Electric Tariff. September 9, 2013

Transcription

1 B-1 Janet Fraser Chief Regulatory Officer Phone: Fax: September 9, 2013 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, BC V6Z 2N3 Dear Ms. Hamilton: RE: British Columbia Utilities Commission (BCUC) British Columbia Hydro and Power Authority (BC Hydro) Electric Tariff and Open Access Transmission Tariff (OATT) Application to Replace S&P Dow Jones Mid Columbia Indices BC Hydro writes pursuant to sections 58 to 61 of the Utilities Commission Act (UCA) to submit an application for approval of amendments to BC Hydro's Electric Tariff and OATT to reflect the discontinuation of the S&P Dow Jones Indices LLC (SPDJI) United States (U.S.) electricity price indices that are used to calculate certain rates under each of the tariffs (the Application). Effective after the close of business on Friday, September 13, 2013, SPDJI will no longer calculate the Dow Jones U.S. electricity Indices. In the Application, BC Hydro proposes that all references to the SPDJI Mid Columbia (Mid-C) electricity price indices for high load hours (HLH), low load hours (LLH) and Sundays and North American Electric Reliability Corporation (NERC) holidays be replaced with the equivalent index published by Platts, McGraw Hill Financial (Platts) as follows: Electric Tariff Rate Schedule (RS) 1253 Distribution Service IPP Station Service: BC Hydro proposes to amend RS 1253 to replace all references in the energy charge rate calculation from the Dow Jones Mid-C Firm Electricity Price Index for HLH and LLH with the Platts Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices RS 1853 Transmission Service IPP Station Service: BC Hydro proposes to amend the RS 1853 to replace all references in the energy charge rate calculation from the Dow Jones Mid-C Firm Electricity Price Index for HLH and LLH with the Platts Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices Tariff Supplement (TS) 54 Modified Demand Agreement RS 1852: BC Hydro proposes to amend the definition of Mid-C Price in section 1.1 (c) to replace the Dow Jones Mid-C Firm Electricity Price Index for HLH with the Platts Mid-C Firm on-peak (HLH) daily price indices British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3

2 September 9, 2013 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Electric Tariff and Open Access Transmission Tariff (OATT) Application to Replace S&P Dow Jones Mid Columbia Indices Page 2 of 4 OATT RS 06 Energy Imbalance Service: BC Hydro proposes to amend RS 06 to replace all references in the Energy Imbalance rate calculations to the Dow Jones Firm Daily Mid-C Index for HLH, LLH or Sundays and NERC Holidays with Platts Mid-C Firm on-peak (HLH), Firm off-peak (LLH), and Firm Sunday and NERC Holiday daily price indices RS 09 Loss Compensation Service (LCS): BC Hydro proposes to amend RS 09 to replace all references in the LCS sell price rate calculations to the Dow Jones Firm Daily Mid Columbia Index for HLH, LLH or Sundays and NERC Holidays with Platts Mid-C Firm on-peak (HLH), Firm off-peak (LLH), and Firm Sunday and NERC Holiday daily price indices TS 80 Network Economy: BC Hydro proposes to amend TS 80 section 2 (c)(i) and (ii) to replace the references to the Mid-C Heavy Load Hour price and Mid-C Light Load Hour price, as reported by Dow Jones, with Platts Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices OATT Attachments A and B: BC Hydro also proposes to replace the reference to CME Group Index Services LLC, Dow Jones & Company, Inc. and their respective affiliates in Attachment A section 10.4 and Attachment B section 9(c) with any index publishing services firms or their respective affiliates that are identified in the OATT, including its schedules, and supplements Consultation Concurrent with its filing of the Application, BC Hydro notified its customers of its filing of the Application. Customers were notified by way of an and/or a bulletin was also posted on BC Hydro s transmission website. Implementation BC Hydro respectfully requests an interim approval before September 30, 2013 to allow it to utilize equivalent indices provided by Platts effective September 13, 2013, Following September 30, BC Hydro will calculate the monthly settlements under the affected rate schedules and tariff supplements for September 2013 and requires approval to utilize the Platts indices for such calculations. Proposed Process BC Hydro believes that a minimal written regulatory process is appropriate. BC Hydro includes a draft Order and a draft Interim Order in Appendix E of the Application.

3 September 9, 2013 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission BChgdro "' Electric Tariff and Open Access Transmission Tariff (OATT) Application to Replace S&P Dow Jones Mid Columbia Indices Page 3 of 4 For further information, please contact Gordon Doyle at or by at bchydroregulatorygroup@bchydro.com. Janet Fraser Chief Regulatory Officer Enclosures (5)... 4/

4 September 9, 2013 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Electric Tariff and Open Access Transmission Tariff (OATT) Application to Replace S&P Dow Jones Mid Columbia Indices Page 4 of 4 Copy to: AMPC Attention: Richard Stout roninconsult@live.com Attention: Brian R. Wallace rbw@bht.com BCPSO Attention: Tannis Braithwaite ltbraithwaite@bcpiac.com Capital Power Corporation Attention: Daniel Jurijew djurijew@capitalpower.com Cargill Attention: Philip Pauls Philip_Pauls@cargill.com Attention: Robert Walker Robert_Walker@cargill.com Clean Energy Association Attention: David Austin daustin@securitieslaw.bc.ca Commercial Energy Consumers Association of BC Attention: Christopher Weafer cweafer@owenbird.com Enmax Attention: Darren Gogol dgogol@enmax.com Morgan Stanley Attention: Deborah Hart deborah.hart@morganstanley.com Attention: Jasper D Wright Jasper.D.Wright@morganstanley.com Attention: Murray Margolis murray.margolis@morganstanley.com Attention: Sabrina Kikkert Sabrina.Kikkert@morganstanley.com Attention: Steve Huhman Steven.Huhman@morganstanley.com Attention: Lisa Cherkas Lisa.Cherkas@morganstanley.com NorthPoint Energy Attention: Dean K. Krauss dkrauss@northpointenergy.com Attention: Dean Jones djones@northpointenergy.com Partner, The Progressive Group Attention: Cynthia Burton cynthia.burton@shaw.ca Powerex Attention: Mike MacDougall mike.macdougall@powerex.com Attention: Mark Thompson mark.thompson@powerex.com Attention: Michael McWilliams michael.mcwilliams@powerex.com Attention: Dan O Hearn dan.ohearn@powerex.com Attention: Tom Bechard tom.bechard@powerex.com REMC Rainbow Energy Marketing Corporation Attention: Bob Friessen b.friesen@rainbowenergy.com Teck Metals Ltd Attention: Richard Deane Richard.Deane@teck.com TransAlta Attention: Marcy Cochlan marcy_cochlan@transalta.com TransCanada Attention: Regulatory Department tce_regulatory@transcanada.com

5 Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices

6 Application to Replace S&P Dow Jones Mid Columbia Indices Table of Contents 1 Introduction Application Order Sought Consultation Interim Approval Sought before September 30, Proposed Process Tariff Amendments Electric Tariff OATT Background and Options SPDJI Mid-C Electricity Price Indices SPDJI Methodology SPDJI Cost Platts Mid-C Electricity Price Indices Platts Methodology Cost of replacement with Platts Suitability of Platts for BC Hydro Purposes Powerdex Mid-C Electricity Price Indices Powerdex Methodology Cost of replacement with Powerdex Suitability of Powerdex for BC Hydro Purposes ICE Mid-C Electricity Price Indices ICE Methodology Cost of replacement with ICE Suitability of ICE for BC Hydro Purposes Conclusion and Recommendation List of Appendices Appendix A Appendix B Appendix C Appendix D Appendix E Electric Tariff - Clean and Black-lined Versions of the Affected Pages Open Access Transmission Tariff - Clean and Black-lined Versions of the Affected Pages /Bulletin to Affected Customers Letter of Notification from S&P Down Jones Indices Draft Orders Electric Tariff and Open Access Transmission Tariff Page i

7 Application to Replace S&P Dow Jones Mid Columbia Indices Introduction 1.1 Application British Columbia Hydro and Power Authority (BC Hydro) files this application pursuant to sections 58 to 61 of the Utilities Commission Act (UCA), R.S.B.C. 1996, c. 473 to amend its Electric Tariff and its Open Access Transmission Tariff 1 (OATT) to reflect the discontinuation of the S&P Dow Jones Indices LLC (SPDJI) U.S. electricity price indices that are used to calculate certain rates under each of the tariffs (Application). Effective after the close of business on Friday, August 30, 2013, SPDJI will no longer calculate the Dow Jones U.S. hourly electricity indices and effective after the close of business on Friday, September 13, 2013, SPDJI will no longer calculate the Dow Jones U.S. daily electricity indices. BC Hydro uses the certain daily indices in its rate calculations so as a result, BC Hydro must transition to different equivalent indices effective September 13, The Application seeks amendments to both the Electric Tariff and the OATT to replace all references to the SPDJI Mid Columbia (Mid-C) electricity price indices for high load hours (HLH), low load hours (LLH) and Sundays and North American Electric Reliability Corporation (NERC) holidays. BC Hydro proposes that the tariff language be amended to reflect the equivalent index published by Platts, McGraw Hill Financial (Platts). The following tariff pages are affected by the proposed changes: Electric Tariff: Rate Schedule (RS) 1253, RS 1853, Tariff Supplement (TS) 54 OATT: RS 06, RS 09 and TS 80 OATT: Attachments A and B also make reference to index publishing service companies including CME Group Index Services Inc. and Dow Jones Inc. These index publisher references are obsolete. 1 Electric Tariff and OATT available at: Electric Tariff and Open Access Transmission Tariff Page 1

8 Application to Replace S&P Dow Jones Mid Columbia Indices Order Sought In this Application, BC Hydro seeks two Orders pursuant to sections 58 to 61 of the UCA as follows: Since the SPDJI indices specified in Electric Tariff and in the OATT will no longer be available after close of business on September 13, 2013, BC Hydro seeks an interim order to allow it to utilize equivalent indices provided by Platts for rate calculation purposes under the Electric Tariff and OATT, all as described in the Application and as reflected in the revised tariff pages attached in Appendix A (Electric Tariff) and Appendix B (OATT), to be effective from September 13, 2013 until such time as the BCUC renders a final decision on the Application BC Hydro seeks a final order approving its proposed changes to the Electric Tariff and to the OATT to reflect the replacement of the SPDJI U.S. electricity price indices with equivalent indices, all as described in the Application and as reflected in the revised tariff pages attached in Appendix A (Electric Tariff) and Appendix B (OATT) Draft forms of the order for each of the interim order and the final order sought by BC Hydro are included in Appendix E. 1.3 Consultation Concurrent with its filing of the Application, BC Hydro notified its customers of its filing of the Application with the BCUC and that the Application would seek approval to replace the SPDJI electricity price indices that are referenced in the Electric Tariff and OATT with an equivalent index as appropriate. Customers were notified by way of an and/or a bulletin was also posted on BC Hydro s transmission website. A copy of the /bulletin is attached as Appendix C. Electric Tariff and Open Access Transmission Tariff Page 2

9 Application to Replace S&P Dow Jones Mid Columbia Indices Interim Approval Sought before September 30, 2013 BC Hydro respectfully requests that interim approval of the changes that are included in the Application be provided before September 30, 2013, since this is the date following which BC Hydro will calculate the monthly settlements under the affected rate schedules and tariff supplements for September Proposed Process BC Hydro believes that a written process is appropriate for the BCUC to consider the amendments proposed by BC Hydro in the Application Tariff Amendments 2.1 Electric Tariff BC Hydro is proposing amendments to the Electric Tariff to revise references to the SPDJI electricity price indices as follows: RS 1253 Distribution Service IPP Station Service: BC Hydro proposes to amend RS 1253 to the reference in the energy charge rate calculation from the Dow Jones Mid-C Firm Electricity Price Index for HLH and LLH with the Platts Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices RS 1853 Transmission Service IPP Station Service: BC Hydro proposes to amend the RS 1853 to replace all references in the energy charge rate calculation from the Dow Jones Mid-C Firm Electricity Price Index for HLH and LLH with the Platts Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices TS 54 - Modified Demand Agreement RS 1852: BC Hydro proposes to amend the definition of Mid-C Price in section 1.1 (c) to replace the Dow Jones Mid-C Firm Electricity Price Index for HLH with the Platts Mid-C Firm on-peak (HLH) daily price indices Clean and black-lined versions of the affected tariff pages are included in Appendix A. Electric Tariff and Open Access Transmission Tariff Page 3

10 Application to Replace S&P Dow Jones Mid Columbia Indices OATT BC Hydro is proposing amendments to the OATT to revise references to the Dow Jones electricity price indices as follows: RS 06 - Energy Imbalance Service: BC Hydro proposes to amend RS 06 to replace all references in the Energy Imbalance rate calculations to the Dow Jones Firm Daily Mid-C Index for HLH, LLH or Sundays and NERC Holidays with Platts Mid-C Firm on-peak (HLH), Firm off-peak (LLH), and Firm Sunday and NERC Holiday daily price indices RS 09 - Loss Compensation Service (LCS): BC Hydro proposes to amend RS 09 to replace all references in the LCS sell price rate calculations to the Dow Jones Firm Daily Mid Columbia Index for HLH, LLH or Sundays and NERC Holidays with Platts Mid-C Firm on-peak (HLH), Firm off-peak (LLH), and Firm Sunday and NERC Holiday daily price indices TS 80 - Network Economy: BC Hydro proposes to amend TS 80 section 2(c)(i) and (ii) to replace the references to the Mid-C Heavy Load Hour price and Mid-C Light Load Hour price, as reported by Dow Jones, with Platts Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices OATT Attachments A and B: BC Hydro also proposes to replace the reference to CME Group Index Services LLC, Dow Jones & Company, Inc. and their respective affiliates in Attachment A section 10.4 and Attachment B section 9(c) with any index publishing services firms or their respective affiliates that are identified in the Open Access Transmission Tariff, including its schedules and supplements Clean and black-lined versions of the affected tariff pages are included in Appendix B (OATT). Electric Tariff and Open Access Transmission Tariff Page 4

11 Application to Replace S&P Dow Jones Mid Columbia Indices Background and Options On August 14, 2013, BC Hydro was notified that effective after the close of business on Friday, September 13, 2013, S&P Dow Jones Indices (a division of McGraw Hill Financial) will no longer calculate the SPDJI U.S. electricity indices and that these indices would be replaced by indices calculated by Platts (also a division of McGraw Hill Financial) as of September 13, BC Hydro has confirmed that the SPDJI U.S. electricity indices will no longer be available from any vendor and as a result, BC Hydro is required to transition its affected tariff rates so that they are based on different indices effective September 13, As a result, BC Hydro undertook to identify which indices were the most appropriate indices to transition to, based on its specific business requirements. Hydro identified three options. 1. Replace the SPDJI U.S. electricity indices with the equivalent indices calculated by Platts 2. Replace the SPDJI U.S. electricity indices with the equivalent indices calculated by Powerdex Inc. (Powerdex) 3. Replace the SPDJI U.S. electricity indices with the equivalent indices calculated by Intercontinental Exchange Inc. (ICE) 2.4 SPDJI Mid-C Electricity Price Indices As mentioned above, the Electric Tariff and the OATT currently refer to the SPDJI Mid-C electricity price indices for the determination of certain rates. These are being discontinued by SPDJI. The following indices are calculated by SPDJI and each is used by BC Hydro as appropriate in its monthly settlements of rate charges under the Electric Tariff and OATT as applicable: Electric Tariff and Open Access Transmission Tariff Page 5

12 Application to Replace S&P Dow Jones Mid Columbia Indices Firm On-Peak: Daily index of hourly average $/MWh for On-Peak (HLH) transactions at Mid-C (hours ending (HE) Monday through Saturday) Firm Off-Peak: Daily index of hourly average $/MWh for Off-Peak (LLH) transactions at Mid-C (HE Monday through Saturday) Firm Sunday & NERC Holidays: At Mid-C (24 hours) SPDJI Methodology The SPDJI Mid-C electricity price indices are based on the volumetric weighted average price of Megawatt-hours sold at the Mid-C hub as follows: Index Value [$/MWh] = Σ (Transaction Price [$/MWh] Transaction Volume [MWh]) Total Volume of Qualifying Transactions [MWh] Index prices are published on the flow date SPDJI Cost BC Hydro currently pays a subscription fee for use of the SPDJI indices in the amount of USD $4,500/year. The last such payment was for the one-year period commencing July 4, Platts Mid-C Electricity Price Indices By way of a letter to affected SPDJI Clients, a copy of which is attached as Appendix D, BC Hydro was advised that effective September 13, 2013, Platts, the energy information business of McGraw Hill Financial, will begin providing electricity price data to replace the U.S. electricity prices being provided by SPDJI Indices. SPDJI subscriptions will also be transferred to Platts for the remainder of their term. The following indices calculated by Platts would be applicable to BC Hydro s tariffs and could replace the SPDJI indices: On-Peak Hours: Daily index of hourly average $/MWh for On-Peak (HLH) transactions at Mid-C (HE ) Electric Tariff and Open Access Transmission Tariff Page 6

13 Application to Replace S&P Dow Jones Mid Columbia Indices Off-Peak Hours: Daily index of hourly average $/MWh for Off-Peak (LLH) transactions at Mid-C (HE ) There is currently no Sunday and NERC holiday index calculated by Platts. Sunday prices are currently included in the Monday off-peak values and Holiday prices are included in the next day off-peak prices. During discussions with BC Hydro, Platts has stated that they intend to establish a Sunday and NERC Holiday Daily index of hourly average $/MWh for Mid-C, prior to September 13, BC Hydro would utilize this index, or if not available, the appropriate off-peak pricing for these periods as required to calculate charges under the tariffs for Sundays and NERC holidays until the Platts Sunday and NERC Holiday index is available Platts Methodology The Platts Price indices are based on the weighted average price of Megawatts sold at the Mid-C hub as follows: Index Value [$/MWh] = Σ (Transaction Price [$/MW] Transaction Volume [MW]) Qualifying Transactions in period [MW] hours in period There is no impact to using MW instead of MWh in the calculation. Index prices are published on the trade date. Standard deals (e.g., standard delivery times and multiples of 25 MW) are included in the indices. Outliers (greater than two standard deviations from the mean) may be excluded. These are flagged and a determination is made on whether they should be included or excluded (e.g., if they appear to represent a reporting error) Cost of replacement with Platts Platts has not yet established the subscription cost for the replacement indices; however, BC Hydro does not expect the subscription to exceed the USD $4,500/year that it currently pays for the SPDJI indices. BC Hydro has paid the Electric Tariff and Open Access Transmission Tariff Page 7

14 Application to Replace S&P Dow Jones Mid Columbia Indices annual renewal fee for the SPDJI indices and this will be transferred so that BC Hydro is provided with the equivalent Platts indices until July 4, BC Hydro does not expect to incur any significant information technology (IT) costs since Platts data is provided in the same format as the SPDJI indices and could be scraped and parsed using existing systems so that it could be automatically imported it into BC Hydro s Market Operations and Development System (MODS). BC Hydro also does not expect to incur any significant IT costs related to importing the Platts data into BC Hydro s Electric Tariff customer billing system Suitability of Platts for BC Hydro Purposes The transition to Platts indices could be accomplished immediately since the data is provided in the same format as SPDJI data and can be imported into BC Hydro s MODS system with no modification. The Platts indices have a high degree of correlation with the equivalent SPDJI indices. For the test period of August 1 to 13, 2013, Peak index values were within a range of -0.3 per cent to +0.8 per cent with and average error of +/- 0.2 per cent of the SPDJI values. Off-Peak index values were within a range of -0.2 per cent to +1.3 per cent with and average error of +/- 0.4 per cent of the SPDJI values and Sunday and NERC holiday index values were within a range of -0.2 per cent to +0.1 per cent with and average error of +/- 0.1 per cent of the SPDJI values. 2.6 Powerdex Mid-C Electricity Price Indices Powerdex is an index publisher that publishes hourly and prescheduled indexes of wholesale power transactions for eight hubs in the Western Interconnect. The following indices calculated by Powerdex would be applicable to BC Hydro s tariffs and could replace the SPDJI indices: Standard On-peak: Daily index of hourly average $/MWh for On-Peak (HLH) transactions at Mid-C (HE Monday through Saturday) Electric Tariff and Open Access Transmission Tariff Page 8

15 Application to Replace S&P Dow Jones Mid Columbia Indices Standard Off-peak: Daily index of hourly average $/MWh for Off-Peak (LLH) transactions at Mid-C (HE Monday through Saturday) Non-Standard Day-Ahead 1x16s: Daily index of hourly average $/MWh for Mid-C (HE ) on Sundays and NERC holidays Powerdex Methodology The Powerdex Price indices are based on the volumetric weighted average price of Megawatt-hours sold at the Mid-C hub as follows: Index Value [$/MWh] = Σ (Transaction Price [$/MWh] Transaction Volume [MWh]) Total Volume of Qualifying Transactions [MWh] This is the same calculation methodology as is used in the SPDJI indices. Index prices are published on the following business day that is not a NERC holiday. Standard deals (e.g., standard delivery times and multiples of 25 MW) are included in the indices. Non-standard deals are included in separate indices Cost of replacement with Powerdex BC Hydro expects that the subscription fee for the use of the Powerdex indices would be in the amount of USD $2,000/year. Data is available in Comma Separated Value (CSV) format; however, BC Hydro expects IT costs would be required to develop a parsing methodology to allow auto population into MODS. The expected cost of this work is expected to be $5,000 to $10, Suitability of Powerdex for BC Hydro Purposes Auto population into MODS could likely not be completed prior to September 30, 2013; however, a manual work around until the parsing methodology is complete is feasible. Electric Tariff and Open Access Transmission Tariff Page 9

16 Application to Replace S&P Dow Jones Mid Columbia Indices The Powerdex data correlation with the equivalent SPDJI indices is not as good as Platts. For the test period of August 1 to 13, 2013, Peak index values were within a range of -0.3 per cent to +0.8 per cent with and average error of +/- 0.4 per cent of the SPDJI values. Off-Peak index values were within a range of -1.0 per cent to +1.1 per cent with and average error of +/- 0.5 per cent of the SPDJI values and Sunday and NERC holiday index values were within a range of -1.0 per cent to +0.5 per cent with and average error of +/- 0.7 per cent of the SPDJI values. 2.7 ICE Mid-C Electricity Price Indices ICE is an operator of regulated exchanges and clearing houses for agricultural, credit, currency, emissions, energy and equity index products. The following indices calculated by ICE would be applicable to BC Hydro s tariffs and could replace the SPDJI indices: Mid-C Peak: Daily index of hourly average $/MWh for On-Peak (HLH) transactions at Mid-C (HE Monday through Saturday) Mid-C Off-Peak: Daily index of hourly average $/MWh for Off-Peak (LLH) transactions at Mid-C (HE Monday through Saturday) Mid-C Off-Peak Sunday 1x16: Daily index of hourly average $/MWh for Sunday Off-Peak transactions at Mid-C (HE ) ICE Methodology ICE indices are based on the weighted average price of Megawatt-hours sold at the Mid-C hub as follows: Index Value [$/MWh] = Σ (Transaction Price [$/MWh] Transaction Volume [MWh]) Total Volume of Qualifying Transactions [MWh] This is the same calculation methodology as is used in the SPDJI indices. Electric Tariff and Open Access Transmission Tariff Page 10

17 Application to Replace S&P Dow Jones Mid Columbia Indices Trades done between two companies that are owned by the same parent company are excluded as are option trades that fall outside of the given time period for each index Cost of replacement with ICE There is no subscription fee for use of the ICE indices; however, 3rd party IT data parsing may be required. Data is provided in a format that is not compatible with MODS. Data is available in Comma Separated Value (CSV) format; however, BC Hydro expects IT costs would be required to develop scraping and parsing methodologies to allow auto population into MODS. The expected cost of this methodology could be $15,000 to $20, Suitability of ICE for BC Hydro Purposes The indices are based upon verifiable trade data and underlying historical prices are available through subscription. The ICE data correlation with the equivalent SPDJI indices is also not as good as Platts. For the test period of August 1 to 13, 2013, Peak index values were within a range of -0.6 per cent to +1.7 per cent with and average error of +/- 0.5 per cent of the SPDJI values. Off-Peak index values were within a range of -1.0 per cent to +1.1 per cent with and average error of +/- 0.5 per cent of the SPDJI values and Sunday and NERC holiday index values were within a range of -0.6 per cent to -0.1 per cent with and average error of +/- 0.5 per cent of the SPDJI values. Electric Tariff and Open Access Transmission Tariff Page 11

18 Application to Replace S&P Dow Jones Mid Columbia Indices Conclusion and Recommendation BC Hydro proposes to amend its Electric Tariff and its OATT to reflect the discontinuation of the SPDJI electricity price indices as of close of business on Friday, September 13, BC Hydro proposes to amend both the Electric Tariff and the OATT to replace all references to the SPDJI Mid-C electricity price indices for HLH, LLH or Sundays and NERC holidays with the appropriate Platts Mid-C Firm on-peak (HLH), Firm off-peak (LLH), and Firm Sunday and NERC Holiday daily price indices. Affected tariff pages are: Electric Tariff: RS 1253, RS 1853 and TS 54 OATT: RS 06, RS 09 and TS 80. OATT: Attachments A and B to amend references to index publishing service companies BC Hydro s proposal to use the equivalent Platts indices is based on data compatibility and high degree of correlation with SPDJI indices. Electric Tariff and Open Access Transmission Tariff Page 12

19 Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Appendix A Electric Tariff Clean and Black-lined Versions of the Affected Pages

20 Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Appendix A-1 Electric Tariff Black-lined Version of the Affected Pages

21 Appendix A-1 BC Hydro Rate Schedules Effective: 01 April September 2013 Twelfth Thirteenth Revision of Page 24 SCHEDULE 1253 DISTRIBUTION SERVICE IPP STATION SERVICE Availability: Applicable in: For Customers who are Independent Power Producers (IPPs) served at distribution voltage, subject to the Special Conditions below. Rate Zone I excluding Districts of Kingsgate-Yahk and Lardeau-Shutty Bench. Rate: Energy Charge: The sum, over the Billing Period, of the hourly energy consumed multiplied by the entry in the Dow JonesPlatts Mid- Columbia (Mid-C) Firm Electricity Price Index foron-peak (HLH) and Firm off-peak (LLH) daily price indices that corresponds to the time when consumption occurred, during that hour. Monthly Minimum Charge: Special Conditions: $ BC Hydro agrees to provide Electricity under this Schedule to the extent that it has energy and capacity to do so. 2. BC Hydro may, without notice to the Customer, terminate the supply of Electricity under this Schedule if at any time BC Hydro does not have sufficient energy or capacity. 3. Prior to taking Electricity under this Schedule, the Customer may be required to obtain approval from BC Hydro. BC Hydro will advise the Customer of the need to obtain approval prior to the taking of energy under this Schedule. 4. Electricity taken under this Schedule is to be used solely for maintenance and black-start requirements and shall not displace Electricity that would normally be generated by the Customer. Rate Rider: Rate Increase: The Deferral Account Rate Rider as set out in Rate Schedule 1901 applies to all charges payable under this Rate Schedule, before taxes and levies. Effective April 1, 2013 the Rates and Minimum Charge under these schedules include an increase of 1.44% before rounding, approved by BCUC Order No. G-77-12A, subject only to a Commission order under section 44.2 of the Utilities Commission Act respecting BC Hydro s F2014 expenditures on DSM. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 1 of 3

22 Appendix A-1 BC Hydro Rate Schedules Effective: 01 April September 2013 Twelfth Thirteenth Revision of Page 57 SCHEDULE 1853 TRANSMISSION SERVICE IPP STATION SERVICE Availability: Applicable in: For Customers who are Independent Power Producers (IPPs) served at transmission voltage subject to the Special Conditions below. Rate Zone I excluding Districts of Kingsgate-Yahk and Lardeau-Shutty Bench. Rate: Energy Charge: The sum, over the Billing Period, of the hourly energy consumed multiplied by the entry in the Dow JonesPlatts Mid- Columbia (Mid-C) Firm Electricity Price Index for on-peak (HLH) and Firm off-peak (LLH) daily price indices that corresponds to the time when consumption occurred, during that hour. Minimum Monthly Charge: $35.81 Special Conditions: BC Hydro agrees to provide Electricity under this Schedule to the extent that it has energy and capacity to do so. BC Hydro may, without notice to the Customer, terminate the supply of Electricity under this Schedule if at any time BC Hydro does not have sufficient energy or capacity. Prior to taking Electricity under this Schedule, the Customer may be required to obtain approval from BC Hydro. BC Hydro will advise the Customer of the need to obtain approval prior to the taking of energy under this Schedule. Electricity taken under this Schedule is to be used solely for maintenance and black-start requirements and shall not displace Electricity that would normally be generated by the Customer. Taxes: Rate Rider: Rate Increase: The rates and minimum charge contained herein are exclusive of the Goods and Services tax and the Social Services tax. The Deferral Account Rate Rider as set out in Rate Schedule 1901 applies to all charges payable under this Rate Schedule, before taxes and levies. Effective April 1, 2013 the Rates and Minimum Charge under these schedules include an increase of 1.44% before rounding, approved by BCUC Order No. G-77-12A, subject only to a Commission order under section 44.2 of the Utilities Commission Act respecting BC Hydro s F2014 expenditures on DSM. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 2 of 3

23 BC Hydro Electric Tariff Supplement No. 54 Appendix A-1 of September 13, 2013 Fourth Fifth Revision of Page 1 Effective: April 27, MODIFIED DEMAND AGREEMENT Rate Schedule 1852 This Agreement, which together with all Demand Reduction Transactions is referred to as the "Agreement", is made to be effective on the day of 200_, BETWEEN: AND: BRITISH COLUMBIA HYDRO AND POWER AUTHORITY, a body corporate with its head office at 333 Dunsmuir Street, Vancouver, British Columbia ("B.C. Hydro") ("the Customer''} (Each of B.C. Hydro and the Customer are referred to individually as the "Party" and collectively, as the "Parties") WHEREAS the Customer is currently receiving service from B.C. Hydro pursuant to Rate Schedule 1821 and the Electricity Supply Agreement approved by the British Columbia Utilities Commission, and in addition, wishes to take service from B.C. Hydro under Rate Schedule NOW THEREFORE, THIS AGREEMENT WITNESSES that the Parties agree as follows: 1. INTERPRETATION 1.1. Definitions The following definitions and any terms defined internally in this Agreement will apply to this Agreement and all notices and communications made pursuant to this Agreement: (a) (b) (c) "Business Day" means any day other than a Saturday, Sunday or a Statutory Holiday. "Calendar Hour" means a 60 minute period commencing at the start of the first minute of one of the 24 one hour periods in a day. "Mid-C Price" means the daily entry in the Dow JonesPlatts Mid Columbia (Mid- C) Firm Electricity on-peak (HLH) daily Price lndex for the High Load Hours (HLH) ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 3 of 3

24 Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Appendix A-2 Electric Tariff Clean Version of the Affected Pages

25 Appendix A-2 BC Hydro Rate Schedules Effective: 13 September 2013 Thirteenth Revision of Page 24 SCHEDULE 1253 DISTRIBUTION SERVICE IPP STATION SERVICE Availability: Applicable in: For Customers who are Independent Power Producers (IPPs) served at distribution voltage, subject to the Special Conditions below. Rate Zone I excluding Districts of Kingsgate-Yahk and Lardeau-Shutty Bench. Rate: Energy Charge: The sum, over the Billing Period, of the hourly energy consumed multiplied by the entry in the Platts Mid Columbia (Mid-C) Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices that corresponds to the time when consumption occurred, during that hour. Monthly Minimum Charge: Special Conditions: $ BC Hydro agrees to provide Electricity under this Schedule to the extent that it has energy and capacity to do so. 2. BC Hydro may, without notice to the Customer, terminate the supply of Electricity under this Schedule if at any time BC Hydro does not have sufficient energy or capacity. 3. Prior to taking Electricity under this Schedule, the Customer may be required to obtain approval from BC Hydro. BC Hydro will advise the Customer of the need to obtain approval prior to the taking of energy under this Schedule. 4. Electricity taken under this Schedule is to be used solely for maintenance and black-start requirements and shall not displace Electricity that would normally be generated by the Customer. Rate Rider: Rate Increase: The Deferral Account Rate Rider as set out in Rate Schedule 1901 applies to all charges payable under this Rate Schedule, before taxes and levies. Effective April 1, 2013 the Rates and Minimum Charge under these schedules include an increase of 1.44% before rounding, approved by BCUC Order No. G-77-12A, subject only to a Commission order under section 44.2 of the Utilities Commission Act respecting BC Hydro s F2014 expenditures on DSM. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 1 of 3

26 Appendix A-2 BC Hydro Rate Schedules Effective: 13 September 2013 Thirteenth Revision of Page 57 SCHEDULE 1853 TRANSMISSION SERVICE IPP STATION SERVICE Availability: Applicable in: For Customers who are Independent Power Producers (IPPs) served at transmission voltage subject to the Special Conditions below. Rate Zone I excluding Districts of Kingsgate-Yahk and Lardeau-Shutty Bench. Rate: Energy Charge: The sum, over the Billing Period, of the hourly energy consumed multiplied by the entry in the Platts Mid- Columbia (Mid-C) Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices that corresponds to the time when consumption occurred, during that hour. Minimum Monthly Charge: $35.81 Special Conditions: BC Hydro agrees to provide Electricity under this Schedule to the extent that it has energy and capacity to do so. BC Hydro may, without notice to the Customer, terminate the supply of Electricity under this Schedule if at any time BC Hydro does not have sufficient energy or capacity. Prior to taking Electricity under this Schedule, the Customer may be required to obtain approval from BC Hydro. BC Hydro will advise the Customer of the need to obtain approval prior to the taking of energy under this Schedule. Electricity taken under this Schedule is to be used solely for maintenance and black-start requirements and shall not displace Electricity that would normally be generated by the Customer. Taxes: Rate Rider: Rate Increase: The rates and minimum charge contained herein are exclusive of the Goods and Services tax and the Social Services tax. The Deferral Account Rate Rider as set out in Rate Schedule 1901 applies to all charges payable under this Rate Schedule, before taxes and levies. Effective April 1, 2013 the Rates and Minimum Charge under these schedules include an increase of 1.44% before rounding, approved by BCUC Order No. G-77-12A, subject only to a Commission order under section 44.2 of the Utilities Commission Act respecting BC Hydro s F2014 expenditures on DSM. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 2 of 3

27 BC Hydro Electric Tariff Supplement No. 54 Appendix A-2 Fifth Revision of Page 1 of 15 Effective: September 13, 2013 MODIFIED DEMAND AGREEMENT Rate Schedule 1852 This Agreement, which together with all Demand Reduction Transactions is referred to as the "Agreement", is made to be effective on the day of 200_, BETWEEN: AND: BRITISH COLUMBIA HYDRO AND POWER AUTHORITY, a body corporate with its head office at 333 Dunsmuir Street, Vancouver, British Columbia ("B.C. Hydro") ("the Customer''} (Each of B.C. Hydro and the Customer are referred to individually as the "Party" and collectively, as the "Parties") WHEREAS the Customer is currently receiving service from B.C. Hydro pursuant to Rate Schedule 1821 and the Electricity Supply Agreement approved by the British Columbia Utilities Commission, and in addition, wishes to take service from B.C. Hydro under Rate Schedule NOW THEREFORE, THIS AGREEMENT WITNESSES that the Parties agree as follows: 1. INTERPRETATION 1.1. Definitions The following definitions and any terms defined internally in this Agreement will apply to this Agreement and all notices and communications made pursuant to this Agreement: (a) (b) (c) "Business Day" means any day other than a Saturday, Sunday or a Statutory Holiday. "Calendar Hour" means a 60 minute period commencing at the start of the first minute of one of the 24 one hour periods in a day. "Mid-C Price" means the daily entry in the Platts Mid Columbia (Mid-C) Firm onpeak (HLH) daily Price lndex ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 3 of 3

28 Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Appendix B OATT Clean and Black-lined Versions of the Affected Pages

29 Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Appendix B-1 OATT Black-lined Version of the Affected Pages

30 Schedule 06 Energy Imbalance Service (continued) Appendix B-1 BC Hydro Open Access Transmission Tariff Effective: 09 December September 2013 OATT Schedule 06 First Revision of Page 2 Energy Imbalance Energy imbalances are calculated hourly based on deviations from scheduled generation and load. Positive imbalances occur when actual generation is greater than scheduled generation or when actual load is less than scheduled load. Negative imbalances occur when actual generation is less than scheduled generation or when actual load is greater than scheduled load. 1. Positive imbalances that do not exceed 20 MWh over an Energy Imbalance Period, will be settled at BC Hydro s hourly Energy Imbalance Price for the amount of the imbalance that does not exceed 4 MW in any hour, and at BC Hydro's hourly buy price for the amount of the imbalance in any hour that exceeds that amount. 2. Positive imbalances that exceed 20 MWh over an Energy Imbalance Period will be settled at BC Hydro's hourly buy price for the entire amount of the imbalance over that Energy Imbalance Period. 3. Negative imbalances that do not exceed 20 MWh over an Energy Imbalance Period, will be settled at BC Hydro s hourly Energy Imbalance Price for the amount of the imbalance that does not exceed 4 MW in any hour, and at BC Hydro's hourly sell price for the amount of the imbalance in any hour that exceeds that amount. 4. Negative imbalances that exceed 20 MWh over an Energy Imbalance Period will be settled at BC Hydro's hourly sell price for the entire amount of the imbalance over that Energy Imbalance Period. BC Hydro s Energy Imbalance Price will be calculated hourly based on the average of BC Hydro's hourly buy price and BC Hydro's hourly sell price. Rate BC Hydro's hourly buy price for energy received is equal to the Dow JonesPlatts Mid-C Firm off-peak Daily Mid Columbia (LLH) Daily Index Price, less Bonneville Power Authority's (BPA) wheeling rate from B.C.- U.S Border to Mid- Columbia (Mid-C). On Sundays and NERC Holidays, BC Hydro's hourly buy price is equal to the Platts Mid-C Firm Sunday and NERC Holidays Daily Index Price, less the wheeling rate from B.C.-U.S. Border to Mid-C. If a BC Hydro system spill occurs during the month, the buy price for all hours of the month will be zero. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 1 of 7

31 Appendix B-1 BC Hydro Open Access Transmission Tariff Effective: 09 December September 2013 OATT Schedule 06 First Revision of Page 3 BC Hydro's hourly sell price for energy provided during High Load Hours(HLH are hours ending 0700 to 2200) is set hourly as follows: BPA's Mid-C to U.S.-B.C. Border wheeling rate will be added to the Dow JonesPlatts Mid-C Firm on-peak Daily Mid Columbia (HLH) Daily Index Price and the result will be multiplied by the following factors to derive hourly prices. Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour BC Hydro's hourly sell price for energy provided during Low Load Hours (LLH are hours ending 2300 to 0600) is equal to the Dow JonesPlatts Mid-C Firm off-peak (LLH) Daily Mid Columbia LLH Index Price, plus BPA's wheeling rate from Mid-C to the U.S.-B.C. Border. BC Hydro's hourly sell price for energy provided during Sundays and NERC Holidays is equal to the Dow JonesPlatts Mid-C Firm Sunday and NERC Holidays Daily Index Price, plus BPA's wheeling rate from Mid-C to the U.S.-B.C. Border. BPA's wheeling rate is available on the BPA OASIS website. Taxes Note The Charges contained herein are exclusive of applicable taxes. A description of the methodology for discounting Energy Imbalance Services provided under this Schedule is contained in Section 3 of the BC Hydro OATT. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 2 of 7

32 BC Hydro Open Access Transmission Tariff Effective: April 18, 2013September 13, 2013 OATT Schedule 09 Fourth Fifth Revision of Page 1 Schedule 09 Appendix B-1 Loss Compensation Service Preamble To Transmission Customers taking Network Integration Transmission Service, Long and Short-Term Firm Point-to-Point Transmission Service, and Non-Firm Point to Point Transmission Service who have elected to take the Loss Compensation Service. Termination Date 1 March 2018 Rate Loss Compensation Service will be priced at BC Hydro s hourly sell price. BC Hydro's hourly sell price for energy provided during any hour in which the intertie for US to BC is fully utilized, as measured by zero Available Transmission Capacity at the close of the scheduling period for that hour, is the AESO Export Opportunity Service Rate (XOS) added to the greater of $0/MWh or the Alberta Power Pool price corresponding to that hour. If the intertie for the US to BC is not fully utilized, the following hourly prices apply. BC Hydro's hourly sell price for energy provided during High Load Hours (HLH are hours ending 0700 to 2200) is set hourly as follows: BPA's wheeling rate from Mid-C to the U.S.-B.C. Border will be added to the greater of $0/MWh or the Dow Jones Firm Daily Mid Columbia HLH IndexPlatts Mid-C Firm on-peak (HLH) Daily Index Price and the result will be multiplied by the following factors to derive hourly prices. Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 3 of 7

33 Appendix B-1 BC Hydro Open Access Transmission Tariff Effective: April 18, 2013September 13, 2013 OATT Schedule 09 Fourth Fifth Revision of Page 2 BC Hydro's hourly sell price for energy provided during Low Load Hours (LLH are hours ending 2300 to 0600) is equal to BPA's wheeling rate from Mid-C to the U.S.-B.C. Border plus the greater of $0/MWh or the Dow Jones Firm Daily Mid Columbia LLH IndexPlatts Mid-C Firm off-peak (LLH) ddaily Index Price. BC Hydro's hourly sell price for energy provided during Sundays and NERC Holidays is equal to BPA's wheeling rate from Mid-C to the U.S.- B.C. Border plus the greater of $0/MWh or the Dow JonesPlatts Mid-C Firm Sunday and NERC Holidays ddaily Index Price. AESO's XOS Rate is available on the AESO website. BPA's wheeling rate is available on the BPA OASIS website Taxes The Rate and Charges contained herein are exclusive of applicable taxes. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 4 of 7

34 BC Hydro Tariff Supplements Effective: April 18, 2013September 13, 2013 Tariff Supplement No. 80 First Second Revision of Page 1 of 2 Network Economy Service Appendix B-1 1. In this Tariff Supplement: Burrard Heat Rate means the heat rate used by British Columbia Hydro and Power Authority (BC Hydro) in making economic decisions about whether to run Burrard Thermal Generating Station. Sumas 2 Gas Index means the Midpoint Price listed in Gas Daily for Northwest, Canadian Border (Sumas). Threshold Purchase Price means the Threshold Purchase Price, as defined, and as determined from time to time, in the Transfer Pricing Agreement for Electricity and Gas between BC Hydro and Powerex Corp, dated April 1, Network Economy Service is as defined in section 1 of Attachment Q For the purposes of section 2 of Attachment Q-2 to the Tariff: (a) (b) During the period from March 1 to October 31, the Trigger Price is the Threshold Purchase Price; During the period from November 1 to February 28 or February 29, as applicable, the Trigger Price is: (i) (ii) for transactions at the BC-US intertie, the Sumas 2 Gas Index multiplied by the Burrard Heat Rate; and for transactions at the BC-Alberta intertie, the Threshold Purchase Price. (c) At all times, in the case of imports using Network Economy Service over the US- BC intertie, the Market Price is: (i) (ii) for Hours Ending 07:00:00 to 22:00:00 (Monday to Saturday, excluding US NERC Holidays) the Mid-C Heavy Load Hour price as reported by Dow JonesPlatts Mid-C Firm on-peak (HLH) Daily Index Price, net of transmission losses, from the last day available as of 17:00:00 of each current day; and for Hours Ending 01:00:00 to 06:00:00, Hour Ending 23:00:00 and Hour Ending 24:00:00, Monday to Saturday; all day Sunday; and all US NERC Holidays: the Platts Mid-C Firm off-peak (LLH) ddaily Index PriceMid-C Light Load Hour price as reported by Dow Jones, net of transmission losses, from the last day available as of 17:00:00 of each current day. ACCEPTED: ORDER NO. COMMISSION SECRETARY BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 5 of 7