Remote Community Electrification Program RCE

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Remote Community Electrification Program (RCE)
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Outline

• Electrical Communities in BC
• Reliability RCE Long Term Goal
• Defining Remote Communities
• Program Objectives
• Program Components
• Community Electricity Plans
• Funding and Partners
• Summary

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Electrical Communities in BC

• Communities in BC Hydro non-integrated areas
  (NIA)
• Not connected to the grid, but have BC Hydro
  local generation (e.g., smaller hydro or diesel
  generators).
• Pay Zone II rate for electricity
• Example is Atlin
• None on Vancouver Island

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Reliability and Benchmarks

• Reliability differs among the three groups
• On-grid is most reliable
• Non-integrated areas (NIA) are next most reliable
• Remote sites are least reliable
• We intend to bring remote communities to NIA
  standards 2 years after take-over

Interruption Availability BC Hydro grid
(F05) 3 hrs 99.96 (4 hrs out) BCH NIA (5
yr average) 2 hrs 99.80 (20 hrs out) Non BCH
(5 yr average) 5 hrs 99.44 (50 hrs out)
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BC Hydros Bold Goals

• August 2004 BC Hydro established 15 Bold Goals
  or long term goals to ensure that the company
  will deliver on its Vision of Reliable Power,
  At Low Cost, For Generations. These goals are in
  the areas of
• Customer Reliability
• Supply Reliability
• Customer Satisfaction
• Remote Community Electrification
• Workplace
• Teamwork
• Safety
• First Nations
• Suppliers
• Environmental Impact
• Electricity Conservation and Efficiency
• Financial Performance
• Western Opportunities (export)
• Innovation Technology
• Stakeholder Engagement

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RCE Long Term Goal

• Provide appropriate electrical service to
  eligible remote communities on an equitable
  basis, who are interested in receiving service
  from BC Hydro
• Manage existing generation systems where desired
  and upgrade to BC Hydro standards for better
  reliability
• Build new generation facilities if needed
• Arrange new alternative generation and partner
  with suppliers, contractors and manufactures
• Meet Zone 2 electricity pricing regulations
• Partner with Province and Canada to transfer
  funding

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RCE Program

• Fully established in May 2006 with a full-time
  team
• Program Manager Nick Hawley
• Energy Planning John Oliver
• Implementation David Benish
• Power Smart Janie Hutchings
• Community Relations Grietje Van Dijk
• Supported by consultants.
• Closely aligned with the Non-Integrated Areas
  (NIA)
• External Steering Committee
• Indian and Northern Affairs
• BC Hydro
• Ministry of Energy, Mines and Petroleum Resources
  
• First Nations Summit
• Western Economic Diversification

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Community Eligibility

• In a rural area and in existence for 20 years
• More than 25 people residing there all the time
  in 10 or more permanent homes
• Homes within 200 meters of each other and on
  average no more than 100 meters apart
• Homes more than 1.5 km away from the BC Hydro
  grid or not able to take advantage of the
  Uneconomic Extension Allowance program to connect
  to the grid
• Unique circumstances may be considered for
  growing communities

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Identifying and Prioritizing Communities

• 50 main communities identified as potentially
  eligible remote communities (plus satellites
  communities)
• Many are aboriginal communities.
• Prioritization based on a set of 11 objectives,
• Objectives weighted based on input from First
  Nations and civic remote communities (workshops).

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What are the objectives of the program?

• Objective 1 Maximize potential for successful
  implementation
• Objective 2 Maximize the number of new
  customers served
• Objective 3 Improve access to community
  services
• By enabling the improvement of health, cultural,
  language and educational opportunities
• Objective 4 Improve electricity reliability
• By ensuring diverse supply and reliable energy
  sources

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What are the objectives of the program?

• Objective 5 Enable economic development by
  enhancing opportunities for business development
  and growth.
• Objective 6 Contribute to sustainable
  communities
• Objective 7 Provide long-term successful
  service to First Nation communities
• Objective 8 Reduce environmental impacts
• Primarily Greenhouse Gases
• By maximizing renewable energy opportunities

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What are the objectives of the program?

• Objective 9 Minimize financial impact
• Meet BCUC objectives
• including minimize impact to ratepayers
• By working with funding partners and alternative
  energy sources.
• Objective 10 Improve customer relationships
• By working closely with communities to ensure
  goals and needs are met.
• Objective 11 Reduce amount of energy used
• By working with communities with infrastructure
  growth opportunities

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The Program Components

• RCEP Remote Community Electricity Plan
• Business Model the responsibilities of each
  party and ownership of assets. (BCH/Customers/Comm
  unity)
• Operating Model - how the system will be
  operated and who will do what.

• 4. Service Agreement who will pay what
  for the service and
  what service standards will be provided.
• 5. CPCN Certificate to be the utility for this
  community.

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Remote Community Energy Plan

• Includes
• Existing Equipment Assessment
• Existing and future load/demand assessment
• Supply Options
• Demand
• Management
• Scenario evaluation
• and selection

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Remote Community Energy Plan

• Supply Options
• Conventional
• Small Hydro
• Wind
• Solar
• Ground source heat
• Ocean energy
• Biomass / Biogas
• Near Commercial Opportunities
• Storage Options

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Remote Community Energy Plan

• Demand Management Options
• Building Improvements
• Efficiency Upgrades
• Behavioural Changes
• Power Smart offerings will be customized for
  remote communities.

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RCE Program Funding Policy

• Rate structure
• BC Hydro Zone II stepped rate, to encourage
  energy efficiency
• Revenue shortfall
• Estimate annual revenue shortfall of 10 M to 15
  M plus capital with all community implementation
• Based on NIA model/INAC model and experience,
  depending on level of third party funding.
• Cost recovery
• Deficit to be funded from BC Hydros broader
  revenue base
• will spread cost of servicing remote communities
  fairly across all BC Hydro customers/products

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Electrical Rates - BC Hydro Zones I and II
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Regulatory Issues

• Program costs were included in the 2006 Revenue
  Requirement Application to BCUC.
• Because remote communities are gt 90m outside
  existing distribution lines they are outside our
  existing service area.

• Program will need to apply to the BCUC for a
  Certificate of Public Convenience and Necessity
  for every community that it electrifies unless
  the BC Government issues a directive for the
  program.

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The RCE Program Will

• Contact the 50 potentially eligible communities
  and offer service
• Advertise program widely to reach all eligible
  communities and prioritize communities
• Recommend and assist with grid extension
  application if community appears to be eligible
• Assist communities with preparing RCEPs to
  identify an implementation plan
• Purchase existing generation systems where they
  exist and upgrade to BC Hydro standards and/or
  provide new diesel generation facilities if
  required

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The RCE Program Will

• Where possible, contract with IPPs for new
  alternative generation and partner with local
  suppliers, contractors and manufacturers.
• Establish service agreements with the communities
• Connect, meter and bill customers for use of
  electricity
• Implement Remote Community Power Smart
• Monitor reliability and service.
• Work with Steering Committee to streamline the
  process
• Work through BCUC and MEM to gain approval to
  continue.
• Meet all Zone II tariff commitments

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Thank You