Subject to negotiation and completion of definitive agreements, Fortis will own 51% of the Waneta Expansion and will operate and maintain the non-regulated investment when the facility comes into service, which is expected in spring 2015. Federal and provincial environmental assessment approvals are in place for the project.
The Waneta Expansion will become part of the Canal Plant Agreement and will receive fixed energy and capacity entitlements based upon long-term average water flows, thereby significantly reducing hydrologic risk associated with the project.
The energy, approximately 630GWh, from the project will be sold to BC Hydro under a long-term energy purchase agreement at prices comparable to those for projects recently accepted by BC Hydro under its 2008 Clean Power Call. The surplus capacity, equal to 234MW on an average annual basis, will, subject to approval of the British Columbia Utilities Commission (BCUC), be sold to FortisBC Inc. under a long-term capacity purchase agreement at a price within the range of alternatives outlined in FortisBC's Resource Plan filed with the BCUC in May 2009.
"Fortis is excited about this opportunity to grow our non-regulated hydroelectric generation business in British Columbia, where we have well-established regulated utility operations at FortisBC and Terasen Gas," said Stan Marshall, President and Chief Executive Officer, Fortis Inc.
"The Waneta Expansion will substantially resolve capacity shortfall issues for FortisBC and will enable FortisBC to serve its customers with long-term, reliable electricity from a renewable resource."
