1. Reliability in British Columbia
Lori Ann Boychuk
BCUC Commissioner
WECC Annual Meeting
April 20, 2006
San Diego

2. BC’s Energy Plan “Energy for our Future: A Plan for BC” November, 2002
Electric Reliability and Partial Industry Restructuring
Four cornerstones:
Low electricity rates and public ownership of BC Hydro
Secure, Reliable Supply
More Private Sector Opportunities
Environmental Responsibility and no nuclear power sources
High reliability and energy security will be maintained through well- functioning natural gas markets and coordinated electricity planning (Policy Action #7).
BC Transmission Corporation (BCTC) created as an independent entity to manage BC Hydro’s core transmission assets.
BC Utilities Commission (BCUC) to have continued and expanded regulatory oversight of supply, transmission and distribution.

3. British Columbia’s Electrical System
Industry structure:
Generation: BC Hydro, FortisBC, IPPs
Distribution: BC Hydro, FortisBC, municipal systems
Transmission: BC Transmission Corp., FortisBC, independents
Company ownership:
BC Hydro - BC provincial government
FortisBC - investor-owned
IPPs - investor-owned
BCTC - BC provincial government with separate board, management and regulation from BC Hydro

5. Regulatory Framework
Provincial: BC Ministry of Energy, Mines and Petroleum Resources
- sets policy framework
BC Utilities Commission
- Provincial Regulatory Agency with primary regulatory
oversight for reliability under the Utilities Commission Act
Set fair, just and reasonable utility rates
Ensure safe, adequate and secure operations
Review resource plans
Review power purchase agreements
Set standards for utilities and monitor performance
Approve capital plans and CPCNs for B.C. facilities
Federal: National Energy Board
- Federal Regulatory Agency
Issue export permits or licences
Conduct market monitoring
Issue permits or certificates for international power lines

6. Criteria & Reliability
B.C. Reliability Framework
BCUC
-Regulatory
Oversight
BC Hydro
Transmission
System Management
-BCTC
-FortisBC
Independent
Generation &
Other Utilities
Generation
Facility
Management
Distribution
Facility
Management
NERC/WECC
Reliability Planning
Standards, Operating
Criteria & Reliability
Monitoring

7. Reliability Management in British Columbia: Current State
BC has embraced and complied with reliability standards through WECC and predecessor organizations for over 30 years.
Mechanism: Reliability Management System (RMS) and Reliability Criteria (RC) Agreements – voluntary contracts between WECC and regulated BC entities – approved by the BCUC.
RC Agreement, elements:
Reliability criteria
Data submission requirements
Sanction measures
Compliance determination procedures
Dispute resolution procedures
BCUC statutory authority over reliability measures for public utilities
Determine and set standards, including reliability standards
Consider complaints, conduct inquiries and order improved service by BC entities

8. Reliability Management in British Columbia: Current State
Industry reliability practices (NERC/WECC) endorsed by the BCUC, through decisions on capital plan applications, CPCN applications and complaints related to service quality.
Implementation through regulated utilities, notably BCTC
Interconnection agreements with generators
Transmission service agreements
Tariffs

9. ERO Recognition in Canada - what NERC is seeking
NERC reliability standards made mandatory and enforceable
Backstop for compliance and enforcement efforts of NERC and Regional Entities
Assurance for collection of a fair allocation of NERC’s reasonable costs in carrying out its programs
CAMPUT Key Topics Meeting
Ottawa, March 29, 2006
Ontario Energy Board

10. ERO Recognition in Canadian Jurisdictions: British Columbia
Mandatory Standards
BCUC authority under UCA to determine and set standards, including reliability standards, for regulated utilities, i.e. BCTC, FortisBC.
No statutory authority to “recognize” the ERO/RE or to delegate standard setting to another entity.
Compliance and Enforcement
BCUC responsibility and authority to impose sanctions.
Penalty provisions under the UCA.
No statutory authority to delegate responsibility to any other entity.
Need to work with ERO and RE to build on existing successful relationships.
ERO/RE Costs
Continue the current WECC scheme; utilities include WECC-related costs in rates applications for BCUC consideration.
No BCUC authority to approve ERO/RE budgets.

11. NERC Recognition in Canadian Jurisdictions: British Columbia
NERC October 27, 2005 request to initiate discussions
BC/NERC Meeting in Vancouver on January 10, 2006
NERC filed with BCUC “Notice of Filing” as the ERO April 4, 2006
Continue to participate with the Canadian Council of Energy Ministers federal/provincial working group and with the Bilateral Group.
Ongoing dialogue required with NERC and WECC.
BC Energy Plan review underway; opportunity to reinforce BC policies and practices that contribute to enhancing the overall reliability of interconnected power system operations.