• Green Power Generation Process
• Standard Electricity Purchase Agreement 
• Call for Tenders Process  

2002/03 Green Power Generation Process
April 30, 2003

Is there any benefit in the evaluation process, in terms of evaluation criteria in the 2002/03 GPG Request for Qualifications, of having a benefits agreement or for consulting with a First Nation? Would the weighting or evaluation be different if there was just support (i.e., letter of support) or proof of participation from First Nations?

The 2002/03 GPG RFQ outlines the process for assessing the proponent’s likelihood of meeting the applicable low impact criteria and the social responsibility criteria. One of the socially responsible facilities criteria is that the IPP must demonstrate how they intend to meet, or have met the descriptor "Relevant members of the aboriginal community have been contacted and communicated with allowing for informed decision-making by the aboriginal community."

In addition, under the Project Criteria - "Project Development Status," BC Hydro will evaluate the likelihood of a project achieving commercial operation by its target commercial operation date (COD). In evaluating projects against these criteria, BC Hydro has no preference, and will not give any additional weight, with respect to the manner in which each IPP complies with the Socially Responsible Facilities Criteria or the steps each IPP takes to ensure that its project will achieve commercial operation by its target COD.

However, as stated in the 2002/03 GPG RFQ, "BC Hydro will give preference to those projects that are the most likely to meet the 2002/03 GPG Green Criteria and that are most likely to achieve commercial operation not later than 30 September, 2006." There are many variables that will affect the project achieving its target COD. Therefore, in evaluating projects against the criteria discussed above, BC Hydro will assess information provided on all of these variables, including the advancement of communications with First Nations, to evaluate a project’s relative level of advancement.

As part of the Crown’s approval process for each IPP project, BC Hydro expects that the Crown’s fiduciary obligations to First Nations will be met, as provided in the Provincial Policy for Consultation with First Nations (October 2002). IPPs applying for authorizations must also meet all statutory obligations with respect to First Nations that relate to those authorizations.

November 26, 2002

Will BC Hydro financially support the developers’ 2002/03 GPG RFQ or CFT submissions?

No. As stated within the 2002/03 GPG RFQ Conditions, developers are responsible for all costs incurred by them in connection with this 2002/03 GPG RFQ, the 2002/03 GPG CFT, the preparation of any 2002/03 GPG Qualification Statement and Tender, the execution and delivery of any electricity purchase agreement arising therefrom, and any interconnection and facilities agreement.

2002/03 GPG Standard Electricity Purchase Agreement
December 9, 2002

How far can the project target COD precede the BC Hydro-established target COD of September 30, 2006? In other words, will BC Hydro purchase the electricity if the project reaches COD before September 30, 2006?

As long as the project still meets the "New Project" definition (see 2002/03 GPG Eligibility Requirements), the project target COD can precede the BC Hydro-established target COD of September 30, 2006.

The payment for electricity delivered before September 30, 2006, will be established in the 2002/03 GPG Standard Electricity Purchase Agreement. For information on tariffs in other BC Hydro Standard Electricity Purchase Agreements, refer to the Customer Based Generation Standard Electricity Purchase Agreement.

Can you provide the 2002/03 GPG Standard EPA definitions for: (a) Green Rights; (b) Greenhouse Gas Emission Reductions; (c) Contracted Capacity; and (d) Contracted Electricity?

These terms will be defined in the 2002/03 GPG Standard Electricity Purchase Agreement. For information on definitions of these terms in other BC Hydro Standard Electricity Purchase Agreements, refer to the Customer Based Generation Standard Electricity Purchase Agreement.

When does the Inflation Adjustment start? When do the Green Criteria, GHG Intensity and Recall Option Adjustments start?

The terms and conditions for the Inflation and Recall Option Adjustments will be finalised in the 2002/03 GPG Standard EPA. For information on how these Adjustments were applied in other BC Hydro Standard Electricity Purchase Agreements, refer to the Customer Based Generation Standard Electricity Purchase Agreement.

Please note that a Green Criteria price adjustment will apply only if a project fails to meet the 2002/03 GPG Green Criteria. Similarly, liquidated damages may apply if the project fails to achieve the GHG intensity specified for the project. The 2002/03 GPG Standard EPA will define how BC Hydro will apply the Green Criteria price adjustment and the GHG intensity liquidated damages.

At what stage do developers have to begin the process with BC Hydro - Transmission and Distribution?

After the list of eligible bidders has been determined from the RFQ stage, bidders may have to initiate meetings with BC Hydro - Office of Generator Interconnections early in the 2002/03 GPG CFT process. The list of eligible bidders will be notified of the process at that time.

Are IPPs expected to predict their energy output for every HLH and LLH for every month for the length of the contract term?

The 2002/03 GPG EPA is under development. However, it is likely that BC Hydro will not require IPPs to predict their energy output for HLH/LLH throughout the contract term. IPPs may want to consider the price impacts of the HLH/LLH applied to their energy profile before submitting their tender bid.

November 18, 2002

Could BC Hydro elaborate on the pricing structure of EPAs awarded to successful candidates? Specifically, will the Bid Price be the basis for the price actually entered in the EPA?

Yes. The Bid Price of those bidders who have been awarded an EPA will be the basis for the price entered in the EPA. This price will be adjusted according to the adjustments outlined on pages 4 – 5 of the 2002/03 GPG RFQ in the section "2002/03 GPG Standard Electricity Purchase Agreement."

The Bid Price will also be used to select projects as part of the 2002/03 GPG CFT process. Ranking adjustments will be applied to the Bid Price for comparison purposes only. These ranking adjustments are outlined on pages 10 – 12 of the 2002/03 GPG RFQ, in the section "2002/03 GPG CFT Process." After the Bid Price has been adjusted, for comparison purposes only, any adjusted Bid Price greater than the ceiling price of $55/MWh will be rejected.

2002/03 GPG Call for Tenders Process
December 9, 2002

Will BC Hydro consider a phased construction/delivery schedule? To be more specific, would BC Hydro consider a bid during the CFT to develop x MW in Phase 1 and y MW in Phase 2, if both phases are in commercial operation by September 30, 2006?

BC Hydro will take this under advisement for the 2002/03 GPG procurement process.

What is the purpose of the Bulk Location Adjustment? What is the rationale behind the bid price increase for all areas other than the Lower Mainland and Vancouver Island?

The Bulk Location Adjustment reflects BC Hydro's preferences for new power generation to take place in locations facing high demand and system constraints.

Can a range of possible values be provided for the Area Location Adjustment based on BC Hydro's past experience? If a developer provides the project location and installed capacity, can BC Hydro provide an estimate of what the Area Location Adjustment will be before the Call for Tenders?

As Area Location Adjustments are site and project specific, BC Hydro does not feel that it will be meaningful to come up with examples that will generally apply to IPP generation projects. The project-specific Area Location Adjustment will be determined as part of the Preliminary Interconnection Study during the 2002/03 GPG CFT process.

Could BC Hydro confirm that a qualified and short-listed bidder would be allowed to withdraw from the 2002/03 GPG CFT process (after review of the 2002/03 GPG CFT and EPA) without penalty?

The 2002/03 GPG CFT is under development. However, it is likely that BC Hydro will require security from developers only if they decide to submit a tender bid.

At certain project sites, the project might conceivably connect to two distribution lines. What is the maximum amount of kW that could be connected to each line? What would the interconnection cost be?

Feasibility and cost depend upon the present loading on the line, whether it is single or three phase and the type of generator that is being attached. If one could ignore line losses, a dedicated distribution could be connected to a plant of up to 30,000 kW. Normally, the limit is around 8,000 -10,000 kW. The costs payable by the developer can range from a few thousand to millions of dollars depending upon the work required. A project can trigger the need for significant protection upgrades at the substation. This is why BC Hydro encourages developers to contact the Office of Generator Interconnections and initiate a preliminary interconnection study.

November 26, 2002

Will a project on Vancouver Island be considered on the same basis as a project on the B.C. mainland, subject to the Bulk Location Adjustment?

In the 2002/03 GPG CFT, where bids will be adjusted for Bid Price comparison purposes only, project location will affect the Area Location Adjustment and System Adjustment as well as the Bulk Location Adjustment. Location is not expected to be a determinant of the value of any of the other adjustments applied in the 2002/03 GPG CFT.

In the 2002/03 GPG RFQ, BC Hydro will also evaluate the likelihood of the project achieving commercial operation by its target commercial operation date and will give preference to those projects that are the most likely to achieve commercial operation not later than 30 September 2006. This involves a review and assessment of the project development timeline and current status of key project development tasks, including strategies to meet regionally specific development requirements. Here, BC Hydro will only consider project location with respect to regionally specific development requirements and the likelihood of the project achieving commercial operation by its target commercial operation date.

Regarding the information on the 2002/03 GPG EPA, it is stated that the Bid Price will be adjusted for deliveries during heavy load hours and light load hours. Will Delivery Time be used as an adjustment for Bid Price comparison purposes in the 2002/03 GPG CFT?

No. The Delivery Time adjustment will not be used in the ranking and selection process for contract award. Rather, it is an adjustment that will be applied to the Bid Price of those bidders who are awarded an EPA, to determine the actual payment.

November 18, 2002

I am considering developing a 9 MW project. What amount, approximately, would be required for Bid Security for this project?

BC Hydro will release the amount required for Bid Security at the 2002/03 GPG CFT stage.

For information on the amount required for Tender Security in other BC Hydro Call for Tenders processes, refer to the 2002 Customer-Based Generation Call for Tenders document.