It’s a point of pride that BC Hydro provides the power that fosters

economic development for communities and industry across the

province. Last year, BC Hydro celebrated its 50th anniversary and

we are continuing that legacy by preparing for the future.

The provincial demand for electricity is growing and we recently

set out our proposed steps to continue to meet customer demand

in our Integrated Resource Plan.

Our plan is, first, to conserve more, by expanding our conservation targets; second, to

build more and reinvest in our aging infrastructure by, for example, continuing to pursue

the Site C Clean Energy Project and also revitalizing and upgrading such generating

stations as Mica, Ruskin and John Hart; and, lastly, to buy more energy from B.C.-based

clean energy producers, as needed. We gathered feedback on our draft plan over the

summer from customers, communities and First Nations and this input will inform the

final plan that we will submit to the Province this winter.

Another way we are preparing for the future is by identifying new processes to work

smarter and more efficiently so that we can continue to keep energy rates affordable

for customers. Our Smart Metering Program, for example, will help modernize our

electricity grid and provide important benefits to customers, including improved outage

restoration and household energy consumption information. Today, we are close to

completing smart meter installations for all of our nearly 1.9 million customers.

High water levels across the province this year have reminded us of our roots in

communities and the role our facilities play in providing flood control, particularly in the

Peace and Columbia basins. Mother Nature can challenge us, and we can all be thankful

that the revitalization of our system will better prepare us to respond to whatever

conditions she throws our way.

In closing, thank you for your continued support of our operations and projects now, and

into the future. We appreciate the leadership of local government and First Nations being

demonstrated in communities throughout the province. Whether it’s the collaboration

on the Vancouver City Central Transmission Project, or selecting the location for a new

substation in Mission, we are partners working to serve B.C. communities for generations.

Charles Reid

President and Chief Executive Officer

BC Hydro

QUICK FACTS PROVINCE-WIDE:

1.9 million customers

Electricity is delivered through a network of:

• 75,000kilometersoftransmission and distribution lines

• 300substations• 900,000utilitypoles• 325,000transformers

Capital investments of $1.9 Billion (Fiscal2012)

LOWER MAINLAND-SOUTH COAST SUPPLY:

Dams and Generating Stations:BridgeRiver 478megawattsCheakamus 158megawattsRuskin 105 megawattsStave Falls 91 megawattsLakeBuntzen 72.8megawattsWahleach 65 megawattsSeton 48megawattsClowhom 33megawattsAlouette 9 megawatts

LOWER MAINLAND—SOUTH COAST COMMUNITY RELATIONS2012 ANNUAL REPORT SEPTEMBER 2012

MESSAGE FROM CHARLES REID

In August more than 550 visitors attended

the 100th Anniversary Celebration at Stave Falls

Powerhouse in Mission.

2COMMUNITY RELATIONS 2012 ANNUAL REPORT—LOWER MAINLAND—SOUTH COAST

SMART METERING INFRASTRUCTURE UPDATEBC Hydro is modernizing the electricity system to ensure it keeps up with growth in demand. Smart meters will help to power our future by:

• gettingthelightsbackonfasterandsaferduring power outages;

• keepingrateslowbyhelpingBCHydrooperatemoreefficiently and by reducing wasted electricity; and

• providingcustomerswithtoolstoconserveenergyandsave money.

InJuly2011BCHydrobeganupgradinghomesandbusinesseswith new smart meters. This meter installation will be complete byDecember31,2012.Todate,wehaveinstalledover1.6millionsmart meters,whichismorethan85percentofourcustomerbase.

In the near future, customers will be able to view their daily energy use through our free and secure customer website. Tracking energy use will help customers in communities all around the province understand how energy use affects their costs, and will enable them to take actions to save energy and save money. These new online features will be available to customers as the smart metering network is completed in each community.

In2013,customerswillalsohavetheoptionofadoptingdevices and software solutions to access near real-time energy consumption information directly from their smart meter.

For more information about the Smart Metering Program, please visit bchydro.com/smartmeters or contact your local Community Relations Manager.

INTEGRATED RESOURCE PLAN This spring BC Hydro released its draft Integrated Resource Plan(IRP)whichdescribestheactionsBCHydrorecommendsto meet growing demand so that our customers will continue to receiveaffordable,cleanandreliableelectricity.FromMay28toJuly6,2012,BCHydroaskedforfeedbackonthedraftplan.We would like to thank all of the stakeholders that participated inthe13 stakeholdermeetings,fivepublicopenhousesand

twowebinars.Participantscompleted483feedbackformsand28 writtensubmissions.AtthesametimeBCHydroheldeightFirst Nations workshops across the province.

Thedraftplanincludesinputgatheredin2011fromFirstNations,the Technical Advisory Committee and through stakeholder public consultation. BC Hydro is now considering the feedback received, along with technical, financial, environmental and economic development inputs, to prepare the final plan for submissiontotheprovincialgovernmentbyDecember2012.

SITE C CLEAN ENERGY PROJECTSite C is being proposed to help meet B.C.’s future electricity needs. This would provide an average of 5,100 gigawatt hours of electricity, or enough energy to power the equivalent of about 450,000 homes per year.

The project is currently in a cooperative federal-provincial environmental assessment process, which will include a joint review panel. There are multiple opportunities for participation by the public, Aboriginal groups, governments, and other interested stakeholders.

In addition to the consultation opportunities provided by the environmental assessment process, BC Hydro is leading a separate consultation process on a broad range of topics relevant toprojectdefinition.Inthespringof2012,BCHydroheldfiveopenhousesand18stakeholdermeetingsinnortherncommunities.

As part of the regulatory process, BC Hydro is identifying and assessing potential project effects and opportunities for benefits. Where effects cannot be avoided, BC Hydro is identifying mitigation options.

Site C requires environmental certification before it can proceed to construction. In addition, the Crown has a duty to consult and, where appropriate, accommodate Aboriginal groups.

Theprojectisestimatedtocreateupto35,000directandindirectjobs through all stages of development and construction.

More information is available at bchydro.com/sitec.

Site C rendering

3COMMUNITY RELATIONS 2012 ANNUAL REPORT—LOWER MAINLAND—SOUTH COAST

CAPITAL PROJECTS

With the future in mind, BC Hydro continues to invest to extend the life and enhance the capacity of the electrical system. New infrastructure and other system reinforcements mean reliable, cost-effective energy for communities across B.C.

Some of the projects BC Hydro is currently working on in the Lower Mainland-South Coast region include:

Vancouver City Central Transmission (VCCT) Project

The VCCT Project will meet the growing demand for power in Vancouver’s south False Creek and Mount Pleasant communities that is expected to increase by almost 40 per cent over the next ten years. There are three main components: a new electrical substation currently under construction – the first LEED-standard substation in BC Hydro’ssystem;anew230kilovolt(kV)transmissionlineunder city streets connecting the new substation to two existing substations; and the drilling and installation of a crossing under the bed of False Creek, to connect the north and south side of the project; now complete. The project’s anticipated in-service date is spring 2014.Moreinformation:bchydro.com/vcct.

Ruskin Dam

In April of this year, the British Columbia Utilities Commission confirmed that BC Hydro will proceed with upgrades to the

Ruskin powerhouse and dam that will improve the seismic safety andreliabilityofthe82-year-oldfacility.Constructionhasbegunon the significant upgrades to the facility, creating economic opportunitiesforlocalbusinessesandgeneratingabout175jobsa year during the project’s six years of construction.

The project consists of the reinforcement of the right bank, the seismic upgrade of the dam and water intakes, powerhouse upgrades and the relocation of the switchyard. The project is estimatedtocostbetween$718and$857million.Theanticipatedin-servicedateis2018.Moreinformation:bchydro.com/ruskin.

Silverdale Substation

Mission is currently served by only one substation, the Mission Substation. Within the next few years, the electricity needs of the growing community will exceed the capacity of the Mission Substation, therefore a new one is required, to serve the electrical needs of the community well into the future.

BC Hydro has planned the new substation to ensure that it blends in with the surrounding community. As a result, the substation will not be visible from residential areas; it will be screened by trees and other greenery and a significant amount of the equipment will be indoors.

Thenewsubstationwillcostapproximately$35millionandwillbein-servicebysummer2014.Moreinformation: bchydro.com/energy_in_bc/projects/substation/silverdale.html

Interior to Lower Mainland Transmission (ILM) Project

The ILM Project will expand the capacity of the essential transmission system that brings power from generation resources in the north and southern Interior of the province so that it can continue to deliver clean and reliable energy to homes and businesses in the Lower Mainland and Vancouver Island.

REGIONAL INFORMATION

Transmission duct banks (concretehousingforcables)and cable vaults/manholes for thenew230 kVtransmissionlinewere installed under city streets.

Ruskin Dam

Rendering of Silverdale Substation

4COMMUNITY RELATIONS 2012 ANNUAL REPORT—LOWER MAINLAND—SOUTH COAST

ABCHydrotechniciancrawlsacrossporcelaininsulatorsonthe250 kVtransmission lines that cross Indian Arm in North Vancouver. A helicopter lowered the worker into a buggy suspended from wires as much as ten storeys off the water in order to perform required maintenance. (Photo courtesy of Mike Wakefield, North Shore News.)

The project includes a new 500 kilovolt transmission line between Nicola Substation near Merritt and Meridian Substation in Coquitlam near Agassiz; a new series capacitor station at Ruby Creek on BC Hydro-owned property; and associated improvements at the Nicola and Meridian substations.

PlannedtobeinservicebyJanuary2015,theestimatedcostoftheILMProjectis$709million.Moreinformation:

bchydro.com/ilm_transmission.

Big Bend Substation

BC Hydro is investing in Burnaby’s Big Bend area by building a substation that will reinforce the power supply to this large and regionally significant industrial location.

BC Hydro forecasts that demand for electricity in the area will increaseby31percentoverthenexttenyears.Asaresult,theexistingsystemwillreachcapacityin2014.Anewsubstationinthe Big Bend area will ensure a reliable supply of electricity for many years to come.

The new Big Bend Substation is scheduled to be in service by 2014.Moreinformation:bchydro.com/energy_in_bc/projects/substation/bigbend.html

Fraser River Towers

Work is underway to rebuild the 500 kilovolt transmission line that crosses the Fraser River from Coquitlam to Surrey, west of the Port Mann Bridge. This transmission line is one of two transmissionlinesinthearea;theotherisa230kVline.

OntheeveningofJuly4,2011,highwaterlevelsintheFraserRiver and swift erosion damaged the foundation of the 500 kV transmission tower on the Surrey side of the river and caused the230kVtowernexttoittofallintotheriver.The230 kVcrossingwasrebuiltandreturnedtoserviceinDecember2011.The500 kVcrossingwasrestoredtoserviceinSeptember2011using temporary measures to support the tower at the edge of the river.

BC Hydro is now completing the final rebuild of the 500 kV crossing. Two new stronger and taller towers will be installed:

one on the Surrey side and one on the Coquitlam side of the river; longer lines will be used to eliminate the need for towers at the edge of the river. Work is expected to be completed in spring2013.

Watch a video of the restoration of the two crossings: bchydro.com/news/conservation/2012/fraser_river_towers_solution.html.

Proactive Asset Maintenance Programs

BC Hydro delivers electricity to customers through a vast network of transmission and distribution lines, substations, rights-of-way, steel towers and utility poles. Significant investments are needed annually to maintain and extend the life of assets to ensure safety and reliability.

Over the past year work has been focused on:

• Substationupgrades,includingsecurityimprovements,roof replacements, aging circuit breaker replacements, transformers, and other improvements and maintenance to ensure the safety and security of these essential facilities;

• Replacingaginganddeterioratingwoodpolestructures;

• Seismicupgradestostructuresandfacilities;

• Paintingsteeltowerstocontrolcorrosionandextendthelife of the structures;

• Replacingagingundergroundcablesandoverheadlinesand equipment;

• Maintainingright-of-wayaccessroads,trailsandgates; and,

• Ongoingvegetationcontrolandmaintenanceonrights-of-way. (Trees falling on lines is the most common cause ofoutages.)

Theestimatedcostforassetmaintenanceprogramsin2011-12is$458millionprovince-wide.

Meridian Substation on Westwood Plateau in Coquitlam.

5COMMUNITY RELATIONS 2012 ANNUAL REPORT—LOWER MAINLAND—SOUTH COAST

COMMUNITY INVESTMENT AND OUTREACH

BC Hydro is committed to sustainability for generations, and to support and strengthen the communities we serve. Through our programs we commit to organizations that are active in our key funding areas: environmental sustainability, youth and lifestyle, and community leadership. Applications meeting our criteria are accepted online. The application and criteria can be found at bchydro.com/community/community_investment.html. Organizations are also welcome to contact Lisa Waddell for more information: 604 623 4144 or lisa.waddell@bchydro.com.

Provincially, BC Hydro supports the Lower Mainland-South Coast region through partnerships with local community groups, such as the Be the Change Earth Alliance, Cool North Shore and Squamish Client Action Network. In addition, the Lower Mainland-South Coast regionissupportedbyabudgetof$72,000forfiscalyear2011/2012.SomeoftheorganizationsthatBCHydrosupportedintheLowerMainland-South Coast region include:

APPLICANT COMMUNITY DONATION/SPONSORSHIP

ChilliwackAgriculturalCountyFair2011 Chilliwack $2,000

Central Abbotsford Community School Society Abbotsford $1,000

Sechelt Festival of the Arts Sechelt $1,500

Evergreen - Architects of a Green Legacy Vancouver $1,500

Water Kiosk for Community Events Maple Ridge $2,000

Whistler Arts Council Whistler $2,000

8thAnnualMaritimeFestival Richmond $1,500

Coho Society of the North Shore West Vancouver $1,500

WaterWeeks2011 Langley Township $2,500

Vancouver Maritime Museum Vancouver $2,500

YWCA of Vancouver Vancouver $5,000

Fraser Valley Youth Stewards Abbotsford $2,500

Changemakers Toolbox Vancouver $1,500

Delta School District Science Fair “Minds of Discovery” Delta $2,000

Harrison Festival Society Harrison Hot Springs $2,000

7thAnnualWinterfest Pemberton $2000

13thAnnualChinatownFestival Vancouver $2,500

Hyack Festival Association New Westminster $2,500

Burns Bog Conservation Society Delta $2,500

Forum of Women Entrepreneurs Vancouver $2,500

BC Hydro donated $5,000 to the YWCA Metro Vancouver’s High School Mentorship Program. Lower Mainland-South Coast Community Relations Manager, Donna McGeachie, attended theprogram’s2012GreenChoiceCareerForumattended by more than 45 young women from high schools throughout the Lower Mainland.

BC Hydro Outreach Team at Golden Spike Days in Port Moody.

BC Hydro Outreach Team at the Lower Lonsdale Festival in North Vancouver.

6COMMUNITY RELATIONS 2012 ANNUAL REPORT—LOWER MAINLAND—SOUTH COAST

GRANTS-IN-LIEU

BC Hydro pays net property tax and grant payments to local governments. The grant program is a Provincial government initiative and the amounts paid are dictated under the current legislation. Listed below are the grants paid to each community in the Lower Mainland-SouthCoastregionasatJune30,2012.

MUNICIPALITY/DISTRICT SCHOOL TAXES GRANTS OTHER TAXES PAYMENTS

Abbotsford, City of 1,453,479.93 1,300,638.34 20,266.94 2,774,385.21

Anmore, Village of 375,436.86 79,878.26 0.00 455,315.12

Belcarra, Village of 16,770.20 15,040.93 0.00 31,811.13

Bowen Island Municipality 34,254.66 33,838.16 0.00 68,092.82

Burnaby, City of 3,030,630.11 4,629,022.22 315,679.75 7,975,332.08

Chilliwack, District of 771,517.78 691,655.61 0.00 1,463,173.39

Coquitlam, City of 1,319,200.49 1,050,548.69 15,211.92 2,384,961.10

Delta, Corporation of 1,355,185.92 1,739,969.30 1,392.84 3,096,548.06

Fraser Valley Regional District 0.00 102,066.00 0.00 102,066.00

Gibsons, Town of 50,820.38 41,453.65 518.86 92,792.89

Harrison Hot Springs, Village of 13,859.20 12,019.37 0.00 25,878.57

Hope, District of 66,260.74 62,576.89 4.20 128,841.83

Kent, District of 328,518.42 54,217.20 0.00 382,735.62

Langley, City of 76,644.50 185,091.10 0.00 261,735.60

Langley, Township of 1,175,983.78 1,076,564.48 26.92 2,252,575.18

Lillooet, District of 429,867.46 160,906.46 0.00 590,773.92

Lions Bay, Village of 22,407.60 31,011.62 0.00 53,419.22

Maple Ridge, District of 1,032,671.16 602,789.50 1,769.58 1,637,230.24

Mission, District of 1,871,292.92 742,129.70 64.82 2,613,487.44

New Westminster, City of 90,876.13 176,455.80 0.00 267,331.93

North Vancouver, City of 199,603.72 538,132.33 0.00 737,736.05

North Vancouver, District of 1,028,901.83 1,633,041.16 7,928.58 2,669,871.57

Pemberton Valley Dyking District 0.00 3,761.61 0.00 3,761.61

Pemberton, Village of 75,294.08 75,719.50 0.00 151,013.58

Pitt Meadows, District of 98,704.20 117,735.22 0.00 216,439.42

Port Coquitlam, City of 151,520.12 353,938.65 8,513.15 513,971.92

Port Moody, City of 923,298.20 1,553,941.16 0.00 2,477,239.36

Powell River, City of 152,475.18 413,077.88 2,002.30 567,555.36

Richmond, City of 1,240,634.58 2,154,817.41 16,373.82 3,411,825.81

Sechelt, District of 73,639.12 104,977.30 0.00 178,616.42

Sechelt, Indian Government District 5,807.80 17,806.70 0.00 23,614.50

Squamish, District of 936,864.86 364,567.52 16,444.28 1,317,876.66

Squamish-Lillooet, Regional District of 0.00 1,026,638.00 0.00 1,026,638.00

Sunshine Coast, Regional District of 0.00 51,256.00 0.00 51,256.00

Surrey, City of 5,767,441.87 7,215,646.37 249,077.86 13,232,166.10

Vancouver, City of 5,500,389.36 9,787,286.78 124,694.37 15,412,370.51

West Vancouver, District of 355,155.22 291,156.25 0.00 646,311.47

Whistler, Resort Municipality of 449,477.02 355,189.35 1,452.95 806,119.32

White Rock, City of 76,687.10 110,294.21 3,567.53 190,548.84

7COMMUNITY RELATIONS 2012 ANNUAL REPORT—LOWER MAINLAND—SOUTH COAST

RELIABILITY PERFORMANCEBC Hydro recognizes how important the reliable supply of electricity is to our customers. By continuing to invest in our electrical system, we expect to see enhanced levels of reliability for our customers.

In2011,theBCHydroaverageinterruptiondurationpercustomerwas2.27hourscomparedto2010,whichwas2.78hours.Theaveragenumberofinterruptionspercustomerin2011was1.58comparedto2010,whichwas1.89.

These statistics also include interruptions due to planned outages. Considerable maintenance and reliability improvement work is being done within the Lower Mainland region and for safety reasons this work often requires a planned outage.

Theinformationbelowprovidessomecomparisonsfor2010 and2011.

YOUR COMMUNITY RELATIONS TEAM

At BC Hydro we believe that strong relationships with the communities we serve are key to our mutual success.

The Lower Mainland-South Coast Community Relations team is the point of contact for local government, business and community groups. Whether it’s for BC Hydro projects, corporate initiatives and programs, planned or unplanned outages or emergency response, we work hard to meet the needs of our stakeholders and ensure communities are kept informed.

BC HYDRO COMMUNITY RELATIONS LOWER MAINLAND—SOUTH COAST

Donna McGeachie Community Relations Manager, Lower Mainland-South Coast 6046233994 donna.mcgeachie@bchydro.com

Steve Higginbottom Community Relations Coordinator 6046233593 steve.higginbottom@bchydro.com

Lisa Waddell Public Affairs Research Assistant 6046234144 lisa.waddell@bchydro.com

To report a power outage call: 1 888 POWERON(18887693766)or *HYDRO(*49376)fromyourcellphone.

LOWER MAINLAND - SOUTH COAST 2010 LOWER MAINLAND - SOUTH COAST 2011

BC HYDRO DISTRICT

AVERAGE CUSTOMER

INTERRUPTION DURATIONS

(HOURS)

AVERAGE NUMBER OF

INTERRUPTIONS PER CUSTOMER

BC HYDRO DISTRICT

AVERAGE CUSTOMER

INTERRUPTION DURATIONS

(HOURS)

AVERAGE NUMBER OF

INTERRUPTIONS PER CUSTOMER

Abbotsford 3.29 1.96 Abbotsford 1.74 1.70

Chilliwack/Hope 2.30 2.64 Chilliwack/Hope 2.53 2.98

Coquitlam 2.30 1.42 Coquitlam 2.99 0.94

Fraser Valley West 2.39 0.96 Fraser Valley West 2.32 1.83

Lillooet 2.34 3.80 Lillooet 2.49 2.81

North Shore 2.29 1.16 North Shore 2.84 0.74

Powell River 3.58 2.52 Powell River 4.37 1.93

Sechelt 3.36 2.94 Sechelt 3.89 3.74

Squamish 2.08 2.95 Squamish 2.87 1.09

Vancouver/Burnaby 1.63 0.86 Vancouver/Burnaby 2.16 0.65

8COMMUNITY RELATIONS 2012 ANNUAL REPORT—LOWER MAINLAND—SOUTH COAST GDS12-141

Lower Mainland—South Coast

QUICK ACCESS TO KEY INFORMATION ON BCHYDRO.COM

BC HYDRO’S LOCAL GOVERNMENT GUIDE

POWER SMART INITIATIVESPower Smart Programs bchydro.com/powersmart/Learn about how you can be smart with your power. Take advantage of Power Smart rebates and programs.

Power Smart Sustainable Communities bchydro.com/powersmart/ps_communities.html Learn about how the Sustainable Communities program works and who is eligible to apply.

Business and Residential Rebates and Savings bchydro.com/rebates_savings/Find out how you can save big through our Product Incentive Program and Power Smart Commercial and Industrial programs.

How to Green Your Home bchydro.com/guides_tips/Learn how to cut your energy consumption at home, in your strata complex, in your community and in your business.

PROJECTSSmart Metering Information bchydro.com/smartmetersFind out why Smart Meter installations are an important upgrade to our electricity system.

Capital Projects bchydro.com/energy_in_bc/projects.htmlWe are investing in projects that are needed to keep the lights on in our province for the next 50 years. Learn more about projects

taking place in your region.

DONATIONS Community Investment bchydro.com/community/community_investment.html

Learn about our funding opportunities and how to apply for them.

Scholarships & Endowments bchydro.com/community/community_investment/scholarships.html

We look to build the next generation of engineers, electricians, and many other key roles who will help us deliver clean energy

for generations. Learn about our scholarship and endowment opportunities.

POWER OUTAGES Information about Outages bchydro.com/outages/orsMain.jsp Find out more about outages in your area, how to prepare for them and how power is restored.

How to Report a Power Outage bchydro.com/news/power_outages/reporting_outage.htmlFollowtheseinstructionsonwhattododuringapoweroutage.CallBCHydroat1888POWERON(18887693766)or*HYDRO(*49376)

on your cell phone.