Interconnections Educational Workshop

1. Interconnections Educational Workshop February 9, 2006

2. Welcome & Introductions • Welcome • Introduce Interconnections Team • Workshop Objective • Provide a high level overview of the OATT Standard Generator Interconnection Process (SGIP) and the grandfathering processes; • Provide an explanation on the applicability of each interconnection process on various types of projects; • general instructions to navigate through the OATT SGIP. 4. Agenda IPP Educational Workshop

3. Workshop Agenda • Welcome & Introductions – Doug Little (8:30 – 8:45) • Background & Transition – Jim Ko (8:45 – 9:15) • Key Differences – Matt Good (9:15 – 9:45) • Break (9:45 – 10:00) • OATT SGIP Process – Ryan Hefflick (10:00 – 10:45) • Q & A – Jim Ko (10:45 – 11:45) • Wrap-Up – Janet Fraser (11:45 – 12:00) IPP Educational Workshop

4. Interconnections Educational Workshop Background & Transition Jim Ko

5. Background & Transition • Generator Interconnections Process • Existing Process • F2006 CFT Process • SGIP Process • Transition Rules • Q&A on the Processes and Transition Rules IPP Educational Workshop

6. Generator Interconnections Process • Interconnecting Generators to the Transmission System • Basic elements in all processes: • Preliminary or Feasibility Study (Optional) • Impact Study and Facilities Study • Facilities Agreement • Facilities Design and Construction • Interconnection Agreement • Commissioning and Commercial Operation IPP Educational Workshop

7. Existing Process • Comprehensive presentation on BCTC web http://www.bctc.com/generator_interconnection/transmission_generator_interconnection_process_chart.htm • Used by BCTC since its formation • Interconnection studies • Facilities agreements and Interconnection agreements • Will be replaced by OATT SGIP on March 1, 2006 • Will continue to be used for projects that are grandfathered from the OATT SGIP process IPP Educational Workshop

8. F2006 CFT Process • BCTC is currently conducting preliminary studies for CFT participants under this process • Grandfathered from the OATT SGIP process by BCUC order - as published in the BC Hydro F2006 Call for Tenders and on BCTC website • For the exclusive use of projects participating in the F2006 CFT - valid for as long as a project is a part of this CFT and not valid outside this CFT • Projects unsuccessful/withdrawn from the F2006 CFT will need to pursue interconnection under the OATT SGIP process • Projects that are selected by the CFT must execute a Combined Study Agreement and pay associated deposit within 60 days of the EPA award. • A new and different interconnection process will apply to CFT issued by BC Hydro subsequent to 2006. BC Hydro and BCTC are developing the process under BCUC directions in the OATT decision. IPP Educational Workshop

9. OATT SGIP Interconnection Process • Approved by BCUC in the OATT decision • Standard Generator Interconnections Procedures (SGIP) • Effective 1 March 2006 • Different than the existing process • Details of the process and implementation will be covered in later slides IPP Educational Workshop

10. Transition Rules • All Interconnection Agreements executed prior to the effective date of OATT SGIP will be grandfathered. • A new Interconnection Request under OATT SGIP may be required for modifications to existing generating facilities • Projects responding to existing BCH CFT will follow the interconnection process published in the CFT (F2006 CFT Interconnection Process) • Projects that have executed an Combined Study Agreement prior to the effective date of OATT SGIP may choose the existing process or the OATT SGIP process during March 2006. • Projects that have not executed a Combined Study Agreement prior to the effective date of OATT must use the OATT SGIP. IPP Educational Workshop

11. Processes and Transition Rules • Q and A on the Processes and the Transition Rules IPP Educational Workshop

12. Interconnections Educational Workshop Key Differences – Current & OATT Matt Good

13. Introduction • This presentation is just an overview, the new tariff is the best reference for details. • Found at http://www.bctc.com/generator_interconnection/ • Standard Generation Interconnection Procedures (SGIP) • Standard Generator Interconnection Agreement (SGIA) • Recovery of New Facilities Costs (Attachment K) IPP Educational Workshop

14. Key Differences • Application • Interconnection Types – multiple • Timelines • Facilities – definition and funding • Clustering • Request Queue / Public Info • Third Party Use • Study Scope IPP Educational Workshop

15. Application Deposit Difference: a $15K deposit is required along with the Interconnection Request OATT Reference: Section 3.3.1 Key Terms: Site Control – show the right to “develop a site for the purposes of constructing the Generation Facility” *note* Demonstrating Site Control within 15 business days of the Interconnection Request makes the deposit refundable. IPP Educational Workshop

16. Interconnection Types Difference: NRIS – used when selling to BCH. Integrates generator facilities on same basis as BCH generation. ERIS – used when planning to market energy independently OATT Reference: Section 3.2 Note: • can request to be studied for both for greater flexibility • NRIS study potentially identifies more NU’s than ERIS IPP Educational Workshop

17. Specific Timelines Difference: prescribed timelines for responses (Interconnection Customer and Transmission Provider) OATT Reference: Section 3.6, 6.3, 7.4, 8.4 etc • Current process — requests can sit at a given stage • SGIP — a continuous process from start to finish IPP Educational Workshop

18. Facilities - Definitions Difference: current definition of Network upgrade is based on sole use and benefit, OATT SGIP definition is based on location relative to the Point-of-Interconnection (POI) OATT Reference: SGIP — Sec 1 SGIA — Sec 1, 5.10 & 11 Key Terms: • Network Upgrades (NU) – Sec 11.3 of SGIA • Point of Interconnection (POI) • Point of Change of Ownership (POCO) • Interconnection Facilities (IF) • Transmission Provider Interconnection Facilities (TPIF) – 5.11, 11.2 • Interconnection Customer Interconnection Facilities (ICIF) – 5.10 IPP Educational Workshop

19. Facilities – Definitions Diagram Transmission System Upgrades for the “sole use” of the Generator. Transmission System Upgrades that also benefit others. Generator POCO POI DA Direct Assignment Facilities Current Process Transmission Provider Interconnection Facilities NU Network Upgrades SGIP IPP Educational Workshop

20. Facilities – Funding & Security OATT Reference: OATT Attachment K, 11.4 of SGIA • Customer funds the Interconnection Facilities and Transmission Provider funds the Network Upgrades (NU). • Customer provides security for NU. • Release / reduction of NU security • ERIS – reduction equal to LTF PTP charges. • NRIS – annually reduced for an amount equal to the annual output times the LTF PTP rate. IPP Educational Workshop

21. Request Clustering Difference: allows for the study of multiple Interconnection Requests concurrently instead of serially OATT Reference: Section 4.2 Key Terms: Queue Cluster Window • for efficient planning and sharing of facilities costs • after the Feasibility Study stage • Benefits to be investigated as SGIP comes into use • No surprises – 180 day notice prior to window opening IPP Educational Workshop

22. Queue Position / Public Posting Difference: SGIP features a queue to establish explicit priority and makes the list of Interconnection Requests public OATT Reference: Section 3.4, 4.1 Key Terms: Queue Position Posted info: type of generator, size, ISD, location, POI, study reports Queue establishes order for performing studies and cost responsibility for facilities. Customer name will be held confidential until an interconnection agreement is signed. IPP Educational Workshop

23. Third Party Use Difference: Interconnection Customer is entitled to pro-rata compensation for TPIF used by a third party. Via TPIF – Third parties cannot be unreasonably prevented from connecting to the Transmission Provider Interconnection Facilities. Capital and ongoing expenses will be shared by users. Via ICIF – IC can negotiate the new interconnection directly. Use of NU – no entitlement or reimbursement. OATT Reference: Section 9.9 of SGIA / 11.4.4 of SGIA IPP Educational Workshop

24. Facilities – Definitions Diagram Transmission System Upgrades for the “sole use” of the Generator. Transmission System Upgrades that also benefit others. Generator POCO POI DA Direct Assignment Facilities Current Process Transmission Provider Interconnection Facilities NU Network Upgrades SGIP IPP Educational Workshop

25. Study Scope Difference: SGIP Interconnection Feasibility Study has a more restricted scope than the current Preliminary Study. OATT Reference: Section 6 Note: • Quicker – 45 calendar days • Simpler – powerflow and short circuit analysis only IPP Educational Workshop

26. Key Differences – Summary • Explicit queue • Information posted • Specific timelines • New allocation of upgrades & costs IPP Educational Workshop

27. Key Differences – Q & A IPP Educational Workshop

28. Interconnections Educational Workshop OATT SGIP Process Ryan Hefflick

29. Overview • Current Generator Interconnection Process • OATT SGIP Process: High Level • IR Submission, Feasibility Study & System Impact Study Process • Deposit Requirements and Study Timelines • Generator Interconnection Queue • Q&A IPP Educational Workshop

30. Current Generator Interconnection Process IPP Educational Workshop

31. OATT SGIP Process: High Level IPP Educational Workshop

32. IR – Interconnection Request • Interconnection Request shall mean an Interconnection Customer’s request…to interconnect a new Generating Facility, or increase the capacity of, or make a Material Modification to the operating characteristics of, an existing Generating Facility that is interconnected with the Transmission Provider’s Transmission System. IPP Educational Workshop

33. IR Submission Process IPP Educational Workshop

34. Feasibility Study Process IPP Educational Workshop

35. System Impact Study Process IPP Educational Workshop

36. Noteworthy Deposit Requirements and Study Timelines • IR Submission: Initial $15K deposit • Feasibility Study: $15K study deposit. BCTC to complete study in 45 Calendar Days • System Impact Study: $75K study deposit. BCTC to complete study in 90 Calendar Days • Facilities Study: $150K study deposit. BCTC to complete study in 90 Calendar Days if IC requests a +/- 20% cost estimate or, 180 Calendar Days for a +/- 10% cost estimate IPP Educational Workshop

37. Queue Position • Transmission Provider shall assign a Queue Position based upon the date and time of receipt of the valid Interconnection Request. • The Queue Position of each Interconnection Request will be used to determine the order of performing the Interconnection Studies and determination of cost responsibility… IPP Educational Workshop

38. Generator Interconnection Queue IPP Educational Workshop

39. Generator Interconnections Home Page IPP Educational Workshop

40. SGIP Process – Q&A • Questions? IPP Educational Workshop

41. Wrap-Up – Janet Fraser • Thank you for your attendance • For More Info • Visitwww.bctc.com/generator_interconnection/ • E-mail: bctc.interconnection@bctc.com • Talk to: • Jim Ko – 699-7389 • Ryan Hefflick – 699-7382 • Matt Good – 699-7434 IPP Educational Workshop