BC Hydro

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BC Hydro Power Smart

• BC Hydro Today
• Power Smart
• The 1st 10 years
• Today
• The next 10 years

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BC Hydro Profile

• 3rd Largest Canadian Utility
• 2001 51,338 GWh
• 91 of generation from 30 hydro installations
• 74, 000 km of transmission and distribution lines
• 6.3 billion in revenue, including 3.9 billion
  in trade revenue (2002)
• 3rd Lowest Electricity Prices in North America
• 1.4 million residential customers
• 181,000 commercial industrial customers

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Power Smart The 1st 10 years
Why Power Smart?

• The Situation BC Hydro was faced with the
  decision to develop a large, expensive,
  hydroelectric project
• The Alternative Power Smart was an attractive,
  cost-effective alternative to
• be more responsive to changing market demands,
• employ new technologies,
• give our customers more value, and
• reduce demand on the natural environment

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Power Smart The 1st 10 years
The Potential for Conservation

• a 1980s study of energy efficiency suggested
  that there were 5,600 GW.h of electricity savings
  available through utility demand side management
  (DSM) programs, over and above natural
  conservation
• this potential could be realized by a
  combinationof education, information and
  awareness,incentives, rates, technology, retail
  promotion and partnering programs, and through
  standards, legislation and regulations
• A new study is just being completed and the early
  results show that the Gw.h number of electricity
  savings has grown.

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Power Smart The 1st 10 years
Program Examples

• Residential 672,000 participants
• Refrigerator Recovery
• Power Smart New Home
• Home Check-Up Audit
• Business 33,800 participants
• Building Improvement Program
• High Efficiency Motor Program
• New Building Design

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Power Smart The 1st 10 years
The Results by 2000

• Annual Ongoing Savings ...
• 2,500 GWh/yr of electricity savings 500 MW of
  generation orenough to power 250,000 homes
• 5 billion litres of water
• 1.3 million tonnes of GHG emissions

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Power Smart The 1st 10 years

• 1989-2000 18,900 GWh Savings

Investment by Year 1989 - 2000

• Cost 343.3 million
• Overall DSM savings at
• lt2 cents/KWh
• Estimated value of saved
• energy 1 billion

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Power Smart - Today
Transition - Investment in Power Smart has
changed over the years
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Power Smart - Today
Rebirth of Power Smart

• tight supply growing demand renewed interest in
  Power Smart as a source of cost-effective,
  green energy
• higher environmental expectations
• significant conservation potential remained
• new programs planned and implemented

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Power Smart - Today
Power Smart Targets

• Meet resource requirements (GWhs) and
  environmental commitments (GHGs)
• 10 Year savings target is 3500 GWh savings
  and1.3 million tonnes of GHGs
• 1000 GWh Residential
• 1100 GWh Commercial
• 1400 GWh Industrial
• Investment 600 million

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Power Smart - Today
The Rationale Power Smart makes business sense
for BC Hydro

• Cost-Effective - DSM is very competitive with
  alternative sources of electricity
• Environmentally Sound - DSM is the greenest
  possible energy and helps BC Hydro meet goal of
  leadership in sustainability
• Customer Satisfaction - Improved bottom-line for
  our customers through the smart use of power

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Power Smart - Today

• What is BC Hydro doing for Business?
• Power Smart Partners an incentive based program
  that provides customers with access to funding
  for energy audits or studies, energy managers,
  re-commissioning of equipment, and competitive
  based incentive funding for energy efficiency
  projects
• e.Points funding for energy efficiency projects
  based on the customers conservation efforts
• Customer Based Generation a call to customers to
  provideBC Hydro with generation at its long run
  marginal cost of energy
• Revolving Fund interest financing for energy
  efficiency incentives
• Sector Specific Programs Power Smart offers
  specific programs for municipalities and schools,
  universities, collegesand hospitals

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Power Smart - Today

• Business Awareness Programs
• e.Review - Interactive audit available on the
  web
• Alliance - Network of private contractors and
  engineers
• e.Tools - Online library of energy savings
  tips, technology guides and resources
• Seminars - Energy management practices and
  technologies
• Demonstration - Projects and case studies
• e-Catalog - on-line access to 17 manufacturers
  and over 1,700 energy efficiency products

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Power Smart - Today

• Business Programs - an example
• LED Traffic Light Exchange Program
• Targeted technology program aimed at every
  intersection in B.C.
• Incentives to replace incandescent bulbs with LED
  traffic signal lamps
• BCH pays 100 up-front LED cost, customer repays
  50 over 5-yrs
• 85-90 electricity savings

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Power Smart - Today

• What is BC Hydro doing for Residential?
• On Vancouver Island, compact fluorescent light
  (CFL), home energy upgrade and refrigerator
  buy back programs
• Across BC, customers have access to home energy
  profiling tools, and information about Power
  Smart over the web, at home shows and other
  events and through the Power Smart Youth Team
• Power Smart introduced light emitting diode
  Christmas lights on a promotional basis this past
  year
• Other programs, such as Power Smart New Home
  standards and re-lamping of common areas in
  multi-family residential common areas are also
  in place

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Power Smart - Today
An example - the CFL program

• ? Customer Surveys
• CFL awareness increased from 62 to 92
• Understanding of CFL features increased - 70
• Satisfaction rates of over 90 for CFLs, the
  process the program
• ? Retailer Surveys
• 93 very satisfied
• Program created buzz, increased traffic to
  stores, increased sales (CFL and overall)

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Power SmartThe Next 10 Years

• ? We have made a commitment to invest 600
  million over the next 10 years
• ? We have set aggressive targets
• ? It is an important piece of the resource
  acquisition strategy for BC Hydro
• ? It makes business sense
• ? It delivers value to our customers
• ? The business climate today supports doing
  more rather than less Demand SideManagement
  programs.

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Resource Acquisition Programs

• Customer Based Generation
• Green Alternative Energy

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Customer-Based Generation

• First time BC Hydro has conducted a competitive
  tender based call for energy
• 10 to 20 year purchase agreements
• ceiling price of 55 / MWh
• in service date of September 2006
• Launched May 2002 - 800 GWh/year target
• RFQ phase - 37 proposals, 6,800 GWh/year
• Short-listed to 22 proposals, 3,200 GWh/year
• Tenders due March 15th

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Green Energy

• First Green energy call in 2001
• 23 Energy Purchase Agreements signed
• 900 GWh/year
• Second Green energy competitive call now in
  progress
• 800 GWh/year target, price and terms consistent
  with the Customer-Based Generation call
• 70 proposals received, 5,500 GWh/year
• most of the proposals are hydro based
• but they include biomass, wind and wave proposals
• In service date is September 2006

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Green Power Certificates

• Purchasers can offset the impact of their
  electricity use
• Stringent green criteria, permitting GHG
  reductions
• Third party verification of claims
• Mix of small hydro, biomass, and landfill gas
• Recognition program for purchasers
• Special recognition for Charter Purchasers
• Cost for Green Certificates is 20/MWh
• Subscribe between September 2002 throughMarch
  2003

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• Questions