Capital Power offers response to BC Hydro’s Integrated Resource Plan

Capital Power has issued a response to BC Hydro’s draft Integrated Resource Plan (IRP) submitted recently to the British Columbia Utilities Commission (BCUC).

The draft IRP references two natural gas-fired independent power facilities, including Capital Power’s Island Generation facility at Campbell River on Vancouver Island. BC Hydro is not currently intending to renew the long-term Electricity Purchase Agreement (EPA) expiring in April 2022.

Island Generation, located in Campbell River, is a 275 MW natural gas-fired combined-cycle power generation facility, fully contracted under a long-term tolling agreement with BC Hydro until April 2022. It utilizes an Alstom GT24B gas turbine and an Alstom steam turbine with fuel supplied by BC Hydro. It is the largest power generation facility on Vancouver Island, representing approximately one-third of the generation capacity on Vancouver Island.

Capital Power officials said that while there have been discussions with the Island Generation counterparty to understand potential renewal terms, there is no basis for assuming that the electricity purchase agreement with this facility will be renewed.

“We continue to believe the Island Generation facility is needed to ensure secure and reliable electricity supply for homes and businesses on Vancouver Island and in Metro Vancouver and will actively participate in the consultation process,” Chris Kopecky, senior vice president and chief legal, development & commercial officer of Capital Power, said. “The facility has been extremely reliable for BC Hydro with a 99% average availability in the last five years, providing critical back-up power and grid reliability for Vancouver Island and Metro Vancouver over the past decade under Capital Power after it was acquired in 2010.”

The contract’s renewal status does not impact 2021 results and is not material to management’s future cash flow expectations.

Capital Power is a wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. Capital Power owns over 6,400 megawatts (MW) of power generation capacity at 26 facilities across North America.