SITE C PROJECT OVERVIEW BC Energy Conference, Fort St. John October 2, 2013 Dave Conway

1. SITE C PROJECT OVERVIEW BC Energy Conference, Fort St. John October 2, 2013 Dave Conway Community Relations Manager

2. SITE C PROJECT UPDATE • Project Overview • Environmental Assessment • Community Liaison • Procurement • Next Steps

3. DEMAND TO INCREASE 40% IN 20 YEARS

4. MEETING LONG-TERM ELECTRICITY DEMAND • Conservation BC Hydro pursuing all cost-effective demand-side management • Re-investment in Existing Assets Upgrades to aging infrastructure Expansion of existing facilities • Managing Renewables 20% of current system and growing (e.g., wind, run-of-river, bioenergy) • New Capacity Resource Site C Clean Energy Project

6. ABOUT SITE C DAM • Type: Earthfill Dam • Length: 1,050 metres • Height: 60 metres • Capacity: 1,100 MW • Energy: 5,100 GWh/yr. RESERVOIR • Length: 83 km • Width: 2-3 times current river (on average)

7. PUTTING SITE C IN PERSPECTIVE • Site C would produce approximately 35 per cent of the electricity of the W.A.C. Bennett Dam with only five per cent of the reservoir area

8. PROJECT COMPONENTS DAM SITE COMPONENTS

9. OFF-SITE PROJECT COMPONENTS Shoreline protection at Hudson’s Hope

10. OFF-SITE PROJECT COMPONENTS Wuthrich 85th Avenue Industrial Lands Del Rio Portage Mountain 85th Avenue Industrial Lands Worker Accommodation West Pine

11. WHY BUILD SITE C Site C provides the best combination of financial, technical, environmental and economic development attributes compared to alternatives. - BC Hydro Integrated Resource Plan

12. ENVIRONMENTAL AND SYSTEM BENEFITS • 100-year supply of clean and renewable electricity • Low, predictable long-term operating costs • Optimizes existing resources – 35% of energy of Bennett Dam with 5% of reservoir area • Firm energy that can be relied upon throughout year and dependable capacity to meet peak demand • Low GHG emissions, per gigawatt hour, compared to other forms of electricity generation • Facilitates integration of intermittent renewables, such as wind and run-of-river hydro

13. ECONOMIC BENEFITS • 10,000 person-years of direct employment during construction, and 33,000 total jobs through all stages of development and construction • $3.2 billion contribution to provincial GDP, including approximately $130 million to regional GDP • $40 million in tax revenues to local governments and, once in operation, $2 million from grants-in-lieu and school taxes

14. SITE C REGULATORY PROCESS

15. ENVIRONMENTAL IMPACT STATEMENT (EIS) • BC Hydro submitted EIS to regulators in January 2013 • Five-volumes,15,000 pages • Includes project rationale, identifies potential effects and proposes measures to avoid or mitigate adverse effects • Describes key benefits for customers, Aboriginal groups, northern communities and the province • Public comment period Feb.3 – April 4 • Public open houses, technical meetings • Responded to 4,100 information requests

16. VALUED COMPONENTS TECHNICAL DATA REPORTS • Air Quality • Electric and Magnetic Fields • Fluvial Geomorphology and Sediment Transport • Geology, Terrain and Soils • Groundwater Regime • Land Requirements • Land Requirements • Methyl-mercury • Micro-climate • Noise and Vibration • Surface Water Regime • Thermal and Ice Regime • Water Quality • Local Government Revenue • Minerals and Aggregates • Navigation • Oil, Gas & Energy • Outdoor Recreation and Tourism • Population and Demographics • Regional Economic Development • Transportation • Visual Resources • Vegetation and Ecological Communities • Wildlife Resources • Agriculture • Community Infrastructure and Services • Current Use of Lands and Resources for Traditional Purposes • Fish and Fish Habitat • Forestry • Greenhouse Gases • Harvest of Fish and Wildlife Resources • Heritage Resources • Housing • Human Health • Labour Market

17. COMPREHENSIVE MITIGATION MEASURES * • Upgrading roads for construction traffic • Implementing a car pool program • Providing worker shuttle services • Reducing fleet GHG emissions • Building new boat launches and recreation sites • Funding community services • Funding skills training • Using local labour supply • Funding additional daycare spaces • Providing emergency services for project sites • Encouraging Aboriginal participation in workforce • Construction of new housing units • Agricultural compensation fund • Irrigation and drainage improvements • Creating new habitat areas • Establishing barriers and protection zones • Habitat enhancement projects • Restoring construction areas • Using indigenous plants to re-vegetate • Trap and haul fish passage • Relocating portions of Highway 29 • Maintaining drainage patterns • Retaining or planting tree screens • Constructing perimeter fencing * Partial list only

18. JOINT REVIEW PANEL • August 1 CEA Agency and BCEAO deemed EIS satisfactory • August 2 Three-member Joint Review Panel announced • Aug 26 – Sept 16 Public comment on draft Public Hearing Procedures • Sufficiency review of EIS underway • Public hearings to follow

19. CONSULTATION • Public and Stakeholder Consultation • Since 2007, BC Hydro has led or participated in more than 500 consultation meetings, presentations, local government meetings, community events and open houses • Property owner liaison and consultation • Community consultation offices • Aboriginal consultation • BC Hydro is committed to ongoing consultation with Aboriginal groups and has signed a number of consultation agreements 19

20. REGIONAL AND LOCAL GOVERNMENT ENGAGEMENT • Regional and Local Government Liaison Committee • Members include region’s Mayors, regional district Directors and CAOs • Meets ~ quarterly • Local Government Technical Engagement • Individual, staff-level committees with each regional, local government • Capacity funding provided • Periodic updates to councils

21. COMMUNITY AGREEMENTS • Site C Regional Legacy Benefits Agreement • Annual payment of $2.4 million over 70 years to the Peace River Regional District and member municipalities • Funding formula determined by the PRRD and member municipalities, to be used at the discretion of each local government • Mitigation Agreements • Ongoing discussions with communities regarding proposed measures to mitigate direct project effects 21

22. PROCUREMENT APPROACH • Opportunities for small, medium and large businesses • Multiple large contracts for major works, smaller contracts for other works • Encourage local and Aboriginal participation • Procurements subject to environmental certification and other approvals to proceed to construction

23. PROCUREMENT OBJECTIVES • Achieve value for money for ratepayers • Maximize cost-effective project performance (generation capacity, energy and flexibility) • Structure a fair and competitive procurement process • Meet project schedule • Meet project budget • Optimally manage project risks • Support Site C project objectives, including providing economic benefits for northern communities and the province

24. REGIONAL CONTRACTOR ENGAGEMENT • Objectives: • Assess capacity of regional contractors including staff, equipment and other resources • Commence relationship building and communication with businesses • Identify potential matches between contractor capacity and project work • Conducted 50+ site visits and meetings with regional contractors and First Nations companies

25. PRELIMINARY FINDINGS • Contractor interests: • Clearing and debris clean-up • Access road and bridge construction • Security • Worker accommodation (camp and services) • Heavy civil works (earth moving, quarrying) • Reclamation • Environmental monitoring • Recreation (e.g. boat launch) • Significant regional capacity in logging and clearing, and civil works • Identified strategic partnerships that improve the range of services offered by regional contractors

26. UPCOMING MAJOR PROCUREMENTS *All procurements are subject to certification and approvals

27. BUSINESS LIAISON Sign up for Site C Business Directory www.bchydro.com/sitec Familiarize yourself with the project Get to know BC Bid www.bcbid.gov.bc.ca Attend information meetings Participate in future networking sessions Facilitate local / regional businesses to engage with proponents 27

28. NEXT STEPS

29. questions