2013 09 09 Application to Replace S and P Dow Jones Mid ... · [email protected] Partner, The Progressive Group Attention: Cynthia Burton ... 3 Conclusion and Recommendation

British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3 www.bchydro.com

Janet Fraser

Chief Regulatory Officer Phone: 604-623-4046 Fax: 604-623-4407 [email protected]

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

B-1

mailto:[email protected]

markhuds

BCH-Electric-Tariff-OATT-PIR

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 email 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.

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 604-623-3815 or by email at [email protected].

Janet Fraser Chief Regulatory Officer

Enclosures (5)

... 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 [email protected] Attention: Brian R. Wallace [email protected]

BCPSO Attention: Tannis Braithwaite [email protected]

Capital Power Corporation Attention: Daniel Jurijew [email protected]

Cargill Attention: Philip Pauls [email protected] Attention: Robert Walker [email protected]

Clean Energy Association Attention: David Austin [email protected]

Commercial Energy Consumers Association of BC Attention: Christopher Weafer [email protected]

Enmax Attention: Darren Gogol [email protected]

Morgan Stanley Attention: Deborah Hart [email protected] Attention: Jasper D Wright [email protected] Attention: Murray Margolis [email protected] Attention: Sabrina Kikkert [email protected] Attention: Steve Huhman [email protected] Attention: Lisa Cherkas [email protected]

NorthPoint Energy Attention: Dean K. Krauss [email protected] Attention: Dean Jones [email protected]

Partner, The Progressive Group Attention: Cynthia Burton [email protected]

Powerex Attention: Mike MacDougall [email protected] Attention: Mark Thompson [email protected] Attention: Michael McWilliams [email protected] Attention: Dan O’Hearn [email protected] Attention: Tom Bechard [email protected]

REMC Rainbow Energy Marketing Corporation Attention: Bob Friessen [email protected]

Teck Metals Ltd Attention: Richard Deane [email protected]

TransAlta Attention: Marcy Cochlan [email protected]

TransCanada Attention: Regulatory Department [email protected]

























Electric Tariff and Open Access Transmission Tariff

Application to Replace S&P Dow Jones Mid Columbia Indices



Page i

Table of Contents

1 Introduction ........................................................................................................ 1 1.1 Application ................................................................................................ 1 1.2 Order Sought ............................................................................................ 2 1.3 Consultation .............................................................................................. 2 1.4 Interim Approval Sought before September 30, 2013 ............................... 3 1.5 Proposed Process ..................................................................................... 3

2 Tariff Amendments ............................................................................................. 3 2.1 Electric Tariff ............................................................................................. 3 2.2 OATT ........................................................................................................ 4 2.3 Background and Options ........................................................................... 5 2.4 SPDJI Mid-C Electricity Price Indices ........................................................ 5

2.4.1 SPDJI Methodology .................................................................... 6 2.4.2 SPDJI Cost ................................................................................. 6

2.5 Platts Mid-C Electricity Price Indices ......................................................... 6 2.5.1 Platts Methodology ..................................................................... 7 2.5.2 Cost of replacement with Platts .................................................. 7 2.5.3 Suitability of Platts for BC Hydro Purposes ................................. 8

2.6 Powerdex Mid-C Electricity Price Indices .................................................. 8 2.6.1 Powerdex Methodology .............................................................. 9 2.6.2 Cost of replacement with Powerdex ........................................... 9 2.6.3 Suitability of Powerdex for BC Hydro Purposes .......................... 9

2.7 ICE Mid-C Electricity Price Indices .......................................................... 10 2.7.1 ICE Methodology ...................................................................... 10 2.7.2 Cost of replacement with ICE ................................................... 11 2.7.3 Suitability of ICE for BC Hydro Purposes .................................. 11

3 Conclusion and Recommendation .................................................................... 12

List of Appendices

Appendix A Electric Tariff - Clean and Black-lined Versions of the Affected Pages Appendix B Open Access Transmission Tariff - Clean and Black-lined Versions of

the Affected Pages Appendix C Email/Bulletin to Affected Customers Appendix D Letter of Notification from S&P Down Jones Indices Appendix E Draft Orders



Page 1

1 Introduction 1

1.1 Application 2

British Columbia Hydro and Power Authority (BC Hydro) files this application 3

pursuant to sections 58 to 61 of the Utilities Commission Act (UCA), R.S.B.C. 1996, 4

c. 473 to amend its Electric Tariff and its Open Access Transmission Tariff1 (OATT) 5

to reflect the discontinuation of the S&P Dow Jones Indices LLC (SPDJI) U.S. 6

electricity price indices that are used to calculate certain rates under each of the 7

tariffs (Application). Effective after the close of business on Friday, August 30, 8

2013, SPDJI will no longer calculate the Dow Jones U.S. hourly electricity indices 9

and effective after the close of business on Friday, September 13, 2013, SPDJI will 10

no longer calculate the Dow Jones U.S. daily electricity indices. BC Hydro uses the 11

certain daily indices in its rate calculations so as a result, BC Hydro must transition 12

to different equivalent indices effective September 13, 2013. 13

The Application seeks amendments to both the Electric Tariff and the OATT to 14

replace all references to the SPDJI Mid Columbia (Mid-C) electricity price indices for 15

high load hours (HLH), low load hours (LLH) and Sundays and North American 16

Electric Reliability Corporation (NERC) holidays. BC Hydro proposes that the tariff 17

language be amended to reflect the equivalent index published by Platts, McGraw 18

Hill Financial (Platts). 19

The following tariff pages are affected by the proposed changes: 20

• Electric Tariff: Rate Schedule (RS) 1253, RS 1853, Tariff Supplement (TS) 54 21

• OATT: RS 06, RS 09 and TS 80 22

• OATT: Attachments A and B also make reference to index publishing service 23

companies including CME Group Index Services Inc. and Dow Jones Inc. These 24

index publisher references are obsolete. 25

1 Electric Tariff and OATT available at: http://www.bchydro.com/about/planning_regulatory/tariff_filings.html.

http://www.bchydro.com/about/planning_regulatory/tariff_filings.html



Page 2

1.2 Order Sought 1

In this Application, BC Hydro seeks two Orders pursuant to sections 58 to 61 of the 2

UCA as follows: 3

• Since the SPDJI indices specified in Electric Tariff and in the OATT will no 4

longer be available after close of business on September 13, 2013, BC Hydro 5

seeks an interim order to allow it to utilize equivalent indices provided by Platts 6

for rate calculation purposes under the Electric Tariff and OATT, all as 7

described in the Application and as reflected in the revised tariff pages attached 8

in Appendix A (Electric Tariff) and Appendix B (OATT), to be effective from 9

September 13, 2013 until such time as the BCUC renders a final decision on 10

the Application 11

• BC Hydro seeks a final order approving its proposed changes to the Electric 12

Tariff and to the OATT to reflect the replacement of the SPDJI U.S. electricity 13

price indices with equivalent indices, all as described in the Application and as 14

reflected in the revised tariff pages attached in Appendix A (Electric Tariff) and 15

Appendix B (OATT) 16

Draft forms of the order for each of the interim order and the final order sought by 17

BC Hydro are included in Appendix E. 18

1.3 Consultation 19

Concurrent with its filing of the Application, BC Hydro notified its customers of its 20

filing of the Application with the BCUC and that the Application would seek approval 21

to replace the SPDJI electricity price indices that are referenced in the Electric Tariff 22

and OATT with an equivalent index as appropriate. Customers were notified by way 23

of an email and/or a bulletin was also posted on BC Hydro’s transmission website. A 24

copy of the email/bulletin is attached as Appendix C. 25



Page 3

1.4 Interim Approval Sought before September 30, 2013 1

BC Hydro respectfully requests that interim approval of the changes that are 2

included in the Application be provided before September 30, 2013, since this is the 3

date following which BC Hydro will calculate the monthly settlements under the 4

affected rate schedules and tariff supplements for September 2013. 5

1.5 Proposed Process 6

BC Hydro believes that a written process is appropriate for the BCUC to consider the 7

amendments proposed by BC Hydro in the Application. 8

2 Tariff Amendments 9

2.1 Electric Tariff 10

BC Hydro is proposing amendments to the Electric Tariff to revise references to the 11

SPDJI electricity price indices as follows: 12

• RS 1253 – Distribution Service – IPP Station Service: BC Hydro proposes to 13

amend RS 1253 to the reference in the energy charge rate calculation from the 14

“Dow Jones Mid-C Firm Electricity Price Index” for HLH and LLH with the Platts 15

Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices 16

• RS 1853 – Transmission Service – IPP Station Service: BC Hydro proposes 17

to amend the RS 1853 to replace all references in the energy charge rate 18

calculation from the “Dow Jones Mid-C Firm Electricity Price” Index for HLH and 19

LLH with the Platts Mid-C Firm on-peak (HLH) and Firm off-peak (LLH) daily 20

price indices 21

• TS 54 - Modified Demand Agreement – RS 1852: BC Hydro proposes to 22

amend the definition of “Mid-C Price” in section 1.1 (c) to replace the “Dow 23

Jones Mid-C Firm Electricity Price Index” for HLH with the Platts Mid-C Firm 24

on-peak (HLH) daily price indices 25

Clean and black-lined versions of the affected tariff pages are included in Appendix A. 26



Page 4

2.2 OATT 1

BC Hydro is proposing amendments to the OATT to revise references to the Dow 2

Jones electricity price indices as follows: 3

• RS 06 - Energy Imbalance Service: BC Hydro proposes to amend RS 06 to 4

replace all references in the Energy Imbalance rate calculations to the “Dow 5

Jones Firm Daily Mid-C Index” for HLH, LLH or Sundays and NERC Holidays 6

with Platts Mid-C Firm on-peak (HLH), Firm off-peak (LLH), and Firm Sunday 7

and NERC Holiday daily price indices 8

• RS 09 - Loss Compensation Service (LCS): BC Hydro proposes to amend 9

RS 09 to replace all references in the LCS sell price rate calculations to the 10

“Dow Jones Firm Daily Mid Columbia Index” for HLH, LLH or Sundays and 11

NERC Holidays with Platts Mid-C Firm on-peak (HLH), Firm off-peak (LLH), and 12

Firm Sunday and NERC Holiday daily price indices 13

• TS 80 - Network Economy: BC Hydro proposes to amend TS 80 section 2(c)(i) 14

and (ii) to replace the references to the “Mid-C Heavy Load Hour price” and 15

“Mid-C Light Load Hour price”, “as reported by Dow Jones”, with Platts Mid-C 16

Firm on-peak (HLH) and Firm off-peak (LLH) daily price indices 17

• OATT – Attachments A and B: BC Hydro also proposes to replace the 18

reference to “… CME Group Index Services LLC, Dow Jones & Company, Inc. 19

and their respective affiliates…” in Attachment A section 10.4 and Attachment B 20

section 9(c) with “…any index publishing services firms or their respective 21

affiliates that are identified in the Open Access Transmission Tariff, including its 22

schedules and supplements 23

Clean and black-lined versions of the affected tariff pages are included in Appendix B 24

(OATT). 25



Page 5

2.3 Background and Options 1

On August 14, 2013, BC Hydro was notified that effective after the close of business 2

on Friday, September 13, 2013, S&P Dow Jones Indices (a division of McGraw Hill 3

Financial) will no longer calculate the SPDJI U.S. electricity indices and that these 4

indices would be replaced by indices calculated by Platts (also a division of McGraw 5

Hill Financial) as of September 13, 2013. 6

BC Hydro has confirmed that the SPDJI U.S. electricity indices will no longer be 7

available from any vendor and as a result, BC Hydro is required to transition its 8

affected tariff rates so that they are based on different indices effective 9

September 13, 2013. 10

As a result, BC Hydro undertook to identify which indices were the most appropriate 11

indices to transition to, based on its specific business requirements. Hydro identified 12

three options. 13

1. Replace the SPDJI U.S. electricity indices with the equivalent indices calculated 14

by Platts 15


by Powerdex Inc. (Powerdex) 17


by Intercontinental Exchange Inc. (ICE) 19

2.4 SPDJI Mid-C Electricity Price Indices 20

As mentioned above, the Electric Tariff and the OATT currently refer to the SPDJI 21

Mid-C electricity price indices for the determination of certain rates. These are being 22

discontinued by SPDJI. The following indices are calculated by SPDJI and each is 23

used by BC Hydro as appropriate in its monthly settlements of rate charges under 24

the Electric Tariff and OATT as applicable: 25



Page 6

• Firm On-Peak: Daily index of hourly average $/MWh for On-Peak (HLH) 1

transactions at Mid-C (hours ending (HE) 0700 – 2200 Monday through 2

Saturday) 3

• Firm Off-Peak: Daily index of hourly average $/MWh for Off-Peak (LLH) 4

transactions at Mid-C (HE 2300 – 0600 Monday through Saturday) 5

• Firm Sunday & NERC Holidays: At Mid-C (24 hours) 6

2.4.1 SPDJI Methodology 7

The SPDJI Mid-C electricity price indices are based on the volumetric weighted 8

average price of Megawatt-hours sold at the Mid-C hub as follows: 9

Index Value [$/MWh] = Σ (Transaction Price [$/MWh] • Transaction Volume [MWh]) 10

Total Volume of Qualifying Transactions [MWh] 11

Index prices are published on the flow date. 12

2.4.2 SPDJI Cost 13

BC Hydro currently pays a subscription fee for use of the SPDJI indices in the 14

amount of USD $4,500/year. The last such payment was for the one-year period 15

commencing July 4, 2013. 16

2.5 Platts Mid-C Electricity Price Indices 17

By way of a letter to affected SPDJI Clients, a copy of which is attached as 18

Appendix D, BC Hydro was advised that effective September 13, 2013, Platts, the 19

energy information business of McGraw Hill Financial, will begin providing electricity 20

price data to replace the U.S. electricity prices being provided by SPDJI Indices. 21

SPDJI subscriptions will also be transferred to Platts for the remainder of their term. 22

The following indices calculated by Platts would be applicable to BC Hydro’s tariffs 23

and could replace the SPDJI indices: 24

• On-Peak Hours: Daily index of hourly average $/MWh for On-Peak (HLH) 25

transactions at Mid-C (HE 0700 – 2200) 26



Page 7

• Off-Peak Hours: Daily index of hourly average $/MWh for Off-Peak (LLH) 1

transactions at Mid-C (HE 2300 – 0600) 2

• There is currently no Sunday and NERC holiday index calculated by Platts. 3

Sunday prices are currently included in the Monday off-peak values and 4

Holiday prices are included in the next day off-peak prices. During discussions 5

with BC Hydro, Platts has stated that they intend to establish a Sunday and 6

NERC Holiday Daily index of hourly average $/MWh for Mid-C, prior to 7

September 13, 2013. BC Hydro would utilize this index, or if not available, the 8

appropriate off-peak pricing for these periods as required to calculate charges 9

under the tariffs for Sundays and NERC holidays until the Platts Sunday and 10

NERC Holiday index is available. 11

2.5.1 Platts Methodology 12

The Platts Price indices are based on the weighted average price of Megawatts sold 13

at the Mid-C hub as follows: 14

Index Value [$/MWh] = Σ (Transaction Price [$/MW] • Transaction Volume [MW]) 15

Qualifying Transactions in period [MW] • hours in period 16

There is no impact to using MW instead of MWh in the calculation. 17

Index prices are published on the trade date. 18

Standard deals (e.g., standard delivery times and multiples of 25 MW) are included 19

in the indices. Outliers (greater than two standard deviations from the mean) may be 20

excluded. These are flagged and a determination is made on whether they should 21

be included or excluded (e.g., if they appear to represent a reporting error). 22

2.5.2 Cost of replacement with Platts 23

Platts has not yet established the subscription cost for the replacement indices; 24

however, BC Hydro does not expect the subscription to exceed the USD 25

$4,500/year that it currently pays for the SPDJI indices. BC Hydro has paid the 26



Page 8

annual renewal fee for the SPDJI indices and this will be transferred so that 1

BC Hydro is provided with the equivalent Platts indices until July 4, 2014. 2

BC Hydro does not expect to incur any significant information technology (IT) costs 3

since Platts data is provided in the same format as the SPDJI indices and could be 4

scraped and parsed using existing systems so that it could be automatically 5

imported it into BC Hydro’s Market Operations and Development System (MODS). 6

BC Hydro also does not expect to incur any significant IT costs related to importing 7

the Platts data into BC Hydro’s Electric Tariff customer billing system. 8

2.5.3 Suitability of Platts for BC Hydro Purposes 9

The transition to Platts indices could be accomplished immediately since the data is 10

provided in the same format as SPDJI data and can be imported into BC Hydro’s 11

MODS system with no modification. 12

The Platts indices have a high degree of correlation with the equivalent SPDJI 13

indices. For the test period of August 1 to 13, 2013, Peak index values were within a 14

range of -0.3 per cent to +0.8 per cent with and average error of +/- 0.2 per cent of 15

the SPDJI values. Off-Peak index values were within a range of -0.2 per cent to 16

+1.3 per cent with and average error of +/- 0.4 per cent of the SPDJI values and 17

Sunday and NERC holiday index values were within a range of -0.2 per cent to 18

+0.1 per cent with and average error of +/- 0.1 per cent of the SPDJI values. 19

2.6 Powerdex Mid-C Electricity Price Indices 20

Powerdex is an index publisher that publishes hourly and prescheduled indexes of 21

wholesale power transactions for eight hubs in the Western Interconnect. 22

The following indices calculated by Powerdex would be applicable to BC Hydro’s 23

tariffs and could replace the SPDJI indices: 24

• Standard On-peak: Daily index of hourly average $/MWh for On-Peak (HLH) 25




Page 9

• Standard Off-peak: Daily index of hourly average $/MWh for Off-Peak (LLH) 1


• Non-Standard Day-Ahead 1x16s: Daily index of hourly average $/MWh for 3

Mid-C (HE 0700 – 2200) on Sundays and NERC holidays 4

2.6.1 Powerdex Methodology 5

The Powerdex Price indices are based on the volumetric weighted average price of 6

Megawatt-hours sold at the Mid-C hub as follows: 7



This is the same calculation methodology as is used in the SPDJI indices. 10

Index prices are published on the following business day that is not a NERC holiday. 11

Standard deals (e.g., standard delivery times and multiples of 25 MW) are included 12

in the indices. Non-standard deals are included in separate indices. 13

2.6.2 Cost of replacement with Powerdex 14

BC Hydro expects that the subscription fee for the use of the Powerdex indices 15

would be in the amount of USD $2,000/year. 16

Data is available in Comma Separated Value (CSV) format; however, BC Hydro 17

expects IT costs would be required to develop a parsing methodology to allow auto 18

population into MODS. The expected cost of this work is expected to be $5,000 to 19

$10,000. 20

2.6.3 Suitability of Powerdex for BC Hydro Purposes 21

Auto population into MODS could likely not be completed prior to 22

September 30, 2013; however, a manual work around until the parsing methodology 23

is complete is feasible. 24



Page 10

The Powerdex data correlation with the equivalent SPDJI indices is not as good as 1

Platts. For the test period of August 1 to 13, 2013, Peak index values were within a 2




Sunday and NERC holiday index values were within a range of -1.0 per cent to 6

+0.5 per cent with and average error of +/- 0.7 per cent of the SPDJI values. 7

2.7 ICE Mid-C Electricity Price Indices 8

ICE is an operator of regulated exchanges and clearing houses for agricultural, 9

credit, currency, emissions, energy and equity index products. The following indices 10

calculated by ICE would be applicable to BC Hydro’s tariffs and could replace the 11

SPDJI indices: 12

• Mid-C Peak: Daily index of hourly average $/MWh for On-Peak (HLH) 13


• Mid-C Off-Peak: Daily index of hourly average $/MWh for Off-Peak (LLH) 15


• Mid-C Off-Peak Sunday 1x16: Daily index of hourly average $/MWh for 17

Sunday Off-Peak transactions at Mid-C (HE 0700 – 2200) 18

2.7.1 ICE Methodology 19

ICE indices are based on the weighted average price of Megawatt-hours sold at the 20

Mid-C hub as follows: 21



This is the same calculation methodology as is used in the SPDJI indices. 24



Page 11

Trades done between two companies that are owned by the same parent company 1

are excluded as are option trades that fall outside of the given time period for each 2

index. 3

2.7.2 Cost of replacement with ICE 4

There is no subscription fee for use of the ICE indices; however, 3rd party IT data 5

parsing may be required. 6

Data is provided in a format that is not compatible with MODS. Data is available in 7

Comma Separated Value (CSV) format; however, BC Hydro expects IT costs would 8

be required to develop scraping and parsing methodologies to allow auto population 9

into MODS. The expected cost of this methodology could be $15,000 to $20,000. 10

2.7.3 Suitability of ICE for BC Hydro Purposes 11

The indices are based upon verifiable trade data and underlying historical prices are 12

available through subscription. 13

The ICE data correlation with the equivalent SPDJI indices is also not as good as 14

Platts. For the test period of August 1 to 13, 2013, Peak index values were within a 15




Sunday and NERC holiday index values were within a range of -0.6 per cent 19

to -0.1 per cent with and average error of +/- 0.5 per cent of the SPDJI values. 20



Page 12

3 Conclusion and Recommendation 1

BC Hydro proposes to amend its Electric Tariff and its OATT to reflect the 2

discontinuation of the SPDJI electricity price indices as of close of business on 3

Friday, September 13, 2013. 4

BC Hydro proposes to amend both the Electric Tariff and the OATT to replace all 5

references to the SPDJI Mid-C electricity price indices for HLH, LLH or Sundays and 6

NERC holidays with the appropriate Platts Mid-C Firm on-peak (HLH), Firm off-peak 7

(LLH), and Firm Sunday and NERC Holiday daily price indices. 8

Affected tariff pages are: 9

• Electric Tariff: RS 1253, RS 1853 and TS 54 10

• OATT: RS 06, RS 09 and TS 80. 11

• OATT: Attachments A and B to amend references to index publishing service 12

companies 13

BC Hydro’s proposal to use the equivalent Platts indices is based on data 14

compatibility and high degree of correlation with SPDJI indices. 15



Appendix A

Electric Tariff Clean and Black-lined Versions of the Affected Pages



Appendix A-1

Electric Tariff Black-lined Version of the Affected Pages

BC Hydro Rate Schedules

Effective: 01 April 201313 September 2013 Twelfth Thirteenth Revision of Page 24

ACCEPTED: ORDER NO. COMMISSION SECRETARY

Availability: For Customers who are Independent Power Producers (IPPs) served at

distribution voltage, subject to the Special Conditions below.

Applicable in:

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:

$35.81

Special Conditions:

1. 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: 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.

Rate Increase: 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.

SCHEDULE 1253 – DISTRIBUTION SERVICE – IPP STATION SERVICE

Appendix A-1

BC Hydro Electric Tariff and Open Access Transmission Tariff Application to Replace S&P Dow Jones Mid Columbia Indices Page 1 of 3


Effective: 01 April 201313 September 2013 Twelfth Thirteenth Revision of Page 57



transmission voltage subject to the Special Conditions below.

Applicable in:


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: The rates and minimum charge contained herein are exclusive of the Goods and Services tax and the Social Services tax.

Rate Rider: 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.


SCHEDULE 1853 – TRANSMISSION SERVICE – IPP STATION SERVICE

Appendix A-1


BC Hydro Electric Tariff Supplement No. 54

Fourth Fifth Revision of Page 1 of 15

Effective: April 27, 2006September 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:

BRITISH COLUMBIA HYDRO AND POWER AUTHORITY, a body corporate with its head office at 333 Dunsmuir Street, Vancouver, British Columbia ("B.C. Hydro")

AND:

("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 1852. 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) "Business Day" means any day other than a Saturday, Sunday or a Statutory Holiday.

(b) "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.

(c) "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)

Appendix A-1

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

Page 3 of 3



Appendix A-2

Electric Tariff Clean Version of the Affected Pages


Effective: 13 September 2013 Thirteenth Revision of Page 24



distribution voltage, subject to the Special Conditions below.

Applicable in:


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:

$35.81

Special Conditions:

1. 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: 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.


SCHEDULE 1253 – DISTRIBUTION SERVICE – IPP STATION SERVICE

Appendix A-2



Effective: 13 September 2013 Thirteenth Revision of Page 57



transmission voltage subject to the Special Conditions below.

Applicable in:


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: The rates and minimum charge contained herein are exclusive of the Goods and Services tax and the Social Services tax.

Rate Rider: 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.


SCHEDULE 1853 – TRANSMISSION SERVICE – IPP STATION SERVICE

Appendix A-2


BC Hydro Electric Tariff Supplement No. 54

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:

BRITISH COLUMBIA HYDRO AND POWER AUTHORITY, a body corporate with its head office at 333 Dunsmuir Street, Vancouver, British Columbia ("B.C. Hydro")

AND:

("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 1852. 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) "Business Day" means any day other than a Saturday, Sunday or a Statutory Holiday.

(b) "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.

(c) "Mid-C Price" means the daily entry in the Platts Mid Columbia (Mid-C) Firm on-peak (HLH) daily Price lndex

Appendix A-2


Page 3 of 3



Appendix B

OATT Clean and Black-lined Versions of the Affected Pages



Appendix B-1

OATT Black-lined Version of the Affected Pages

BC Hydro Open Access Transmission Tariff

Effective: 09 December 201013 September 2013 OATT Schedule 06 – First Revision of Page 2


Schedule 06 – Energy Imbalance Service (continued)

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.

Appendix B-1



Effective: 09 December 201013 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 0700 0.8531 Hour 1500 0.9668

Hour 0800 0.9437 Hour 1600 0.9766

Hour 0900 0.9852 Hour 1700 1.0365

Hour 1000 0.9995 Hour 1800 1.0966

Hour 1100 1.0026 Hour 1900 1.0850

Hour 1200 0.9945 Hour 2000 1.0615

Hour 1300 0.9861 Hour 2100 1.0360

Hour 1400 0.9731 Hour 2200 1.0031

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 The Charges contained herein are exclusive of applicable taxes.

Note A description of the methodology for discounting Energy Imbalance Services provided under this Schedule is contained in Section 3 of the BC Hydro OATT.

Appendix B-1


Page 2 of 7


Effective: April 18, 2013September 13, 2013 OATT Schedule 09 – Fourth Fifth Revision of Page 1


Schedule 09

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 0700 0.8531 Hour 1500 0.9668

Hour 0800 0.9437 Hour 1600 0.9766

Hour 0900 0.9852 Hour 1700 1.0365

Hour 1000 0.9995 Hour 1800 1.0966

Hour 1100 1.0026 Hour 1900 1.0850

Hour 1200 0.9945 Hour 2000 1.0615

Hour 1300 0.9861 Hour 2100 1.0360

Hour 1400 0.9731 Hour 2200 1.0031

Appendix B-1


Page 3 of 7


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.

Appendix B-1


Page 4 of 7

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

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, 2003.

“Network Economy Service” is as defined in section 1 of Attachment Q-2.

2. For the purposes of section 2 of Attachment Q-2 to the Tariff:

(a) During the period from March 1 to October 31, the Trigger Price is the Threshold Purchase Price;

(b) During the period from November 1 to February 28 or February 29, as applicable, the Trigger Price is:

(i) for transactions at the BC-US intertie, the Sumas 2 Gas Index multiplied by the Burrard Heat Rate; and

(ii) 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) 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

(ii) 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.

Appendix B-1


Page 5 of 7


Effective: 09 December 201013 September 2013

OATT Attachment A – First Revision of Page 3


10.3 This Agreement shall be subject to the Parties obtaining and maintaining any

required regulatory approvals.

10.4 The Transmission Customer acknowledges that the CME Group Index Services

LLC, Dow Jones & Company, Inc. and their respective affiliatesany index

publishing services firms or their respective affiliates that are identified in the

Open Access Transmission Tariff, including is schedules and supplements do not

sponsor, endorse, sell or promote the purchase or sale of transmission service

as outlined in British Columbia Hydro and Power Authority’s Open Access

Transmission Tariff, and none of them make any representation regarding the

advisability of investing in the transmission service offered by British Columbia

Hydro and Power Authority thereunder.

11. The signatories hereby represent that they have been appropriately authorized to

execute this Agreement on behalf of the Party for whom they sign.

12. The Tariff is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their

respective authorized officials.

Transmission Provider:

By: Name Title Date

Transmission Customer:

By: Name Title Date

Appendix B-1


Page 6 of 7


Effective: 09 December 201013 September 2013

OATT Attachment B – First Revision of Page 3


(b) BC Hydro and the Transmission Customer will promptly comply with all relevant

laws and regulations and the relevant orders, rules and requirements of all

authorities having jurisdiction.

(c) The Transmission Customer acknowledges that any index publishing services

firms or their respective affiliates that are identified in the Open Access

Transmission Tariff, including is schedules and supplementsthe CME Group

Index Services LLC, Dow Jones & Company, Inc. and their respective affiliates

do not sponsor, endorse, sell or promote the purchase or sale of transmission

service as outlined in British Columbia Hydro and Power Authority’s Open

Access Transmission Tariff, and none of them make any representation

regarding the advisability of investing in the transmission service offered by

British Columbia Hydro and Power Authority thereunder.

10. Nothing contained in this Service Agreement shall restrict or limit either Party from

establishing, altering or terminating interconnection points with any entity not a party to

this Service Agreement or amending or entering into such agreements.

11. This Service Agreement shall inure to the benefit of and be binding upon the Parties and

their respective successors.

12. The Tariff and the attached Specifications for Long-Term Firm Point-To-Point

Transmission Service is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by

their respective authorized officials.


By: Name Title Date


By:

Appendix B-1


Page 7 of 7



Appendix B-2

OATT Clean Version of the Affected Pages


Effective: 13 September 2013 OATT Schedule 06 – First Revision of Page 2


Schedule 06 – Energy Imbalance Service (continued)

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 Platts Mid-C Firm off-peak (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.

Appendix B-2



Effective: 13 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 Platts Mid-C Firm on-peak (HLH) Daily Index Price and the result will be multiplied by the following factors to derive hourly prices.

Hour 0700 0.8531 Hour 1500 0.9668

Hour 0800 0.9437 Hour 1600 0.9766

Hour 0900 0.9852 Hour 1700 1.0365

Hour 1000 0.9995 Hour 1800 1.0966

Hour 1100 1.0026 Hour 1900 1.0850

Hour 1200 0.9945 Hour 2000 1.0615

Hour 1300 0.9861 Hour 2100 1.0360

Hour 1400 0.9731 Hour 2200 1.0031

BC Hydro's hourly sell price for energy provided during Low Load Hours (LLH are hours ending 2300 to 0600) is equal to the Platts Mid-C Firm off-peak (LLH) Daily 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 Platts 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 The Charges contained herein are exclusive of applicable taxes.

Note A description of the methodology for discounting Energy Imbalance Services provided under this Schedule is contained in Section 3 of the BC Hydro OATT.

Appendix B-2


Page 2 of 7


Effective: September 13, 2013 OATT Schedule 09 – Fifth Revision of Page 1


Schedule 09

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 Platts Mid-C Firm on-peak (HLH) Daily Index Price and the result will be multiplied by the following factors to derive hourly prices.

Hour 0700 0.8531 Hour 1500 0.9668

Hour 0800 0.9437 Hour 1600 0.9766

Hour 0900 0.9852 Hour 1700 1.0365

Hour 1000 0.9995 Hour 1800 1.0966

Hour 1100 1.0026 Hour 1900 1.0850

Hour 1200 0.9945 Hour 2000 1.0615

Hour 1300 0.9861 Hour 2100 1.0360

Hour 1400 0.9731 Hour 2200 1.0031

Appendix B-2


Page 3 of 7


Effective: September 13, 2013 OATT Schedule 09 – 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 Platts Mid-C Firm off-peak (LLH) Daily 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 Platts Mid-C Firm Sunday and NERC Holidays Daily 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.

Appendix B-2


Page 4 of 7

BC Hydro Tariff Supplements

Effective: September 13, 2013 Tariff Supplement No. 80

Second Revision of Page 1 of 2


Network Economy Service

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, 2003.

“Network Economy Service” is as defined in section 1 of Attachment Q-2.

2. For the purposes of section 2 of Attachment Q-2 to the Tariff:

(a) During the period from March 1 to October 31, the Trigger Price is the Threshold Purchase Price;

(b) During the period from November 1 to February 28 or February 29, as applicable, the Trigger Price is:

(i) for transactions at the BC-US intertie, the Sumas 2 Gas Index multiplied by the Burrard Heat Rate; and

(ii) 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) for Hours Ending 07:00:00 to 22:00:00 (Monday to Saturday, excluding US NERC Holidays) the Platts 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

(ii) 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) Daily Index Price, net of transmission losses, from the last day available as of 17:00:00 of each current day.

Appendix B-2


Page 5 of 7


Effective: 13 September 2013 OATT Attachment A – First Revision of Page 3


10.3 This Agreement shall be subject to the Parties obtaining and maintaining any

required regulatory approvals.

10.4 The Transmission Customer acknowledges that any index publishing services


Transmission Tariff, including is schedules and supplements do not sponsor,

endorse, sell or promote the purchase or sale of transmission service as outlined

in British Columbia Hydro and Power Authority’s Open Access Transmission

Tariff, and none of them make any representation regarding the advisability of

investing in the transmission service offered by British Columbia Hydro and

Power Authority thereunder.

11. The signatories hereby represent that they have been appropriately authorized to

execute this Agreement on behalf of the Party for whom they sign.

12. The Tariff is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their

respective authorized officials.


By: Name Title Date


By: Name Title Date

Appendix B-2


Page 6 of 7


Effective: 13 September 2013 OATT Attachment B – First Revision of Page 3


(b) BC Hydro and the Transmission Customer will promptly comply with all relevant

laws and regulations and the relevant orders, rules and requirements of all

authorities having jurisdiction.

(c) The Transmission Customer acknowledges that any index publishing services


Transmission Tariff, including is schedules and supplements do not sponsor,

endorse, sell or promote the purchase or sale of transmission service as outlined

in British Columbia Hydro and Power Authority’s Open Access Transmission

Tariff, and none of them make any representation regarding the advisability of

investing in the transmission service offered by British Columbia Hydro and

Power Authority thereunder.

10. Nothing contained in this Service Agreement shall restrict or limit either Party from

establishing, altering or terminating interconnection points with any entity not a party to

this Service Agreement or amending or entering into such agreements.

11. This Service Agreement shall inure to the benefit of and be binding upon the Parties and

their respective successors.

12. The Tariff and the attached Specifications for Long-Term Firm Point-To-Point

Transmission Service is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by

their respective authorized officials.


By: Name Title Date


By: Name Title Date

Appendix B-2


Page 7 of 7



Appendix C

Email/Bulletin to Affected Customers

Electric Tariff and Open Access Transmission Tariff (OATT) Application to Replace S&P Dow Jones Mid Columbia Indices Bulletin

BC Hydro advises that it has filed an Application with the British Columbia Utilities Commission 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) 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, September 13, 2013, SPDJI will no longer calculate the Dow Jones U.S. Hourly 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:

1. 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.

2. 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.

3. 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.

OATT 4. 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

5. 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

6. 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.

7. 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 with “…any index publishing services firms or their respective affiliates that are identified in the Open Access Transmission Tariff, including its schedules, and supplements.

8. BC Hydro also proposes to replace the reference to “… CME Group Index Services LLC, Dow Jones & Company, Inc. and their respective affiliates…” in 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

Black-lined versions of affected tariff pages are as follows: 1. Electric Tariff: A-1_Electric_Tariff_Pages_BL.pdf (PDF 78KB) 2. OATT: B-1_OATT_Pages_BL.pdf (PDF 86KB)

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Appendix D

Letter of Notification from S&P Down Jones Indices

August 14, 2013

Dear S&P Dow Jones Indices Client, S&P Dow Jones Indices would like to announce that effective September 13, 2013, Platts, the energy information business of McGraw Hill Financial and a premier source of price assessments for the energy market, will begin providing you with price data that will replace the U.S. electricity prices you currently receive from S&P Dow Jones Indices (SPDJI). There will be no interruption of service and you can be confident that you will continue to receive high quality price data that will address your information needs. Below please find additional details. TRANSITION SUMMARY

Effective after the close on Friday, September 13, 2013, SPDJI will discontinue the calculation of the Dow Jones U.S. Electricity Indices. In lieu of the Dow Jones U.S. Electricity Indices, clients will begin to receive Platts assessments that are based upon Platts methodology. Of special note regarding the Platts price assessments, the date of prices will reflect and will be delivered on trade data rather than flow date.

All Dow Jones U.S. Electricity Indices customers will begin receiving Platts price assessments on September 13, 2013. As of this date forward, customers will be billed by Platts.

Data services will transition from the legacy Dow Jones Indexes FTP platform and email; additional transition details will be sent in the near future. Visit the S&P Dow Jones Indices Subscriber Services portal at www.spindices.com/client-services/current-transitions to obtain helpful information and updates that will assist you throughout this transition.

For all service inquiries and questions, please contact [email protected]. To help ensure a seamless transition, provide the below information to Platts Client Support group at [email protected].

o Name: o Title: o Phone #: o Complete company name: o Department: o Full company address (including street, city, state, zip code, country)

Reminder: as previously announced, effective after the close of business on Friday, August 30, 2013, S&P Dow Jones Indices will no longer calculate the Dow Jones U.S. Hourly Electricity Indices. Please contact us if you have any questions or concerns regarding this notice. Kind regards, S&P Dow Jones Indices Client Services Beijing +86 10 6569 2905 | Dubai +9714 3717131| Hong Kong +852 2532 8000 | London +44 20 7176 8888 | New York +1 212 438 2046 or +1 877 325 5415 | Sydney +61 2 9255 9802 | Tokyo +813 4550 8564 www.spindices.com | www.djindexes.com

Appendix D


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http://www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/na_power_method.pdf

http://www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/na_power_method.pdf

http://www.spindices.com/client-services/current-transitions

http://www.spindices.com/client-services/current-transitions





http://www.spindices.com/

http://www.spindices.com/

http://www.djindexes.com/

http://www.djindexes.com/



Appendix E

Draft Orders



Appendix E-1

Interim Order

SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, BC V6Z 2N3 CANADA

web site: http://www.bcuc.com

TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385

FACSIMILE: (604) 660-1102

BR I T I S H CO LU M B I A

UT I L I T I E S COM M I S S I O N OR D E R NU M B E R G-

IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

Application by British Columbia Hydro and Power Authority (BC Hydro) to Replace S&P Dow Jones Mid Columbia Indices

in the Electric Tariff and Open Access Transmission Tariff

BEFORE:

, 2013

ORDER

WHEREAS:

A. On September 9, 2013, BC Hydro, pursuant to sections 59 to 61 of the Utilities Commission Act (Act), submitted to an application (Application) for approval to amend the Electric Tariff and the Open Access Transmission Tariff (OATT) due to the discontinuation of the publication of electricity price indices published by S&P Dow Jones Indices LLC (SPDJI) that are referenced in the Electric Tariff and OATT including:

In the Electric Tariff to replace references to Mid Columbia (Mid-C) indices published by SPDJI with references to equivalent indices published by Platts, McGraw Hill Financial (Platts) in Rate Schedule (RS) 1253, RS 1853 and TS 54;

In the OATT, to replace references to Mid Columbia (Mid-C) indices published by SPDJI with references to equivalent indices published by Platts in RS 06, RS 09 and TS 80; and

In the OATT Attachments A and B, to replace references to index publishing service companies “CME Group Index Services Inc. and Dow Jones Inc” with a generic reference to “any index publishing services firms”.

B. In the Application, BC Hydro also requested an interim order by September 30, 2013, to allow it to utilize the equivalent indices provided by Platts for rate calculation purposes under the Electric Tariff and OATT to be effective from September 13, 2013 until such time as the BCUC renders a final decision on the Application.

C. The Commission has considered the request to utilize equivalent indices provided by Platts for rate calculation purposes under the Electric Tariff and OATT to be effective from September 13, 2013 until such

Appendix E-1


Page 1 of 2

2



time the Commission renders a final decision on the Application and considers that this request is warranted.

NOW THEREFORE the Commission orders as follows:

1. The Commission approves the use of equivalent indices provided by Platts for rate calculation purposes under the Electric Tariff and OATT to be effective from September 13, 2013 until such time as the Comission renders a final decision on the Application.

DATED at the City of Vancouver, in the Province of British Columbia, this day of , 2013.

BY ORDER

Appendix E-1


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Appendix E-2

Draft Order

SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, BC V6Z 2N3 CANADA

web site: http://www.bcuc.com

TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385

FACSIMILE: (604) 660-1102



IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

Application by British Columbia Hydro and Power Authority (BC Hydro) to Replace S&P Dow Jones Mid Columbia Indices

in the Electric Tariff and Open Access Transmission Tariff

BEFORE:

, 2013

ORDER

WHEREAS:

A. On September 12, 2000, the the British Columbia Utilities Commission (Commission) issued Order No. G-82-00 which approved among other things, Tariff Supplement (TS) 54 – Modified Demand Agreement (RS 1852) under BC Hydro’s Electric Tariff;

B. On February 6, 2001, the Commission issued Order No. G-12-01 which approved Rate Schedule (RS) 1853 – Transmission Service – IPP Station Service under BC Hydro’s Electric Tariff;

C. On October 23, 2001, the Commission issued Order No. G-111-01 which approved Rate Schedule (RS) 1253 – Distribution Service – IPP Station Service under BC Hydro’s Electric Tariff;

D. On December 9, 2010, the Commission issued Order No. G-192-10 approving amendments to the Open Access Transmission Tariff, submitted by BC Hydro pursuant to sections 59 to 61 of the Utilities Commission Act (UCA), to reflect the integration of BC Hydro and British Columbia Transmission Corporation pursuant to the Clean Energy Act, including RS 06 – Energy Imbalance Service, RS 09 – Loss Compensation Service, TS 80 – Network Economy Service, Attachment A – Umbrella Agreement for Short-Term Firm or Non-Firm Point-To-Point Transmission Service and Attachment B – Form of Service Agreement for Long-Term Firm Point-To-Point Transmission Service;

E. On September 9, 2013, BC Hydro, pursuant to sections 59 to 61 of the UCA, submitted to the Commission an application (Application) for approval to amend the Electric Tariff and the OATT due to the discontinuation of the publication of electricity price indices published by S&P Dow Jones Indices LLC (SPDJI) that are referenced in the Electric Tariff and OATT including:

Appendix E-2


Page 1 of 2

2



In the Electric Tariff to replace references to Mid Columbia (Mid-C) indices published by SPDJI with references to equivalent indices published by Platts, McGraw Hill Financial (Platts) in RS 1253, RS 1853 and TS 54;

In the OATT, to replace references to Mid Columbia (Mid-C) indices published by SPDJI with references to equivalent indices published by Platts in RS 06, RS 09 and TS 80; and

In the OATT Attachments A and B, to replace references to index publishing service companies “CME Group Index Services Inc. and Dow Jones Inc” with a generic reference to “any index publishing services firms”.

F. The Commission reviewed the Application and determines the proposed amendments to the Electric Tariff are in the public interest and the proposed amendments to the OATT are not unjust,unreasonable, unduly discriminatory or unduly preferential.

NOW THEREFORE the Commission orders as follows:

1. The proposed amendments to the Electric Tariff and OATT as applied for in the Application by BC Hydro dated September 9, 2013, are approved effective September 13, 2013.

DATED at the City of Vancouver, in the Province of British Columbia, this day of , 2013.

BY ORDER

Appendix E-2


Page 2 of 2

Documents

2013 09 09 Application to Replace S and P Dow Jones Mid ... · [email protected] Partner, The Progressive Group Attention: Cynthia Burton ... 3 Conclusion and Recommendation