeure
! Hardship event
! Transmission constraint
! Hydrology limitation (Hydro projects that elect inclusion of
limitation only)
Customer Based Generation Workshop November 4, 2002 45
Delivery/Acceptance cont'd
! From COD Buyer must accept and pay for Eligible Electricity
(EE) subject to:
! Force Majeure
! Transmission constraint, which cannot be relieved by
Buyer’s reasonable management of demand, supply and
transmission access rights
! Disconnection of Seller’s Plant under the Interconnection
Agreement
! Suspension for Seller default (after cure period - 30 days)
Customer Based Generation Workshop November 4, 2002 46
Delivery Priority
("Split Bids" - Section 7.5)
! e.g. An existing generator (with GBL) is expanded to service
incremental loads (i.e. above GBL) through sales to BC Hydro
under EPA and to electricity host and/or third party
! If Seller cannot meet Contracted Capacity and other
incremental loads with generation above GBL, then Seller
must first meet Contracted Capacity, before serving such
incremental loads, unless constraint is due to:
Customer Based Generation Workshop November 4, 2002 47
Delivery Priority cont'd
! Outage (other than prohibited winter planned outage)
! Force Majeure
! Hardship Event
! Transmission constraint
! In which case incremental loads must be served Pro Rata
Customer Based Generation Workshop November 4, 2002 48
Force Majeure Section 10
! Usual events of Force Majeure
! No relief for economic hardship or lack of availability of
fuel/energy source, including natural hydrology limitations
(although Hydro projects that elected to be subject to the
Hydrology Adjustment will be allowed relief for Hydrology
Limitations - see Appendix 10)
Customer Based Generation Workshop November 4, 2002 49
Hardship Clause (Section 11)
Hardship Event is defined as:
! Change in law or policy - Federal, Provincial, Local
! Fuel shortage or price increase
! Co-generation host shutdown
! Electricity host shutdown
All predicated on the fact that the event is out of the Seller’s control, he has
acted prudently to mitigate and it has a material adverse economic effect on
the long-term viability of the operation of the Seller’s Plant.
Customer Based Generation Workshop November 4, 2002 50
Fuel Shortage or Price
Increase
If the Project includes thermal generation:
! A lack of availability of the Energy Source due to diminished
supply
! Or an increase in the delivered cost to the Seller of the Energy
Source
! Including an increase in such delivered cost resulting from an
inability of the Seller to contract for secure supply of the Energy
Source over a reasonable term due to a deterioration in the
creditworthiness of the Seller and/or the Guarantor
Customer Based Generation Workshop November 4, 2002 51
Delivery Requirements (Appendix 4)
Liquidated Damages apply if Seller fails to meet:
! GHG Intensity Factor - fixed target
! Monthly Capacity Factor >90% of CC
! Excluding Force Majeure hours
! Excluding Transmission Constraint hours
! Excluding Planned Outages (non-winter months)
! If Hardship Event relief is in effect, the CC is reduced
proportionately
! Monthly Capacity Factor LD’s are based on the month’s
average non-firm hourly weighted Mid-C price and the CFT
Adjusted Bid Price
Customer Based Generation Workshop November 4, 2002 52
Delivery Requirements cont’d
! Annual Capacity Factor > 80 % of CCP
! Excluding Force Majeure hours
! Excluding Transmission Constraint hours
! If Hardship Event relief is in effect, the CC is reduced
proportionately
! No “double-counting” - i.e. monthly LDs paid are
deducted from any annual LDs payable
! LD’s are based on the average of the average monthly at
Mid-C and the CFT Adjusted Bid Price (Appendix 4 &
Section 3)
Customer Based Generation Workshop November 4, 2002 53
Security (Section 13 and Appendices 6 and 7)
! Development Security: Cash or L/C ($20,000/MW of maximum
average annual CC) to secure construction of plant
! Operating Security: Cash, L/C or creditworthy
covenant/guaranty (determined at COD, and at each
anniversary, as $2,000/MW of average annual CC times
number of years remaining in term) to secure operating
performance
! One time test at EPA signing for creditworthiness of Seller or
Guarantor
Customer Based Generation Workshop November 4, 2002 54
Termination (Section 15)
! Buyer may terminate for:
! Failure to commence construction by target COD
! Delay in COD by 365 days, extendible to 730 day for Force
Majeure
! Seller becoming regulated as a "Public Utility" with material
adverse effect on Buyer
! Prolonged Seller Force Majeure (365 days)
! Prolonged Hardship Event (730 days) or
! Seller defaults (with cure period)
! Seller Liable for:
! Seller liable for "Mark to Market" termination payment if
Buyer terminates for delay in commencement of construction
or in COD or for Seller default
Customer Based Generation Workshop November 4, 2002 55
Termination (Section 15)
! Seller may terminate for:
! Prolonged Buyer Force Majeure (365 days), or
! Buyer default (with cure period)
! Buyer liable for "Mark to Market" termination payment if
Seller terminates for Buyer default
Customer Based Generation Workshop November 4, 2002 56
Other Terms
Other terms and conditions reflecting CBG program (most are
normal for long-term Electricity Purchase Agreements) including
those pertaining to:
! 5 year minimum customer involvement
! Determination of COD
! Operating standards
! Reporting / scheduling
! Restriction in planned winter maintenance
! Metering
Customer Based Generation Workshop November 4, 2002 57
Other Terms cont'd
! Payment terms
! Insurance
! Assignment
! Confidentiality and
! Law and dispute resolutions
Customer Based Generation Workshop November 4, 2002 58
QUESTIONS?
Customer Based Generation Workshop November 4, 2002 59
AGENDA
Topic Presenter
! Introduction & Welcome Bev Van Ruyven
! CFT Process Selection Terry McCullough
! Break
! EPA Terms & Conditions Myran Wallace
! Eligible Electricity Examples Al Boldt
! Lunch
! EPA Price & Examples Greg Simmons
! Green Criteria & GHG Estimating Jim Scouras
! Interconnection Process/Issues Ken Miyazaki
! Break
! Q&A Panel
! Closing Remarks Bob Elton
Customer Based Generation Workshop November 4, 2002 60
Type and Operating Condition
! Separate Generator
! Existing Generator - upgraded
Type of plant ! All output to BC Hydro
Split or not ! Output to BC Hydro and others
! Normal
! Hardship
! Force Majeure
Operating condition ! Outage: Forced, Maintenance, Planned
! Voluntary Turndown
! Increased Steam Use by host coupled with
decreased Electricity Generation
Customer Based Generation Workshop November 4, 2002 61
No Existing Generation
Example No. 1
Seller’s Plant 110 % = 44 MW
Maximum of 40 MW + 10% = 44 MW
Cp = PC = CC = 40 MW
90 % = 36 MW
Project Capacity = Plant Capacity = Contracted Capacity
Project
Capacity 40 MW For 0 $100k Cost
Agreement Facilities
Interconnection Commissioning
Agreement and
Interconnection
Customer Based Generation Workshop November 4, 2002 100
Interconnection Objective
! Interconnection is more than specifying the equipment
at the physical point of interconnection
! Interconnection study determines what is required to
ensure the BCH transmission system reliability is
maintained after interconnection (“protection and
control”)
! Cost estimate will be guaranteed to not exceed 130% of
the estimate (NEW!!)
Customer Based Generation Workshop November 4, 2002 101
Study Components
! Several inter-related planning depts involved
! Area Planning - acceptability, islanding issues
! Network Planning - stability impacts
! Station Planning - station capacity
! Protection Planning - protection and control requirements
! Telecontrol Planning - communication needed for protection to work
! Project Management review - completeness of scope
! Largest variable in interconnection cost is due to
protection requirements - not correlated to generation
project size
Customer Based Generation Workshop November 4, 2002 102
Study Costs
! A standard cost approach was used to prepare estimate
! 8 week time period does not allow time to estimate
individual study requirements
! $15 K for projects impacting transmission system
! $3-5 K for projects on distribution system
! Unique circumstances are being reviewed
! Upon completion, we will review overall study costs and
provide refunds if standard cost estimate was too high
Customer Based Generation Workshop November 4, 2002 103
Deliverables
Preliminary Interconnection Study Deliverables:
! Interconnection cost estimate
! Adjustments for bid comparison
! Bulk Location Adjustment ( i.e. transmission capacity
impact)
! Area Location Adjustment ( i.e. line loss impact)
! System Upgrade Adjustment ( i.e. impact of costs borne by
BCH)
! Bidders project must comply with BCH Interconnection
Requirements regarding equipment on their side of the POI
Customer Based Generation Workshop November 4, 2002 104
Revenue Metering
! Costs of revenue metering is not included in estimate:
! Revenue Metering is required per Section 7.11 of EPA
! Revenue metering is not required for interconnection
! Will vary depending on project configuration
! Largest cost is Voltage Transformers and Current
Transformers
! Provision of revenue meters and equipment by BCH can be
added to Facilities Agreement scope
Customer Based Generation Workshop November 4, 2002 105
Revenue Metering
Approximate Costs (Section 7.11a)
138 kV VTs and CTs $70 K
25 kV Meter Kit $30 K
25 kV VTs and CTs $25 K
600 V VTs and CTs $15 k
Load Profile Meter $6 k
Customer Based Generation Workshop November 4, 2002 106
QUESTIONS?
Customer Based Generation Workshop November 4, 2002 107
AGENDA
Topic Presenter
! Introduction & Welcome Bev Van Ruyven
! CFT Process Selection Terry McCullough
! Break
! EPA Terms & Conditions Myran Wallace
! Eligible Electricity Examples Al Boldt
! Lunch
! EPA Price & Examples Greg Simmons
! Green Criteria & GHG Estimating Jim Scouras
! Interconnection Process/Issues Ken Miyazaki
! Break
! Q&A Panel
! Closing Remarks Bob Elton
Customer Based Generation Workshop November 4, 2002 108
AGENDA
Topic Presenter
! Introduction & Welcome Bev Van Ruyven
! CFT Process Selection Terry McCullough
! Break
! EPA Terms & Conditions Myran Wallace
! Eligible Electricity Examples Al Boldt
! Lunch
! EPA Price & Examples Greg Simmons
! Green Criteria & GHG Estimating Jim Scouras
! Interconnection Process/Issues Ken Miyazaki
! Break
! Q&A Panel
! Closing Remarks Bob Elton
Customer Based Generation Workshop November 4, 2002 109