Orders

BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -43-07 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by British Columbia Hydro and Power Authority for a Certificate of Public Convenience and Necessity for Revelstoke Unit 5 BEFORE: R.H. Hobbs, Chair A.J. Pullman, Commissioner April 19, 2007 O R D E R WHEREAS: A. On April 13, 2007 British Columbia Hydro and Power Authority (“BC Hydro”) applied (“Application”) to the British Columbia Utilities Commission (“the Commission”) for approval of a Certificate of Public Convenience and Necessity (“CPCN”) to construct and operate the proposed Revelstoke Unit 5 (“the Project”); and B. BC Hydro submits that Revelstoke Unit 5 is in the public convenience and necessity and requests that a CPCN be granted for the construction and operation of Revelstoke Unit 5. BC Hydro is seeking the issuance of a CPCN for Revelstoke Unit 5 that targets an in-service date (“ISD”) of October 2010; and C. In the 2006 Integrated Electricity Plan/Long Term Acquisition Plan (“IEP/LTAP”) proceeding, evidence was presented that showed Revelstoke Unit 5 is required for system reliability purposes on or before its earliest in- service date of October 31, 2010; and D. The need for the 480 Megawatts (“MW”) of dependable capacity that will be provided by Revelstoke Unit 5 is demonstrated in the development of a new peak load forecast (2006 Load Forecast), which indicates that the peak demand will have a further increase in the range of 120 MW to 230 MW in the 2010 to 2015 period; and E. The Project is located at the Revelstoke Dam and Generating Station (“GS”) located on the Columbia River, five kilometres (“km”) upstream from the City of Revelstoke and 130 km downstream from the Mica Dam and Generating Station; and F. The scope of Revelstoke Unit 5 is the installation of a 500 MW fifth turbine/generator set in the existing empty turbine bay immediately east of Unit 4 and limited work relating to the extension of the penstock for Unit 5, a 16 kilovolt (“kV”)/500 kV generator transformer and related upgrades to transmission equipment located in the existing powerhouse; and …/2

BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-43-07 2 G. In addition, the British Columbia Transmission Corporation (“BCTC”) has identified a need for one capital upgrade on the transmission network that is attributable to Revelstoke Unit 5. The identified upgrade is a new 250 Megavolt-Ampere Reactive (MVar) 500 kV mechanically switched capacitor (“MSC”) at the Ashton Creek Substation. The MSC will allow full five-unit power transfers from the Revelstoke region, free up reactive reserves at Revelstoke and provide voltage security. As a non-BC Hydro Project cost, this amount is accounted for separately and is not included in the Revelstoke Unit 5 costs. However, it is a cost that is incurred as a result of the Project and is ultimately reflected in BC Hydro’s revenue requirements through payments to BCTC; and H. The Project would not require the permanent use of any land additional to that already occupied by the existing Revelstoke Dam and GS; and I. The October 2010 ISD P50 cost estimate is $280 million and P90 cost estimate is $320 million; and J. In order to meet the October 2010 ISD, the Commission has determined that the regulatory review of the Application should proceed by written public hearing. NOW THEREFORE pursuant to Sections 45 and 46 of the Utilities Commission Act, the Commission orders as follows: 1. The Commission establishes a written public hearing process for the review of the BC Hydro CPCN Application according to the Regulatory Timetable that is in Appendix A to this Order. 2. BC Hydro will publish, as soon as it is possible to do so, in display ad format, the Notice of Application and Written Public Hearing attached as Appendix B to this Order in the Vancouver Sun and Province, the Victoria Times Colonist and such local news publications that will provide adequate notice to the Public in the vicinity of the Project. 3. Persons wishing to be Intervenors and Interested Parties in the proceeding should register in writing with the Commission by Friday, May 11, 2007. DATED at the City of Vancouver, in the Province of British Columbia, this 20 th day of April, 2007. BY ORDER Original signed by: Robert H. Hobbs Chair Attachments Order/G-43-07_BCH_Revelstoke Unit 5 CPCN

British Columbia Hydro and Power Authority (“BC Hydro”) Certificate of Public Convenience and Necessity Application for Revelstoke Unit 5 REGULATORY TIMETABLE ACTION Commission and Intervenor Information Requests Registration of Intervenors and Interested Parties Intervenor Participant Assistance Budgets BC Hydro Responses to Information Requests BC Hydro Final Submission Intervenor Final Submissions BC Hydro Reply Submission APPENDIX A to Order No. G-43-07 Page 1 of 1 DATE (2007) Friday, May 4 Friday, May 11 Tuesday, May 15 Friday, May 18 Tuesday, May 29 Tuesday, June 5 Tuesday, June 12

APPENDIX B to Order No. G-43-07 Page 1 of 2 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 BRITISH COLUMBIA HYDRO AND POWER AUTHORITY APPLICATION FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY REVELSTOKE UNIT 5 NOTICE OF APPLICATION AND WRITTEN PUBLIC HEARING THE APPLICATION On April 13, 2007 British Columbia Hydro and Power Authority (“BC Hydro”) applied to the British Columbia Utilities Commission for a Certificate of Public Convenience and Necessity to construct and operate Revelstoke Unit 5 (“the Project”). The Project is located at the Revelstoke Dam and Generating Station located on the Columbia River, five kilometres upstream from the City of Revelstoke. BC Hydro proposes to install a 500 MW fifth turbine/generator set in the existing empty turbine bay at the station, a limited extension of the penstock for Unit 5, a generator transformer and related upgrades to transmission equipment located in the existing powerhouse. The Project is estimated to cost $280 million and is targeted to be in service in late 2010. The Project will also require an upgrade by the British Columbia Transmission Corporation at the Ashton Creek Substation. In the 2006 Integrated Electricity Plan/Long Term Acquisition Plan (“IEP/LTAP”) proceeding, evidence was presented that showed Revelstoke Unit 5 is required for system reliability purposes by October 31, 2010. THE REGULATORY PROCESS Commission Order No. G-43-07 established the Regulatory Timetable for the review of the Application by way of a Written Public Hearing. The detailed Regulatory Timetable can be reviewed on the Commission’s website http://www.bcuc.com >Proceedings&Agendas>Current Applications. INTERVENTIONS Persons who expect to actively participate in the BC Hydro proceeding should register as Intervenors with the Commission, in writing, by Friday, May 11, 2007, identifying their interest in the Application. Intervenors will receive copies of the Application as well as all correspondence and filed documentation and should provide an e mail address if available. Persons not expecting to actively participate in the BC Hydro proceeding, but who have an interest in the Application, should register as Interested Parties with the Commission, in writing, by Friday, May 11, 2007, identifying their interest in the Application. Interested Parties will receive a copy of the Executive Summary of the Application and all Orders issued. All submissions and/or correspondence received from active participants or the general public relating to the Application will be placed on the public record and posted to the Commission’s web site.

PUBLIC INSPECTION OF THE DOCUMENTS The Application and supporting materials will be available for inspection at the following locations: British Columbia Hydro and Power Regulatory Compliance & Filings 17 th Floor – 333 Dunsmuir St. Vancouver, BC V6B 5R3 http://www.bchydro.com/ FURTHER INFORMATION For further information, please contact the Commission Secretary, Mr. Robert Pellatt or Mr. Brian Williston, Director, Engineering and Energy Markets as follows: Commission Secretary Telephone: (604) 660-4700 Facsimile: (604) 660-1102 E-mail: Commission.Secretary@bcuc.com BC Toll Free: 1-800-663-1385 APPENDIX B to Order No. G-43-07 Page 2 of 2 British Columbia Utilities Commission Sixth Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Telephone: 1-800-663-1385 http://www.bcuc.com Mr. Brian Williston Email: brian.williston@bcuc.com Telephone: (604) 660-4700