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Our Frequently Asked Questions (FAQs) gives you answers to common questions regarding the Standing Offer Program. If you don't find an answer, we invite you to ask us a question. BC Hydro's answers to the questions are only for general information and do not constitute legal or other advice.

  1. What are the eligibility requirements for the Standing Offer Program?
    The eligibility requirements are summarized on the Who Can Apply page and are detailed in Section 3 of the Program Rules.

  2. I have a project that is ready to go. How do I apply to the Standing Offer Program?
    Developers must submit an Application Form and supporting documentation for their project. See How to Apply.

  3. Will permits, zoning and site information be required when submitting the Application Form?
    The Program Rules state that documents with respect to a project's permits, site control and zoning be provided at the time an application is submitted. Please refer to Section 3.7 of the Application Form for more details with respect to which documents will be requested.

  4. What price of energy will my project be receiving?
    BC Hydro will pay for each MWh of energy delivered based on: (1) the base price as determined by the region of the point of interconnection; (2) any CPI escalation applicable to the base price; (3) the time of delivery adjustment factor, and (4) the Environmental Attributes price (if applicable) escalated in accordance with the Program Rules and Electricity Purchase Agreement (EPA). For an example of how the future energy price and Environmental Attributes price is determined, please refer to Figure 6 in Section 4.3  of the Program Rules for more details.

  5. Will the price vary based on the generation technology used?
    BC Hydro offers all Proven Generation Technologies the same price, with prices differentiated by the region where the energy is delivered to BC Hydro. The prices to be paid to developers under the Standing Offer Program are detailed in Section 4 of the Program Rules.

  6. How do I know if the technology I propose to use is a Proven Generation Technology?
    The definition for Proven Generation Technology does not identify specific technologies as being proven, but rather it provides a guideline for determining if particular technologies are proven. It is the responsibility of the developer to offer evidence of at least three generation plants (which need not be owned or operated by the developer) using that technology to generate energy for a period of not less than three years, to a standard of reliability generally required by Good Utility Practice (as defined in the Standard Form EPA).

  7. Are pilot or demonstration projects eligible for the Standing Offer Program?
    Pilot or demonstration projects are not currently eligible for the Standing Offer Program. The Program Rules identify that one of the eligibility requirements for the Program is that the technology to be used is proven. For a definition of Proven Generation Technology please refer to the glossary of the Program Rules .

    As part of its two year review, BC Hydro will consider the participation of prototype and near commercial technologies in the Standing Offer Program.

  8. For projects that do not meet the Proven Generation Technologies eligibility requirement, does BC Hydro offer any other programs that support such projects or promote BC innovation?
    The Non-Integrated Area group (NIA) within BC Hydro is seeking to acquire energy from Independent Power Producers (IPPs) to serve various remote communities (communities not currently serviced by BC Hydro) and NIA customers (customers serviced by BC Hydro but not connected to the distribution system). IPPs may contact the NIA group to discuss options on how to best serve remote communities and NIA customers.

    To find out more about NIA, please contact:
    Nick Hawley
    Business Strategy Manager, Non-Integrated Area
    nick.hawley@bchydro.com

  9. With the requirement that Environmental Attributes are to be transferred to BC Hydro, would any incentive received from the federal government's ecoENERGY program also need to be transferred to BC Hydro?
    Although the Standing Offer Program requires the Environmental Attributes associated with the project be transferred to BC Hydro, the developer need not transfer any incentive it may claim under the ecoENERGY program to BC Hydro provided that the Environmental Attributes of the project need not be transferred to the federal government. Please note that the ecoENERGY program as currently proposed does not require the developer to transfer the Environmental Attributes to the federal government.

  10. How is the Standing Offer Program different from a Call for Tenders (CFT)?
    The difference between the Standing Offer Program and previous CFTs is that developers are not competing against each other for an EPA in the Standing Offer Program. Developers who are offered an EPA in the Standing Offer Program will be paid a pre-determined price. Unlike a CFT process, the Standing Offer Program will not create any legal obligations for the parties until BC Hydro has offered an EPA to a developer in the Program and that offer has been accepted by the developer.

  11. How much power is BC Hydro targeting to acquire from this Program and is there a quota of how much BC Hydro will buy?

    The BC Energy Plan states that "Except for local safety and security reasons, there should be no quota initially for the Standing Offer Program". As such, we will not have an initial target volume or quota. We understand that there may be quite a large interest in this Program as BC Hydro received many submissions for projects of this type in previous calls for power. The need for total or annual volume caps will be reviewed after the first two years of the Program.

  12. When does the Program expire?
    The Program is ongoing. We will review the requirements and need for the Program two years from launch, but currently we do not have a closing date. BC Hydro will provide a one-year notice to developers prior to the Program being cancelled.

  13. What will be included in the two-year review of the Program?
    BC Hydro will review a number of factors in the two-year review. The review will include an updated load/resource balance, the amount of freshet energy acquired, load displacement issues, and the escalation rate used for clean thermal and small hydro. In addition, the participation of prototype and near commercial technologies and different pricing for different technologies will be considered. Other factors to be reviewed may include:

    • The need for total or annual volume caps;
    • The maximum and minimum size of eligible projects;
    • Other eligibility rules;
    • The prices to be paid for new projects under the Program;
    • The length of new EPAs;
    • Other parameters that make up the terms and conditions of the Program.

  14. Can we participate in the Standing Offer Program if we have a cluster of projects that exceeds 10 MW, but each individual project within the cluster is less than 10 MW?
    One of the main purposes of the Standing Offer Program, as outlined in the 2007 BC Energy Plan, is to facilitate the development of clean electricity projects with a capacity of 10 MW or less. Therefore, if a larger project appears to be artificially broken up into smaller projects with the sole intent of meeting the maximum size eligibility criterion of 10 MW, such a situation would be in violation of the spirit and purpose of the Standing Offer Program and would not be acceptable to BC Hydro.

    Section 3.3 of the Program Rules states that "A Project that is part of a Common Generation Facility where that Common Generation Facility is, in whole or in part, the subject of an EPA entered into under the Program will not be eligible for the Program."

    Factors BC Hydro may consider in its sole discretion in determining whether or not two or more projects are effectively part of a larger aggregate project would likely include, but are not limited to:

    • Whether or not the projects share common facilities such as penstocks, powerhouse, etc.
    • Whether or not the projects share interconnection facilities and/or a point of interconnection with the BC Hydro Integrated System
    • Whether or not the projects share the same physical site
    • Whether or not the projects will operate under common permits
    • Whether or not the projects share the same fuel source
    • Whether or not the projects are under common ownership (direct or indirect)

    In order to definitively answer your question, more information about your project would be required. Please submit further detailed information about your project(s) in a written Q&A to allow BC Hydro to consider your specific situation in the context of the bulleted items above.

  15. We are preparing an application for a customer who is currently selling power in short-term increments to Powerex, a wholly-owned subsidiary of BC Hydro. Is Powerex considered to be BC Hydro (Exhibit 11) or a third party (Exhibit 12)?
    For the purposes of the Standing Offer Program, Powerex is considered to be "a party other than BC Hydro" and so, in answer to your specific question concerning section 3.4 of the Program Application Form, an existing or previous electricity purchase agreement with Powerex for electricity generated by the Project should be submitted in Exhibit 12, and section 3.4.b) of the Program Application Form is the relevant section in which to respond with respect to the previous or existing contract(s) with Powerex

  16. Would local governments in the FortisBC service area be able to sell power to BC Hydro through the Standing Offer Program?
    Section 5.0 of the Standing Offer Program Rules states "Projects will interconnect directly or indirectly to either Distribution or Transmission System." In the Glossary of the Program Rules (Appendix A), the definition of "Indirect Interconnection" contemplates interconnections through a public utility system owned and operated by a third party such as FortisBC. Thus, in principle, entities (including local governments) within the FortisBC service area are eligible to participate in the Standing Offer Program. There are a number of sections and clauses in the Program Rules (e.g. section 5,2) and the Standard Form EPA (e.g. Appendix 5) specifically addressing the treatment of indirect interconnections which should be considered for projects contemplating indirect interconnection to the Integrated System. In addition, the concept of a "generator baseline" as described in section 3.3 of the Program Rules, which establishes the amount of energy that has historically been used to serve an existing load or commitment and is therefore not eligible under the Program, is also applicable to projects located within the FortisBC service area. Finally, BC Hydro will require clear evidence that power from an entity inside the FortisBC service area (in excess of any applicable generator baseline) will in fact be delivered into the BC Hydro service area together with an appropriate method of tracking such deliveries.
       

Last Modified: Jun 4, 2008

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