Questions and answers for 2024 Call for Power
Questions on the Request for Proposals ("RFP"), the RFP process and related documents issued during the call process, and BC Hydro's responses, are posted on this page. They are numbered chronologically based on the date of posting. Most recent Q&As are posted first.
BC Hydro's answers to proponent's questions are for general information only. They do not constitute legal or other advice and did not amend or form part of the RFP, unless confirmed by Addendum or revised RFP documents.
Should there be any differences between the responses in these Q&As and the Request for Proposals (RFP) or the Specimen Electricity Purchase Agreement (EPA) issued by BC Hydro when the Call for Power is launched, or subsequently updated, the RFP and the Specimen EPA shall prevail.
Questions will be added regularly.
September 10, 2024
123. Schedule 3 Section 2.3 (a) (i) states: Description of any on-site monitoring used in the wind resource assessment (e.g. number of met towers, period of met campaign). Provide the data collected. Could you please advise if we are to provide the data files from a Project's met tower to BC Hydro and in what form (raw data, .rld, .csv, etc.)?
Yes, where possible, Proponents should include the data collected in csv form.
122. We have some questions related to what happens to generator interconnection queue position under various scenarios.
Generally, a queue position is assigned to a project based upon the date and time of receipt of the valid Interconnection Request. The queue position of each Interconnection Request will be used to determine the order of performing the interconnection studies and determination of cost responsibility for the facilities necessary to accommodate the Interconnection Request. Please refer to Section 4.0 of the Open Access Transmission Tariff (OATT), Attachment M-1 for further clarification. After COD, the project is part of the system model (base case), and therefore it would no longer be in the queue. An EPA is not required for a project to be entered into the queue.
Section 9.1 of the RFP outlines that, for the purposes of this RFP, the interconnection process for all Projects will follow CEAP as described in Attachment M-2 of the OATT.
Section 9.4 of the RFP notes that all Projects participating in the Call for Power will be assigned the same queue priority and will be studied without consideration of other Projects, using the same base case. Prior completed studies will not be accepted.
Section 9.7 of the RFP notes that if a Proponent is awarded an EPA pursuant to this RFP, it will be required to complete the remainder of the interconnection process set out in the OATT.
Detailed questions relating to the application of the OATT to specific projects and project configurations are beyond the scope of the RFP. BC Hydro recommends that each Proponent seek independent legal and technical advice in preparing its submission as may be necessary, which may include how to interpret the OATT.
121. If our Proposal is for 80 MW but according to the Interconnection Feasibility Study this will trigger a major network upgrade, then we must reduce the capacity of our Proposal. How do we discover what is the maximum capacity for the interconnection that does not trigger a major network upgrade, in order to reduce the interconnection capacity of our Proposal?
Please note that Proponents are unable to submit multiple Interconnection Requests such as for 40, 45, 50, 55, 60, 65, 70, 75 MW.
Refer to Q&As #6 and #77.
120. We will be submitting a Proposal for two projects that share the same Point Of Interconnection. If we are successful in the Call, will we be required to execute one SGIA or two SGIAs?
If one of the two Projects in our Proposal achieves COD but the other Project is suspended due to financial reasons and its EPA is terminated by BC Hydro, will this suspended Project retain its interconnection capacity and rights or will it lose its capacity? Will the suspended Project have to reapply to CEAP if participating in a future Call?
From an RFP perspective, each Proponent must submit a separate and distinct Proposal for each Project, and each Project must meet the Eligibility Requirements. Please review the RFP carefully for additional requirements.
For further clarity, two projects in one Proposal would not be eligible for the Call and so the scenarios described are not relevant.
119. As part of the bid, does a Nation need to be signed off on a memorandum of understanding with a Proponent? If so, does it need to be binding or can it be non-binding?
No, however Form 4 should be completed as part of the Proposal.
118. Can BC Hydro please confirm that for the purposes of Bid Security, more than one letter of credit may be provided so long as the aggregate amount of the letters of credit is the same as the amount of Bid Security required in respect of the Project? For example, if the total bid security is $5M, BC Hydro would accept a $2M letter of credit from one party and a $3M letter of credit from another?
Confirmed.
117. In Section 4-1 there are several sections requesting very similar information. In section 4-1-k (ii) Copies of any written information provided to First Nations concerning the Project. In section 4-1-k (iii) Copies of all written correspondence with First Nations, Then in section 4-1-k (iv) Copies of all agreements with First Nations (commercially sensitive information may be redacted).
Please clarify what "all written information" and "all written correspondence" means.
“All written correspondence” means all letters, e-mails, and other correspondence between a Proponent and First Nations with respect to the project. “All written information” means all Project information that a Proponent provided to a First Nation for the First Nation to review as part of Project consultation.
Note, it is strongly recommended that a Proponent be fully responsive to each instruction and provide fulsome information and data to support BC Hydro's evaluation of Proposals.
116. Is "a plan to obtain access/control" for properties wherein lie the Project's transmission facilities, that occur on Crown land, sufficient in order to satisfy the BC Hydro RFP requirements, in the case that ownership rights, lease agreements or options to lease have not been obtained.
Confirmed.
115. Could you please confirm that the address provided by BC Hydro below should not include "BC Hydro" as the organization name?
RFP Administrator - 2024 Call for Power
333 Dunsmuir St
Vancouver, BC V6B 5R3
BC Hydro may be added as organization name.
114. Can you please elaborate on the inputs/assumptions made for the loss study and provide information on how the results relate to equipment on the Project side of the POI?
The loss values provided by BC Hydro for all Projects that received an Interconnection Feasibility Study were calculated using the same methodology and common assumptions for the comparative purposes in the evaluation. The provided loss values reflect the losses that would occur within the BC Hydro System only, and the losses that would occur within the Projects’ facilities (i.e. between the WTG s and the POI) are excluded. The inputs to the loss studies were based on the information provided in the Interconnection Feasibility Studies.
113. Do the line loss estimates factor in non-electrical losses (e.g. plant curtailment for economic or congestion reasons)? If so, can you please provide the itemized list of losses considered for each project? Can BC Hydro provide an input summary of the electrical loss model used for each project (e.g. conductor size, temperature, etc.)?
No, the loss estimates do not factor in plant curtailment or other forms of non-electrical losses.
BC Hydro is not able to provide information on the model that was used. As specified in the email that contained the loss information, the loss results were provided to Proponents for informational purposes only. The transmission line loss information is intended to inform BC Hydro’s evaluation process by way of an evaluation adjuster as described in Section 11.2 of the RFP.
112. Could you please provide the timing of the loss results for the projects throughout the year (monthly and on / off peak), given the impact associated with the time-of-delivery factor?
Please refer to Section 11.2 of the RFP for a description of how the transmission line losses are used in the evaluation. BC Hydro is not able to provide information on the losses throughout the year as they are not used in this way and do not impact the time of delivery factor.
111. How is the Energy Loss Factor calculated? And how are the power losses at peak injection and annual energy losses used in the transmission line loss evaluation adjuster?
Section 11.2 provides a high-level description of how the transmission line losses were calculated. The energy loss factor is calculated by dividing the annual energy losses that would occur within the BC Hydro transmission system by the expected annual energy estimate that would be sold to BC Hydro for each project, where the expected annual energy is based on the methodology that is described in the January 17 illustrative evaluation price adjuster formulas document. The peak energy losses are not used in the evaluation adjusters.
110. Our understanding from the RFP and Q&As is that the planned outage factor was to include wind turbine and BoP availability as plant availability losses (See Q&A #83). However, BC Hydro’s communication regarding project-specific losses appears to contradict this.
Can you confirm that we are to include wind turbine availability, BoP availability, grid availability, and transmission losses in the planned outage factor (and excluded from the monthly generation table)?
Please refer to section 11.2 of the RFP for a description of how the transmission line losses will be used in the evaluation. The transmission line losses that are used in the evaluation are not related to plant availability losses.
The referenced Q&A #83 refers to information that is to be provided in Schedule 3 pertaining to energy generation estimates.
109. Please confirm the following understanding is correct: slight modifications to the Project substation coordinates will not be deemed a material inconsistency if it should not have any impact to BC Hydro’s Network Upgrade costs or timing.
Please refer to Q&As #6 and #49.
108. Please confirm where the Maximum Power Injection limit is applied. At the POI? After accounting for i) line losses to the Point of Interconnection (POI), and (ii) transformers between the generators and the POI?
The Maximum Power Injection limit is applied at the POI with the BC Hydro system and is net of losses between the Project's generators and the POI.
107. Q. 84 speaks to escalation in the Energy Price as follows "The Proponent should not submit an Energy Price ($/MWh) that is subject to escalation in their Proposal. The Energy Price will be escalated pursuant to section 1.1(zz) Energy Price of the EPA.". Can BC Hydro confirm, similarly, then that the Bid Price submitted must not consider the Time of Delivery either, as BC Hydro will calculate this on their own with the Energy Price?
Pursuant to Schedule 2 – Commercial Proposal Form, Section 2 of the RFP, the submitted Energy Price is to be expressed in $2024. The Bid Price is expressed prior to application of the escalation and Time of Delivery adjustments included in the Specimen EPA.
106. We have a few additional questions on Form 6, the Financial Commitment Letter Template:
- Will a Project's First Nations partner also need to sign the Form 6 Financial Commitment Letter?
- Is the Form 6 Letter legally binding to its signatories?
A signed Form 4 – Evidence of First Nations Economic Participation by the Proposal First Nation(s) is sufficient to indicate the financial commitment from a specific First Nation and does not have to be resubmitted for the purposes of Form 6 – Financial Commitment Letter.
Information provided by Proponents will be used by BC Hydro in its evaluation of Proposals. See Q&A #65 for further information.
105. In Schedule 3, under "Proponent's Key Personnel", there is a requirement that at least two Proponent Team members have sufficient experience across six experience categories for at least two past utility scale clean power projects. Can BC Hydro please confirm the following:
Is the experience in each development category held by each Proponent Team member required to be for at least two utility-scale projects? For clarity, would a Proponent Team member's experience be eligible if their experience is on financing for a single utility-scale project of similar technology and size to the proposed Project or should this experience per person be for at least two utility-scale Projects to be considered eligible?
Refer to Q&A #92 for a response.
104. Planned Outage Factor % as required in Section 2.1b of Schedule 3, appears to be a capitalized term but does not have an assigned definition. Please provide a definition to the term in order to facilitate a well-informed response.
Addendum 6 addresses this question. Planned outage factor is not a defined term.
103. Is the Proponent permitted to create Project-specific entities post contract-award or is it required to have these entities in existence at the time of submission?
Yes, post-award, the Specimen EPA contains provisions related to assignment of the contract to a new entity.
For clarity, it is not required to have the Project company created at the time of Proposal submission. See Q&As #62 and #85 for further information on changes to a Project company between Proposal submission and EPA award.
102. Given that many Projects will be new builds with CODs several years in to the future, it is not feasible to receive commitment from debt providers as to the level of financing they are willing to provide. With that as a background, what kind of information/commitment (if any) are Proponents expected to receive from debt providers at this stage?
Schedule 5 – Financial Information Requirements, Sources of Debt section in the table under section 2, notes that commitment letters should be included to the extent for which they are available. Please provide information to the extent it is available.
Refer to Q&A #98 for further detail.
101. Can a Project have a solar project of 40 MW that qualifies for the BC Hydro program, but where up to 25 MW of that total is used to produce green hydrogen locally? In other words, the production from 25 MW of that 40 MW Project will not be sold into the BC Hydro grid?
Please refer to section 2.2 of the RFP for the eligibility criteria, and section 7.6 of the EPA for the exclusivity provisions.
September 6, 2024
100. If a Proponent has completed an Interconnection Feasibility Study Agreement and paid the deposits through the CEAP IR process, and they no longer intend to bid the project in the 2024 Call for Power, does the Proponent need to notify BC Hydro that they are withdrawing the project? What is the process for withdrawing a project?
There is no need to notify BC Hydro if a potential Proponent chooses not to proceed with submitting a Proposal.
99. There is a missing text box in section 2 of Schedule 2, commercial proposal form, and so I am unable to fill in the project name.
As part of Addendum 7, we have included a new version of Schedule 2 which addresses this issue.
98. We have several questions about Schedule 5 (Financial Information Requirements) and Form 6 (Financial Commitment Letter Template):
- Schedule 5, Section 2: Can you please clarify whether we are required to include lender names?
- Schedule 5, Section 3: Regarding the commitment letter required, would BC Hydro accept different forms of letters (e.g., a support letter) in lieu of the template in Form 6?
- Schedule 5, Section 4: For newly formed entities in 2024, both audited or reviewed statements would be unavailable, and both 4a and 4b cannot be provided. Could the ultimate parent's audited consolidated financial statements be provided in lieu of 4a and 4b?
- Schedule 5, Section 4: Can you please provide clarity on what is meant by written confirmation? Would a letter signed by an authorized company representative suffice, and is notarization required?
In response to the questions:
- Schedule 5, Section 2: Please provide names of designated debt providers if/as available.
- Schedule, 5 Section 3, asks Proponents to: Provide as an Exhibit copies of financial commitments (e.g., commitment letters, term sheets, letters of offer or executed financing documents) and/or internal funding authorizations, if any. BC Hydro provided the Form 6 – Financial Commitment Letter Template as a sample. We encourage equity and debt providers to use the template letter to indicate their firm commitment to the Project, which they can modify to reflect a different level of commitment or support, and we will assess accordingly.
- Schedule 5, Section 4: Yes, Proponents may provide audited consolidated financial statements from another entity, such as a parent entity. Please refer to Q&A #90 for further detail.
- Schedule 5, Section 4: A written confirmation letter should 1) indicate the relationship between the Proponent and the entity providing the letter, e.g., the Proponent is a division of the entity or the Proponent is a wholly owned subsidiary of the entity, 2) be written on the entity's letterhead, and 3) signed by either a Senior Finance Manager or Senior Legal Counsel of the entity. The confirmation letter does not require notarization.
97. RFP Section 2.2 definition of Project Sizes states: "The Plant Capacity must be greater or equal to 40 MW and less than or equal to 200 MW based on the maximum electrical output of all generating units."
Further, Addendum 1 states in the Interconnection Study Agreement eligibility criteria "Project capacity specified in a Proposal must be less than or equal to the maximum injected capacity reflected in the corresponding CEAP IR". This would imply a project capacity that, after losses, must be less than or equal to what has been provided in the CEAP IR. Please define Project capacity in this regard.
Plant Capacity is as defined in the Request for Proposals and refers to the maximum electrical output of all generating units. The Project Size that is specified in Section 2.2 (Project Eligibility Requirements) utilizes the definition of Plant Capacity as the basis for confirming whether a Project meets the Project Size eligibility requirement.
The maximum injected capacity is not used to confirm that the Project Size eligibility criteria has been met. Addendum 7 [PDF, 101 KB] has been posted to amend the Interconnection Study Agreement eligibility criteria set out in Table 1 of Section 2.2 of the RFP.
96. Regarding Schedule 3, section 3.2 – Could BC Hydro please confirm that the Legal Description in the table is the description provided by the Ministry of Water, Land and Resource Stewardship in the Investigative Licenses (IL) for the projects? In cases where an IL has been applied for but not yet issued and no such Legal Description has been provided, what content does BC Hydro expect proponents to provide?
Confirmed.
Proponents should provide a description of the property if/as available. If no legal description is available, include "n/a" in this section and provide a comment that a copy of the Investigative Use License (or application) is attached as an exhibit and note the Crown file number. Note, Schedule 3, Section 3.2 (d) requests to include Investigative Use License and/or Accepted Investigative Use License Application and/or submitted Investigative Use License Application form for Provincial Crown lands as an Exhibit, where applicable.
September 4, 2024
95. To change the Project Name and Proponent Name between RFP registration and final submission, should the Proponent complete a new Schedule 1 – Registration Form and include it within its submission? Should the Proponent attach the original Schedule 1 – Registration as well?
If the Proponent would like to change its Project Name and Proponent Name before the RFP Closing Date, it should complete a new Schedule 1 – Registration Form.
Please ensure the CEAP IR # is included in this form. As an alternative, the Proponent may include a new Project Name and Proponent Name as part of Schedule 2 – Commercial Proposal Form as part of its Proposal.
94. What is the maximum file size for submission via the RFP Administrator Email address?
The maximum file size that the RFP Administrator Email can accept is 20 MB. Please review Addendum 6 [PDF, 186 KB] for information on the additional submission method of a Proponent specific secure ShareFile folder.
93. The EPA outlines a definition of On-Peak Hours as the following: "On-Peak Hours means hours ending 0700 – 2200 (6:00 a.m. – 10 p.m.) PPT Monday through Saturday inclusive, but excluding all hours on any such day that is recognized as a "paid holiday" for British Columbia government employees as published by the Province of British Columbia from time to time (including any day Monday through Friday that is a paid holiday for British Columbia government employees due to a holiday occurring on a Saturday or Sunday)". Can BC Hydro clarify if On-Peak Hours commence from 7:00 a.m. or 6:00 a.m.?
On-Peak Hours commence at 6:00 a.m. on applicable days as described in the EPA.
92. Schedule 3 – Proponent's Key Personnel, there is a requirement that at least two Proponent Team members have sufficient experience across six experience categories specified in section 4(c). If more than two Proponent Team members are provided, can they share the experience across some or all categories, or do at least two have to have experience across all six categories?
Section B-4 of Schedule 3 includes the instruction that Proponents provide information for at least two Proponent Team members with experience in delivering past utility-scale clean power projects.
Demonstration of the experience specified in Section B-4(c) may be provided with information on more than two Project Team members if two individuals do not have the full complement of experience.
91. What is the anticipated contract signing date?
Section 4.4 of the RFP document states: Notice to Proponents selected as Preferred Proponents, execution of EPAs and submission of Performance Security are all anticipated to occur during December 2024.
Section 12.1 of the RFP document states that, for Preferred Proponents, the Specimen EPA and the EPA Side Letter must be executed no later than 10 Business Days after the EPA is forwarded to the Preferred Proponent by BC Hydro.
August 28, 2024
90. If a Proponent does not have financial results or financial statements because it is newly created for participation in the Call for Power, would financial statements of the Proponent's Equity providers suffice?
Other RFPs have required other forms of proof of ownership, such as corporate structures or organizational charts, rather than financial statements of newly created entities. Proponents that are newly created entities for participation in the BC Hydro Call for Power may not have financial results or financial statements to provide.
Are financial statements required for all identified sources of equity to these Proponents, including Proposal First Nations who will be contributing equity that is independent of the Canada Infrastructure Bank (CIB) financing package?
If a Proponent does not have financial statements, the Proponent may submit the financial statements of another entity (Entity). An Entity may include one or more of the Proponent's Equity providers.
The Entity should submit financial statements as outlined in Schedule 5, section 4 Financial Statements, provide written confirmation that the Proponent is a separate legal entity, and provide a financial commitment letter that the Entity will provide funding to the Proponent as listed in the Financing Plan. Alternatively, the Entity may provide a guarantee instead of a firm commitment letter. The Entity's level of commitment and willingness to provide a guarantee will be considered in the financial review.
While financial statements are not required for all identified sources of equity, providing such information would be considered as part of the risk assessment (See Section 11.1 (d) in the RFP document).
89. Please clarify when the Proposal Fee and the original of the Letter of Credit are due.
Per Section 7.2 of the RFP, the original of the Letter of Credit is due within five Business Days of the Closing Time which means that it would be due to BC Hydro on or before September 23, 2024.
As amended by Addendum No 6, the Proposal Fee is due within 10 Business Days of receipt of an invoice from BC Hydro. Invoices will be provided to Proponents who submit a Proposal.
Both the Letter of Credit, and any cheques payable for the Proposal Fee, must be delivered to the physical delivery address specified in the Summary of Key Information table at the front of the RFP.
88. Can you provide the final version of the Evaluation Price Adjuster Formula for the Network Upgrade Adder?
The Evaluation Price Adjuster Formulas document posted January 14, 2024, as part of BC Hydro's engagement process, was provided for illustrative purposes only and hence will not be updated. All information regarding Evaluation Adjusters is included in Section 11.2 of the RFP.
87. Would BC Hydro be open to signing a Confidentiality Agreement (CA) for this Call? We have confidential information that we are unable to provide without an executed Confidentiality Agreement in place.
As per section 14.8 of the RFP, subject to the provisions of the Freedom of Information and Protection of Privacy Act and the terms of the RFP, BC Hydro will endeavour to keep all Proposals and their contents confidential.
All BC Hydro employees who have access to Proposals are governed by the BC Hydro Code of Conduct which places specific obligations on employees to protect confidential information. Those evaluating Proposals will also specifically acknowledge their obligations to maintain confidentiality.
Depending on the information, Schedule 5 provides proponents with the discretion to submit information requested in Section 4 in a separate password-protected file marked as "Confidential." Note the Proponent may be contacted with instructions to submit the password.
86. Can one or more of the Proposal First Nations change their level of committed ownership after the Proposal is submitted if replaced by a different Proposal First Nation such that the same level of overall committed ownership is maintained?
Section 8.6 of the RFP provides for the definition of Material Change and details the obligation to inform BC Hydro of Material Changes which would include a change in ownership, control, or management of a Proponent or a member of the Proponent's Team. BC Hydro would exercise its right to consider the specifics of any such Material Change in determining whether to accept the Material Change in accordance with the provisions set out in the RFP.
85. Section 8.6 of the RFP provides that any change to the legal structure of the Proponent, the creation of a new joint venture or other legal entity, or any sale or other transfer to another Person of the Proponent's assets all constitute a Material Change.
Can BC Hydro confirm that the creation of a Project Special Purpose Vehicle (SPV) by a Proposal First Nations and Proponent (or one of its affiliates), after a Project is awarded but before execution of the EPA, the whole in accordance with and resulting in an ownership structure as described in the Proposal, will be acceptable to BC Hydro and not constitute a Material Change?
Section 8.6 of the RFP provides for the definition of Material Change and details the obligation to inform BC Hydro of Material Changes which would include, but not be limited to, any change to the legal structure of the Proponent or a member of the Proponent's Team.
While BC Hydro anticipates that some Proponents may have Material Changes with the information contained in their Proposals, unfortunately BC Hydro is not able to determine in advance the acceptability of changes that may trigger the Material Change provisions of the RFP.
Accordingly, BC Hydro would exercise its right to consider the specifics of any such Material Change in determining whether to accept the Material Change in accordance with the provisions set out in the RFP.
August 23, 2024
84. We have some questions regarding the Specimen EPA:
Please confirm that after COD, there are no Liquidated Damages for non-delivery, except if the Seller has committed to capacity commitment.
Can you confirm that there are no availability guarantees per the EPA and no limitations to availability? (ie: no penalization if the site's availability is below a certain threshold)?
Can you confirm that the submission price ($/MWh) cannot have an escalation?
After COD, there are no Liquidated Damages for non-delivery of Energy, except if the Seller has committed to the Capacity Commitment under section 7.3 of the EPA.
Other than the Capacity Commitment under section 7.3 of the EPA, there are no availability guarantees. However, the Seller is required to have delivered Energy to the Buyer for any period of 365 continuous days. Further, the Seller shall ensure that no Planned Outage occurs during the months of November, December, January, February or March except with the consent of the Buyer.
The Proponent should not submit an Energy Price ($/MWh) that is subject to escalation in their Proposal. The Energy Price will be escalated pursuant to section 1.1(zz) Energy Price of the EPA.
83. Regarding Schedule 3 – Section 2.1(a) – Please confirm that Energy Generation Estimates should exclude plant availability losses (all outages) and that BC Hydro will evaluate availability separately in Section 2.1(b).
Confirmed. Section 2.1 (a) asks for annual and monthly energy estimates that represent the net energy delivered to the POI excluding all outages in GWh (no decimal places).
82. How should we incorporate the In-Service Date provided in the Feasibility Study into our proposed GCOD? Can we meet the GCOD Eligibility Requirement if our Feasibility Study ISD timing is Q3, 2031 (i.e. July-September 2031)?
The estimated in-service date (ISD) for the project’s network upgrades provided in the Interconnection Feasibility Study is a good faith estimate based on the scope determined by the Interconnection Feasibility Study report. The ISD is refined as the project progresses through the interconnection process.
The applicable RFP Eligibility Requirement is that the proposed Project must be reasonably expected to be able to achieve a Guaranteed Commercial Operation Date between October 1, 2028 and October 1, 2031. Bids that do not meet this eligibility requirement will be disqualified from participation in this RFP. Please refer to Section 2.3 of the RFP.
BC Hydro's view is that it is possible for projects to meet the RFP Eligibility Requirement if the ISD from the Feasibility Study is Q3 2031 (i.e. July-September, 2031), seeing as the ISD provided in the Feasibility Study is a good faith estimate.
We also note that if prior to the execution of a SGIA, an Interconnection Customer wishes to advance the implementation of its interconnection, it may request an Early Engineering and Procurement Agreement (E&P Agreement) as outlined in Section 9.0 of OATT Attachment M-1.
81. The OATT requires successful Proponents to post a security in the full amount of the Network Upgrade costs shortly after the Interconnection Agreement is executed. Is BC Hydro willing to adjust the interconnection security posting schedule to reduce the developer's risk exposure?
As explained in our response to Q&A #79, if a Proponent is awarded an EPA pursuant to this RFP, it will be required to complete the remainder of the interconnection process as set out BC Hydro's OATT, including signing a SGIA.
Cost estimates for security will be based on the Facilities Study which will be a more detailed and refined study than the process which was undertaken for the CEAP Interconnection Feasibility Study.
Please refer to BC Hydro's Standard Generator Interconnection Procedures (SGIP) included as Attachment M-1 of the OATT.
80. How long does it usually take for BC Hydro to file EPAs for BCUC approval? Will interconnection-related securities, as well as the Performance Security, be fully returned if the EPA is terminated by the Buyer in accordance with EPA Section 3.2?
BCUC's Rules for Energy Supply Contracts for Electricity require that EPAs be filed with the BCUC under section 71 of the UCA within 60 days of the date an EPA is entered into by the parties.
If the EPA is terminated by the Buyer in accordance with section 3.2, the Performance Security provided under the EPA will be returned to the Seller within 30 days following the date of termination.
As explained in our response to Q&A #79, if a Proponent is awarded an EPA pursuant to this RFP, it will be required to complete the remainder of the interconnection process as set out BC Hydro's OATT, including signing a SGIA.
In the normal course, the posting of interconnection security under the SGIA is not required until after the SGIA is executed and in accordance with its terms.
The return of such security would be governed by the terms of the SGIA and Attachment O of the OATT.
79. Can you please provide details regarding the Interconnection Agreement:
- What is BC Hydro's reasonably anticipated timing for Interconnection Agreement execution for the winning projects?
- Does 100% of final Network Upgrade costs need to be posted in the form of interconnection security and what is BC Hydro's reasonably anticipated timing for the security posting?
- When is the interconnection security is going to be released?
- What are the acceptable forms of interconnection security?
- Does the winning bidder have a right to suspend the Interconnection Agreement to delay the posting of the interconnection security?
As provided in section 9.7 of the RFP, if a Proponent is awarded an EPA pursuant to this RFP, it will be required to complete the remainder of the interconnection process as set out in BC Hydro's OATT. In accordance with OATT Attachment M-2 Section 4.11, a successful Proponent will be tendered a Combined Study Agreement and the timing of next steps associated with the interconnection process is as provided in the Standard Generator Interconnection Procedures (SGIP) included as Attachment M-1 of the OATT.
We are not able to provide timeframes as to when successful Proponents will be executing a Standard Generator Interconnection Agreement (SGIA) as this timing will be very project specific, dependent upon the rate at which it proceeds through the interconnection process as outlined in the SGIP.
If a successful Proponent signs a SGIA, that agreement will set out the terms associated with the posting of interconnection security.
Section 11.5 of the SGIA provides that the Interconnection Customer post security for Network Upgrade costs "at least thirty (30) Calendar Days prior to the commencement of the design, procurement, installation, or construction of a discrete portion of Transmission Provider's Interconnection Facilities or the Network Upgrades…"
The requirement to post security is governed by the SGIA and cannot be amended; however, as the requirement to post is triggered by commencement of work, the parties can work together on a staged work schedule. Section 5.16 of the SGIA governs the ability of an Interconnection Customer to suspend the work in relation to its project.
An Interconnection Customer has the option to advance the implementation of its interconnection and request BC Hydro to begin certain work in advance of executing the SGIA. Such work would be in accordance with an Early Engineering and Procurement Agreement (E&P Agreement) as outlined in Section 9.0 of the SGIP.
An Interconnection Customer is required to provide security as provided in the SGIA, and if applicable the E&P Agreement, for 100% of Network Upgrades costs. BC Hydro generally accepts irrevocable letters of credit and cash as security. Please refer to Section 11.5 of the SGIA and Attachment O of the OATT for further details related to security requirements and the release of required security.
78. Can you please provide further information (e.g. cost estimate breakdown, schedule of activities) related to the Feasibility Study results?
The estimated Network Upgrade cost and the estimated in-service date for the project's Network Upgrades are good faith estimates based on the scope determined by the Interconnection Feasibility Study report.
A breakdown of the estimated Network Upgrade cost or schedule details is not available given the scope of the study. The estimate is high-level at the Interconnection Feasibility Study stage due to limited studies scope and is refined as a project progresses through the interconnection process.
77. Can we request another Interconnection Feasibility Study or re-evaluation based on updated Project data (e.g. decrease MW, change POI)?
Under the CEAP, there is no opportunity for a restudy during the Interconnection Feasibility Study phase.
August 19, 2024
76. Schedule 7, Electricity Purchase Agreement, Section 6.6 indicates "for projects that are deemed by the Buyer to be in a zone where there is a risk of forest fire, such policy will include coverage for forest fire fighting expense liability at a sublimit of $2,000,000." Which locations are deemed by BC Hydro to be at risk of forest fire? Could a map be provided?
BC Hydro does not have a map of zones where there is a risk of forest fire. In general, insurance coverage for forest fire fighting expense liability at a sublimit of $2,000,000 is required if the project is located near a forested area.
75. In Schedule 5 of the RFP, BC Hydro is requesting Financial Commitment Letter(s) from debt providers. What level of commitment related to the portion of debt financing to be provided through the Canada Infrastructure Bank (CIB) loan product will the Proponent need to demonstrate at the time of bid submittal? If the Proponent indicates in its Proposal that a portion of its debt financing will be received from CIB, is the Proponent permitted to enter into other loan arrangements instead of the CIB loan product after contract award and execution?
With reference to the requirement for Financial Commitment letters from debt providers in Schedule 5 of the RFP, Proponents may exclude the CIB portion of a Proponent's financing plan from this requirement, given that the CIB's standard financing offers have already been recognized by BC Hydro for its Call for Power procurement, including the fact that CIB will make its financing offer available to all winning bidders in this procurement.
There are no specific requirements in the Specimen EPA regarding debt financing for the project other than the Seller needs to advise of its progress as part of the project’s Quarterly Development Report.
74. Regarding Q&A number 46, how will BC Hydro consider proposed changes to the Form of Letter of Credit? Can we forward the changes proposed by our financial institution prior to bid submission to ensure BC Hydro does not reject them at the time of bid submission?
Further to Q&A #46 which states:
Will BC Hydro accept changes proposed by financial institutions to Form 1 – Form of Letter of Credit?
BC Hydro will consider proposed changes by financial institutions to Form 1 – Form of Letter of Credit, but BC Hydro has discretion to accept or reject those proposed changes.
However, BC Hydro's strong preference is that changes should not be made to Form 1, as it is BC Hydro's experience that this template language has been successfully used extensively with a variety of financial institutions. Any changes may or may not be accepted at BC Hydro's discretion. BC Hydro notes that the original Letter of Credit must, unless BC Hydro otherwise agrees, be provided to BC Hydro within 5 Business Days of the Closing Date.
BC Hydro is unable to pre-review proposed changes to the Form of Letter of Credit.
73. With respect to Bid Security, please provide examples of when it would be drawn down. If a Proponent were to withdraw its bid prior to the target EPA award date, would the Proponent forfeit the Bid Security?
RFP Section 7.3 provides the scenarios in which the Bid Security will be returned or forfeit, and any drawing of funds would be in accordance with the scenarios in Section 7.3. For clarity, Bid Security will be forfeited if the Proponent is selected as a Preferred Proponent, and awarded an EPA and withdraws or fails to execute the EPA, the EPA Side Letter and deliver the required Performance Security.
72. Does BC Hydro require that an Initial Project Description and Engagement Plan be prepared and submitted to the Environmental Assessment Office prior to submission?
Schedule 3, Section 6.7 provides the information requirements regarding permitting. BC Hydro is aware that Projects will be in various stages of permitting at the time of bid submission.
The Proponent should demonstrate it has a realistic plan to acquire all required permits within the required time to meet its Project schedule and Guaranteed COD. It is advisable that Proponents seek guidance from technical and legal professionals to determine if the specific project is viable considering the requirements set out in the RFP.
71. How can developers establish which domestic Canadian financial institutions will be acceptable to BC Hydro, for a Letter of Credit? For example, are BNP and HSBC Bank Canada acceptable institutions?
Form 1 – Form of Letter of Credit, page 2, Letter of Credit Requirements, provides the criteria regarding acceptable financial institutions.
Developers are responsible for ensuring the letter of credit issuer meets the stated criteria. BC Hydro will not confirm acceptability of the letter of credit issuer beforehand.
70. With reference to section 3.4 of the Request for Proposal document "If the Seller cannot certify at COD and on each of the first three anniversaries of COD that the First Nations Equity Ownership is at least at the Committed Level of First Nations Equity Ownership, the Energy Price may be subject to an Energy Price reduction or termination in accordance with the provisions of the Specimen EPA", can BC Hydro please explain how it determines whether a Seller is subject to energy price reduction or termination?
Under the EPA, at COD and on each of the first three anniversaries of COD, if the First Nations Equity Ownership is less than the Committed Level of First Nations Equity Ownership and/or any of the Proposal First Nations does not hold Equity Ownership or the Seller fails to deliver a statutory declaration in accordance with section 6.10(d)(i), then the Seller will be subject to an energy price reduction.
If, on each of the first, second and third anniversaries of COD, the Seller fails to deliver a statutory declaration that confirms that one or more Project First Nations hold, in aggregate, at least 25% of the Equity Ownership and that each of the Proposal First Nations continues to hold Equity Ownership, the Seller will be considered to be in material default and may be subject to termination of the EPA.
69. Schedule 2 requires the provision of "Project latitude and longitude of the site of the powerhouse forming part of the Seller's Plant". Please provide further information on what the "site of the powerhouse forming part of the Seller's Plant" refers to? Would this be considered the coordinates of the center of the Project site or the coordinates of the point of interconnection?
Schedule 2 requests the Project longitude and latitude (site of the Seller's Plant, e.g., location of the powerhouse). Can you please clarify what location you are seeking for projects without powerhouses?
In Appendix B of the EPA, the latitude and longitude of the project site is intended to clarify the location of the Seller's Plant. For this purpose, typically we have required the latitude and longitude of the powerhouse for hydro projects.
For wind and/or solar projects, please provide the latitude and longitude of the collector substation or similar infrastructure that forms part of the Seller's Plant.
68. Should the EPA Side Letter be submitted as an exhibit per the general instructions in Schedule 8?
Yes, Proponents should complete the template that is provided in Schedule 8 and submit it as an exhibit.
67. Can a Proponent provide a Letter of Credit that secures more than the proposed capacity?
Yes, a Proponent can provide a Letter of Credit that secures more than the proposed capacity.
66. Upon the announcement of contract awards how long will the successful proponent be granted to execute the EPA, and post the Performance Security of $60,000/MW?
Please refer to Section 12 of the RFP for details on when the executed EPA and Performance Security are due.
65. Can the percentage of total debt provided by designated debt providers, or the designated debt provider, change after the Proposal is submitted?
Information provided by designated debt providers will be used by BC Hydro in its evaluation of Proposals. For evaluation purposes, information submitted in a Proposal cannot be modified after the Closing Date.
If, at any time after the submission of a Proposal, there is a Material Change in any of the information submitted by a Proponent in its Proposal, the Proponent should immediately notify BC Hydro in writing via email to the RFP Administrator Email of the Material Change. Please see section 8.6, Obligation to Inform of Material Changes, in the RFP.
July 25, 2024
64. What type of evidence of site access is required for the use of municipal/local government lands (e.g. regional district road ROW)?
BC Hydro expects Proponents to provide demonstration of, or a plan to obtain, site access on municipal lands as may be required by legislative requirements that are established by municipal/local governments.
63. Is "a plan to obtain access/control" for properties in the Project site (including transmission facilities) that occur on private lands sufficient in order to satisfy the BC Hydro RFP requirements, in the case that ownership rights, lease agreements or options to lease have not been obtained.
Confirmed.
62. Does the Project company need to be created at the time of Proposal Submission? If so, does the Project company need to be the entity that submits the Proposal?
No, the Project company will not need to be created at the time of Proposal submission. However, the participants of the project company should be identified and provide their percentage ownership and financial information to BC Hydro for the evaluation.
If the Project company has been created, then it would submit the Proposal. If the Project company has not been created, one of the participants of the Project company should submit the Proposal on behalf of all participants of the Project company.
61. In situations where Bid Prices are very similar/identical, how will BC Hydro evaluate qualitatively to choose between Proponents?
BC Hydro will be following the Proposal evaluation process described under section 11.0 of the RFP in its evaluation of Proposals.
60. Will BC Hydro accept a support letter in place of a commitment letter for Form 6 from a designated Project debt provider?
We encourage debt providers to use the template letter to indicate their firm commitment to the Project, which they can modify to reflect a different level of commitment or support, and we will assess accordingly.
59. How will Network Upgrade costs be derived in the case that a proposed Plant Capacity is revised from what was originally provided in the CEAP IR?
Refer to Q&A #6 for permissible changes between CEAP IR and Proposal submissions, and section 2.2 in the RFP (inclusive of updates in applicable Addenda) for Project Eligibility Requirements.
Provided that the change does not result in a material inconsistency with the Network Upgrade cost estimate, it will be used in the evaluation.
58. Schedule 2 requires the provision of a GST Registration Number. Is there an option to provide this information after the RFP Closing Date?
Proponents are asked to provide a GST number if available at the time that Proposal is submitted. Otherwise, the GST number can be provided at a later time once a GST number is available.
57. Please confirm that the Line Losses that occur after the Point of Interconnection do not impact the Energy Price defined in the EPA.
Confirmed. The Energy Price applies to the amount of Energy delivered at the POI as recorded by the Meter which adjusts for losses of Energy, if any, associated with the transmission of Energy and other electricity on the Seller's Side of the POI.
The Seller is responsible for all Line Losses and all costs and liabilities relating to the transmission of Energy and other electricity, if applicable, on the Seller's Side of the POI.
Transmission Line Losses on BC Hydro's side of the POI will be considered in the Evaluation to assist in calculating the Evaluation Price per section 11.2 of the RFP.
56. Can the Bid Security be in the form of a Letter of Credit from an Insurance Company?
Letters of credit are the only form of security contemplated for in the Call. Since letters of credit are issued by banks, it is unlikely that an insurance company will be able to issue a letter of credit. Issuers of the letter of credit must meet the credit requirement outlined in section (a) of Form 1 and must be in the form provided in Form 1.
55. Form 4 – General Instructions, asks Proponents to: "(b) Attach signed letter(s) as an Exhibit to Schedule 4 – First Nations Consultation and Economic Participation."
Can BC Hydro please confirm if by "signed letter(s)" you mean the attestation on page 2 of Form 4? Or do you require a separate signed letter to be provided with the attestation as an exhibit?
To satisfy BC Hydro's request for evidence of First Nations equity ownership in a Project, Proponents need only submit a completed Form 4. Note that to submit a completed Form 4, Proponents must provide all information requested on pages 2 and 3, and that if more than one First Nation is receiving equity ownership in a Project then a separate Form 4 must be submitted for each First Nation.
54. Is Excess Energy based on the Hourly Limit at the POI?
Excess Energy is any amount of Delivered Energy in excess of the Hourly Limit. If the Hourly Limit is 200 MWh per hour at the POI, any Delivered Energy in excess of 200 MWh in any hour would be Excess Energy.
BC Hydro is not obligated to accept any Excess Energy and no amount will be payable for Excess Energy. Since the Hourly Limit is set based on the lesser of the Plant Capacity and the Maximum Power Injection Limit, the Hourly Limit can be no more than 200 MWh per hour.
If Plant Capacity is greater than 200 MW, note that the Project will not be in compliance with Project Size Eligibility Requirement for the RFP.
53. Can a Proponent decrease the Plant Capacity below what was specified in their CEAP IR? If so, what is the range of a decrease as this deviation may result in impacts to the Network Upgrade costs?
Whether or not any change to the Proponent's Plant Capacity results in a change to the Network Upgrade cost can be confirmed only through an interconnection study (i.e. System Impact Study).
Each regional system is different and BC Hydro cannot provide a general range/scale to indicate the magnitude of change that could result in a change to Network Upgrades. In general, the reduction of MW has less impact to the Network Upgrade cost.
52. Please confirm if after the execution of the EPA Projects will fall under OATT M-1 instead of OATT M-2?
The OATT Attachment M-2 CEAP (Competitive Electricity Acquisition Process) governs the process until the successful Proponents execute a Combined Study Agreement. Once the successful Proponents execute a Combined Study Agreement and provide required deposits within the specified timelines under OATT Attachment M-1 Standard Generator Interconnection Procedures (SGIP), the rest of the interconnection process will follow the terms of OATT Attachment M-1 SGIP.
51. Is it BC Hydro's expectation that letters of intent or final agreements be in place related to Site Service Agreements (Schedule 3 – Section A 5.2 Site Service Agreements) by the time of Proposal submission?
No, Proponents are not required to have letters of intent or final agreements related to site services at the time of Proposal submission. However, Proponents are asked to provide such documentation if available at the time of Proposal submission.
50. Schedule 3 – Section A 3.5 Environmental Impacts asks for a description of the Project environmental mitigation plan. Can BC Hydro provide further clarity regarding the expectation on this requirement?
Recognizing the early stage of Projects when Proposals are submitted, BC Hydro will be looking for the Proponent to provide the current status of any steps taken to develop and implement its environmental mitigation plan and the process that it expects to follow to fill any outstanding gaps in that plan as the Project develops.
49. Is there any flexibility to amend the location of the Point of Interconnection in order to optimize interconnection costs?
The Interconnection Feasibility Study considers only the POI that was proposed in each Proponent's valid CEAP IR. No changes to the POI can be made prior to the completion of the Interconnection Feasibility Study and the delivery of the report.
Shortly after the completion of the Interconnection Feasibility Studies, Proposals under the RFP will be submitted and one of the conditions of the RFP is that the submission reflects the CEAP IR. Therefore, any changes to the POI before such submission would not align with that RFP requirement.
If you are a successful Proponent, the terms and conditions of any changes to the POI will be governed by the Electricity Purchase Agreement.
48. The RFP states that the Fairness Monitor is available to Proponents should fairness concerns arise during the RFP Process. How does a Proponent go about contacting the Fairness Monitor in the event of a fairness concern?
As specified in Section 11.7 of the RFP, BC Hydro has appointed John Singleton, K.C., of Singleton Urquhart Reynolds Vogel LLP (the "Fairness Monitor") to act as an independent observer of the fairness of the administration of this RFP. Proponents with a fairness issue may contact Mr. Singleton at:
John R. Singleton, K.C. | Chair
925 W. Georgia St., Suite 1200, Vancouver, BC V6C 3L2
D 604 673 7422 | M 604 377 7557 | F 604 682 1283
Singleton Urquhart Reynolds Vogel LLP | singleton.com
Vancouver | Toronto
July 4, 2024
47. Please confirm if the instructions for Schedule 8 – EPA Side Letter need to be attached when a selected Preferred Proponent provides the EPA Side Letter.
Preferred Proponents are asked to submit a signed copy of the EPA Side letter that is provided as a template in Schedule 8 with an executed EPA. Proponents do not need to attach the general instructions shown in Schedule 8.
46. Will BC Hydro accept changes proposed by financial institutions to Form 1 – Form of Letter of Credit?
BC Hydro will consider proposed changes by financial institutions to Form 1 – Form of Letter of Credit, but BC Hydro has discretion to accept or reject those proposed changes.
45. Can BC Hydro please clarify what information Proponents are required to provide as evidence of Community Consultation under section 6.8 of Schedule 3 to the RFP?
BC Hydro is seeking to understand what efforts the Proponent has taken to consult with the local community where the Project will be located. The second paragraph of section 6.8 details the information that is requested as evidence of community consultation.
44. Please confirm that Proponents are not required to attach the Interconnection Feasibility Study Agreement as an exhibit.
Confirmed.
43. Section 1.2 of Schedule 3 references project generation technology and the provision of other such instances wherein this technology has been used. Does this requirement pertain to the type of technology (e.g., solar, wind, geothermal etc.) or more specifically to the specific make or model of the equipment?
The proven technology requirement refers to the generation technology type (e.g. wind, solar, biomass, hydro, etc.), and not the specific make or model of a given technology.
42. How should degradation affecting solar panels be reflected in section 2 of Schedule 3?
Proponents should provide their year-one generation estimates for solar Projects.
41. Please clarify the ownership structures, arrangements, or otherwise that would require the Indigenous Partner to provide financial statements.
BC Hydro is seeking financial statements for all entities that will make up the Proponent, regardless of commercial arrangement, and whether or not the entity is a First Nation.
40. How will you quantify the credit/adder for transmission line losses? Are you considering future loads nearby? Will BC Hydro share information to enable developers estimating transmission line losses prior to September 2024?
BC Hydro will conduct project-specific loss studies that will determine the losses for a given project in consideration of the interaction of that project with the system as a whole based on its current configuration.
Yes, where the future loads are identified in the BC Hydro Load Forecast, they are included in the study assumptions for the 2024 Call for Power. Note that where queued future transmission voltage customers have not yet completed a System Impact Study, those loads typically are not yet in the forecast.
The loss study results will be provided to Proponents as outlined in the RFP schedule.
39. How can a Proponent change the Primary Contact for RFP registration purposes?
Please have the Primary Contact send an email to the RFP Administrator advising of the new Primary Contact.
38. Which site services should be included in response to Section 5.1 and 5.2 of Schedule 3 to the RFP?
Generally, site services pertain to those services that are required for the construction and operation of the Project in accordance with the terms of the Specimen EPA. Some examples may include, but are not limited to, access roads, water, sanitary/sewer systems, and camp facilities, amongst others.
37. Section 3.3 of Schedule 3 references Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) approval for projects that include reserve land. In the event the Project does not include reserve land, please confirm if Section 3.3 of Schedule 3 applies.
Crown-Indigenous Relations and Northern Affairs Canada approval is required if the project is located on reserve land. Section 3.3 of Schedule 3 does not apply if the Project is not located on reserve land.
36. Can the Seller engage an original equipment manufacturer (OEM) to enter into a services agreement for certain aspects of the operation and maintenance of the project to meet the requirements of Section 6.1 of the EPA?
Yes, the Seller may engage a service provider to maintain and operate the project, however, the Seller shall remain responsible for the operations of the Seller's Plant at all times during the Term.
35. How do I obtain info/presentations from the Province of B.C. and/or the Canada Infrastructure Bank?
BC Hydro facilitated participation by the Canada Infrastructure Bank (CIB) and the provincial permitting agencies to provide information on their respective areas of expertise.
For further information about the loan products the CIB is offering to support the Call for Power, please email: CFP-BCH-2024@cib-bic.ca.
For information on the B.C. permitting processes, please contact:
- Callforpower.EAO@gov.bc.ca – for the B.C. Environmental Assessment Office
- permittingsolutions@gov.bc.ca – for the Ministry of Water, Land and Resource Stewardship
34. Does the band need to hold the equity in the Project or can individuals within the band own the equity ownership?
First Nations Equity Ownership must be held, directly or indirectly, by one or more Proposal First Nations, and not individual band members. Please refer to the Request for Proposals and seek professional legal guidance as necessary to help with preparing your Proposal.
33. Will BC Hydro consider the utilization of the transmission lines by existing generators at different times of year when considering the amount of transmission that is available for resources that bid into this Call?
When conducting transmission generator interconnection Feasibility Studies in consideration of new generators, BC Hydro does not base its assessment of available transmission on hourly or seasonal generation patterns of existing generators. This is to avoid potentially oversubscribing our transmission resources should there be greater supply when compared to historical and expected generation of existing and new resources respectively.
32. How should Proponents plan to respond to the Schedules and Forms that are part of the RFP? Should all schedules be compiled into a single document, or multiple documents? Are there any size restrictions?
Each Schedule or Form should be completed on an individual basis. As applicable, instructions are provided in the Schedules to provide guidance on how to organize the submission. BC Hydro will be posting these details later this summer and will be hosting a session in August to provide Proponents with an understanding of the Proposal submission requirements.
June 5, 2024
31. Do I need to consult with all First Nations in whose territory my Project is located or just the one(s) with whom we are planning to partner?
You need to consult with all the First Nations in whose territory your Project is located. As BC Hydro has noted in Schedule 4 – First Nations Consultation and Economic Participation, "Proponents are expected to consult with all First Nations potentially impacted by the Project."
In addition, Proponents are expected to "provide a description of the engagement and consultation activities with First Nations that have been undertaken as part of its Proposal development."
If BC Hydro has concerns about the consultation information you provide, BC Hydro may seek additional clarifying information from you and/or First Nations.
For provincial requirements, please contact FrontCounter BC.
30. Is the Bid Security refundable?
Yes, please refer to Section 7.3 (Return of Bid Security) of the Request for Proposals for details.
29. Can a Proponent request an extension to a deadline under the Request for Proposals Schedule?
No, the deadlines are as specified in the RFP Schedule and apply to all Proponents.
28. Where can we find BC Hydro's Contractor Standards for Ethical Conduct?
BC Hydro's Contractor Standards for Ethical Conduct document can be found on BC Hydro's website contractor standards for ethical conduct [PDF, 59 KB].
27. The RFP notes that details of a Cybersecurity Risk Management Questionnaire will be evaluated but are not included in a schedule or form. It looks to be capitalized as a defined term but not a definition. Can you please provide additional details and a draft form or further information?
Section 11.4 (b)(v) states that BC Hydro may request a Proponent to complete the Cybersecurity Risk Management Questionnaire if it's deemed necessary in which case a copy of the Questionnaire will be provided. At this point in time BC Hydro is not anticipating that the Questionnaire will be required.
26. In reference to Schedule 3, Section 2.3, Additional Energy Resource Information (for wind), bullet a), please clarify the requirement to provide a "Project site model." Please specify what should be included in this model.
BC Hydro is looking to understand the basis for the energy estimate that is provided in the Proposal, including desktop modelling if provided by the Proponent. It is up to the Proponent to determine the modelling approach and it is advisable that Proponents seek guidance from technical and legal professionals as necessary to help with preparing your Proposal.
25. Please confirm the delivery method for the proposals, including energy resource data that is requested in Section 2.3 of Schedule 3 to the Request for Proposals? What happens if the file is too large to send via email?
BC Hydro will be accepting Proposal submissions via email as detailed in Section 8 of the Request for Proposals. If the energy resource data is too large to send via email, an alternative means of submitting the data will be provided. Details of this alternative submission process will be provided in a session that will be scheduled in August 2024.
24. Can BC Hydro clarify the site control requirements and expectations for a "plan to obtain site control"?
Site control requirements are outlined in Schedule 3 – Project Information Requirements and Form 2 – List of Anticipated Permits. We note that Addendum 2 provides further clarification to Section 3.2 of Schedule 3 pertaining to the project information requirements for Site Access/Control.
It is advisable that Proponents seek guidance from technical and legal professionals to determine if the specific project is viable considering the requirements set out in the RFP.
23. Can we change the name of the entity and other company details between the RFP registration and Proposal?
Yes. For the purpose of the RFP, the entity specified on the Registration Form does not have to match the entity that submits the Proposal.
22. Can a First Nation partner on more than one Proposal with different Proponents in this RFP? If so, what kind of disclosure must be made to BC Hydro, if any, by the First Nation and by the Proponent/Proponent's Team? How does a First Nation's partner/member of Proponent's Team become aware of any partnership(s) of that First Nation with other Proponents without the First Nation stating their "intent to participate or not participate in this RFP" and potentially triggering the No Collusion clause?
Yes, it is possible for a First Nation to partner on more than one Proposal. Proponent Team members are responsible for establishing procedures to ensure compliance with Section 14.11, No Collusion, to ensure they are not sharing information contemplated in that Section with other Proponents.
In the event there has been sharing of information between Proponents, disclosure should be made to BC Hydro in accordance with the RFP. This Section is not intended to prevent a First Nation from disclosing to any Proponent its involvement with another Proponent's Team provided the terms of Section 14.11 are complied with.
21. Will BC Hydro confirm our calculations related to this RFP?
BC Hydro will not be confirming a Proponent's calculations related to the RFP. BC Hydro recommends that each Proponent seek independent legal and technical advice in preparing its submission as may be necessary.
20. Please explain why the Bid Security and Performance Security are different than in your previous calls? How are First Nations expected to provide their contributions to these securities?
BC Hydro engaged extensively on the design of the Call for Power throughout fall 2023, which included Bid Security and Performance Security, and reviewed approaches used in other recent power calls across Canada. For summaries of the engagement process, see background and development.
A Project's financial arrangements are up to a Proponent to determine.
May 10, 2024
19. Please confirm the specific layer on iMapBC that is to be used to identify the territory attributed to a First Nation. Please specify the acceptable successor website administered by the Province of B.C. that is intended to provide equivalent public information regarding First Nations' territories.
iMapBC is a tool that is owned by the Government of B.C. Accordingly, BC Hydro cannot provide instructions on how to use the tool and we recommend reaching out directly to the B.C. Government or experienced professionals if support is needed on how to use iMapBC.
We are not aware of a successor to iMapBC. The RFP provides information in the event that iMapBC is replaced by another tool.
18. May I ask BC Hydro about how to interpret provisions of the RFP and associated documents in the context of my particular project? Can I provide company or project brochures to help BC Hydro understand my question?
BC Hydro is unable to give project-specific advice in order to maintain fairness to all participants. Please seek professional guidance as necessary to help with preparing your Proposal. Potential Proponents should not attach materials when submitting an inquiry. These materials will not be considered in BC Hydro's responses to questions.
17. Does BC Hydro have any guidelines for how bidders should take the proposed federal government's Investment Tax Credit (ITC) program into consideration in developing their bid price? In other words, are Proponents able to bid on a project with two bid prices, i.e., one bid price that is conditional on the federal government's ITC being approved and one bid price that applies in the event of the ITC not proceeding?
BC Hydro is not able to provide guidance on how Proponents should formulate their bids in consideration of the Investment Tax Credit. In accordance with the RFP, Proponents must submit a single bid price for their proposal.
16. We noticed a possible discrepancy in the bidding instructions. The RFP says that failure to respond to the CEAP IR pre-submission request by April 19 precludes participation in the RFP, but in the RFP instructions to bidders it indicates pre-registration by May 1 is voluntary. Did we miss a deadline?
Please refer to the RFP for clarification on the different timelines that are associated with the 2024 Call for Power. The CEAP IR deadline has now passed and is separate from the RFP registration deadline. Only Proponents who have shown an intent to submit a Proposal by meeting the April 19, 2024, CEAP IR pre-submission deadline are eligible to register for the RFP by submitting a Registration Form.
April 18, 2024
15. Does an accepted Competitive Electricity Acquisition Process Interconnection Request (CEAP IR) mean that my Project will be eligible under the Request for Proposals (RFP)?
No, the CEAP IR process is separate and distinct from the RFP and therefore a valid CEAP IR is not indicative that a Project will meet the Eligibility Requirements under the RFP. Proponents are solely responsible for ensuring that their CEAP IR(s) and Proposal(s) meet the relevant requirements of both CEAP and the RFP.
14. I have submitted my CEAP IR with a Commercial Operation Date (COD) that is outside the Eligibility Requirement COD range (being October 1, 2028 to October 1, 2031). In order to meet the Eligibility Requirements under the RFP, I need to change my COD in my CEAP IR. How do I do so?
If a Proponent wishes to change the COD in their CEAP IR, they need to send an email to CEAP2024@bchydro.com to notify BC Hydro of the COD change. The notification must include the Project name, the COD listed in the original CEAP IR, and the revised COD. The original and revised CODs must include the day, month and year. If you are in the process of correcting deficiencies for your CEAP IR, please do not change the COD on your Interconnection Request form and re-submit the form for the purpose of changing the COD. We request you send a separate email notifying of the new COD as described above.
Please note that in order for any COD change to be reflected in the Interconnection Feasibility Studies, notification of such change needs to be delivered to BC Hydro by May 21, 2024.
13. Can we change the name of the entity and other company details between the CEAP IR submission and proposal deadline?
Yes. For the purpose of the RFP, the entity that submits the CEAP IR does not have to match the entity that submits the Proposal. Pursuant to Section 4.3 of the Open Access Transmission Tariff (OATT) M-1 (Standard Generator Interconnection Procedures), an interconnection customer may transfer its queue position to another entity if such entity acquires the specific generating facility identified in the Interconnection Request and the Point of Interconnection (POI) does not change. We will provide each applicant a CEAP IR number that you need to include in your bid submission which will allow us to link the CEAP IR to the bid.
12. Can BC Hydro please provide maps displaying the Cost of Incremental Firm Transmission (CIFT) boundaries for Kelly Lake/Nicola to the Lower Mainland as well as for Vancouver Island? Also, and in relation to the boundaries of Kelly Lake/Nicola to Lower Mainland and Vancouver Island, could BC Hydro please clarify if all the areas outside of those boundaries are considered neutral?
BC Hydro cannot provide a map that delineates the CIFT boundaries explicitly for those projects that are in proximity to Kelly Lake and Nicola 500 kV substations or to Vancouver Island. Certain details need to be confirmed on a case-by-case basis based on the plant Point of Interconnection (POI) with the BC Hydro system.
BC Hydro confirms that projects that are located in the Lower Mainland are neutral from the perspective of the CIFT evaluation adjuster.
11. BC Hydro pays for curtailed energy but is excused from this obligation if there is an emergency event or during the first 24 hours of a BC System constraint event. Please confirm the period during which BC Hydro is excused from the obligation to pay.
There is no payment or liability for BC Hydro related to curtailment due to an emergency event. During curtailment for a BC Hydro System Constraint, BC Hydro will pay for Deemed Energy after the first 24 hours of the BC Hydro System Constraint.
10. When will additional details be available regarding the RFP information sessions that are planned to take place on May 14 and 16?
Details about the information sessions are provided in the RFP under Section 5.6 of the RFP.
9. Can I meet with BC Hydro to discuss my project or the Call more generally?
We cannot meet with potential proponents to discuss project-specific matters. This is because we are in an active competitive procurement process and need to maintain fairness with all potential proponents.
Please refer to Section 5 of the RFP for further information on the Q&A process.
8. In the scenario where a wind or solar project's proposal can provide a Designated Capacity Commitment, will the Resource Integration Cost still be added to the Evaluation Price?
For the purposes of Proposal evaluation, the Resource Integration Cost adder will be applied to the Evaluation Price for all wind and solar projects, including those that provide a Designated Capacity Commitment.
This is because, in the event that a Project provides a Designated Capacity Commitment, it would only cover a portion of the Plant Capacity, and because the Capacity Commitment Period only applies for part of the year. As such, BC Hydro must continue to hold reserves for wind and solar resources, the cost of which are accounted for in the evaluation by the Resource Integration Cost adder.
April 15, 2024
7. Will BC Hydro propose alternative Points of Interconnection (POI) and/or Project Sizes if the Interconnection Feasibility Study reveals that a project is not possible or too costly?
BC Hydro is not able to provide alternatives based on information that is provided in the Competitive Electricity Acquisition Process interconnection request (CEAP IR). To help inform Project configuration and location, BC Hydro made available information on our transmission system in the document [PDF, 370 KB] that was provided in the fall, as well as via the Pre-CEAP process [MS Word, 45 KB] that took place in December and January where Proponents were invited to submit details on proposed Projects for a preliminary assessment.
6. Are Proponents permitted to change the parameters of their bids (e.g., Project Size, Commercial Operations Date (COD), equipment specifications, etc.) between what is submitted in the CEAP IR and the Proposal Schedules?
As specified in Table 1 of the RFP under Section 2.2, and further clarified in Addendum No. 1, the details contained in the CEAP IR must be consistent in all material respects with the information that is provided pursuant to the Schedules of the RFP. A material inconsistency would include any inconsistency that, in BC Hydro's opinion, could reasonably be expected to have an impact on the proposed interconnection including Network Upgrade schedule, or any costs to be borne by BC Hydro in relation thereto. This is important because the cost of Network Upgrades are considered in the evaluation. Accordingly, Proponents should not change the details in their Proposal, otherwise the project may not meet the eligibility requirement.
Notwithstanding the above, the COD reflected in the CEAP IR may be different from the Proposal if the Interconnection Feasibility Study (as defined in the Open Access Transmission Tariff [OATT]) conducted by BC Hydro determines that the COD proposed in the CEAP IR cannot be met due to the time required to complete Network Upgrades. In this circumstance, the COD in the Proposal Schedule may differ from the COD in the CEAP IR provided that the COD in the Proposal Schedule falls between the date by which BC Hydro determines that Network Upgrades may be completed and October 1, 2031.
We provide the following illustrative examples for clarity:
- A change to COD may or may not be material depending on whether or not the change has implications to the Network Upgrade cost estimate and schedule which could be impacted by how many months the COD moves between what was proposed in the CEAP IR and the Proposal Schedules. A COD cannot move to an earlier date in the Proposal Schedules than what was proposed in the CEAP IR because it may not be possible to accelerate the schedule of the Network Upgrades on the BC Hydro System.
- A change in the make, model, number of turbines is not expected to be material as long as the maximum injected capacity is consistent or less than the corresponding Interconnection Feasibility Study.
5. Should a project achieve a COD ahead of the Guaranteed COD, is this time included in the term of the EPA, or is it in addition to the term? Put another way, if there is a 30-year EPA agreement, does a COD 60 days before Guaranteed COD mean the contract goes 30 years + 60 days, or does the agreement term simply start earlier?
The Term of the contract ends on the 30th anniversary of the date that the project reaches COD, pursuant to section 2.1 of the EPA. If a Project achieves a COD prior to the Guaranteed COD, the Term will not be extended to account for the time between the actual COD and the Guaranteed COD.
4. Will future calls allow for expansions of projects that are awarded EPAs under the 2024 Call for Power?
BC Hydro cannot comment on the design of future calls because each call will be informed by BC Hydro's system needs at the time future calls are designed.
3. Does the Project Size requirement apply to the injection at the POI with the BC Hydro system, or the total output of the proposed project (before losses to the POI)?
The Project Size requirement applies to the maximum electrical output of all generating units of the proposed project combined before accounting for i) line losses to the Point of Interconnection (POI), and (ii) transformers between the generators and the POI.
In general, the maximum electrical output for each generating unit corresponds to its nameplate capacity. For all project types except solar projects, the Project Size requirement is based on the total nameplate capacity of all turbine/generator sets combined. For Solar projects, the Plant Capacity is the total nameplate capacity of all inverters combined, based on alternating current output.
2. I am looking to submit a project whose design might need to spread across two parcels that are separated by a road. Are there any RFP rules that deny such a project design/location?
BC Hydro cannot provide project-specific advice as Proponents are responsible for ensuring that their projects meet the requirements of the RFP and its associated Schedules. It is advisable that Proponents seek guidance from technical and legal professionals to determine if the specific project is viable considering the requirements set out in the RFP.
1. Can you confirm that the $5,000 company registration fee is no longer applicable for the May 1 deadline? It was referenced in early documentation but we are unable to locate that requirement in the recently released RFP.
We confirm that there is no longer a registration fee in order to register to participate in the 2024 Call for Power.