Orders

Suite 410, 900 Howe Street P: 604.660.4700 Vancouver, BC Canada V6Z 2N3 TF: 1.800.663.1385 bcuc.com F: 604.660.1102 ORDER NUMBER R-14-20 IN THE MATTER OF the Utilities Commission Act, RSBC 1996, Chapter 473 and British Columbia Hydro and Power Authority Mandatory Reliability Standard Assessment North American Electric Reliability Corporation COVID-19 Compliance Response BEFORE: W. M. Everett, QC, Panel Chair E. B. Lockhart, Commissioner on July 29, 2020 ORDER WHEREAS: A. On June 17, 2020, British Columbia Hydro and Power Authority (BC Hydro) submitted to the British Columbia Utilities Commission (BCUC), its assessment of the proposed delayed effective dates for 14 Mandatory Reliability Standards (MRS) identified by the North American Electric Reliability Corporation (NERC) in an informational letter to the BCUC dated April 24, 2020 (NERC Letter) (Report). In the Report, and after receiving feed back from participating Entities, BC Hydro recommends delaying the effective dates for six of the 14 MRS that currently have implementation dates in British Columbia in the second half of 2020, due to the impacts of the COVID-19 pandemic; B. Pursuant to section 125.2 of the Utilities Commission Act (UCA) the BCUC has exclusive jurisdiction to determine whether a “reliability standard” as defined in the UCA, is in the public interest and should be adopted in British Columbia (BC). The UCA also states BC Hydro must review each reliability standard and provide a report to the BCUC assessing each reliability standard for its reliability impact, suitability, applicability and potential cost of adoption. Within this process, BC Hydro also recommends effective dates for the MRS brought before the BCUC for adoption; C. On March 18, 2020, the United States (US) Federal Energy Regulatory Commission (FERC) and NERC provided industry guidance to ensure grid reliability amid potential COVID-19 impacts (Guidance); D. On March 19, 2020, the BCUC issued Letter L-11-20 to all Entities registered with the British Columbia Mandatory Reliability Standards Program (MRS Program), advising that the BCUC is using regulatory discretion that aligns with measures in the Guidance. In Letter L-11-20, the BCUC also stated that it will consider the impact of the COVID-19 pandemic for specific aspects of compliance with MRS and included Direction to ensure Bulk Electric System (BES) reliability amid potential COVID-19 impacts and related compliance with MRS; Final Order 1 of 3

Order R-14-20 E. On April 6, 2020, NERC filed a motion with FERC to defer the implementation, by three to six months, of 14 reliability standards scheduled to become effective in the US, in whole or in part, during the second half of 2020 (Motion). FERC granted that Motion on April 17, 2020; F. In the NERC Letter, NERC indicated registered entities in the US were granted deferral of three to six months for reliability standards with implementation dates scheduled to become effective in the US in the second half of 2020 and suggested the BCUC also consider a three to six month delay for 14 MRS scheduled to go into effect in the second half of 2020 in BC; G. Aware of the Motion and in connection with the NERC Letter, and in consideration of its responsibilities outlined in the UCA to assess reliability standards including effective dates in BC, BC Hydro sent a request for feedback to Registered Entities in the MRS Program requesting comments on the deferral of effective dates of the 14 MRS identified in the NERC Letter; H. Eight Registered Entities responded to BC Hydro’s request for feedback. Three Registered Entities responded stating no extensions were required. Five of the Registered Entities stated a six-month implementation extension is required for three MRS due to on site restrictions for contractors. Additionally, BC Hydro stated a six-month implementation extension is required for three other MRS due to on site restrictions for control centres; I. By Order R-13-20, dated July 2, 2020, BC Hydro was directed to publish a notice of process for consideration of the delayed effective dates along with the established Regulatory Timetable for written public comment; J. On July 9, 2020, Dokie General Partnership, Innergex Renewable Energy Inc., Jimmie Creek Limited Partnership, Toba Montrose General Partnership and Upper Lillooet River Power LP submitted that their comments are represented in the Report and stated their support of the conclusion and recommendations as presented by BC Hydro in the Report; K. On July 10, 2020, FortisBC Inc. submitted it has no additional comments regarding the Report; L. On July 14, 2020, BC Hydro submitted a response to the written public comments and has no further reply comments; and M. The BCUC has reviewed and considered the Report and the proposed delayed effective dates assessed therein, as well as comments received from Entities and considers that the delayed effective date of six MRS is warranted. NOW THEREFORE pursuant to sections 58 to 61 of the UCA, the BCUC orders as follows: 1. Six of the fourteen MRS in the Report, and previously adopted in BC, have revised effective dates as identified in Attachment A to this order. 2. All reliability standards listed in Attachment B to this order are effective as of the dates shown. The effective dates for the reliability standards listed in Attachment B supersede the effective dates that were included in any similar list appended to any previous order of the BCUC. Final Order 2 of 3

Order R-14-20 DATED at the City of Vancouver, in the Province of British Columbia, this 29th day of July 2020. BY ORDER Original Signed By: W. M. Everett, QC Commissioner Attachment Final Order 3 of 3

ATTACHMENT A to Order R-14-20 British Columbia Utilities Commission Reliability Standard Effective Dates as Revised by this Order Table 1 British Columbia Utilities Commission Reliability Standards with Effective Dates as Adopted Effective Date(s) as Adopted by Approved New Effective Date(s) as Standard Standard Name Previous Orders per this Order 1. CIP-010-2 R3.2, Cyber Security – October 1, 2020 N/A R3.2.1 and Configuration Change R3.2.2 Management and Vulnerability Assessments 2. EOP-004-4 Event Reporting October 1, 2020 N/A 3. EOP-005-3 System Restoration and October 1, 2020 N/A Blackstart Resources 4. EOP-006-3 System Restoration October 1, 2020 N/A Coordination 5. EOP-008-2 Loss of Control Center October 1, 2020 N/A Functionality 6. IRO-017-1 Outage Coordination October 1, 2020 N/A 7. MOD-025-2 Verification and Data 40% compliance by October 1, 2017 40% compliance by October 1, 2017 Reporting of Generator Real 60% compliance by October 1, 2018 60% compliance by October 1, 2018 and Reactive Power 80% compliance by October 1, 2019 80% compliance by October 1, 2019 Capability and Synchronous 100% compliance by October 1, 2020 100% compliance by April 1, 2021 Condenser Reactive Power Capability 8. PRC-19-2 Coordination of Generating 40% compliance by October 1, 2017 40% compliance by October 1, 2017 Unit or Plant Capabilities, 60% compliance by October 1, 2018 60% compliance by October 1, 2018 Voltage Regulating Controls, 80% compliance by October 1, 2019 80% compliance by October 1, 2019 and Protection 100% compliance by October 1, 2020 100% compliance by April 1, 2021 9. PRC-024-2 Generator Frequency and 40% compliance by October 1, 2017 40% compliance by October 1, 2017 Voltage Protective Relay 60% compliance by October 1, 2018 60% compliance by October 1, 2018 Settings 80% compliance by October 1, 2019 80% compliance by October 1, 2019 100% compliance by October 1, 2020 100% compliance by April 1, 2021 10. TOP-001-4 Transmission Operations October 1, 2020 April 1, 2021 11. TOP-002-4 Transmission Operations October 1, 2020 April 1, 2021 12. TOP-010-1(i) Real-time Reliability October 1, 2020 April 1, 2021 Monitoring and Analysis Capabilities 13. TPL-001-4 R2- Transmission Operations July 1, 2020 N/A R6, R8 14. VAR-501- Power System Stabilizer (PSS) October 1, 2020 N/A WECC-1 1 of 1

British Columbia Utitlies Commission Reliability Standards with Effective Dates adopted in British Columbia Standard Name BAL-001-2 Real Power Balancing Control Performance BAL-002-2 1 Disturbance Control Standard – Contingency Reserve for Recovery from a Balancing Contingency Event BAL-002-3 Disturbance Control Standard – Contingency Reserve for Recovery from a Balancing Contingency Event BAL-002-WECC-2a Contingency Reserve BAL-003-1.1 Frequency Response and Frequency Bias Setting BAL-004-WECC-2 1 Automatic Time Error Correction BAL-004-WECC-3 Automatic Time Error Correction BAL-005-0.2b 1 Automatic Generation Control BAL-005-1 Balancing Authority Control CIP-002-5.1a Cyber Security — BES Cyber System Categorization CIP-003-7 1 Cyber Security — Security Management Controls CIP-003-8 Cyber Security — Security Management Controls CIP-004-6 Cyber Security — Personnel & Training 1 Reliability standard is superseded by the revised/replacement reliability standard listed immediately below it as of the effective date(s) of the revised/replacement reliability standard. 2 On November 21, 2013, FERC Order 788 (referred to as Paragraph 81) approved the retiring of the reliability standard requirements. ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting R-14-16 July 1, 2016 R-39-17 January 1, 2018 R-21-19 April 1, 2020 R-39-17 July 26, 2017 R-32-16A October 1, 2016 R-32-14 October 1, 2014 R-21-19 January 1, 2020 R-41-13 December 12, 2013 R2: Retired January 21, 2014 2 R-33-18 October 1, 2019 R-33-18 October 1, 2018 and as per B.C.-specific Implementation Plan R-21-19 October 1, 2019 and as per B.C.-specific Implementation Plan N/A Pending BCUC review R-39-17 October 1, 2018 and as per B.C.-specific Implementation Plan 1 of 20

Standard Name CIP-005-5 1 Cyber Security – Electronic Security Perimeter(s) CIP-005-6 Cyber Security – Electronic Security Perimeter(s) CIP-006-6 Cyber Security — Physical Security of BES Cyber Systems CIP-007-6 Cyber Security — System Security Management CIP-008-5 1 Cyber Security – Incident Reporting and Response Planning CIP-008-6 Cyber Security – Incident Reporting and Response Planning CIP-009-6 Cyber Security — Recovery Plans for BES Cyber Systems CIP-010-2 1 Cyber Security – Configuration Change Management and Vulnerability Assessments CIP-010-3 Cyber Security – Configuration Change Management and Vulnerability Assessments CIP-011-2 Cyber Security – Information Protection CIP-013-1 Cyber Security - Supply Chain Risk Management CIP-014-2 Physical Security COM-001-3 Communications COM-002-4 Operating Personnel Communications Protocols ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting R-38-15 October 1, 2018 and as per B.C.-specific Implementation Plan N/A Pending BCUC review R-39-17 October 1, 2018 and as per B.C.-specific Implementation Plan R-39-17 October 1, 2018 and as per B.C.-specific Implementation Plan R-38-15 October 1, 2018 and as per B.C.-specific Implementation Plan N/A Pending BCUC review R-39-17 October 1, 2018 and as per B.C.-specific Implementation Plan R-39-17 October 1, 2018 and as per B.C.-specific Implementation Plan N/A Pending BCUC review R-39-17 October 1, 2018 and as per B.C.-specific Implementation Plan N/A Pending BCUC review R-32-16A October 1, 2017 and as per B.C.-specific Implementation Plan R-39-17 R1, R2: October 1, 2017 R3-R13: October 1, 2018 R-32-16A April 1, 2017 2 of 20

Standard Name EOP-003-1 3 Load Shedding Plans EOP-003-2 4 Load Shedding Plans EOP-004-3 1 Event Reporting EOP-004-4 Event Reporting EOP-005-2 1 System Restoration and Blackstart Resources EOP-005-3 System Restoration and Blackstart Resources EOP-006-2 1 System Restoration Coordination EOP-006-3 System Restoration Coordination EOP-008-1 1 Loss of Control Center Functionality EOP-008-2 Loss of Control Center Functinality EOP-010-1 6 Geomagnetic Disturbance Operations EOP-011-1 Emergency Operations FAC-001-2 1 Facility Interconnection Requirements FAC-001-3 Facility Interconnection Requirements FAC-002-2 Facility Interconnection Studies FAC-003-4 Transmission Vegetation Management 3 Reliability standard would be superseded by EOP-003-2 if adopted in B.C. Adoption of EOP-003-2 pending reassessment. 4 Reliability standard is superseded by EOP-011-1 as of the EOP-011-1 effective date in conjunction with PRC-010-2 Requirement 1 if adopted in B.C. Adoption of PRC-010-2 pending reassessment. 5 Unable to assess based on undefined Planning Coordinator/Planning Authority footprints and entities responsible. The BCUC Reasons for Decision for Order No. R-41-13 (page 20), indicated that a separate process would be established to consider this matter as it pertains to B.C. 6 Requirement 2 of the reliability standard will be effective upon the retirement of IRO-005-3.1a Requirement 3 which follows the effective date of IRO-002-4 (October 1, 2017; per BCUC Order No. R-39-17). ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting G-67-09 November 1, 2010 n/a Adoption held in abeyance at this time 5 R-39-17 October 1, 2017 R-21-19 October 1, 2020 R-32-14 August 1, 2015 R3.1: Retired January 21, 2014 2 R-21-19 October 1, 2020 R-32-14 August 1, 2014 R-21-19 October 1, 2020 R-32-14 August 1, 2015 R-21-19 October 1, 2020 R-38-15 R1, R3: October 1, 2016 R2: At retirement of IRO-005-3.1a R3 R-39-17 October 1, 2018 R-38-15 October 1, 2016 R-33-18 October 1, 2019 R-38-15 October 1, 2015 R-39-17 October 1, 2017 3 of 20

Standard Name FAC-008-3 Facility Ratings FAC-010-3 System Operating Limits Methodology for the Planning Horizon FAC-011-3 System Operating Limits Methodology for the Operations Horizon FAC-013-1 7 Establish and Communicate Transfer Capability FAC-013-2 Assessment of Transfer Capability for the Near-Term Transmission Planning Horizon FAC-014-2 Establish and Communicate System Operating Limits FAC-501-WECC-1 1 Transmission Maintenance FAC-501-WECC-2 Transmission Maintenance INT-004-3.1 Dynamic Transfers INT-006-4 Evaluation of Interchange Transactions INT-009-2.1 Implementation of Interchange INT-010-2.1 Interchange Initiation and Modification for Reliability INT-011-1.1 Intra-Balancing Authority Transaction Identification IRO-001-4 Reliability Coordination – Responsibilities IRO-002-2 8 Reliability Coordination – Facilities IRO-002-5 1 Reliability Coordination – Monitoring and Analysis IRO-002-6 Reliability Coordination – Monitoring and Analysis 7 Reliability standard would be superseded by the FAC-013-2 if adopted in B.C. Adoption of FAC-013-2 pending reassessment. 8 Refer to “IRO and TOP Reliability Standards Supersession Mapping” section below. ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting R-32-14 August 1, 2015 R4 and R5: Retired January 21, 2014 2 R-39-17 R1–R4: October 1, 2017 R5: Retired R-39-17 October 1, 2017 G-67-09 November 1, 2010 n/a Adoption held in abeyance at this time 5 G-167-10 January 1, 2011 R-1-13 April 15, 2013 R-21-19 October 1, 2019 R-38-15 R1, R2: October 1, 2015 R3: January 1, 2016 R-38-15 October 1, 2015 R-38-15 October 1, 2015 R-38-15 October 1, 2015 R-38-15 October 1, 2015 R-39-17 October 1, 2017 R-1-13 April 15, 2013 R-33-18 January 1, 2019 N/A Pending BCUC review 4 of 20

Standard Name IRO-005-3.1a 8,9 Reliability Coordination - Current Day Operations IRO-006-5 Reliability Coordination – Transmission Loading Relief IRO-006-WECC-2 1 Qualified Transfer Path Unscheduled Flow (USF) Relief IRO-006-WECC-3 Qualified Transfer Path Unscheduled Flow (USF) Relief IRO-008-2 Reliability Coordinator Operational Analyses and Real-time Assessments IRO-009-2 Reliability Coordinator Actions to Operate Within IROLs IRO-010-2 Reliability Coordinator Data Specification and Collection IRO-014-3 Coordination Among Reliability Coordinators IRO-015-1 8 Notification and Information Exchange IRO-017-1 Outage Coordination IRO-018-1 1 Reliability Coordinator Real-time Reliability Monitoring and Analysis Capabilities IRO-018-1(i) Reliability Coordinator Real-time Reliability Monitoring and Analysis Capabilities MOD-001-1a Available Transmission System Capability MOD-004-1 Capacity Benefit Margin MOD-008-1 Transmission Reliability Margin Calculation Methodology 9 Requirement 3 of the reliability standard is superseded by EOP-010-1 Requirement 2 as of the IRO-002-4 effective date (October 1, 2017; per BCUC Order No. R-39-17). ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting R-32-14 August 1, 2014 R-1-13 April 15, 2013 R-38-15 October 1, 2015 N/A Pending BCUC review R-39-17 October 1, 2017 R-39-17 October 1, 2017 R-39-17 April 1, 2019 R-39-17 October 1, 2017 G-67-09 November 1, 2010 R-39-17 October 1, 2020 R-39-17 April 1, 2018 R-33-18 April 1, 2020 G-175-11 November 30, 2011 G-175-11 November 30, 2011 G-175-11 November 30, 2011 5 of 20

Standard Name MOD-010-0 10 Steady-State Data for Modeling and Simulation for the Interconnected Transmission System MOD-012-0 10 Dynamics Data for Modeling and Simulation of the Interconnected Transmission System MOD-020-0 Providing Interruptible Demands and Direct Control Load management Data to System Operators and Reliability Coordinators MOD-025-2 Verification and Data Reporting of Generator Real and Reactive Power Capability and Synchronous Condenser Reactive Power Capability MOD-026-1 Verification of Models and Data for Generator Excitation Control System or Plant Volt/Var Control Functions MOD-027-1 Verification of Models and Data for Turbine/Governor and Load Control or Active Power/Frequency Control Functions MOD-028-2 Area Interchange Methodology MOD-029-2a Rated System Path Methodology MOD-030-3 Flowgate Methodology MOD-031-2 Demand and Energy Data MOD-032-1 Data for Power System Modeling and Analysis 10 Reliability standard will be superseded by MOD-032-1 and MOD-033-1 if adopted in B.C. Adoption of MOD-032-1 and MOD-033-1 pending reassessment. ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting G-67-09 November 1, 2010 G-67-09 November 1, 2010 G-67-09 November 1, 2010 R-38-15 40% by October 1, 2017 With revised 60% by October 1, 2018 effective dates by 80% by October 1, 2019 Order R-14-20 100% by April 1, 2021 R-38-15 R1: October 1, 2016 R2: 30% by October 1, 2019 50% by October 1, 2021 100% by October 1, 2025 R3-R6: October 1, 2015 R-38-15 R1: October 1, 2016 R2: 30% by October 1, 2019 50% by October 1, 2021 100% by October 1, 2025 R3-R5: October 1, 2015 R-32-14 August 1, 2014 R-39-17 October 1, 2017 R-39-17 October 1, 2017 R-39-17 April 1, 2018 R-38-15 Effective date held in abeyance 5 6 of 20

Standard Name MOD-033-1 Steady-State and Dynamic System Model Validation NUC-001-3 Nuclear Plant Interface Coordination PER-001-0.2 8 Operating Personnel Responsibility and Authority PER-002-0 Operating Personnel Training PER-003-1 1 Operating Personnel Credentials PER-003-2 Operating Personnel Credentials PER-004-2 11 Reliability Coordination – Staffing PER-005-2 Operations Personnel Training PER-006-1 12 Specific Training for Personnel PRC-001-1.1(ii) 13 System Protection Coordination PRC-002-2 Disturbance Monitoring and Reporting Requirements PRC-004-5(i) Protection System Misoperation Identification and Correction PRC-004-WECC-2 Protection System and Remedial Action Scheme Misoperation PRC-005-1.1b 1, 16 Transmission and Generation Protection System Maintenance and Testing PRC-005-2 1 Protection System Maintenance 11 Reliability standard will be superseded by PER-003-2 if adopted in B.C. as of the PER-003-2 effective date. 12 Reliability standard will supersede PRC-001-1.1(ii) R1 as of the effective date of PER-006-1. 13 PRC-001-1.1(ii) Requirement 1 will be superseded by PER-006-1 as of the effective date of PER-006-1; PRC-001-1(ii) Requirements 3 and 4 will be superseded by PRC-027-1 as of the effective date of PRC-027-1; and, the rest of PRC-001-1.1(ii) will be superseded by other reliability standards as of October 1, 2020. ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting R-38-15 Effective date held in abeyance 5 R-38-15 January 1, 2016 R-41-13 December 12, 2013 G-67-09 November 1, 2010 R-41-13 January 1, 2015 R-21-19 April 1, 2020 R-1-13 January 15, 2013 R-38-15 R1-R4, R6: October 1, 2016 R5: October 1, 2017 R-21-19 October 1, 2021 R-32-16A October 1, 2016 R-32-16A R1, R5: April 1, 2017 R2-R4, R6-R11: staged as per B.C.-specific Implementation Plan R12: July 1, 2017 R-32-16A October 1, 2017 R-39-17 October 1, 2017 Retired: Pending BCUC Review R-32-14 January 1, 2015 R-38-15 R1, R2, R5: October 1, 2017 R3, R4: staged as per B.C.-specific Implementation Plan 7 of 20

Standard Name PRC-005-2(i) 1 Protection System Maintenance PRC-005-6 Protection System, Automatic Reclosing, and Sudden Pressure Relaying Maintenance PRC-006-3 14 Automatic Underfrequency Load Shedding PRC-007-0 15 Assuring consistency of entity Underfrequency Load Shedding Program Requirements PRC-008-0 16 Implementation and Documentation of Underfrequency Load Shedding Equipment Maintenance Program PRC-009-0 15 Analysis and Documentation of Underfrequency Load Shedding Performance Following an Underfrequency Event PRC-010-0 1 Technical Assessment of the Design and Effectiveness of Undervoltage Load Shedding Program PRC-010-2 Under Voltage Load Shedding PRC-011-0 16 Undervoltage Load Shedding system Maintenance and Testing 14 Reliability standard supersedes PRC-006-1 and PRC-006-2 which have both been held in abeyance due to the undefined Planning Coordinator/Planning Authority footprints and entities responsible. 15 Reliability standard will be superseded by PRC-006-3 if adopted in B.C. Adoption of PRC-006-3 pending reassessment. 16 Reliability standard is superseded by PRC-005-6 as per the PRC-005-6 B.C.-specific Implementation Plan. ATTACHMENT B to Order R-14-20 BCUC Order Effective Date Adopting R-32-16A R1, R2, R5: October 1, 2017 R3, R4: staged as per B.C.-specific Implementation Plan R-39-17 R1, R2, R5: October 1, 2019 R3, R4: See Implementation Plan n/a Adoption held in abeyance at this time 5 G-67-09 November 1, 2010 G-67-09 November 1, 2010 G-67-09 November 1, 2010 G-67-09 November 1, 2010 R2: Retired January 21, 2014 2 n/a Adoption held in abeyance at this time 5 G-67-09 November 1, 2010 8 of 20