Commercial Energy Consumers British Columbia Hydro and ......Final Proposal Business Group Safety (Chapter 5D) • General . ,t; • KBU - Field Safety Services • KBU Learning and

Commercial Energy Consumers

British Columbia Hydro and Power Authority - F2020 - F2021 Revenue Requirements Application, Project No. 1598990

Procedural Conference - November 22, 2019

'Topic/ };, 1Rs ii ,. BCHydrn's ,,.

Jnterveners1 ., B'.C Hydro's CE-C's Position Sub-Toeic Receiv.ed ,, lnitiaJ P1oeosal Jnitia1 Final Proeosal .

i • cf Pos".'itions .,

I< ' "

General

Corporate Goals ~40 Include No objections Include Agreed and Objectives received (Appendix E)

Hydro Quebec ~15 Include No objections Include Agreed Survey received (Appendix V)

Organizational ~20 Include No objections Include Agreed Structure received (Appendices R, S)

Evidentiary ~45 Include No objections Include Agreed Update and received Implementation of Rates

Legal ~30 Exclude. Legal AMPC felt this Exclude CEC does not Framework questions should be topic did not Questioning the anticipate cross (Chapter 2, addressed in final need to be rationale or examining on Appendix D) submissions, not by included in a implications of this topic.

witnesses. IRs scoping order government focused on and would want policy decisions clarifications. the opportunity that are not

to ask questions within the about the cost purview of the implications of Commission the Legal would be an Framework. inefficient use of

hearing time.

Rate Design ~35 Exclude. Outside AMPC and Exclude CEC does not the scope of the MOVEUP felt Rate design anticipate cross Application. that rate design matters, and the examining on

should be in implications of this topic. scope to the rate design, are extent that more existing rates appropriately have an impact addressed on items such through rate as the revenue design forecast, etc. proceedings.

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C9-10

AIRAKARA

F2020-21 RRA

''"




. '" : ' '" BCHydro"s '

CEC's Position J:opic~ IR~ lnterveners" BC Hydro~s S:ub-Toejc ·Recejved lnitiaJ Pro~sal · Initial Final Proeosal , F

j )

·Positions H ' 'c'.,. '~ ,fC ;' 0 ft ,1 I" y

,, ,,

Safety ~55 Exclude. Issue has No objections Exclude Agreed Performance been received Metrics well-canvassed in

IRs.

Net Metering <5 Exclude. Outside No objections Exclude Agreed the scope of the received Application. There is an ongoing application related to Net Metering.

Load and Revenue Forecast (Chapter 3, Appendices 0, P, Q)

Load Forecast ~360 Include N/A BC Hydro CEC latitude to clarifies that its ask questions position is to on Load include the Forecast Load Forecast methodology. with regards to the Test Period only

See related discussion in section above

Energy Planning ~70 Exclude. Issue is AMPC and Include with (i .e. , load better discussed as MOVEUP felt regards to the resource part of BC Hydro's that Energy Test Period balance, 2021 Integrated Planning issues Only long-run Resource Plan. should be marginal cost, addressed etc.)

Cost of Energy (Chapter 4, Appendix DD)

Energy Studies ~310 Include No objections Include Agreed and System received Operation

2 {01438690;1}




a . . •i . . w ~.'. ,ffed

:Topic/ '· JRs ,5·ec Hydro's ,. 11

11 ·"' l.nterveners' BC ':Hydrci"-s CEC's Position Sub-Toeic . ) Received ,,l1x lnmal ProeQsal' r Initial ' -Final ProeQsal ,, ; . ;,,

1:0 ' ;: "' " Positions' n w ;;; ff' m " ' . 0 d/0 '" .,

Independent ~240 Exclude. Vast AMPC and Exclude CEC will not be Power majority of forecast MOVEUP felt The BCUC has cross examining Producers costs relate to that IPPs should limited on this topic.

existing contractual be included with discretion with commitments (see regards to the regards to IPP Figure 4-2, cost of energy, costs (see page 4-32 of the the rationale in Application). load-resource column 3). To BC Hydro does not balance and the extent that have any active cost implications the BCUC has energy procurement of commitments. discretion, any programs. Renewal review would of Electricity happen through Purchase a separate Agreements is either section 71 subject to proceeding. Government Direction (Biomass Energy Program) or will be reviewed through a separate section 71 proceeding.

Operating Costs (Chapter 5)

Overall ~175 Include No objections Include Agreed Operating received Costs, Budgeting Process, Work Smart Program

Labour Costs ~250 Include No objections Include Agreed (Full Time received Equivalents, Compensation , Vacancy Factor Savings, Workforce Optimization Program)

Maintenance ~95 Include No objections Include Agreed received

3 {01438690; 1}




Topic/ JRs " • 11, k

~7 'Intervene~ BC Hydro's : 'CEC's Position i;t . BC Hydr9•~ )

, Sub-Toeic ,, Received.~ iW lnl~ial Final Proe2sa1 ,Ci

Initial P.roeosal >

1;: w . Ci

'\ '" .,, n i '•i• SJ! 'Positions

•i © H , E i$ ·''.'e

Benchmarking / ~25 Include No objections Include Agreed Metrics- received General

Comparison - ~20 Include No objections Include Agreed Canadian received Utilities (Appendix U)

Accenture ~55 Exclude. Whether No objections Exclude Agreed Repatriation BC Hydro should received

have repatriated the services provided by Accenture does not appear to be in dispute. Implementation details do not appear to be in dispute.

Benchmarking - ~15 Exclude. IRs No objections Exclude Agreed The Brattle focused on data received Group collection and (Appendix T) clarifications which

have been provided. There would be considerable expense associated with The Brattle Group preparing and attending the hearing, which is not warranted given the number and nature of the IRS.

4 {01438690; 1}

,, I(




, , /1 ' , ' , , '",

CEQts P,osition "'fopicf 1Rs ,,, , _BC ljlydro"s lnterveners' BC:Hydro"s i

_ Sut,:To~! ,x Received Initial ProgosaJ Initial Final Pro(!osal ;f ¥

'/' ,I@ l,~Ji ,,, ~ NH "'.':' ,,, , ,,Positions

Business Exclude. Significant AMPC felt that Exclude CEC Group information provided the By BC Hydro's understands Integrated in the Application for Interconnections count, less than from discussion Planning each Key Business and Shared 5 information with BCH that (Chapter SA) Unit (KBU) in the Assets KBU requests were an Operating

Business Group. should be in received with Cost Panel will Relatively low scope. regards to the be testifying number of I Rs Interconnections which can received , often and Shared respond to focused on Assets KBU . Chapters SA to clarification . The issues SF. These

raised do not chapters

appear to be in represent @$1

dispute. Bill ion and over 1,000 FTE's in 2020, It is a significant component of the RRA At a minimum lnterveners should be able to pursue undertakings on issues pertaining to this evidence avoiding the need for panels dealing with detail while ensuring information can be obtained.

• General ~30

• KBU- Dam <5 Safety

• KBU- < 10 Energy Planning and Analytics

• KBU - < 5 Engineering

5 {01438690;1}


British Columbia Hydro and Power Authority- F2020 - F2021 Revenue Requirements Application, Project No. 1598990


ll:opicf iRs '~ a

· BC liydro"s ' 1ntervene,s" BC Hydro's ,CE~s Pos'ition Sttb-T'oeac 1, Received Initial Proeosal Y in'ifial i ;Final Pro:eosal ?"

rf•@ ff, A Positions '

fr. ~

C !

• KBU- <5 Interconnect ions and Shared Assets

• KBU - Line <10 Asset Planning

• KBU- <5 Stations Asset Planning

Business Exclude. Significant No objections Exclude Group information provided received Capital in the Application for Infrastructure each KBU in the Project Business Group. Delivery Relatively low (Chapter 5B) number of I Rs

received , often focused on clarification .

• General ~5

• KBU- <5 Environment

• KBU- <15 Indigenous Relations

• KBU- ~5 Project Delivery

• KBU - <5 Properties

6 {01438690; 1}




Topic/ . u · 1Rs :' +, J , , "' ,., + Jnterveners''>: 1, ,. c!li;lC Hydrc)"s , CEC's Pasffion BC'Hydro'!s . ·-.i!' 'i

' Sub-ToRiC Receivect. lnitial-PrOl!OSal lnitia1 "' ,Final Pro22sal 4

V 0 ;,: fl :k , Positions %\ & ,

ill r cf;

i " ·'" , &, ;-,

Business Exclude. Significant AMPC felt that Exclude Group granular information the T&D System In BC Hydro's Operations provided in the Operations KBU view, the topics (Chapter SC) Application for each should be in canvassed with

KBU in the Business scope. regards to the Group. Relatively T&D System low number of I Rs Operations KBU received , often are generally focused on not in dispute. clarification.

• General < 5

• KBU- <5 Construction Services

• KBU- <5 Distribution Design/ Customer Connections

• KBU- <5 Generation System Operations

• KBU - Line < 5 Field Operations

• KBU- <5 Program and Contract Managemen t

• KBU- < 10 Stations Field Operations

• KBU-T&D < 15 System Operations

7 {01438690; 1}


British Columbia Hydro and Power Authority- F2020 - F2021 Revenue Requirements Application, Project No. 1598990


&

Topic/ Sub-Topic

1 J.Rs · ,; BC Hyd:ro"s

!Received llW, Initial Pr.oposal Intervene~ ; ~C Hydro's

Final Proposal

Business Group Safety (Chapter 5D)

• General

. ,t;

• KBU - Field Safety Services

• KBULearning and Developmen t

• KBUSafety System and Assurance

• KBUSecurity and Emergency Managemen t

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< 5

<5

<10

< 5

< 5

Exclude. Significant granular information provided in the Application for every Key Business Unit (KBU) in the Business Group. Relatively low number of I Rs received , often focused on clarification . IRs diminished significantly in round 2.

8

dnitial Positions

No objections received

Exclude



Business Group Finance, Technology, Supply Chain (Chapter SE)

• General

• Internal Audit

• KBU-Finance

• KBU-Technology

• KBU-Supply Chain

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< 5

< 10

< 5

<1 0

< 15

y ro's lnitial · . . sal

lntervenen.•· Initial

Posffions

Exclude. Significant No objections granular information received provided in the Application for every Key Business Unit (KBU) in the Business Group. Relatively low number of I Rs received , often focused on clarification. I Rs diminished significantly in round 2.

9

Exclude

CEC's Position




.~ h,lterveneJS'

.;,.,';>

:i CEC"s Ptis'ttion 'fopic1 JRs BC :Hydro•s d + BC Hy:droJs , Sub-TOll!iC · 14 riecruved Initial Pso(!Qsa1 :~i, lnitia1 ;Final Pro(!Qsa1 .. , is · •!! ! ,,

" ~§+ Posttionss Kl'> .. " . , .. "'

Business Exclude. Significant AMPC felt that Exclude Group granular information the Customer In BC Hydro's People, provided in the Service KBU view, the topics Customer, Application for every should be in canvassed with Corporate Key Business Unit scope. regards to the Affairs (KBU) in the Customer (Chapter 5F) Business Group. Service KBU

Relatively low are generally number of I Rs not in dispute. received, often focused on clarification . IRs diminished significantly in round 2.

• General < 5

• KBU- <5 Conservation and Energy Management

• KBU- <5 Communicati ons

• KBU- ~30 Customer Service

• KBU - ~20 Human Resources

• KBU - Power < 5 Acquisitions and Contract Management

• KBU- < 5 Regulatory and Rates

• KBU- < 5 Exclude No objections Exclude General received Counsel

10 {01438690; 1}


~ritish Columbia Hydro and Power Authority - F2020 - F2021 Revenue Requirements Application, Project No. 1598990 ·


Topic / r "' ' JRs '",· . Sub-T-0pic , Received , ~ # !I .

• KBUPresident's Office

Capital Expenditures (Chapter 6, Appendices F, H, K, M, N, W)

Capital Planning

Capital Expenditures -Generation (General)

Capital Expenditures -Transmission and Distribution (General)

Capital Variances -General (Appendix G)

Cybersecurity and Mandatory Reliability Standards

Project Delivery

Project Write-Offs

Capital Expenditures -Dam Safety (General)

{01438690;1}

. './ i,

<5

~125

10

~50

~40

~60

~30

~15

<5

; BC :Hydro's Initial .Proposal

: •fa ,

)ii,

Include

Include

Include

Include

Include (However, some testimony may need to be provided in camera due to the confidential/sensitive nature of these issues)

Include

Include

Exclude. Information provided in Application, and low number of I Rs received .

11

··· Jnt.erveners' 1riitia1 •

<Positions









, · · BC Hydro'; ,final Proposal

' ' " &; ;;

Include

Include

Include

Include

Include

Include

Include

Exclude

CEC':S Po.sition

Agreed

Agreed

Agreed

Agreed

Agreed

Agreed

Agreed

Agreed


British Columbia Hydro and Power Authority- F2020- F2021 Revenue Requirements Application, Project No. 1598990

1;'.opjcJ Sub.:Topic

Electric Vehicle Charging Infrastructure

Technology Capital -General (Appendix L)

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~45

~35

Exclude. Issue has been well-canvassed in IRs and does not appear to be in dispute. BCUC has a separate proceeding with regards to Electric Vehicles and the role of BC Hydro.

Exclude. Aside from cybersecurity issues (included above), relatively low number of IRs received.



12

BC Hydro's Final Proposal

Exclude

Exclude

Agreed

Include

There are historic concerns regarding Technology Investments and the topic remains a concern .

I'




' w ;;'le - .-·,-.,

CEC's Position 'Topic/ BC liydro':s .,, Jnterveners' BC Hydro's 1151 Sub-To)iie

10 IRS ;! 11'.' Received f nitial Proeosa1 Jnitial Final Proe2sal /. 0 $'

H .,,;IX

!< ·- "4 C

:Positions ,J!' d .,

' i) ,;;; ·,, .,. 0 ., Individual Total for all Include. BC Hydro Some Exclude Undertakings to Projects projects in is open to including interveners While some respond to (Appendices I, Appendix J specific projects. indicated that interveners questions on J)

2

3

4

~200 Given the number of they intend to indicated that specific

Aside from these projects, ask questions in they intend to projects.

Site C BC Hydro is asking the oral hearing ask questions in No need for (~45 IRs) , that parties identify on specific the oral hearing panels on each projects specific projects that capital projects. on specific project. related to they intend to capital projects, LNG pursue at the oral no specific Canada hearing. This will projects have and the help BC Hydro been identified Northwest ensure that the right to date. substation people are better

(~30 IRs) equipped to speak

and the to projects of

Peace greatest interest.

Region Please note that Electricity Some projects in Supply Appendix J are Project exempt;1

(~30 IRs) , Cost recovery for

no individual

projects in-service

project prior to April 1, 2016 is directed under s.4 received of Direction 8;2

more than 20 IRs. Some projects in

The vast Appendices I and J

majority don't affect the test

received period;3 and

between 0 Some projects in and 10 Appendix J are/will IRs. be the subject of

other CPCN or s.44.2 proceedings.4

E.g., LNG Canada/ Northwest Substation related projects are exempt under Transmission Upgrade Exemption Regulation E.g. Interior to Lower Mainland project was completed in 2016. E.g. Revelstoke Unit 6. Site C project execution has no impact on the test period revenue requirements .

E.g. : 2017 Waneta transaction was reviewed through a separate proceeding. Peace to Kelly Lake Capacitors Project will be the subject of a separate CPCN proceeding

13 {01438690; 1}


British Columbia Hydro and Power Authority- F2020- F2021 Revenue Requirements Application, Project No. 1598990


,·' , ,,, N , ,, > , Topic! JRs "' BCHydrp':s i1 'lotervenets' · BC Hydro"s CEC's Pos1tion

StJb.:To~ic "Received Initial Pr-OROSal lnitiaJ , Rnal Proi>osal ,,

"11 ,,

; Po.sitions l

!¥,' ~:,:;

'j Ji

Regulatory Accounts (Chapter 7)

Regulatory ~35 Include No objections Include Agreed Accounts- received General

Cost of Energy ~135 Include No objections Include Agreed Variance received Accounts/ Trade Income

Finance ~65 Include No objections Include Agreed Charges / Debt received Management Regulatory Account

Dismantling < 10 Include No objections Include Agreed Costs received Regulatory Account

Demand Side ~35 Include No objections Include Agreed Management received Regulatory Account

Pension Costs / ~25 Include No objections Include Agreed Non-Current received Pension Costs Regulatory Account

Property Sales / ~15 Include No objections Include Agreed Real Property received Sales Regulatory Account

Rate Smoothing ~35 Include No objections Include Agreed Regulatory received Account

14 {01438690;1}




Topic/ IRs BC Hydro's lnterveners' BC Hydro's CEC's Position Sub-TOE!ie Received Initial PrOE!OSal 1nitial Final Pro~sal

Positions

Storm ~30 Include No objections Include Agreed Restoration received Costs / Storm Restoration Costs Regulatory Account

All Other ~10 Include No objections Include Agreed Regulatory received Accounts

Other Revenue Requirements (Chapter 8)

Accounting ~95 Exclude. IRs No objections Exclude Agreed Policy, primarily focused on received Implementation data collection and of IFRS clarifications.

Depreciation ~50 Exclude. IRs No objections Exclude Agreed primarily focused on received data collection and clarifications.

Net Income ~1 5 Exclude. Set by AMPC felt that Exclude CEC will not be Direction No. 8 for Net Income Net income is cross examining the Test Period. should be set by on this topic. Allowed Net Income included in Government for Fiscal 2022 and terms of its Direction for the beyond will be the impact on Test Period. subject of a BC Hydro's separate revenue proceeding. requirements,

finance charges, etc.

Taxes ~10 Exclude. Taxes are AMPC felt that Exclude CEC will not be an uncontrollable Taxes should be Taxes are an cross examining cost for BC Hydro. in-scope. uncontrollable on this topic.

cost for BC Hydro.

Transmission ~60 Exclude. IRs No objections Exclude Agreed Revenue primarily focused on received Requirement data collection and (Chapter 9) clarifications.

15 {01438690;1}




i-0pic i/ . " ' Jnterv~ners' :

·f:';•/C ,,,:,t;'

CEC's :Position .IRs BC Hydro's BC Hydro's. · Sub!l".Ol!iC ,Received Initial .Pr<Jeosal Jn1tial . Fina] Proeosal

' . i q }' ,,

Positions 0,•,

" " ¥ , Si C i Oi .!Fl ! ¥'

Demand Side ~450 Exclude. Issue has AMPC felt that Exclude DMS is a topic Management been load curtailment Load of significant (Chapter 10, well-canvassed in should be in curtailment will interest as Appendices X, IRs. Key issues scope be explored evidenced by Y,Z, AA, BB, (DSM moderation BCNPHA through the the number of CC, DD) strategy, indicated that 2021 IRP. IR's filed .

prioritization DSM should be BC Hydro does between sectors) discussed and not offer load are well understood in particular, curtailment, and and consistent with program equity. the IRP would the BCUC's be the place to Decision on the determine Previous whether such a Application . The program would appropriate level of have value as a DSM over the resource. long-term will be

In BC Hydro's explored in the

view, issues 2021 IRP.

with regards to program equity are well understood and have been well canvassed in this proceeding. The BCUC's Decision on the Previous Application included directives on this matter and BC Hydro's proposal is consistent with those directives.

Performance ~65 Already scoped No objections Exclude Agreed Based out. Separate received Regulation proceeding ( Chapter 11 , established by Appendices FF, BCUC Order GG) No. G-245-19.

16 {01438690;1}

Documents

Commercial Energy Consumers British Columbia Hydro and ......Final Proposal Business Group Safety (Chapter 5D) • General . ,t; • KBU - Field Safety Services • KBU Learning and