2005 Annual Report - Internal Business Structure

Internal Business Structure

BC Hydro has four Lines of Business and a corporate group, two subsidiaries and two key suppliers. These groups and their respective employee numbers are shown in the accompanying chart.

Generation manages and operates BC Hydro’s generation assets to optimize their value for the benefit of the company, customers and the shareholder. Generation manages the investment strategies related to generation assets and Water Use Planning. Generation assets include 42 dams, 79 generating units at 31 hydroelectric facilities and nine units at three thermal generating plants.

Distribution acquires energy through demand-side and supply-side options, delivers it safely and reliably to our customers, and provides extension and connection services. Distribution manages 56,400 kilometres of overhead, underground and submarine distribution lines, 876,000 poles and 344,000 transformers, and substation distribution assets.

Engineering provides project management, maintenance, emergency response, design, environmental support, contracts and construction management services to BC Hydro, British Columbia Transmission Corporation (BCTC) and to some external clients.

Field Services provides services such as emergency response and restoration and maintenance services to BC Hydro and BCTC in more than 50 communities in the province. Field Services also manages the vehicle fleet.

Corporate services include: the office of the Chief Financial Officer (finance and regulatory functions); Corporate Resources (legal, corporate communications and public affairs, properties and human resources); Organizational Development, Stakeholder Engagement and sustainability; Business Partnerships; and Risk Management. These groups provide services to the overall organization.

Subsidiaries

Powerex, the energy marketing arm of BC Hydro, is a leading marketer of wholesale physical electricity products and services in western Canada and the United States, and a growing player in other select markets across North America. Powerex is responsible for creating economic value for BC Hydro and the province by:

• Optimizing the unused capability of BC Hydro’s generation system for trade, including purchasing energy for trade and resale using the hydroelectric system;
• Energy trading in the Western Electricity Coordinating Council and other regions; and
• Optimizing the purchase and sale of electricity and natural gas in relation to BC Hydro’s capabilities and domestic requirements.

Powertech Labs Inc. is BC Hydro’s research and engineering technology subsidiary, serving B.C., Canadian and international clients. Powertech’s basic business is innovation, solving technical problems, equipment testing and certification. Powertech also develops and deploys software solutions, investigates alternate energy generation, performs electrical, materials and metallurgy testing, and provides chemistry analysis for the energy sector.