Electricity purchase agreements
Electricity Purchase Agreement (EPA) Renewal Program
As proposed in our 2021 Integrated Resource Plan (IRP), we have developed an electricity purchase agreement (EPA) renewal program for independent power producers (IPPs) who have EPAs for clean or renewable projects set to expire before April 1, 2026 (see list below). These projects will be offered EPA renewals at market-based prices.
Important notes about the EPA renewal program:
- The program itself does not create any legally binding obligations, rights or liabilities between the parties;
- The program may be discontinued at any time;
- Terms and conditions may be updated from time to time;
- No agreement will exist between the parties until both parties have signed and delivered the final agreements; and
- Where there are differences between the Specimen EPA and other documents issued by BC Hydro, the Specimen EPA shall prevail.
Qualifying IPPs
| Project Name |
Resource Type |
Location |
Capacity (MW) |
Energy (GWh/yr) |
|---|---|---|---|---|
| Brandywine Creek Small Hydro | Non-Storage Hydro | Whistler | 7.6 | 34.1 |
| Brown Lake 2 | Storage Hydro | Prince Rupert | 7.2 | 57 |
| China Creek Small Hydroelectric | Non-Storage Hydro | Port Alberni | 6.3 | 24.7 |
| Coats IPP 2 | Non-Storage Hydro | Gabriola Island | <1 | 0.4 |
| Eagle Lake C2 Micro Hydro | Non-Storage Hydro | West Vancouver | <1 | 1.2 |
| Furry Creek | Non-Storage Hydro | Lions Bay | 10.4 | 39.5 |
| Hartland Landfill Gas Utilization | Biogas | Saanich | 1.8 | 14.5 |
| Marion 3 Creek | Non-Storage Hydro | Port Alberni | 4.6 | 17.5 |
| McNair Creek Hydro | Non-Storage Hydro | Sechelt | 9.8 | 38 |
| Mears Creek | Non-Storage Hydro | Gold River | 3.8 | 19.5 |
| Miller Creek Power | Non-Storage Hydro | Pemberton | 29.5 | 118 |
| Pingston Creek | Non-Storage Hydro | Revelstoke | 45 | 193 |
| Robson Valley (Ptarmigan Creek) | Non-Storage Hydro | McBride | 3.6 | 19.2 |
| Rutherford Creek Hydro | Non-Storage Hydro | Pemberton | 50 | 172 |
| Sechelt Creek 2 | Non-Storage Hydro | Sechelt | 16.6 | 84.6 |
| South Sutton Creek | Non-Storage Hydro | Port Alberni | 4.9 | 26 |
| Upper Mamquam Hydro | Non-Storage Hydro | Squamish | 25 | 108 |
| Vancouver Landfill Gas Utilization - Ph 1 | Biogas | Delta | 5.5 | 40 |
| Walden North | Non-Storage Hydro | Lillooet | 16 | 54 |
Program updates
The EPA Renewal Program was finalized in October 2022. The key components of the program are outlined in the documents listed below. Minor amendments to both the Final Term Sheet and Specimen EPA were made in January 2023.
- EPA Renewal Program Rules [PDF, 219 KB]
- Final Term Sheet (January 2023) [PDF, 310 KB]
- Specimen EPA (January 2023) [PDF, 763 KB]
- Specimen EPA (Blackline comparison of January 2023 versus October 2022 version) [PDF, 667 KB]
October 26, 2022
Qualifying IPPs provided written feedback regarding the draft term sheet and specimen EPA by September 16th. We subsequently finalized the terms of the EPA Renewal Program and on October 26 provided the final documents to qualifying IPPs.
- Final Term Sheet (October 2022 – Superceded) [PDF, 262 KB]
- Specimen EPA (October 2022 – Superceded) [PDF, 652 KB]
September 1, 2022
Following the July information session, we held clarification meetings with individual IPPs to address their questions and to receive feedback about the EPA Renewal Program. On September 1, the qualifying IPPs were provided with a draft standard form of contract (i.e., specimen EPA) for the EPA Renewal Program which was aligned with the final draft term sheet.
July 19, 2022
We held a second information session with qualifying IPPs on July 19, providing a summary of the feedback received through the engagement process and presenting the resulting, updated draft commercial terms for the EPA Renewal Program. The presentation and final draft term sheet from the meeting are listed below.
- Information session #2 presentation – July 19, 2022 [PDF, 280 KB]
- Final draft term sheet – July 2022 [PDF, 180 KB]
February 16, 2022
In February 2022, we started engaging with the qualifying IPPs and First Nations regarding the development of an EPA renewal program. On February 16, we held an initial information session for qualifying IPPs that have EPAs expiring within the next five years. The presentation and draft term sheet from the meeting are listed below.
- Information session #1 presentation – February 16, 2022 [PDF, 363 KB]
- Draft term sheet – February 16, 2022 [PDF, 207 KB]
December 21, 2021
We filed our 2021 Integrated Resource Plan (IRP) [PDF, 2.8 MB] with the British Columbia Utilities Commission (BCUC) in December 2021. The plan outlines our approach to continuing to meet the electricity needs of the province for the next 20 years. The IRP identifies the EPA renewals for clean or renewable projects expiring prior to April 1, 2026 as one of the Near-Term Actions needed to implement the elements of the Base Resource Plan.
Frequently asked questions: EPA renewals
While BC Hydro expects to have sufficient energy and capacity until the early 2030s, there is a potential benefit to BC Hydro if these facilities continue to be available for a situation in which their generation is required to meet domestic need.
Renewing these agreements now, even for shorter-term periods, provides us with greater certainty that these IPP facilities will continue to be available when needed to displace new greenfield supply.
In order to maintain flexibility for the future and to limit cost-risk to ratepayers we have chosen to offer market-based pricing agreements to the IPP holders of all 19 clean or renewable electricity purchase agreements expiring in the next five years.
There are 19 EPAs for clean or renewable projects that are set to expire before April 2026. These EPAs are identified in the EPA Renewal Program Rules document.
The 19 clean/renewable projects range in size from 0.2 MW to 50 MW in nameplate capacity, and total over 200 MW in nameplate capacity and over 900 GWh annual generation. The projects are comprised of 16 run-of-river projects, one storage hydro and two biogas.
The Island Generation and SEEGEN EPAs are also expiring. As these projects are not from 100% clean or renewable resources, the potential renewal of their EPAs will be managed through separate processes.
Renewing EPAs expiring in the next five-years is a Near-Term Action in the 2021 IRP. Near-Term Actions are those actions BC Hydro is taking over the next five years to the implement the Base Resource Plan as set out in the IRP.