DC hydro m FOR GENERATIONS Janet Fraser Chief Regulatory Officer Phone: 604-623-4046 Fax: 6.04-623-4407 bchydroregulatorvgroup@bchydro.com

September 19, 2012

Dokie General Partnership Toba Montrose General Partnership Attention: Brandon Woudzia Attention: Brandon Woudzia bwoudzia@alterrapower.ca bwoudzia@alterrapower.ca

Attention: Paul Rapp Attention: Jay Sutton prapp@alterrapower.ca jsutton@alterrapower.ca

Attention: Walter MacFarlane Attention: Tony Nott wmacfarlane@alterrapower.ca tnott@alterrapower.ca

Attention: Sophie Pilkington Attention: Stacie Crane spilkington@alterrapower.ca scrane@alterrapower.ca

TransCanada Energy Sales Ltd. Catalyst Paper Attention: Gordon Bartels; Ron Adam Attention: Carlo Dal Monte wecc_compliance@transcanada.com carlo.dalmonte@catalystpaper.com

Attention: Bob Lindstrom bob.lindstrom@catalystpaper.com

FortisBC Energy Inc. lnnergex Renewable Energy Inc. Attention: Janice Barkey (formerly Cloudworks Energy Inc.) gas.regulatory.affairs@fortisbc.com Attention: John D. Miller

jmiller@innergex.com Attention: Jaime Chiang jaime.chiang@fortisbc.com

Shell Energy North America Tembec CRS/LAP (Canada) Inc. and Shell Energy Attention: Alan Scalet North America (US), L.P alan.scalet@tembec.com Attention: Paul Kerr paul.kerr@shell.com Attention: Chris Lague

chris.lague@tembec.com Attention: Robert Reilley robert.reilley@shell .com Attention: Elroy Switlishoff

elrovs@telus.net

Dear Sir or Madam:

RE: British Columbia Utilities Commission (BCUC)

Powell River Energy Inc. Attention: Bryan Lacey Bryan. Lacey@brookfield renewable. com

Attention: Tracy Brason Tracy.Brason@brookfieldrenewable.com

Attention: Walter DiCesare Walter.DiCesare@brookfieldrenewable.com

Attention: Andrew Burmaster Andrew. Bu rmaster@brookfieldrenewable. com

Fortis BC Inc. Attention: Dennis Swanson

Curtis Klashinsky; Lavern Humphrey

FortisBCMRSPrimary@fortisbc.com FortisBCMRSAEO@fortisbc.com Electricity.regulatory.affairs@fortisbc.com FortisBCMRSSecondary@fortisbc.com

Powerex Attention: Jeff Lam jeff.lam@powerex.com

British Columbia Hydro and Power Authority (BC Hydro) Mandatory Reliability Standards (MRS) Assessment Report No. 5 Compliance with BCUC Order No. R-54-12

As one of the entities who provided comments regarding the Mandatory Reliability Standards assessed in the above-noted report (Report), BC Hydro writes to advise you

British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3 www.bchydro.com

September 19, 2012 Mandatory Reliability Standards (MRS) Assessment Report No. 5 Compliance with BCUC Order No. R-54-12

BChgdro

Page 2 of 2

that the Report was filed with the BCUC on April 19, 2012 and Errata No. 1 to the Report was filed on May 3, 2012. Electronic copies of the Report and Errata No. 1 were provided to you at the time the documents were filed. For convenience of review, the Report and Errata No. 1 are attached in electronic format to this letter (Attachment 1).

Pursuant to Order No. R-54-12, the BCUC has established a regulatory process for review of the report and has directed BC Hydro to notify you of such. A copy of this order is attached for your information (Attachment 2). Please note that the date for submitting written comments to the BCUC and BC Hydro is October 19, 2012.

For further information, please contact Sandra Jones at 604-623-4315 or by e-mail at bchydroregulatorygroup@bchydro.com.

Yours sincerely,

(for}Al_9A t Fraser LChief Regulatory Officer

ch/ma

Enclosures (2)

Copy to: British Columbia Utilities Commission Attention: Erica Hamilton commission .secretary@bcuc.com

Mandatory Reliability Standards (MRS) Assessment Report No. 5

Compliance with BCUC Order No. R-54-12 Directive 5

Attachment 1

BC Hydro MRS Assessment Report No. 5 April 19, 2012

and Errata No. 1 May 3, 2012

British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3

www.bchydro.com

Janet Fraser

Chief Regulatory Officer Phone: 604-623-4046 Fax: 604-623-4407 bchydroregulatorygroup@bchydro.com May 3, 2012 Ms. Alanna Gillis Acting Commission Secretary British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, BC V6Z 2N3 Dear Ms. Gillis: RE: British Columbia Utilities Commission (BCUC)

British Columbia Hydro and Power Authority (BC Hydro) Mandatory Reliability Standards (MRS) Assessment Report No. 5 Errata to Table 3

BC Hydro is writing to the BCUC to provide a correction to its MRS Assessment Report No. 5 (Report) dated April 2012 that was submitted to the BCUC on April 19, 2012. In the attached revised report pages, BC Hydro has corrected and clarified entries that were made within Table 3 of the Report. These relate to BC Hydros final assessment of the adverse impacts and suitability of standards assessed in the Report. The corrections and clarification are in response to comments provided to BC Hydro, with copy to the BCUC, from Shell Energy North America (Canada) Inc./Shell Energy North America (U.S.) L.P. (together Shell Energy) by email on April 20, 2012 following the filing and distribution of the Report. Specifically, Shell is concerned that its comments regarding the suitability of certain requirements contained in standards EOP-005-3a, TOP-005-2a and VAR-001-2 were not fully addressed in the Report. Although BC Hydro had considered stakeholders perspectives, including Shells in reaching its final assessment of these and all the other standards included in the Report, the details provided in Table 3 were not clear in this regard which have led to the revisions noted above.

MRS Assessment Report No. 5 Compliance with BCUC Order No. R-54-12 Directive 5

Attachment 1

Page 1 of 534

mailto:bchydroregulatorygroup@bchydro.commailto:bchydroregulatorygroup@bchydro.com

May 3, 2012 Ms. Alanna Gillis Acting Commission Secretary British Columbia Utilities Commission Mandatory Reliability Standards (MRS) Assessment Report No. 5 Errata to Table 3 Page 2 of 2

For further information, please contact Sandra Jones at 604-623-4315 or by e-mail at bchydroregulatorygroup@bchydro.com. Yours sincerely,

Janet Fraser Chief Regulatory Officer ch/ma Enclosure (1) Copy to:

geoff.coke@columbiapower.org; gene.anderson@columbiapower.org; Carlo.DalMonte@catalystpaper.com; ahannula@newwestcity.ca; rcarle@newwestcity.ca; j.johnson@cloudworksenergy.com; cameron.carr@domtar.com; tom.poleck@domtar.com; brent.zahnd@domtar.com; FortisBCMRSPrimary@fortisbc.com; FortisBCMRSSecondary@fortisbc.com; FortisBCMRSAEO@fortisbc.com; uarnold@terconind.com; uto@telus.net; bill.manganaro@naes.com; jim.mcconville@naes.com; Alan.Brumwell@riotinto.com; Pierre.denis@alcan.com; robert.reilley@shell.com; paul.kerr@shell.com; troy.albo@teck.com; chris.lague@tembec.com; marc.barrette@tembec.com; wayne.clement@tembec.com; michael.towers@tolko.com; brian.shale@tolko.com; paul.dottori@tembec.com; mike.harkies@tolko.com; chris_best@transcanada.com; Rob.Scott@teck.com; Bill.Vanbeek@teck.com Brock.John@altagas.ca; Jim.McCormack@westfraser.com; Terry.Edmonds@canforpulp.com; Gary.Bradshaw@canforpulp.com; garnet.boese@canforpulp.com; Stephen.Hilder@canforpulp.com; Sotirios.Korogonas@canforpulp.com; Brett.Robinson@canforpulp.com; bwoudzia@alterrapower.ca; kyle.muir@tolko.com; marinela.mariscal@powerex.com; rrobinson@sterling-energy.com; rrobinson@sterling-energy.com; Brock.John@altagas.ca; Jim.McCormack@westfraser.com; Terry.Edmonds@canforpulp.com; Gary.Bradshaw@canforpulp.com; grig.cook@plutonic.ca; gfielding@terconind.com; jpriestley@capitalpower.com; jmorison@capitalpower.com; akirby@capitalpower.com; uarnold@terconind.com; uto@telus.net; jhindrichs@vereseninc.com; rrobinson@sterling-energy.com; wbjohn@telus.net; bruce.eby@westfraser.com; Bob.lindstrom@catalystpaper.com; j.miller@cloudworksenergy.com; electricity.regulatory.affairs@fortisbc.com; stuart.gairns@canforpulp.com; tracy.brason@brookfieldpower.com; walter.dicesare@brookfieldpower.com; mike.todd@canforpulp.com; mary.gunderson@riotinto.com; stephane.larouche@riotinto.com; RTAPowerOpsMRS@riotinto.com; rcompliance@capitalpower.com

MRS Assessment Report No. 5 Compliance with BCUC Order No. R-54-12 Directive 5

Attachment 1

Page 2 of 534

Mandatory Reliability Standards (MRS) Assessment Report No. 5

Page 1

Mandatory Reliability Standards (MRS) Assessment Report No. 5 Errata No. 1 May 3, 2012

From the Original MRS Assessment Report No. 5 dated April 19, 2012:

REMOVE INSERT

Pages 20 to 22 Pages 20 to 22 Revision 1 May 2, 2012

MRS Assessment Report No. 5 Compliance with BCUC Order No. R-54-12 Directive 5

Attachment 1

Page 3 of 534

British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3

www.bchydro.com

Janet Fraser

Chief Regulatory Officer Phone: 604-623-4046 Fax: 604-623-4407 bchydroregulatorygroup@bchydro.com April 19, 2012 Ms. Alanna Gillis Acting Commission Secretary British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, BC V6Z 2N3 Dear Ms. Gillis: RE: British Columbia Utilities Commission (BCUC)

British Columbia Hydro and Power Authority (BC Hydro) Mandatory Reliability Standards (MRS) Assessment Report No. 5

BC Hydro is writing to the BCUC to provide its MRS Assessment Report No. 5 (Report) dated March 2012, pursuant to section 125.2(3) of the Utilities Commission Act (UCA). BC Hydro is providing an electronic copy of the Report to parties involved in consultation for the purpose of preparing the Report. Overview of