North Montney Expression of Interest

The proposed North Montney Region Electrification project is the only new transmission project in the region being considered at this time. 

We are currently exploring two options for this line – a transmission line extending about 100 kilometres north from either the existing Site C substation near Fort St. John or the existing GMS substation near Hudson’s Hope to a new substation in the vicinity of the Wonowon community. The exact transmission line route and the location of a new terminus substation will be based on a number of factors, including consultation with Indigenous Nations, geotechnical and environmental considerations, engagement with stakeholders, and the location and associated electricity requirements of prospective customers.

At this time, only transmission customers are being considered due to the large electricity demand required to make the project economically viable. While we’re open to discussing the electricity needs of communities in the region, any distribution-service connections would need to be considered at a later date.

Interest in connecting to the transmission line has been strong and is well over the initial planned capacity of the proposed line. As we move forward with project planning and continue our discussions with prospective customers, we’ll evaluate options for supplying customers beyond the initial planned capacity of the transmission line. If we remain over-subscribed at the next stage of the customer process anticipated to proceed in early 2022, we may prioritize customers, including the amount of capacity available to each customer. Further information will be available prior to the start of the next stage of the customer process.

To help ensure the proposed project is completed on time, we’re looking at a number of options. These could include: 

• Expediting the approval process;
  
• Adopting alternate financing and procurement models, including third-party design and construction and Indigenous ownership;
  
• Advancing materials and equipment procurement;
  
• Incorporating incentives and liquidated damages into the design and construction contract, in part of offset any customer bridging costs; and
  
• Incorporating opportunities for customer collaboration and input.
  

Protecting the environment is a top priority. We’re in the early development stage of the project and are in the process of conducting an environmental overview assessment to identify, predict and evaluate the potential environmental impacts of the proposed project. Our plans will include the necessary steps to avoid or mitigate any environmental impacts.

We’re considering new and/or alternative financing models, which may include Indigenous or other private sector ownership. The form of Indigenous participation will be determined through discussion with Indigenous Nations.

Regardless of the ownership structure, all parties connecting to the proposed North Montney line will be customers of BC Hydro, with the rights and protections associated with being part of the large rate base of a regulated public utility.

BC Hydro's credit rating as of April 1, 2021:

• Moody's Investor's Service (Moody's): Aaa
• Standard and Poor's (S&P): AAA
• DBRS Morningstar (DBRS): AA (high)

The B.C. Government is supportive of developing the North Montney and through its Ministry of Forests, Lands, Natural Resource Operations and Rural Development has created a centralized hub to streamline approval processes and advance project development in the province.

If it’s not reasonable, practical, or economic for the customer to carry out the necessary design, approval, land acquisition or construction of the customer transmission line, it may be possible for BC Hydro to carry out these activities at the customer’s expense.

BC Hydro releases security annually as revenues are realized and based on the security release formula in the corresponding tariff. Although a new tariff is proposed for the North Montney project, the security release formula will be similar to that in Tariff Supplement 6.

It’s anticipated that customers wanting to interconnect to the proposed North Montney transmission line will be advised of the leading route alternative later this year, after the results of the expression of interest have been evaluated and considered.  At that point, customers will be able to estimate the cost of constructing the transmission line from the customer’s substation to the point of interconnection to the BC Hydro grid. Customers are required to design, construct, and own both the customer’s substation and this transmission line. However, if the transmission line is built to an acceptable standard, the customer can elect to transfer the ownership of the transmission line to BC Hydro.

Prior to requesting any initial security for the design and construction of the North Montney transmission line, we’re proposing to provide customers with an estimate for the Basic Transmission Extension (facilities that connect a customer’s transmission line to the BC Hydro system), which will be designed, constructed, and owned by BC Hydro.  Customers with a standard interconnection (e.g. line position) will be provided a capped cost estimate for that standard interconnection. Customers with a non-standard interconnection (e.g. a tap connection, if feasible) will be provided with an indicative cost estimate.  

A cost estimate for any customer-specific system reinforcement costs that may be required, e.g. protection & control upgrades, will be available prior to BC Hydro requesting any final security for the design and construction of the North Montney transmission line. The customer is responsible for these costs, however BC Hydro provides an offset, which may cover some or all of these costs.

Note, some the above costs may also be eligible for government funding, such as the CleanBC Facilities Electrification Fund or additional funding that BC Hydro is seeking specifically for North Montney customers.

Prospective North Montney customers will be notified when applications are being accepted from North Montney customers for the discounted rates under the CleanBC Industrial Electrification Rates (RS1894 or RS1895, as applicable) and the corresponding application process. No applications are being accepted at this time. EOI registrants will be emailed about the application process and information will be posted to the Notices section. Those participating in the EOI don't need register again to receive these updates.

BC Hydro does not currently have any active industrial load displacement or energy purchase programs to enable the sale of energy to BC Hydro.  

Regarding the sale of energy to parties other than BC Hydro, in general, retail electricity customers located in BC Hydro’s service territory must purchase their electricity from BC Hydro since “retail access” (i.e. the ability for retail customers to source electricity supply from a source other than BC Hydro) has been suspended pursuant to Direction No. 8 to the British Columbia Utilities Commission issued under the Utilities Commission Act.  A customer can purchase transmission service from BC Hydro under BC Hydro’s Open Access Transmission Tariff to enable the customer to transmit power if they wish to sell their power to markets or customers outside of BC Hydro’s service territory. However, as noted on page two of the North Montney EOI, generators can not be accommodated at this time.

We’re fortunate to have an electricity system built on hydroelectric generation, which allows BC Hydro to ramp electricity generation up and down as required to meet the electricity demand of customers. Unlike solar and wind that are only available when the sun is shining and the wind is blowing, hydroelectric facilities offer firm power that can be counted on any time, day or night. 

Under the transmission-service rate schedules, there is a demand charge and an energy charge. The demand charge is based on the High Load Hour peak kVA Demand during the billing period and the energy charge is based on kWh energy consumed. The default rate for transmission service is Rate Schedule 1823.

Rate Schedule 1823, which is the default rate for transmission service, includes a minimum demand charge equal to 50% of the Electricity Supply Agreement (ESA) Contract Demand. It doesn’t have a fixed term or expiry date. 

The initial ESA term is one year and renews automatically unless a six months written notice is provided for termination by either party.

No additional rate riders are proposed for North Montney customers or for the construction of the line.

Prospective North Montney customers will be notified when applications are being accepted from North Montney customers for the discounted rates under the CleanBC Industrial Electrification Rates (RS1894 or RS1895, as applicable) and the corresponding application process. No applications are being accepted at this time. Registrants will be emailed about the application process and information will be posted to the Notices section. Those participating in the EOI don't need register again.

We cannot guarantee eligibility for electrification programs on connections made in 2026. 

The CleanBC Facilities Electrification Fund, which is administered by BC Hydro, is allocated on a first come, first served basis and there are currently no plans to alter the funding cap. 

We cannot comment on the potential flexibility of the provincial program caps; however, a one-time adjustment in the funding cap for the “CleanBC Industry Fund – Emissions Reduction” program was made this year.    

Existing facilities:

• CleanBC Industry Fund – Emissions Reduction
• CleanBC Industrial Incentive Program
• CleanBC Facilities Electrification Fund
• Clean Growth Infrastructure Royalty Program

New facilities

• CleanBC Facilities Electrification Fund
• Clean Growth Infrastructure Royalty Program