SITE C CLEAN ENERGY PROJECT

SITE C CLEAN ENERGY PROJECT
Presentation to AIEQ
March 26th, 2015
Thomas Assimes
Chief Financial Officer, Site C
ABOUT BC HYDRO
• 
BC Hydro is one of Canada’s
largest electric utilities, serving 95
per cent of B.C.’s population
• 
Crown corporation legally
mandated to provide electricity to
its customers
–  Delivers electricity to
approximately 1.9 million
customers in B.C.
–  Operates 31 hydroelectric facilities
and three thermal generating
plants
2
DEMAND TO INCREASE 40% IN 20 YEARS
3
DEMAND DRIVEN BY POPULATION
GROWTH…
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… AND ECONOMIC EXPANSION
Key Industrial Drivers of Electricity
Demand:
• 
Oil and gas / LNG industry
• 
Mining
• 
Forestry
5
MEETING LONG-TERM ELECTRICITY DEMAND
•  Conservation is first and best choice
66% of future demand growth to be met
through demand-side management
•  Re-investing in Existing Assets
Upgrades to aging infrastructure
Expansion of existing facilities
•  Buying from IPPs
~25% of current system and growing (e.g.,
wind, run-of-river, bioenergy)
•  New Energy and Capacity Resource
Site C Clean Energy Project
6
7
BUILDS ON EXISTING RESOURCES
• 
As third project on Peace
River, Site C will rely on
Williston Reservoir for most of
its water storage
• 
Enables Site C to produce
35% of energy of WAC
Bennett Dam with 5% of the
reservoir area
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W.A.C. BENNETT DAM
PEACE CANYON DAM
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DAM
SITE C
Transmission
Lines
• 
Type:
Earthfill Dam
• 
Length:
1,050 metres
• 
Height:
60 metres
• 
Capacity:
1,100 MW
• 
Energy:
5,100 GWh/yr.
RESERVOIR
Generating
Station
Auxiliary
Spillway
• 
Earthfill Dam
• 
Length:
83 km
Reservoir
Width:
2-3 times current
river (on average)
Spillway
Access
Roads
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OTHER PROJECT
COMPONENTS
SITE C
Transmission
Lines
Generating
Station
Auxiliary
Spillway
Spillway
• 
Realignment of 30 kilometres
of Highway 29
• 
Shoreline protection at
Hudson’s Hope
• 
Two new 500 kilovolt AC
transmission lines
• 
Access
roads and a temporary
Reservoir
construction access bridge
• 
Two ten-metre-diameter
tunnels and associated
cofferdams
• 
Worker accommodation
Earthfill Dam
Access
Roads
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BENEFITS OF SITE C
• 
Clean and renewable
electricity for 100+ years
• 
Dependable energy to
meet peak demand
• 
Lowest cost to ratepayers
Intermittent
• 
Integrates intermittent
power from IPPs (e.g.,
wind and run-of-river)
Dependable
• 
Low GHG emissions
• 
Economic development
and job creation
Dependable
Intermittent
Dependable
Dependable
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ECONOMIC DEVELOPMENT
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JOB CREATION
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ENVIRONMENTAL ASSESSMENT COMPLETE
• 
7+ years of consultation with First Nations, public and communities
• 
14,000+ entries in First Nations consultation log
• 
500+ consultation meetings with the public and stakeholders, property
owners, and local governments
• 
Multiple years of field studies for fish, wildlife, socio-economic, environment
• 
15,000+ pages in the Site C Environmental Impact Statement
• 
70+ pages of mitigation, management and monitoring measures proposed
• 
7,094 information requests responded to
• 
Two-month public hearing process (December 2013 to January 2014)
• 
29,572 pages of evidence filed
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ABORIGINAL CONSULTATION
There has been meaningful consultation with the potentially affected Aboriginal
groups…” and “… consultation has been carried out in good faith and that the
process was appropriate and reasonable in the circumstances.
- Conclusion of federal/provincial Consultation and Accommodation Report
•  Consulting and engaging with Aboriginal
groups since 2007.
•  Offers of accommodation have been made
to all First Nations the Joint Review Panel
deemed most affected.
•  Significant procurement opportunities
being negotiated.
•  Will continue working with First Nations to
address concerns, identify opportunities
for benefits and enhance relationships.
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KEY MITIGATION MEASURES
•  Relocating six portions of
Highway 29
•  Providing upstream fish passage
through a trap and haul facility
•  Upgrading roads
•  Building new boat launches and
recreation sites
•  Establishing a $20 million
agricultural compensation fund
•  Creating new wildlife habitat
•  Supporting habitat enhancement
projects in the region
•  Funding skills training initiatives
•  Encouraging Aboriginal
participation in the work force and
in procurement opportunities
•  Funding community services
where appropriate
•  Funding additional daycare
spaces to support participation in
the labour market
•  Building 40 new permanent
housing units to be used by the
project
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PROJECT APPROVED
• 
Project received approval
from the provincial
government in December
2014.
• 
Approval followed
extensive due diligence
process that found Site C
provides most affordable
clean electricity,
compared to alternatives.
• 
Construction planned to
start in summer 2015.
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SITE C PROCUREMENT APPROACH
• 
Number of large contracts for major project components
– 
– 
– 
– 
• 
• 
Turbines and Generators
Main Civil Works
Generating Station and Spillways
Worker Accommodation
Multiple small and medium contracts for supporting activities and ancillary
works
Approach supports project objective of providing economic opportunities
for Aboriginal groups, northern communities and the province
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SITE C PROCUREMENT OBJECTIVES
• 
Achieve value for money for ratepayers
–  Maximize cost-effective project
performance (generation capacity,
energy and flexibility)
–  Structure a fair and competitive
procurement process
• 
Meet project schedule
• 
Meet project budget
• 
Optimally manage project risks
• 
Support Site C project objectives,
including providing economic
opportunities for Aboriginal groups,
northern communities and the province
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PROCUREMENT OBJECTIVES
Driver
Measurable Procurement Objectives
Cost/Value & Finance •  Deliver project within budget, maximize cost certainty
• 
Optimize UEC
Schedule
• 
Minimize schedule interfaces; incentives to meet or exceed
schedule milestones
Interfaces
• 
Does the packaging minimize the number and criticality of
interfaces that BC Hydro has to manage?
Risk
• 
Allocate risk to party best able to manage that risk
Contractor Capability •  Maximize interest from qualified proponents; minimum of three
competitive bids to be received for each package from qualified
and Capacity
proponents
First Nations and
Regional
Participation
• 
Meet project objectives and obligations
Governance
• 
Ensure fit between BC Hydro’s competencies and the
requirements of the contractors’ role
Quality
• 
Maximize owner’s responsibility for level of quality and oversight of
QM
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PROCUREMENT APPROACH
Category
Site
Preparation
Generating
Facilities
Supporting
Works
Component
Procurement Model
Early Clearing
Design-Bid-Build contracts (& Direct Awards)
Access Roads and
Bridge
Design-Bid-Build contracts (& Direct Awards)
Worker Accommodation
Design-Build-Finance-Operate-Maintain
Main Civil Works
Design-Bid-Build with Design-Build elements
Generating Station and
Spillways
Design-Bid-Build with Design-Build elements
Turbines and
Generators
Design-Build
Clearing
Design-Bid-Build (& Direct Awards)
Highway 29
Ministry of Transportation and Infrastructure to
determine
Transmission Line
Design-Bid-Build or Design-Build Site C Substation
Design-Bid-Build or Design-Build 23
SUMMARY OF PROCUREMENTS
UNDERWAY
Component
Description
Status
Turbines and
Generators
Supply and installation of six 183 MW
vertical axis Francis turbines
Worker
Accommodation
Camp accommodation at the dam site –
structures, infrastructure and services –
to house a peak workforce of 1,600
RFP issued to:
•  Alstom
•  Andritz
•  Voith
Contract late 2015/16
RFP issued to:
•  Peace River Housing Partners
•  Plenary Living
Main Civil Works
Excavation, bank stabilization, diversion
works, earthfill dam, RCC buttress
Site Preparation:
North Bank
Building access roads, excavation,
producing / stockpiling aggregate
materials
•  Two Rivers Lodging Group
Contract spring 2015
RFP issued to:
•  ABFD JV
•  CLENGROUP Constructors
•  Peace River Hydro Partners
•  Salini Impregilo S.p.A
Contract summer 2015
RFP issued November 12, 2014
RFP close February 2015
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SUMMARY OF PROCUREMENTS
UPCOMING
Component
Description
Anticipated Timing
Generating Station and
Spillways
Civil works, hydromechanical
equipment, transformers and
balance of plant
Qualification process: 2015 to
2016
Clearing
Removal of timber and
vegetation, salvage of
merchantable timber
Construction start 2015
North Bank MOTI Roads Upgrades to 240, 269, 271 and
Old Fort Road
Qualification process: Spring
2015
Highway 29
Realignment of multiple
sections of Highway 29 over a
total distance of approx. 30km
Qualification process: 2016
Transmission Line
Two new 500 kV transmission
lines
Qualification process: 2016
Site C Substation
New substation connecting the
generating station to the
transmission lines
Qualification process: 2016
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SITE PREPARATION
Component
Description
Anticipated
Construction
South Bank Early
Clearing
South bank rail siding, access road and
clearing of dam site, south bank and lower
reservoir area
2015
North Bank Site
Preparation
Includes building access roads, excavation,
and producing and stockpiling aggregate
materials
2015
Other Infrastructure
Includes site power and communications and
2015 - 2016
a temporary construction bridge
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GENERATING FACILITIES
Upgrades in progress at Ruskin
Component
Description
Anticipated
Construction
Main Civil Works
Includes excavation, diversion works, earthfill
dam and roller compacted concrete buttress
Start 2015
Generating Station and
Spillways
Includes powerhouse, spillways, intakes,
penstocks, hydro-mechanical equipment,
transformers and balance of plant
Start 2017
Turbines and
Generators
Includes supply and installation of six 183 MW
turbines and six generators and associated
equipment
Installation: 2018
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SUPPORTING WORKS
Anticipated
Construction
Component
Description
Worker
Accommodation
Camp facilities on the north bank of the dam site to
Start 2015
accommodate a peak workforce of ~1,600
Reservoir Clearing
Includes clearing and removal of timber and
vegetation, and salvage of merchantable timber
Start 2016
Public Road
Infrastructure
Realignment of sections of Highway 29 and
upgrades to Old Fort Road, 240 Road, 269 Road
and 271 Road
Start 2015
Transmission Line
Includes two 77 km 500kV transmission lines from
Site C substation interconnecting at Peace Canyon Start 2016
substation; decommissioning of existing 138kV
transmission lines
Site C Substation
Includes substation connecting Site C generating
station to the two 500kV lines from Peace Canyon
and the 138kV local power supply
Start 2017
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UPCOMING PROCUREMENT
GENERATION STATION AND SPILLWAY
• 
Description: Includes
powerhouse,
spillways, intakes,
penstocks, hydromechanical
equipment,
transformers and
balance of plant
3D Rendering of Powerhouse
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GENERATION STATION AND SPILLWAY
•  Procurement Type: a
Design-Bid-Build with
Design-Build elements
•  Anticipated timing:
Request for Qualifications
is anticipated for late fall
2015
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REGIONAL, ABORIGINAL
BUSINESS ENGAGEMENT
• 
825 companies registered in the Site C Business Directory
• 
770 attendees at Business Information Sessions 2011-2013
• 
Business-to-Business Networking Sessions
–  Worker Accommodation: 181 attendees
–  Main Civil Works:
207 attendees
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NEXT STEPS
• 
Continued planning for Site C construction start in summer 2015
• 
Ongoing consultations with Aboriginal groups and affected communities
• 
Procurements underway
• 
Provincial permits and federal authorizations required
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STAYING INFORMED
• 
Website: www.sitecproject.com
• 
Email: [email protected]
• 
Phone: 1.877.217.0777 (toll-free)
• 
Sign up for Site C Business Directory
• 
Attend business information meetings;
participate in business-to-business
networking sessions
• 
Get to know BC Bid: http://
www.bcbid.gov.bc.ca/
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QUESTIONS?
www.sitecproject.com
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