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Analysis of BC Hydro Alternatives Methodology

Client:

Synapse was retained by BC Hydro to conduct a review of its 2013 Integrated Resource Plan (IRP) and to prepare a report detailing whether specific input assumptions and the methodology for analyzing resource alternatives align with good utility resource planning practices. Before preparing this report, we reviewed the relevant sections of BC Hydro’s IRP, the various filings made as part of the 2013/2014 Site C environmental assessment process, and various other utility planning documents.

Specifically, Synapse was asked to comment on the following: 1) the differential between the weighted average cost of capital (WACC) for BC Hydro and for Independent Power Producers (IPPs); 2) the use of sensitivity analyses as a means to evaluate the direction and magnitude of risk; 3) the use of analytical methods, including the appropriateness of BC Hydro’s Unit Cost Comparison, as well as the System Optimizer model; and 4) the calculation of annualized costs with respect to resource end-of-life.

Status: 
Project completed November 2014.