VANCOUVER — BC Hydro has announced that 23 bidders have registered to participate in the Vancouver Island Call for Tenders (VI CFT). The VI CFT, which was released on October 31, 2003, invites private sector developers to submit proposals for new generation projects to be located on Vancouver Island.

"We are pleased that so many private sector developers will be participating in the VI CFT," said BC Hydro's Senior Vice-President, Distribution, Bev Van Ruyven,. "The VI CFT is a key strategy in helping BC Hydro identify long-term, low-cost, reliable electricity options for our customers on Vancouver Island."

Bidder registration closed on Friday November 14, at 4 p.m. PPT. A list of registered bidders, project locations and technologies is attached.

Next steps include registered bidders submitting pre-qualification submissions. Based on successful pre-qualification, bidders will submit tenders to supply dependable capacity on Vancouver Island. As part of the pre-qualification phase, bidders are required to attend a workshop on November 21, to assist them in preparing their project submissions. Registered bidders have also been invited to comment to BC Hydro on key documents, including the CFT and preliminary Electricity Purchase Agreement. The VI CFT is being monitored by an Independent Reviewer, PricewaterhouseCoopers, which will report periodically to the BC Utilities Commission on the fairness, transparency and impartiality of the process.

"Our goal is to ensure a fair and competitive process that results in a cost-effective solution for new dependable capacity on Vancouver Island," said Van Ruyven.

BC Hydro's target for the VI CFT is to acquire 150 to 300 megawatts (MW), in aggregate, of low-cost, new dependable capacity on Vancouver Island. Individual projects must employ proven technology, be at least 25 MW in size and reach commercial operation by May 2007.

For more information about the Vancouver Island Call for Tenders, including all relevant documents, visit  www.bchydro.com/vicft.

Vancouver Island Call For Tenders Bidder Registration List

	Bidder Name	Project Location	Project Technology
1	Brascan Power Corporation	Beaver Cove	Water
2a	Calpine Canada Power Ltd.	Nanaimo	Natural Gas
2b	Calpine Canada Power Ltd.	Elk Falls	Natural Gas
3	Comstock Canada Ltd.	Nanaimo	Natural Gas
4	Constellation Power Source Inc.	Nanaimo	Natural Gas
5	EnviroCo Energy Recovery Ltd.	Nanaimo	Distillate Fuel / Natural Gas
6a	EPCOR Power Development Corporation	Nanaimo	Natural Gas
6b	EPCOR Power Development Corporation	Nanaimo / Ladysmith / Crofton	Natural Gas
7	Exodus Energy North America LLC	Nanaimo	Natural Gas
8	Green Island Energy Ltd.	Gold River	Biomass
9	Hunt Power Company of Canada, Inc.	Nanaimo	Natural Gas
10	Maxim Power Corp.	Ladysmith / Chemainus / Comox	Natural Gas
11	Norske Skog Canada Limited	Crofton / Elk Falls / Port Alberni	Natural Gas
12	Northern Utilities Inc.	Beaver Cove	Water
13	Northland Power Inc.	Beaver Cove	Biomass / Coal
14	Northwest Energy Services Company LLC	Nanaimo	Natural Gas
15	NPP Projects VI, L.L.C.	Nanaimo	Natural Gas
16	Plutonic Capital Inc.	Campbell River	Water
17	PPM Energy, Inc.	Port Alice	Wind
18a	Pristine Power Inc.	Nanaimo	Natural Gas / Dual Fuel
18b	Pristine Power Inc.	Nanaimo	Natural Gas / Dual Fuel
18c	Pristine Power Inc.	Nanaimo	Dual Fuel
19	Quinsam Energy Partnership	Campbell River	Coal
20a	Sea Breeze Power Corp.	Knob Hill	Wind / Battery
20b	Sea Breeze Power Corp.	Courtney / Comox / Duncan / Victoria	Battery
20c	Sea Breeze Power Corp.	Knob Hill	Wind
20d	Sea Breeze Power Corp.	Knob Hill	Wind / Water
21	SNC-Lavalin Inc.	Nanaimo	Natural Gas
22	Suthan Inc.	Nanaimo	Natural Gas
23	Syngen Power Ltd.	Comox	Synthetic Gas

Contact:

BC Hydro Media Relations

Media Relations manager

Phone: 604 623-4022

Vancouver Island Call for Tenders

• BC Hydro has long identified the need for new dependable capacity to meet its long-term electrical load on Vancouver Island.
• This dependable capacity must be in place by 2007 to offset the fact that the aging submarine transmission cable system — the high voltage direct current (HVDC) — will no longer be able to reliably supply Vancouver Island from the mainland of the province.
• In response, BC Hydro pursued two initiatives:
  • The Vancouver Island Generation Project (VIGP) — a 265 MW combined cycle gas turbine generation facility proposed by Vancouver Island Energy Corporation (VIEP), a wholly owned subsidiary of BC Hydro. VIGP was to reach commercial operation by November 1, 2006.
  • Georgia Strait Crossing — a natural gas pipeline jointly sponsored by BC Hydro and Williams Gas Pipeline Company to increase gas transportation capacity to Vancouver Island, with a scheduled in-service date that would support service to VIGP.
• Public hearings on VIGP took place during the summer of 2003. On September 8, 2003, the BC Utilities Commission (BCUC) denied VIEP a Certificate of Public Convenience and Necessity to build VIGP, and encouraged BC Hydro to proceed with a call for tenders to determine the most cost-effective option for new dependable capacity on Vancouver Island.
• Through the Vancouver Island Call for Tenders (VI CFT), BC Hydro is seeking proposals for new dependable capacity projects, which are to be located on Vancouver Island and which must achieve commercial operation date (COD) by May 1, 2007. This COD date provides six months to fully test and prove new generation project(s) prior to the winter 2007/08 peak demand season.
• Projects proposed must be new generation facilities; as well, tenders are also invited from independent power producers who may wish to acquire certain development assets — including the site — associated with the VIGP and who seek to build, own and operate either the VIGP, or a variation of that project, on the same site.
• The VI CFT comprises two phases : Pre-Qualification: Bidders and projects will be assessed against mandatory criteria; projects and/or bidders failing to meet the mandatory criteria will be disqualified. Tender: Bidders and projects will be re-evaluated against the pre-qualification mandatory criteria to ensure continuing compliance. A development risk assessment will be conducted by BC Hydro for each project. Projects that meet the mandatory criteria and pass the development risk assessment will be assembled into portfolios to determine the most cost-effective source of power supply.
• BC Hydro will announce the outcomes of the VI CFT by August 31, 2004.
• All documents and pertinent information on the VI CFT are posted on BC Hydro's web site at www.bchydro.com/vicft; these pages are updated as new information becomes available.