Capital Expenditure & Project Review BC H YDRO C APITAL E - - PowerPoint PPT Presentation
Capital Expenditure & Project Review BC H YDRO C APITAL E XPENDITURES AND P ROJECTS R EVIEW E XHIBIT B-5 Transcribed Workshop May 23, 2018 Agenda o Introduction o Proposed 2018 Capital Filing Guidelines o Scope of Review in Revenue
May 23, 2018
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BC HYDRO CAPITAL EXPENDITURES
AND PROJECTS REVIEW EXHIBIT
proceeding to review the regulatory oversight of BC Hydro’s capital expenditures and projects.
Hydro’s Capital Project Filing Guidelines.
and Timing”, which was accepted by BC Hydro and registered interveners.
issued an Order setting the scope as previously outlined, and setting the review process and timetable.
issued an Order amending the date for filing the Initial Proposal to April 3, 2018.
registered interveners on April 24, 2018 with responses filed May 18, 2018.
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appropriateness of such reviews in various filings including:
service in the test period, or outside the test period.
RRA and expected to enter service in test period, or outside test period.
expected to enter service in test period, or outside test period
CPCN (Section 46.1 of UCA) or Section 44.2 of UCA.
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for IT Projects, or propose separate IT filing guidelines.
Project Filing Guidelines.
CPCN application versus a Section 44.2 application, addressing the following:
for extensions.
general plant and IT projects.
issued, consider the appropriateness of filing Section 44.2 applications for projects where the duty to consult First Nations is triggered.
items included in Appendix B to Order G-63-16.
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Project Filing Guidelines and the proposed scope, and to develop the Initial Proposal.
Planning, Project Delivery, Properties, Information Technology, and Finance, and considered items such as:
plans, and studies
unique planning identification numbers.
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issued on May 4.
understanding of the Initial Proposal and support development of the revised proposal.
including the proposed 2018 Capital Filing Guidelines.
Filing Guidelines.
Proposal to be filed June 13.
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in Commission Order G-63-16
by Commission and by BC Hydro. Capital investment portfolio performance is summarized.
scope of Commission’s review in RRA processes; guidelines for major project applications; clarity on programs; Strategies, plans and studies; various compliance reporting; and other matters related to form and content in RRA, CPCN and Sec 44.2 applications.
changes discussed in the Initial Proposal and are discussed in more detail in the following slides.
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working well and capturing BC Hydro’s most significant capital projects for review by the Commission.
scope of the 2010 Capital Project Filing Guidelines to reflect the following:
Appendices I and J, and a new Appendix for strategies, plans, and studies;
work on power system assets in one category with a $100 million threshold;
and final reports.
process.
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with expenditures or additions in the test period:
interest issues have been considered and approved or exempted.
include consideration of the execution of projects and forecast total cost.
schedule, BC Hydro will be providing ongoing project progress reports.
project execution is best reviewed at project completion when actual cost and project outcomes are known.
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with expenditures or additions in the test period:
Major Project application.
schedule, and public interest issues as outlined in the Commission’s 2015 CPCN Guidelines.
test the reasonableness of the forecast capital expenditures and
capture any timing differences between forecast and actual capital additions.
project execution is best reviewed at project completion when actual cost and project outcomes are known.
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have capital expenditures and additions in the test period:
reviewed within this category in revenue requirements.
reasonableness of the forecast.
additions rather than capital expenditures.
project completion when actual cost and project outcomes are known.
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requirements applications.
complexity asset replacements; and
made.
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requirement applications or, if meeting the criteria for a CPCN or 44.2 application, in a Major Project application.
benefits that can be achieved independent of other projects.
different levels of project definition.
areas such as procurement and managing system interdependencies.
should not be treated as a single project as these consist of low risk, repeatable projects.
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projects and programs across filings;
linked to, if applicable; and
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extensions.
the intent to expand the geographic service area or capacity of a utility plant or system.
load growth; and
incremental load growth, but through efficiencies result in additional capacity and energy on a planning basis.
Major Projects that are not extensions.
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generation, transmission, substation, distribution, and dam safety projects.
$50 million to $100 million.
development and building improvement projects.
representing 20-30% of non-exempt capital expenditures over the next decade.
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the immediate past fiscal year
decision on rates, a CPCN, or expenditure schedule.
comparisons between planned and actual capital expenditures at end of reporting period.
to provide a listing of all projects, which are considered extensions and are above the agreed upon materiality limit, in section 7 of the report.
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timing as ordered by the Commission:
most projects, and will request annual progress reports for some projects depending on their implementation schedule.
the report has been tabled before the Board of Directors.
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BC Hydro will remove the words “and have not been reviewed in a previous test period”.
body of the Proposal.
inadvertently omitted from the list included in the Initial Proposal, bringing the total number to 23 over the next decade.
and financially approved with a single business case”. Most programs are not financially approved with a single business case.
Appendix I if a project is part of a program.
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Workshop for inclusion in our Revised Proposal;
current planning processes and project delivery practices as outlined in the Initial Proposal.
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