Re: Kettle Valley CPCN Application - Project #

Transcription

1 B-3 Joyce Martin Manager of Regulatory Affairs FortisBC Inc Esplanade Box 130 Trail BC V1R 4L4 Ph: Fax: May 5, 2006 Via Original via courier Mr. Robert J. Pellatt Commission Secretary British Columbia Utilities Commission Sixth Floor, 900 Howe Street, Box 250 Vancouver BC V6Z 2N3 Dear Mr. Pellatt: Re: Kettle Valley CPCN Application - Project # Please find enclosed 20 copies of the FortisBC responses to Information Request No 2 regarding the above noted project. Should the Commission have any questions regarding this matter, please address your queries to the undersigned at the above address. Yours truly, (original signed by Joyce Martin) Joyce Martin Manager of Regulatory Affairs cc: Registered Intervenors Grand Forks Library

2 Preamble In responding to these Information Requests, FortisBC has endeavoured to provide particular clarity in regard to the primary drivers of the Kettle Valley Project ( KVP or the Project ). The KVP is required on an imminent basis to address the system reliability risks in the entire Boundary area, and the service restoration times and safety issues arising from the aged transmission, substation, and distribution facilities in the Kettle Valley region. At the transmission level, the greatest risk is associated with the single 161/63 kv transformer T1 at the Grand Forks Terminal Station ( GFT ). 11 Line (transmission) from Mawdsley Substation in Warfield is the only 161 kv source of supply. If GFT Transformer 1 fails, no mobile 161 kv transformer support is available, and backup supply is obtainable only at 63kV, via 9 Line and 10 Line from Warfield Terminal Station ( WTS ). 9 Line and 10 Line would be unable to ensure system voltage during peak load periods, and could force load shedding affecting all customers west of Grand Forks for an extended period of time (potentially up to six weeks), pending emergency relocation of a 161/63 kv transformer from another substation within the service territory or from another utility. Construction of the Kettle Valley Substation proposed in this Project alleviates the risk of the GFT Transformer 1 failure by reducing the load connected to GFT to a level that can be supported by 9 Line and 10 Line backup. It also permits the decommissioning of three aged and vulnerable distribution substations in the region, along with major sections of 9 Line and 10 Line, with their attendant safety risks. Simply put, the infrastructure in this region has reached the end of its practical useful life. The Kettle Valley Project is the most efficient means of addressing these age and reliability issues. The cost of refurbishing or replacing the existing facilities is approximately double that of the proposed solution. In addition, the Project provides adequate capacity for the growing load in Page 1

3 the Mount Baldy Resort area, which would otherwise have to be addressed in a separate project. The Project is independent of future projects such as the Okanagan Transmission Reinforcement ( OTR ) Project or the Grand Forks Solution Project. In particular, those projects do not dictate individual Project components, including transmission line voltages (on 11 Line, for example). Similarly, the completion of this project will not impose limitations in regard to the future projects. These factors are discussed in detail in the following responses. Page 2

4 Q1.0 Reference: Exhibit B-1 p. 26 FortisBC states that the System Development Plan ( SDP ) identified more that one hundred projects to be implemented over the next six years. The 2004 SDP priority matrix identified the Kettle Valley project as a high priority with an overall weighting of 26. Q1.1 Has the Kettle Valley project been re-evaluated within the context of this priority matrix? If so what is the ranking of this project now? A1.1 The 2004 SDP priority matrix identified the Kettle Valley Project ( KVP ) as a high priority with an overall weighting of 26. The following table recalculates the project weighting based on the factors identified in Table 4, Page 27 of the CPCN Application. The result is an increase in overall project weighting from 26 to 30. The reasons for the changes are identified below. Weighting Category Unit Rating Factor SDP KVP Safety High Medium 5 Low 1 Public Impact Number of Customers > < <500 1 Restoration Time Hours > to 8 4 <4 2 Termal Capacity (overloads) >25% to 25% System Effects of Failure High 3 3 Medium 2 2 Low 1 Voltage Related <110 kv 5 <115 kv 2 2 N/A 0 0 Total Changes in ranking occurred for three factors: Page 3

5 Public Impact: As stated in Table 4 at page 28 of the Application, the total number of customers that will be positively affected by the Kettle Valley Project is estimated at 2,500. The weighting for Public Impact is changed from 2 to 3. System Effects of Failure: Midway Substation: The mobile substation, which is required for station maintenance and emergency supply, cannot be parked at the existing site. When required for routine maintenance or in case of emergency, it must be located on private property, surrounded by temporary fencing, which is a non-standard practice and is undesirable from a public safety perspective. This negatively affects system restoration during faults or maintenance. In addition, a recent maintenance inspection revealed that the existing transformer tap changer has reached its end of life. A transformer failure may result in selective load shedding of service areas prior to system normalization. All below grade control and wiring is contained within steel conduit, which is corroded and requires replacement. Failure would result in loss of supply (CPCN Application, Page 28). Rock Creek Substation: No mobile facilities exist at the substation due to limited space; the mobile is located away from the station and consequently no low voltage ( LV ) supplies are available whilst working in the substation during maintenance. This negatively affects system restoration during faults or maintenance (please refer to Appendix 1A). Greenwood Substation: The transformer condition assessment indicates that it should be retired from service as soon as practicable to avoid any potential failures and the associated environmental implications. Additionally, signs of degradation are evident in the bus bar structures (please refer to Appendix 2A). Any failure of either the transformer or bus bar structures will have long-term restoration implications in the absence of immediate mobile transformer back up. 9 Line and 10 Line: Presently, for a failure of the 161/63 kv Grand Forks Transformer 1, the only remaining source of Boundary area supply is via 9 Line and Page 4

6 10 Line from Warfield. Shedding of all loads west of Grand Forks would be required to maintain a tolerable minimum voltage level during system peak periods. Since mobile transformers rated for 161 kv are not generally available, the contingency plan for such an occurrence involves emergency relocation of a compatible transformer from another location such as Oliver and this may take up to six weeks before supply can be fully restored, in this case affecting all customers west of Grand Forks. Two ways to mitigate this problem are to reduce the 63 kv load connected to Grand Forks Terminal (for example by constructing the Kettle Valley Substation), or to install a second 161/63 kv transformer (T2) at Grand Forks Terminal. Review of these factors result in a change in the weighting for System Effects of Failure from 2 to 3. Voltage Related: In the event of loss of Grand Forks Terminal T1 (N-1 event), the 63 kv backup supply from the Warfield Terminal Station is unable to ensure system voltage in the Boundary West area. As stated earlier, for the failure of the 161/63 kv Grand Forks T1 transformer, shedding of all loads west of Grand Forks will be required to maintain a tolerable minimum voltage level during system peak periods. Voltage Related Issues are weighted at a factor of 2. General Although the new ranking of the Project has not been evaluated among all other pending projects of FortisBC, the Kettle Valley Project remains one of primary significance. The KVP, apart from addressing the safety and the reliability needs of the aged substations, defers the need for a second transformer at Grand Forks Terminal beyond the ultimate planning horizon of If the KVP does not proceed, there will be an immediate need to address reliability issues in the Boundary region, which would require the following Page 5

7 actions, estimated to cost in excess of $40 million. Installation of a second 161 kv/63 kv transformer (T2) at Grand Forks Terminal Upgrade of the aged substations in the Boundary region Rebuild of major sections of 9 Line and 10 Line (especially in critical sections of Santa Rosa, Devil Hill, etc.) Q2.0 Reference: Exhibit B-1, Application, table 4, p. 27 In this table, FortisBC describes various drivers for the Kettle Valley project. In particular, FortisBC describes the condition of the various facilities, which will be replaced. Q2.1 Please provide condition assessment reports and photographs showing the state of the equipment. A2.1 Please refer to Appendices 1A, 1B, 2A, 2B, 3A and 3B. Factors relevant to the KVP are highlighted in those documents. Q2.2 Q2.2 Please also provide the maintenance costs for these facilities over the last three years and the projected maintenance costs over the next five years. Please provide these costs on a facility basis. A2.2 The facilities referenced include the Rock Creek, Midway and the Greenwood substations and the 9 Line and 10 Line 63 kv circuits from Warfield. The bulk of these facilities has reached or surpassed the end of their useful life and requires, in the absence of the proposed solution (Kettle Valley Substation) significant upgrades or complete replacement. For that reason, standard or preventive maintenance such as the repair of existing equipment is not a prudent course of action. The maintenance costs identified below represent the expenditures necessary to maintain a reasonable level of system reliability as well as serving the area load. In addition, capital maintenance expenditures will be required for each of the components and are shown below. Page 6

8 Actual Maintenance Costs ($) Facility Name Total Greenwood Sub Rock Creek Sub 15,995 72,934 4,129 93,058 Midway Sub 42, ,077 62,054 9 Line 1, , , , Line 416,213 55, ,452 1,032,946 Total Maintenance Costs 1,923,397 Actual Capital Expenditures ($) Facility Name Total Greenwood Sub ,128 Rock Creek Sub 12,370 2,444 6,889 21,703 Midway Sub ,060 19,548 64,804 9 Line Line Total Capital Expenditures 87,635 Forecast Maintenance Costs ($) Facility Name Total Greenwood Sub 50,000 50,000 50, , ,000 Rock Creek Sub 50,000 50, ,000 10, ,000 Midway Sub 50, ,000 10,000 10,000 80,000 9 Line 50, ,000 10,000 70, Line 50,000 50, , ,000 Forecast Maintenance Cost 540,000 Forecast Capital Expenditures ($) Facility Name Total Greenwood Sub 3,000,000 3,000,000 Rock Creek Sub 5,200,000 5,200,000 Midway Sub 3,300,000 3,300,000 9 Line 3,000,000 3,000,000 6,000, Line 3,000,000 3,000,000 6,000,000 Capital Expenditure 6,300,000 11,200,000 6,000,000 23,500,000 The capital costs identified above are related to the existing facilities only. In order to Page 7

9 meet N-1 contingency, a second 161/63 kv transformer (T2) would be required at Grand Forks Terminal Station. The cost of this additional transformer is not included above. Q2.3 For all the concerns cited by FortisBC in Table 4, please describe the present measures FortisBC is using to mitigate workers or public risks. A2.3 All applicable Environmental, Health and Safety Standards legislation as well as the provincial WorkSafe BC Guidelines are followed by FortisBC employees. All FortisBC field workers follow general operating routines to ensure safe operation in any work area to mitigate any risk to the employees and the public, including: Adopt all necessary precautions to prevent accidents; Observe safety rules and operating procedures; Conduct formal on-the-job safe site working planning with all crew members; Identify possible risks that may arise and establish safe work barriers to mitigate the risks; Account for personal safety and safety of other employees on the job site / remote from the job; Display adequate and approved safety signs; Determining existing site conditions prior to initiating any work; Consider equipment to be energized unless positively known to be de-energized; Consider ungrounded equipment to be at a dangerous voltage for personnel; Keep body parts away from devices that produce / likely to produce arc; Only use tools and devices approved for the work being done; Do not to use tools and devise without testing / inspecting; Prevent unauthorized persons from entering the work zone; Prevent unauthorized vehicles from entering the work zone; and Barricade exposed openings / obstructions. Due to deteriorated station conditions, extended operation practices are required to ensure personnel, customer and equipment safety. These include: Page 8

10 1. Station shutdowns may be required for equipment / fuse replacements due to lower conductor / ground clearances, which would otherwise be done in an energized state. Crews doing maintenance may elect, through their safe work planning, to extend the outage boundaries in the substation to effect the necessary repairs. 2. In some cases, switch operations may require a shutdown since the switch alignments do not permit operations while energized, thereby extending the outage times to customers and increasing costs. 3. In other situations, the isolating switches are very hard to operate from the ground using live line tools. The confined space between the fence and the switch creates a hazard and requires a bucket truck to allow the switches to be operated from outside the fence, thereby extending the outage to customers and increasing costs. Page 9

11 Q3.0 Reference: Exhibit B-1 Application pp. 28 and 29 FortisBC states that the overall load growth in the Kettle Valley area is expected to be 7.8 percent. Q3.1 Please provide a table showing actual loads per station, the capacity of each substation and the expected load growth for each station. Please also identify the expected cause of the load growth. A3.1 An updated load forecast for substations in the Kettle Valley area is shown below. The most significant change is the decommissioning of Baldy Transformer 1 in late 2005 and the transfer of this load to Rock Creek Transformer 2. KETTLE VALLEY LOAD Substation Transformer WINTER HISTORICAL Table 3.1 WINTER PROJECTED LOADING Capacity 2004/ / / / / / / / /27 MVA KVA MIDWAY T ,100 7,227 7,190 7,236 7,283 7,331 7,379 7,428 7,996 ROCK CREEK T ,468 2,448 2,552 2,594 2,636 2,678 2,720 2,762 2,973 ROCK CREEK T ,440 2,253 2,291 2,838 3,385 3,933 4,480 5,027 5,411 BALDY T , GREENWOOD T ,160 2,411 2,261 2,313 2,366 2,420 2,474 2,530 2,723 TOTAL 14,467 14,339 14,294 14,981 15,670 16,362 17,053 17,747 19,103 % GROWTH W.R.T. 2003/04 (12.5 MVA) 16% 15% 14% 20% 25% 31% 36% 42% 53% Refer to CPCN Page 28 % AVERAGE OVERALL LOAD 5.2% GROWTH DURING 2003/04 TO 2011/12 Forecast load growth for the Kettle Valley area assumes normal household growth for this region. Growth on the Rock Creek Transformer 2 is expected to be above the area average due to probable development activity at the Mt. Baldy Ski area. The forecasted annual contribution of the Mt. Baldy Ski hill area to the regions growth is approximately 500 kva. The table above replaces Table 5 at Page 28 of the CPCN Application. Overall load growth in the Kettle Valley area during 2003/04 to 2011/12 period is now expected to be 5.2%. Page 10

12 Q4.0 Reference: BCUC IR FortisBC notes that it has no contractual commitments from the Mt. Baldy Resort, which incorporates a number of residences. Q4.1 What portion of the above load increase is attributable to the Mt. Baldy Resort development? A4.1 The forecasted annual contribution of the Baldy ski hill area to the region s growth is 500 kva. Q4.2 Please provide Mt. Baldy Resort s development plan and business plans for the resort. A4.2 The complete Baldy Ski Resort Expansion Master Plan can be downloaded from the following Website: An Executive Summary is attached as Appendix 4. Q4.3 Has FortisBC evaluated these plans to determine the likely hood of them being completed with in the development time frame claimed by the developers? If so, please provide your analysis and the reasons for your conclusions. If not, please explain FortisBC s confidence in the load forecast for this area. A4.3 In line with all larger development plans, FortisBC planning staff reviewed the Mt. Baldy master plan primarily to evaluate the ultimate load impact the development would have if completed in its entirety over the 20 year period as proposed by the plan. Based on proposed residential unit development the ultimate demand is in the range of 10 MW, and the contribution to the forecast for the five-year planning horizon is approximately 500 kva/year. The Project supports this forecast growth but it is not a driver either for the KVP or for any immediate capital investment. Activity and load are monitored annually to re-evaluate the forecast. Q4.4 Please describe the facilities that are being constructed to serve the load at the Mt. Baldy resort. A4.4 There are no new facilities being constructed to serve load at the Mt. Baldy resort. The Page 11

13 Mt. Baldy area will be fed from the existing Rock Creek Feeder 2 which will be reterminated at the Kettle Valley Substation and designated Kettle Valley Feeder 1. Q4.5 Is this system extension being built pursuant to FortisBC tariff schedule No. 74? If these facilities are being built pursuant to Schedule No. 74, please confirm that the costs for the extension are not part of this application, if not, please explain why not. A4.5 Schedule 74 - Extensions is applicable to the construction of an addition, or extension of, the Company s distribution system. As stated, no new facilities are being constructed to serve the Baldy area load. Q5.0 Reference: BCUC IR The impact of renewable energy alternatives for the Mt. Baldy Village is not factored into the load forecast. The PowerSense group contacted Mt. Baldy Ski Corporation regarding their master plan development and a Partners in Efficiency program. Q5.1 Do the programs offered by FortisBC include geothermal and geo-exchange systems, solar and photovoltaic systems, and/or combined heat and power district heating systems? A5.1 Programs offered by FortisBC include geothermal and geo-exchange systems. Photovoltaic, combined heat and power and district heating are not offered under the FortisBC Tariff. A reduction in the load at Mt. Baldy does not impact the need for this project. Q5.2 Has FortisBC considered the potential impact of such systems on the level of investment that is or may be required to serve Mt. Baldy? A5.2 The Kettle Valley Project as has been indicated earlier is not a load driven project. FortisBC has reviewed the Mt. Baldy master plan and estimated the load increase on the hill as a result of the proposed development of the ski resort. Only those energy efficiency programs approved in the Tariff were considered. Based on load management experience at Big White Ski Resort, it was estimated that for Page 12

14 every MW of load on the hill, the demand could be reduced by 2-3% for motor loads and 15% for all other loads, with the application of energy efficiency measures. The overall impact is estimated to be a 15% reduction of the load growth. Of the estimated load growth of 500 kva per year 2006 to 2010 (please refer to the response to Q4.1 above), energy efficiency is expected to save 75 kva per year. A reduction in the load at Mt. Baldy does not impact the need for this project. Q5.3 Please describe in detail the relationship between FortisBC and Mt. Baldy with respect to renewable energy systems. A5.3 FortisBC contacted Mt. Baldy Ski Corporation in 2005 regarding their master plan for development at the hill and outlined the energy efficiency programs offered by FortisBC. The company plans to enter into a formal Partners-in-Efficiency service during Under this arrangement, FortisBC and developer will review planned capital projects annually to ensure that practical energy efficiency measures are built into the expansion design. A reduction in the load at Mt. Baldy does not impact the need for this project. Q6.0 Reference: BCUC IR Q6.1 What is the present capacity of the Rock Creek substation? Please compare this capacity to the expected load growth in this area (including the Baldy resort) and show what portion is attributable to the Baldy Resort. A6.1 Please refer to the load forecast and substation capacity of the Kettle Valley region provided in response to Q3.1 above. The combined capacity of the Rock Creek Substation transformers is 7.5 MVA. Based on the forecast, the capacity of the Rock Creek substation will be exceeded after Of the 7.8 MVA of demand in 2011, approximately 3.7 MVA or 47% of the load on the station is attributable to the Baldy resort. As previously stated, the KVP is not influenced by Mt. Baldy Ski Resort development. Page 13

15 Q6.2 Please explain what options FortisBC has for serving this load if it materializes. What kind of lead-time is necessary to implement these options? A6.2 In the short term load can be transferred from the Rock Creek Transformer 2 to Transformer 1, however, in the longer term and in the absence of the Kettle Valley Project, the future Baldy Load could be served by increasing transformer capacity at the Rock Creek substation. The lead-time required is estimated at months. Q7.0 Reference: BCUC IR Q7.1 Please explain the n/a entries in Table A2.4 and, if appropriate, substitute the kva values. A7.1 The n/a entries indicate data not available. Not all substations are monitored monthly. Off peak loads are sometimes collected during normal station inspections, but for planning purposes only the summer and/or winter station peaks are required. Estimated values of the n/a are highlighted in the Table below: LOAD IN kva MONTH / YEAR January 2,540 5,150 5,320 February 1,940 3,930 4,060 March 1,440 2,930 3,030 April 1,390 2,817 2,914 May 1,300 2,635 2,725 June 1,170 2,370 2,440 July 820 1,662 1,719 August September 800 1,622 1,677 October 1,150 2,340 2,410 November 1,600 3,250 3,360 December 2,600 5,270 5,450 Page 14

16 Q8.0 Reference: BCUC IR FortisBC notes that there is no mobile substation available to provide backup at 161 kv. FortisBC further notes that, without the additional 138 kv breaker at Kettle Valley, the remaining transformer would be directly connected to one of the incoming transmission lines. In that scenario, a fault on the transmission line would cause an outage to Kettle Valley load, a situation that results in a violation of FortisBC s N-1 transmission reliability criterion. A8.0 The single contingency, also known as N-1 contingency, for a transmission system emanates from the loss of a single transmission component at any time. An N-1 compatible transmission network should be able to withstand a single transmission component failure and still be able to maintain the supply of electricity within specified operating limits. Q8.1 Can FortisBC s N-1 planning criterion be met by using either two substation transformers or one substation transformer with along with provision for a mobile unit? A8.1 FortisBC s N-1 planning criterion may be met by either using a single or a two / multi transformer substation depending on system load and capability of the adjacent system network to ensure back up capability under N-1 contingency. Satisfaction of the N-1 planning criterion in substation design is not contingent upon a mobile transformer in either a single or a multi transformer substation. Please also refer to the response to Q8.2 below. Q8.2 If yes, how does FortisBC determine which of the two configurations is to be implemented at a particular substation? A8.2 For loss of the transformer in a single transformer substation (N-1 contingency), 80% of the peak load normally supplied by that transformer must be able to be supplied from the remaining substations / distribution feeders in the area. Full recovery may be dependent on installation of a mobile transformer, but a mobile transformer under such circumstances is not expected to share more than 20% of the station load under peak load Page 15

17 periods. On the other hand, for loss of a single transformer in a multi transformer substation, 100% of the peak load must be able to be supplied from the remaining transformer(s) alone or in a combination with other available supplies in the area. Most distribution load in the FortisBC system is fed from sub-transmission lines that are supplied from major terminal stations. These terminal stations are operated meshed with two or more sources of supply to meet the N-1 planning criterion, therefore satisfaction of N-1 Planning Criterion in substation design is not contingent upon a mobile transformer in either a single or a multi transformer substation. Q9.0 Reference: BCUC IR The cancellation or delay of the Kettle Valley project would have no effect on the Baldy project. However, as the Baldy load is now supplied by the Rock Creek substation, that load along with all other Rock Creek load, will be at risk as the area power requirements increase. Q9.1 What is the existing capacity of the substation? A9.1 The present capacity of the Rock Creek Substation is 7,500 KVA (7.5 MVA). Please also refer to the response to Q3.1 above. Q9.2 Please provide the peak load on the substation for each of the last five years, as well as the projected load for the next five years, in the former case as adjusted to account for the load that has been transferred to the substation. A9.2 The requested information is provided below. Winter Historical (kva) Winter Projected Loading (kva) 2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/ / /12 Rock Creek (ROC 1) Rock Creek (ROC 2) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 2,255 2,024 1,983 2,468 2,448 2,552 2,594 2,636 2,678 2,720 2,762 1,426 1,114 1,243 1,440 2,253 2,291 2,838 3,385 3,933 4,480 5,027 Page 16

18 Q10.0 Reference: BCUC IR FortisBC discusses two options for the substation location. Q10.1 Has a final recommendation been made? A10.1 Yes, a final recommendation has been made. FortisBC has secured an option to purchase land in District Lot 471, approximately five kilometers west of the existing Rock Creek substation (Site A). The theoretically ideal site for the substation construction is: flat or relatively flat; immediately adjacent to 11 Line, which would be the transmission source; adjacent to the 9 Line/10 Line corridor, one of which would be converted in whole or in part to a 25 kv express distribution circuit; geotechnically suitable; free of any environmental or archaeological concerns; and separated from nearby residences to minimize sound, visual and other perceived disturbance. The site selected meets all of those criteria. Q10.2 If a recommendation has been made, what were the deciding factors? A10.2 Several potential sites in the area were evaluated at a high level, and two were assessed in detail. Site A (the preferred site) was initially selected, but a second site was suggested at an area residents meeting. This site (Site B), roughly seven kilometers west of the Rock Creek substation, was reviewed from an engineering and cost perspective. It is further away from Highway 3 and is hampered by poor access. In addition, the portion of land that the landowner was willing sell was less than ideal for construction, involving rock blasting and increasing the cost of the ground grid. The estimated cost increase for road construction and site civil costs was conservatively in the order of a $700,000 over Site A. The road would have also required two additional land easements from separate property owners. Page 17

19 For these reasons, Site A was identified as preferred. Q10.3 Please describe the involvement of local residents in the decision since the time of the response to Commission IR #1. A10.3 On November 2, 2005, a meeting was held with approximately 15 area residents to explain the project needs and solicit stakeholder input. The roster of attendees with properties in close proximity to the substation site was provided by one of the residents. The meeting lasted for over two hours, with the primary concerns being visual impact, EMF and noise. An alternate site (Site B as described in 1.2 above) was suggested and a commitment was made to investigate the site for viability, which was subsequently done. The attendees seemed to be concerned that the project impacts not merely be transferred to another person or group or people, and recognized that the original site may be required if the alternate site was inadequate. FortisBC also committed to work with the community to minimize the impacts where practical, and allow public access to the land for recreational use, such as horseback riding and walking. A discussion was also held regarding the potential for weed control, which was well received. The Company intends to have a follow-up meeting with interested residents once there is more certainty about the substation location and construction timing. On February 6, 2006, a meeting was held with Regional District representative to describe the project and the residents concerns. The representative agreed to work with FortisBC to coordinate the second public meeting when adequate information had been gathered, primarily the substation location. Page 18

20 Q11.0 Reference: BCUC IR 1.17 FortisBC notes that the detailed engineering for the Bentley project, as well as its timing, will be explored in the South Okanagan Transmission Reinforcement Project. Certain decisions about the existing Oliver Substation and the use of 161 kv also depend on the South Okanagan project. Q11.1 When will the South Okanagan studies be completed? If they are completed please provide them. A11.1 The Okanagan Transmission Reinforcement ( OTR ) project is currently in the planning phase and has been the subject of high-level review. A more rigorous and exhaustive study is scheduled to begin in May 2006, with the OTR project CPCN application expected to be submitted by year-end. The complete studies will then be submitted as part of the OTR CPCN application. Q11.2 What would be the impact of delaying the Kettle Valley project until the South Okanagan study has been completed? If a detrimental impact on reliability is expected, please provide FortisBC s best quantitative estimate of that impact. A11.2 The OTR project does not have any impact on the need for KVP. The primary drivers for the Kettle Valley Project are safety and reliability of power supply in the Boundary. The existing 63 kv transmission system from Warfield to Baldy was originally constructed in the early 1920s and 1930s. Although regularly maintained over the years, many segments of this system have effectively reached the end of their service life. To keep them in service significant portions of these facilities now require accelerated sustaining investments, making them prime candidates for either complete rebuild or salvage. While it is difficult to quantify the detrimental effect, this situation, if not addressed, is very likely to result in system failures and consequently lower levels of safety, reliability and customer satisfaction. The Boundary area substations and in particular the Midway Substation require rehabilitation of the 63 kv switching facilities, 13 kv switchgear, station civil and station security to ensure continued safe operation. Compounding the Page 19

21 situation is the fact that Greenwood Substation, though not capacity restricted, is an old substation with the transformer dating back to 1934 and is double its expected service life, which generally is 30 to 40 years. Secondly, in the present system, for the failure of the 161/63 kv Grand Forks Transformer 1, the only remaining source of Boundary area supply is via 9 Line and 10 Line from Warfield. Shedding of all loads west of Grand Forks will be required to maintain a tolerable minimum voltage level during system peak periods. Since a mobile transformer is not available, emergency relocation of a compatible transformer from another location such as Oliver, subject to its suitability, may take up to six weeks before supply can be fully restored. Q11.3 Has FortisBC considered using the 161 kv facility at 69kV? If so, please comment on the relative advantages and disadvantages of this voltage compared to the 138 kv option. If not, please explain why. Would this voltage class eliminate the need for a Bentley substation? A11.3 Yes, FortisBC has considered using 161 kv facilities at 63 kv and concludes that 11 Line cannot be dropped to 63 kv after the construction of Bentley Terminal. In case of a single contingency (outage of Vaseux Lake Terminal Bentley) 11 Line at 63 kv cannot supply the loads in Boundary and Oliver (please refer to Alan Wait IR1, Q15: 2006 System Development Plan Update). Secondly, if the Kettle Valley substation is operated at 63 kv it will be supplied from Grand Forks Terminal. In the case of an outage of the 161/ 63 kv transformer at Grand Forks the existing 63 kv system (9 Line and 10 Line out of Warfield) is not capable of supplying the entire Boundary area load. Shedding of all loads west of Grand Forks would be required to maintain a tolerable minimum voltage level during system peak periods. Moreover, it will also necessitate the condition assessment based work identified at the Rock Creek, Greenwood and Midway substations that is not required with the new Page 20

22 substation at Kettle Valley (please refer to Appendices: 1A, 1B, 2A, 2B, 3A and 3B). The new substation at Kettle Valley, whether operated at 138 kv or 161 kv, will provide a new source to all loads west of Grand Forks and will improve the reliability of supply by reducing the criticality of the transformer outage at Grand Forks. It will also eliminate the reliability issues in the existing substations. With Kettle Valley in service, in case of transformer outage, the load at Grand Forks and Christina Lake can be supplied at 63 kv from Warfield. The KVP will not eliminate the need for Bentley substation. Bentley will be required when Vaseux Lake Terminal is upgraded for 230 kv operations to meet the reliability requirements for the Kelowna load. Q11.4 Please describe the drivers for the conversion to 138 kv. Please also describe the expected timing for this conversion. If the driver is the failure of a system element (i.e., a transformer), please describe the condition and expected life of the element. A11.4 A conversion to 138 kv might be considered in the event of a failure of any one of the two existing 161/63 kv transformers at Mawdsley. However, failures of the Mawdsley transformers is not anticipated, especially since their existing loadings will be reduced, increasing their remaining life expectancy, following implementation of the KVP. The typical service life / useful life window for a transformer is 40 years. After a transformer reaches its service life, comprehensive evaluation of the unit is generally conducted which may result in: (FortisBC System Development Plan, Appendix D, Page 10 Maintenance Planning Report) 1. Equipment Replacement 2. Life-Cycle Rehabilitation 3. Re-assessment of remaining life A comprehensive assessment has not been carried out at Mawdsley but a basic assessment is given below: Page 21

23 EQUIPMENT RATING VOLTAGE CLASS YEAR OF MANUFACTURE AGE (Years) PRESENT CONDITION LIFE EXPECTANCY Mawdsley T1 80 MVA 161 / 63 kv Fair 5-8 Years Mawdsley T2 80 MVA 161 / 63 kv Good 10 Years 12.0 Reference: BCUC IR , through Q12.1 FortisBC s responses to these information requests deal with its 161 kv assets. Q12.1Please provide a detailed financial comparison of the Bentley, Kettle Valley, and Grand Forks projects (as a group) under three scenarios: one in which the project envisions using only 161 kv assets indefinitely, one in which the 161 kv system is used initially and then converted to 138 kv (essentially the application), and one in which the 138 kv system is built immediately. Planning estimates may be used where more detailed information is not yet available. A12.1 Detailed financial information is not available for future projects such as the Okanagan Transmission Reinforcement (Bentley) Project or the Grand Forks Solution Project which will be the subject of future CPCN applications. A high level comparison of the three scenarios, without the privilege of detailed engineering analysis is provided below. The following scenarios are considered: Scenario 1: 161 kv assets to be retained indefinitely. This will eliminate the need to have the third 138 kv winding in the two Kettle Valley transformers and the proposed Bentley Transformer 2. The estimates provided exclude any age related replacement costs of the existing 161 kv equipment. Any 161 kv equipment that might necessitate a replacement will incur higher replacement cost, since 161 kv voltage level is not considered a standard voltage level in the utility industry. The Grand Forks Terminal Project is also excluded since the KVP may defer beyond the planning horizon of Scenario 2: 161 kv system to be used initially with provision to convert to 138 kv system later. This will require the third (138 kv) winding in the two Kettle Valley transformers and the proposed Bentley Transformer 2. The estimates provided exclude Page 22

24 any age related replacement costs of the existing 161 kv equipment. The Grand Forks Terminal Project is also excluded since the KVP may defer beyond the planning horizon of Scenario 3: 138 kv system. This configuration could not be operational until after the Bentley Project (OTR) during the 2009/10 timeframe. Since it would be necessary to have a 138 kv source at Warfield Terminal Station ( WTS ), relocation of Bentley Transformer 3 to WTS and decommissioning of the Mawdsley Terminal Station would be necessary. Deferring the KVP beyond 2009/10 is not prudent for the reasons discussed in this submission. In Figure 5 at page of 10 the Application 11 Line from Mawdsley to the Kettle Valley Substation and 48 Line from the Kettle Valley Substation to Oliver are labeled as 138 kv. A reduction in voltage of 11 Line/48 Line from 161 kv to 138 kv has been considered, but as stated in previous responses, FortisBC currently foresees no such requirement and anticipates the voltage to remain at 161 kv throughout the long-term planning horizon. Page 23

25 Scenario 1: 161 kv system / assets to be used indefinitely ($million) Reduction of cost w.r.t. scenario 2 (Present Application): 138 kv winding of the Kettle Valley T1 & T2 Transformers (0.15) 138 kv winding of the Bentley T2 Transformer (0.08) Addition of cost w.r.t. Scenario 2: NIL NET PROJECT COST SCENARIO 1: Scenario 2: 161 kv system is used initially and then converted to 138 kv (Present Application) The combination of the Kettle Valley & the Bentley Project Cost estimated at Grand Forks Project may be deferred beyond the Planning Horizon if KVP matures Refer SDP 2004 & KVP CPCN 52 Scenario 3: 138 kv system Reduction of cost w.r.t. Scenario 2: 138 kv winding of the Kettle Valley T1 & T2 Transformers (0.15) 138 kv winding of the Bentley T2 Transformer (0.08) Addition of cost w.r.t. scenario--2: NIL 138kV Ring Bus at Bentley 2.00 Replacement of existing GFT T1 by a 138/63 kv Transformer 1.00 Install proposed Bentley T3 at Warfield Terminal Station kv Ring Bus at Warfield Terminal Station 0.80 Salvage of Mawdsley Terminal Station 0.50 NET PROJECT COST SCENARIO 3: Note: These estimates are at the planning level only and are subject to change upon detailed engineering analysis. Page 24

26 Q13.0 Reference: IMEU IR The existing 63/13 kv transformer at Grand Forks was installed in The peak load on the 20 MVA transformer was 4.4 MVA in Q13.1 Given a load of 4.4 MVA, why was a 20 MVA transformer used here? A13.1 The Grand Forks Terminal T3 transformer replaced the previous Grand Forks Terminal Transformer 3 (2 MVA rated) to increase capacity. It is also used to off-load Ruckles substation in place of upgrading Ruckles Transformer 1. Winter 2005 loading of Grand Forks Terminal Transformer 3 was 6.39 MVA. The Grand Forks Terminal Transformer 3 is expected to pick up another 5.0 MVA of load to relieve Ruckles substation by 2010 and is expected to reach 12 MVA. For a transformer rating of 12/16/20 MVA, 16 MVA is the maximum continuous rating and 20 MVA is considered an emergency rating. Page 25

27 APPENDIX 1A ROCK CREEK SUBSTATION CONDITION REPORT Note: Factors relevant to the Information Requests are hilighted. Page 26

28 Location and Aspect Rock Creek substation is situated on Highway 3 just west of the Town of Rock Creek. The substation perimeter fence consists of 6 chain link fence with a 1 barbed wire top. The substation is located off the highway; access is via an unpaved road. The substation provides step down Voltages from 63 kv to 25 kv. The substation function is to provide supplies to the local community of Rock Creek and outlying areas like Baldy Ski hill and remote communities to Beaverdell via two 63 kv transformers. General first impressions of this substation is one of cramped conditions, too much equipment in too small a space to work safely, the other striking issue is the visible poor conditions of the wooden bus bar supports and overall structures. These issues and others will be addressed in detail below. Buildings & Civil Climbing aids All the equipment is located greater than 1 meter from the perimeter fence line no problems to report with respect to climbing aids. Vandalism There is no evidence of any vandalism. Building Structure No structures present Washroom Facilities No washroom facilities present. Drawing & Records No facilities to store schematic and wiring diagrams or any engineering drawings, this should be corrected with the erection of a suitable cabinet to house drawings. Cable trenches No cable trenches present. Page 27

29 Ground Grade Drainage - the site is flat with no drainage issues, Stone - the ground crush around the high-voltage equipment is inadequate; the entire station is in need of new stone crush to maintain safety standards. Weed control no visible signs of weeds. Storage No materials are being stored here. Statutory Requirements Perimeter Fence & Security Some steel members of the perimeter fence are lacking grounding conductors. Install additional grounds to fence line. The substation gates are adequately bonded via flexible braids. Notice boards The emergency response plan is located within the lockout box and is well maintained System single line diagram is out of date. Lighting External compound light consists of one dusk till dawn light. This does not provide suitable coverage for the site during nighttime hours. Additional lighting is required. Fire Control Equipment One fire extinguisher located within the compound last inspected January 2005 Electrical Systems LV Auxiliary Supplies The 15 kva station service transformer is in good condition, AC panel requires upgrading. The station services transformer is fed from transformer T1 25 kv bus bars. LV supplies are lost when T1 is switched out under maintenance or outage. Page 28

30 DC Supplies No DC Supplies available Below Grade Services All below grade LV auxiliary wiring appear to be in sound condition running in steel rigid pipe. No HV cables present. Circuit Breakers / Reclosers Designation FDR1 Designation FDR2 Manufacturer Kyle Type NOVA 27 Manufacturer Kyle Type NOVA 27 Rating 630A Rating 630A Voltage 27 kv Voltage 27 kv Interrupting 12.5kA Interrupting 12.5kA Insulation Vacuum / Epoxy Insulation Vacuum / Epoxy Date of Manf Date of Manf Both Reclosers are recent addition to the station, replacing an old Westinghouse oil breaker. No problems have been recorded with the new reclosers. All conductors connected to the reclosers infringe safety clearances, the reclosers height needs to be increased to allow for correct safety clearance to ground. Associated Equipment There are no associated switches with these reclosers. Transformer T1 PI Designation T1 Manufacturer Federal Pioneer Page 29

31 Type Rating Voltage Temp Rise ONAF 4.5MVA 63 / 25 kv 65C Date of Manf Serial No. R All paintwork is generally very good with some minor rusting to the cooling fins and conservator tank. Oil leaks are evident around the main tank lid with signs of fresh oil, together with some minor oil leaks from the cooler outlets from the transformer, this need to be addressed at the next maintenance. Replacement of H3 - HV bushing was completed during previous maintenance intervals in Doble testing identified acceptable levels for H1 & H2 Bushing. The bottom tank sample point is a one-inch drain valve. Cooling is provided by three independent banks of cooling radiators. Two cooling fans are provided for additional cooling. The oil quality is borderline (dark Amber colour with an IFT less than 17), records indicate that the oil is reaching decline point knee point the quality will degrade rapidly over the next two to three years, future replacement will be required to maintain correct operating conditions. Doble testing of the oil confirm these lab tests. The 63 kv GAP type surge arresters are now providing poor reliability and require replacing. Doble testing records completed in 1996 indicate a questionable condition, these should be replaced. DGA results indicate increasing activity within the transformer tank; the levels of Hydrogen gas indicate active partial discharges are occurring. A steady increase in Carbon Monoxide indicated this too with cellulose paper degradation occurring. This transformer is running towards failure and reconditioning or replacement is recommended to avoid associated safety and environmental costs / exposure. Associated Equipment No LTC Tap Changer T1 Regulator Bank. Recent problems with the operation of the centre phase (B phase) regulator have been Page 30

32 corrected. Controller working fine, the fault is with the operating mechanism jamming. The same fault occurred in the A phase regulator in previous years. The C phase regulator (which is different to A&B phases) requires the controller to be upgraded to a CL5 controller. At present, no meter readings are available for C phase due to the outdated controller. The passive components in this controller are prone to failure with age. The platform on which the regulators are situated is showing signs of advanced rotting and requires replacement within the next 2 3 year period. The distance to the base of the high Voltage insulators are within safety clearances, the regulators should be raised to a safe working height to accommodate this safety clearance. The potential to achieve this difficult as space above the regulators is limited. Relocation to a structure outside the station on the line should be considered, this would also improve the limited space issues within the station. T1-F HV Fuses Operational configuration issues prohibit safe replacement of the HV fuses unless the whole station is isolated by opening the HV line disconnector (10-1 or 9-1). Each transformer should be provided with HV disconnects upstream of the fuses to enable efficient isolation. No facility or space within the substation exists to provide this upgrade. Transformer T2 PI Designation T2 Manufacturer General Electric Company (GEC) Type Rating Voltage Temp Rise ONAN 2MVA 63 / 25 kv 55C Date of Manf Serial No All paint work is in good condition. With no visible signs of corrosion. Oil leaks are evident around the main tank lid. The conservator tank (around the sight glass) and radiator fins are showing signs of significant oil leaks, the radiators look to be leaking from the main transformer connections, this will need to be corrected during Page 31

33 maintenance. Doble testing indicate the transformer is in sound condition. The bottom tank sample point is a one inch drain valve. Cooling is provided by six independent banks of cooling radiators. No cooling fans fitted. The oil quality is very good considering the age, with no foreseeable work required in the near future. DGA results indicate no evidence of over heating or partial discharge, which is quite remarkable considering the age of the unit. T2-F HV Fuses Operational configuration issues prohibit safe replacement of the HV fuses unless the whole station is isolated by opening the HV line disconnector (10-1 or 9-1). Each transformer should be provided with HV disconnects upstream of the fuses to enable efficient isolation. No facility or space within the substation exists to provide this upgrade. Associated Equipment No LTC Tap Changer T1 Regulator Bank. No problems to report. The distance to the base of the high voltage insulators do not meet safety clearances, the regulators should be raised to a safe working height to accommodate this safety clearance. The potential to achieve this is difficult as space above the regulators is limited. Relocation to a structure outside the station on the line should be considered, this would also improve the limited space issues within the station. Capacitor Bank Not Applicable Mobile Station Access No mobile facilities exist at the substation. Plans to correct this have failed due to limited space, the mobile is located away from the station and consequently no LV supplies are available whilst working in the substation during maintenance. Page 32

34 Telecoms Non-Present Protection Transformer protection is in the form of HV fusing, single phasing issues arise during loss of HV fuse. Metering No metering present. Only indication is from the CL 5C Regulator controllers. Bus Bars & Structures All 63 kv wooden structures are showing signs of severe degradation with large splits evident; on sounding of the poles the results indicate a dull thud which is a sign of internal rotting. Testing is required to ascertain the level of rot with a view to changing in the near future. The overall structural design of the wooden HV supports compromises safety, safety clearances are infringed during certain operational and maintenance activities. All porcelain insulators within the substation appeared to be in good order with no signs of damage. Ground Grid & Grounding All switch handles appear to be adequately bonded to ground; the switch ground mats are undetermined, at the time of this report. Ground grid condition should be checked for any corrective recommendations. A number of grounding conductors are above grade, which is of concern; these conductors also pose tripping hazards. The whole grounding system should be investigated for correct depth and soil resistivity. Stone crush is deficient within the substation and along the perimeter fence line outside the substation. A full crush depth is required to correct this deficiency. Addition Comments No further comments. Page 33

35 APPENDIX 1B ROCK CREEK SUBSTATION CONDITION PHOTOS Page 34

36 Rock Creek Substation Condition Related Photographs Substation overall indicating cramped conditions too much equipment in such a small footprint makes safe working and switching a challenge. No mobile access Complex wooden structure is difficult to access and maintain notice the over-sailing live 63 kv circuits above which make working below them hazardous Page 35

37 Indication of the low 25 kv bus, which does not meet current safe limits of approach. These new reclosers replaced the old oil units, which had a different conductor orientation. Space limitations prohibited the reclosers from moving higher. Page 36

38 Voltage regulators are in a cramped location, the live 25 kv conductors are within safety limits and the wooden supports need to be replaced shortly. External grounding along the perimeter fence is in poor shape, notice the lack of crushed rock, this is below acceptable standards. Page 37

39 Transformer oil leak from the cooling radiators, these leaks have in the past been suppressed, the ultimate work will be to strip the transformer down and replace all the gaskets, then refill the oil. It is difficult to capture the extent of distortion and degradation of the wooden supporting structure but the picture below indicates the aging of the structure. Unlike steel structures that once galvanized will remain structurally strong for decades, these wooden structures degrade which makes it very difficult to ascertain the remaining load bearing strength left within them. Ultimate replacement of all the structures will be required shortly. Page 38

40 APPENDIX 2A GREENWOOD SUBSTATION CONDITION REPORT Note: Factors relevant to the Information Requests are hilighted. Page 39

41 Location and Aspect Greenwood substation is located to the rear of the overhead line depot, situated in a clearing of trees. The perimeter fence consists of 5 chain link fence with a 1 barbed wire top. The substation provides step down Voltages from 63 kv to 13 kv. The function is to provide supplies to the local community of Greenwood via three 63kV single phase transformers. Buildings & Civil Climbing aids The 63kV termination pole is too close to the fence line and acts as a climbing aid; this should be relocated to increase security. Several long timbers stored within the station should be removed as these could also serve as a climbing aid. The fence height is below acceptable standards (5-foot chain link with 1-foot barbed wire top) and need to be re constructed to meet engineering standards. The base of the fence line is inadequate, with several potential point of entry where substation security is compromised. Installation of a concrete curb around the perimeter fence will improve security. Vandalism There is no evidence of any vandalism. Building Structure Not Applicable Washroom Facilities Not Applicable Drawing& Records No facilities to store schematic and wiring diagrams or any engineering drawings, this should be corrected with the erection of a suitable cabinet to house drawings. Cable trenches No cable trenches present. Page 40

42 Ground Grade Drainage - the site is flat with no apparent drainage issues, Stone - the ground crush in the substation is inadequate and requires re stoning to meet current safety engineering standards, this is an integral part of the whole ground grid system and should be completed upon complete upgrade of the ground grid. Weed control no visible signs of weeds. Storage Several lengths of long timbers are being stored within the station these should be removed. Statutory Requirements Perimeter Fence & Security All steel members of the perimeter fence are adequately bonded to a questionable ground. The substation gates are also adequately bonded via flexible braids. Notice boards The emergency response plan is located within the lockout box and is well maintained System single line diagram is out of date. Lighting External compound light consists of two dusk till dawn lights. Operations personnel report that the lighting is inadequate and have request relocation or additional lighting. Fire Control Equipment One fire extinguisher located within the compound last inspected February 2005 Electrical Systems LV Auxiliary Supplies The 15 kva station service transformer is in good condition, AC panel manufactured by Cutler Hammer. The circuit breakers are well labeled with plenty of capacity. DC Supplies No DC Supplies available Page 41

43 Below Grade Services All below grade a LV auxiliary wiring appear to be in sound condition running in PVC high impact tubing. No HV cables present. Circuit Breakers / Reclosers Designation FDR1 Manufacturer Kyle Type NOVA 27 Rating 630A Voltage 27 kv Interrupting 12.5 ka Insulation Vacuum / Epoxy Date of Manf Designation FDR2 Manufacturer Kyle Type NOVA 27 Rating 630A Voltage 27 kv Interrupting 12.5 ka Insulation Vacuum / Epoxy Date of Manf The Reclosers are a recent addition to the station, replacing the Westinghouse oil breakers. Recent problems on Recloser FDR2 have been corrected, the loss of AC supply to the battery charger inside the Recloser controller caused the controller battery bank to fail this effectively disabled the Recloser making tripping via protection impossible. No alarms or communication to substation are available so these types of problems are only identified during monthly inspections or opportune visits. Associated Equipment There are no reported problems with the associated switches for these reclosers. Transformers PI Designation T1A Manufacturer Canadian Gen Electric Type ONAN Rating 1MVA Voltage 63 / 7.2 kv Temp Rise 40 C Date of Manf PI T1B Canadian Gen Electric ONAN 1MVA 63 / 7.2 kv 40 C 1934 PI T1C Canadian Gen Electric ONAN 1MVA 63 / 7.2 kv 40 C 1934 Page 42

44 Paintwork on all three units is generally good considering the age of these units, some minor rusting to the cooling fins and conservator tank. Oil leaks are evident around all three transformers with minor leaks to all gasket joints and valves. Nothing can be economically done to correct these deficiencies. No electronic Doble records exist for these transformers. Service reports indicate one of the HV bushings fitted to T1A is leaking which results in the oil level within the bushing dropping well below the sight glass, efforts to correct the leak were made in 1988 but failed. The transformer is classed as Wet, the oil is saturated with water, and the general oil quality is very poor and is beyond salvage using reclamation equipment, complete replacement of the oil is required to maintain reliability and maintenance standards. DGA results indicate partial discharge events and periods of overheating probably due to heating effects on high resistance joints. Abnormal levels of Carbon Monoxide indicate advanced paper degradation for all three units. Events indicate either high temperature overloads have taken place or problems with overheating connections are the cause, the load data for the transformer indicates peaks around 4,500 kva which makes the most likely cause being poor connections within the transformer. The oil temperature indicators read around 60 C for these periods, unfortunately, there are no winding temperature indicators on this transformer to ascertain whether short duration thermal overloading could be a possible cause due to cold load pickup after a power outage. Associated Equipment No LTC Tap Changer T1 Regulator Bank. Voltage regulation is provided by three Cooper Power 200A Regulators manufactured in The monthly inspection sheets indicate satisfactory tap positions under maximum loadings. All bypass switches operating correctly with no reported problems. T1-F HV Fuses No reported problems to date. 63 kv Line switches 9-1 Switch No significant problems reported. Incorrect nomenclature displayed on Page 43

45 switch Switch - Maintenance and field operational personnel report poor alignment and sloppy operation problems are experienced on closing, requiring several operations to make proper contact. Blade ends are bent out off shape due to difficult operation. Incorrect nomenclature displayed on switch. Capacitor Bank Not applicable Mobile Station Access No HV facility exists to connect to switches, the mobile is connected directly onto the line. Future plans should include a new additional structure to facilitate safer mobile HV connection. Telecoms Non Present Protection Transformer protection is in the form of HV fusing. Metering Metering is provided by the CL 5C Regulator controllers fitted to the transformer together with metering from the Form 4C Recloser controllers fitted to FDR1 & FDR2. Bus Bars & Structures All 63 kv wooden structures are in reasonable condition given the age. Signs of degradation are evident. All porcelain insulators within the substation appeared to be in good order with no signs of damage. Ground Grid & Grounding The ground grid is not to current safety standard, several trial excavations where made around the fence line with no signs of copper present in the ground. The whole ground grid is suspected to be below acceptable safety standards All switch handles appear to be adequately bonded to ground. There is no sign of grounding mats located below the operator position, this need to be corrected with the recommended ground grid upgrade. Addition Comments Page 44

46 Problems encountered with the loss of battery supplies to the recloser controller cannot be avoided unless station monitoring equipment is installed along with the required communication links. Once this is installed then service crews can be dispatched to correct the problems. Recommended action: - install communications and condition monitoring equipment if the station is to remain for any length of time. The transformers should be retired from service as soon as practicable to avoid any potential failures and the environmental implications connected. The addition of MOD 63 kv switches would decrease outage times if installed. The grounding system is a safety concern and should be corrected along with new stoning. Security issues need to be addressed with the replacement of the low fence and the installation of concrete curbing to the base. Page 45

47 APPENDIX 2B GREENWOOD SUBSTATION CONDITION PHOTOS Page 46

48 Greenwood Substation Condition Related Photographs Overall view of the substation showing the three single-phase 1 MVA transformer units, these transformers date back to 1934 the condition issues drive the replacement need. Fence height is only 5 feet which is below the standard height The ground below the fence line is soft sandy soil, which is eroding allowing large gaps to appear. This picture shows a steep bank to the side of the fence with the 8-10 inch gap at the bottom. Attempts have been made to back fill the gaps. The correct remedy would be to construct a concrete curb under the fence line. This picture also displays the deficiency in ground-crushed rock, which is common to the whole station area. Page 47

49 Transformer A phase HV bushing is in poor state requiring replacement. The oil level is well below the sight glass, previous attempts to stop the leak have failed. Switch 10-1 is located upon a wooden structure; poor operation and miss alignment are directly related to the bending and twisting of the wooden support members on which the switch is located. Replacement of the switch and wooden support structure cross arms is required to correct this. Page 48

50 APPENDIX 3A MIDWAY SUBSTATION CONDITION REPORT Note: Factors relevant to the Information Requests are hilighted. Page 49

51 Midway Substation Condition Report: 1. The existing site is 100 feet - 50 feet which is too small for a station of this size. 2. The fence is located 36" from the lot line on the West side, and only 12" from the lot line on the North and South sides. The requirement for new stations is a minimum of 2 metres on all sides. 3. The fence is 6 feet high, and does not meet station requirements. 4. The low voltage structure was built with less than minimum electrical clearances i.e. phase to phase spacing is 24" (minimum requirement is 36"). 5. The isolating switches in the station are a distribution class at 95 kv BIL, while the station standard is 110 kv BIL for 13 kv. 6. There is no isolation switch between the transformer and low voltage bus, which makes it impossible to connect the mobile to the low voltage structure without removing bus work. 7. The ground grid appears too small at some structures, and by the vintage of this station, is probably inadequate kv Fuses are old Dominion style and need to be upgraded. 9. Wood support beams are deteriorated and twisted to the point of causing switch failure. 10. There is a tree farm on the Northern boundary uses a water cannon sprinkling system, carrying spray into the station area despite repeated communication with the farm about the hazards. 11. The access to the station is through the Pope and Talbot compound, which is used by logging trucks and fork lifts. (Note this requires crossing the old Kettle Valley RR which is now "Rails to Trails" public biking / hiking path and part of the Trans Canada trail). Alternatively, You can drive down the 9 / 10L R/W (easement only) but this route is not useable all year without significant upgrade work. This route is sometimes blocked by the farmers equipment and in spring is impassable due to mud. 12. According to the drawings, there is an aerial trespass on the North side of the right of way where 9 line was relocated. 13. The existing station was constructed circa 1970 (capacitor bank added 1983) with the original equipment still in place. The existing transformer tapchanger requires excessive maintenance to remain functional. 14. The mobile sub can only be set up on the west side of the sub on private property, and the truck has to drive through the sub and out and around into the field to get back out. To set up on the east side would be the same problem, either drive around through the field or through the sub yard. 15. There is dust from the mill that contaminates station insulators. Page 50

52 APPENDIX 3B MIDWAY SUBSTATION CONDITION PHOTOS Page 51

53 Proximity to Private Properties: Congested Switching Facilities: Page 52

54 APPENDIX 4 Baldy Ski Resort Expansion Master Plan Executive Summary Page 53

55 Mount Baldy Resort Expansion Master Plan February 2005 Introduction BACKGROUND On behalf of the Mount Baldy Ski Corporation (MBSC), The Resort Expansion Master Plan for the Mount Baldy Ski Area has been completed by Brent Harley and Associates Inc., The Resort Planning Group (BHA), as per the requirements of the Commercial Alpine Ski Policy. THE PLANNING PROCESS In April 2004, Mountain Recreation, LLP (MRLP) completed the purchase of Mount Baldy Ski Area and associated private lands. In the Spring of 2004, BHA was retained to create the Resort Expansion Master Plan for Mount Baldy. A detailed terrain analysis of the Mt Baldy study area confirmed the technical viability for the expansion of the alpine ski resort. Anticipating a growing market demand for a mountain resort product, somewhat different than the typical ski area offering, a comprehensive vision for Mt. Baldy was created. The results of this process provided the foundation for the Master Plan. THE PROJECT VISION Mt. Baldy is a hidden gem where skiing today can be compared to what it was twenty years ago: friendly, un-crowded and affordable. MBSC intends to protect these attributes, elevating the resort s infrastructure to support current skier expectations while transforming Mt. Baldy into a profitable enterprise capable of becoming a significant fourseason tourism complement to the South Okanagan s regional economy. To that end, the Vision is: To nurture Mt. Baldy as a special place where the outdoor environment is celebrated, where people are valued, and the timeless spirit of skiing and mountain-play thrive. Supporting this, the Primary Goal is: To develop a high-quality all-season mountain resort at Mt. Baldy that offers a unique blend of recreational and adventure opportunities including (but not restricted to) low density alpine skiing and snowboarding, Nordic skiing, backcountry touring, mountain biking, hiking, golfing, horseback riding, birding and a mountain spa/water park. FIRST NATIONS RELATIONSHIP The Osoyoos Indian Band (OIB) claims that the proposed expansion of Mt. Baldy lies within their traditional territory. A key project goal is to establish an unprecedented working relationship with the First Nations in the area where economic opportunities can be shared, heritage can be celebrated, and culturally sensitive areas will be respected. MBSC and the OIB are working diligently to achieve this goal. The common vision that the parties are taking into the negotiations is that certainty must be created for MBSC, OIB and potential investors; economic opportunities associated with the project must be shared; OIB must participate in the project in a meaningful way, and OIB s culture, rights and title must be protected. Page I Brent Harley & Associates Inc. The Resort Planning Group

56 Mount Baldy Resort Expansion Master Plan February 2005 Existing Resort LOCATION Mt. Baldy is situated on the eastern boundary of the Southern Okanagan Valley approximately 40 km east of the communities of Oliver and Osoyoos and 30 km north of the U.S. border. Penticton, and the main population centre of Kelowna, are both situated to the north at distances of approximately 75 and 150 km respectively. The closest international airport is located in Kelowna, an approximate 2 hour drive. EXISTING FACILITIES Mt. Baldy currently operates on two mountain faces, the southeast face of Mt. Baldy and the west face of Mt. McKinney. All of the ski terrain is located on Provincial Crown land and is subject to an operating lease providing the ski area with approximately 188 ha (465 acres) of licensed terrain. In addition to alpine skiing, Mt. Baldy offers limited crosscountry skiing and snowshoeing. The existing area has two ski lifts, the Eagle Chair (double) and the McKinney T-bar, servicing 389 metres and 94 metres of vertical respectively. They service the 22 existing ski trails; 18 in association with the Eagle Chair and 4 with the McKinney T-bar. The existing Comfortable Carrying Capacity (CCC) of the skiing at Mt. Baldy is 799 skiers/day. The area is under-lifted with the ski lifts having less uphill capacity than the terrain s downhill capacity. Further, the developed terrain is not well balanced when compared to the accepted skier marketplace distribution. The first phases of expansion should focus on adding more beginner and low intermediate terrain. Located at the base of the mountain the three-story 600 square metre Day Lodge houses the ski rental shop, ski ticket office, ski school office, the cafeteria and a fully serviced lounge. An analysis of this space identifies significant shortcomings in terms of space for washrooms, daycare, retail sales and convenience products, as well as public lockers. Currently at Mt. Baldy there are approximately 100 privately owned single-family residences, two condominium complexes consisting of 20 units, and one managed bed and breakfast. The existing resort residential area can expand by another 30 singlefamily residences. As such, the current existing and committed bed units at the resort equates to 822. Site Analysis THE MOUNTAIN AND THE BASE The study area was analysed in terms of slope, elevation, aspect and fall-line in order to gain an understanding of the alpine and Nordic skiing development potential and its capability to physically and environmentally support additional four-season recreation activities. It is clear that much of the land within the study area is well suited to additional alpine ski resort development. The mountain exhibits a strong consistency of terrain, a reliable snowpack, a variety of ski terrain orientations, and good fall-line skiing opportunities. Mt. Baldy has the physical potential to have about 645 metres (2,115 feet) of lift serviced skiing, comparing favourably with other ski areas throughout BC (Big White: 777 m; Silver Star: 760 m; Apex: 610m; Crystal Mountain: 232 m; Sun Peaks: 881 m). At buildout, the mountain could support as many as 7,000 skiers per day in a balanced and well integrated fashion. Supporting this, there are two base area focal Page II Brent Harley & Associates Inc. The Resort Planning Group

57 Mount Baldy Resort Expansion Master Plan February 2005 points, the Upper Base (in close proximity to the existing Day Lodge) and the Village (below the existing resort residential subdivision area). ENVIRONMENTAL CONDITIONS An environmental assessment was completed. Based on the known distribution of wildlife and fisheries values as well as actions that have been initiated or proposed by the MBSC to protect those values, indicating that the proposed development represents an exceptionally low risk of environmental harm. Expansion Master Plan The Master Plan details the proposed build-out of Mt. Baldy on a phase by phase basis. It blends traditional lift serviced skiing with the envisioned backcountry adventure product all designed to reinforce and further build the area s reputation as a mountain play oriented resort that celebrates the outdoor environment. MOUNTAIN MASTER PLAN Low density, powder skiing oriented design criteria were applied in the creation of the resort layout and plans. Consistent with this, the Mountain Master Plan embraces a slower recreation ambiance, while preserving snow conditions by utilizing fixed grip lift technology. Lifts and Trails At buildout, Mt. Baldy will have 13 ski lifts servicing over 150 ski trails. The skiable terrain at buildout will total approximately 700 ha (1,725 acres) of developed trails and glades with a CCC of 6,744 skiers per day. As planned, a limited number of select runs will include snowmaking to ensure that Mt Baldy is open for limited early season skiing and to reinforce snowpack on high-use circulation trails to the base areas and real estate. Likewise, a limited amount of terrain, connector and Nordic trails will be equipped with night skiing / pedestrian lighting. The trail layout has been designed to carefully adhere to the perceived distribution of the skier marketplace. At buildout Mt. Baldy will be very close to a perfect match with the market distribution, with only a slight excess of Intermediate Terrain and a lack of Expert Terrain (a function of an absence of slopes with steeper gradients). Backcountry Adventure Consistent with the desire to create a unique resort product, and to ensure that the experiences at Mt. Baldy revolve around mountain play and an expanded sense of alpine recreation, additional infrastructure on backcountry and Nordic trail networks have been incorporated throughout the Alpine skiing area. Primary to this will be the pay-foruse Sherpa return rides. At select focal points, adventure oriented visitors will be able to explore the terrain beyond lift serviced access and be picked up by Sherpas (large capacity snowmobiles) and returned to the base of the resort. Complementing this, those on the adventure trails (backcountry alpine trails and Nordic networks) will be provided with opportunities to enjoy facilities at special gathering areas while in the backcountry environs. These areas will include small park-like facilities such as covered gazebos, picnic areas, viewpoints with seating for gathering and resting, as well as potential yurts and small cabins for warming up, relaxing, and possibly overnight stays. Page III Brent Harley & Associates Inc. The Resort Planning Group

58 Mount Baldy Resort Expansion Master Plan February 2005 Resort Trail Network Also adventure oriented, the Resort Trail Network has been designed to accommodate a wide range of user groups in an all season capacity. During the winter, it will enable Nordic and backcountry skiers to enjoy a very expandable 56 km of Nordic exclusive trails around the periphery of the mountain, while also accessing higher elevation terrain by utilizing the alpine ski lift infrastructure. From the top of any Nordic accessible lift, the Nordic skiers will always have a means of returning to the lower elevation cross-country trails via a shallow grade return trail (less than 12%). As planned, the Nordic trail system adds 561 skiers to the CCC of Mt. Baldy. In the summer, these trails will be utilized in both an informal and formalized capacity for bird watching, natural history, wildlife, guided nature walks, hiking, biking and mountain biking. A hierarchy of trails will be designed to accommodate different needs and skill levels. In its most formal, it is anticipated that a portion of the trail network will be paved, connecting built areas within the resort. At the other end of the spectrum, trails will be rugged, narrow singletrack winding throughout the whole of the Controlled Recreation Area. Other On-Mountain Attractions In addition to the skiing, the backcountry adventure facilities and the resort trail network, other on-mountain attractions include a Tube Park, the Mountain Spa/Park and the Golf Course. The Tube Park will cater to non-skiing snowplay. Its high visibility location adjacent to the Village will help animate the winter play character of Mt. Baldy. This facility adds 120 guests to the resort s capacity. Similarly, a Mountain Spa/Park has been planned for incorporation into the Village. This will be a water-based amenity for Mt. Baldy. It will include a water park providing indoor/outdoor all season swimming as well as specialized skills based water activities such as surfing, white water kayaking and boogie boarding. Directly tied to, and associated with this will be spa facilities for physiotherapy, massage, as well as a wellness centre and sports medicine clinic. This facility will act as a significant attraction in its own right, adding another 350 guests to Mt. Baldy s carrying capacity. Plans for the eighteen-hole Mt. Baldy Golf Course have been incorporated in the overall Master Plan. It will stage from the Village core, winding through undulating terrain and ultimately returning to the Village. The intent is to create a high calibre resort course that will offer visitors and residents at Mount Baldy a satisfying and rewarding golf experience. The mountain setting and cooler summer temperatures will prove to be a complement to the high temperature arid golf found in Oliver and Osoyoos. Collectively, the addition of the Mt. Baldy course will add a new dimension to the golf destination market of the Southern Okanagan. Rounding out the golf product, a driving range and teaching academy will be developed in the area of the tubing and beginner skiing slopes in front of the Village, thereby giving those winter oriented facilities a summer use. Resort Capacity At buildout, the Comfortable Carrying Capacity of Mt. Baldy s attractions (the alpine skiing, the Nordic trails, the Tube Park and the Mountain Spa) will total 7,776 guests per day. The base area facilities and residential development have been planned to balance with and complement this number. Page IV Brent Harley & Associates Inc. The Resort Planning Group

59 Mount Baldy Resort Expansion Master Plan February 2005 BASE AREA DEVELOPMENT The Master Plan for the proposed base area development at Mt. Baldy has been planned to take on a retreat and escape ambiance, complementing the mountain s natural attributes, capacities and proposed facilities. The design and layout of the base area facilities are consistent with the overall vision for Mt. Baldy. An emphasis has been placed on creating a compact, pedestrian oriented development footprint. Direct linkages to and from the base areas and resort residential development areas will be incorporated with the establishment of the highly integrated Nordic trail network enabling ski to / ski from access throughout the resort. The built space requirements are directly correlated to the carrying capacity of the resort s facilities. At buildout, the base area and on-mountain facilities at Mt. Baldy must provide for the needs of approximately 7,776 guests and residents. In total, approximately 14,500 square metres of built space will be in place at buildout. Mt. Baldy will effectively have two base areas as focal points; the Upper Base and the Village. These two areas are linked by ski trails, the trail network and a people-mover lift. Infilling the lands between the bases will be a variety of resort residential accommodations. Integrated within these subdivisions will be affordable resident and employee housing as a means of ensuring a sustained presence of a population base to both service and reinforce the character of Mt. Baldy. Upper Base The Upper Base has its focus defined by the main ski trails serviced by the Eagle Chair and the Sugar Lump lifts and trails. It will be primarily day-use oriented and includes a core of buildings housing visitor services, intimate restaurants and lounges, and a small number of accommodation units all oriented to access, view and celebrate Mt. Baldy. The existing day lodge will be converted to include administration and employee facilities. The upper terminal of the people mover is located in close proximity to the Upper Base core. A low gradient trail (10% slope) will lead guests as pedestrians, Nordic skiers, bikers, skiers and snowboarders from the Upper Base back down to the Village. Day use parking lots have been designed to be within acceptable walking distance. Mt. Baldy Village Mt. Baldy Village is located about one kilometre south of and approximately 100 vertical metres below the Upper Base. The focal point is located in close proximity to the base of the alpine skiing as serviced by Lift D, and directly connected to the Nordic skiing/mountain biking trail system. The core of the Village will include a variety of buildings housing hotels, condo-tels, retail outlets, convention seminar facilities, the mountain resort spa and resort services; all designed to meet the needs of destination and day use guests visiting Mt. Baldy. Additionally, the first and last holes of the eighteen-hole golf course begin and end, at the Village; the tube park and beginner teaching area (serviced by a magic carpet lift) is located immediately uphill from the Village core, and; the Mountain Spa/Park is located within the Village core. The people mover originates at the core area and is adjacent to the return trail coming down from the Upper Base. Resort Residential Areas A series of resort residential areas incorporating a variety of public and private accommodation have been designed to infill between, and around, the Upper Base and Village areas. These developments are located to keep the development footprint compact, pedestrian-oriented and ski-to / ski-from capable. All of the development has been carefully placed to respect streams and associated riparian zones. The desired Page V Brent Harley & Associates Inc. The Resort Planning Group

60 Mount Baldy Resort Expansion Master Plan February 2005 effect is to incorporate the buildings, to the greatest degree possible, into the landscape. The design guidelines will require development to be green-building oriented. At buildout, it is proposed that Mt. Baldy will have a total of 7,892 bed units of which 45% will allocated for public use (available for any interested party to rent for short term use), and 55% for private use (not available for short term rental). As planned, there will be approximately 3,590 public bed units equating to 379 hotel rooms 303 multi-family / condotel rooms, 52 bed and breakfast homes and 275 cabins. All public accommodation units will be developed with rental pool covenants, allowing owners to purchase the units, subject to restricted use. All design, development and construction of public accommodation must adhere to the Mt. Baldy Design Guidelines and associated conformance-oriented approval process. Similarly, privately held accommodation will total 4,302 bed units. This equates to 428 single family units, 226 multi-family units and 30 recreation vehicle stalls. All private accommodation development will be subject to Design Guidelines and a conformanceoriented approval process. Employee Accommodation To be successful Mt. Baldy will need a wide variety of full-time residents to attend to the operational and administrative aspects of enterprise at the resort. Just as a wide variety of employee types coincide with a wide variety of jobs, employee accommodation must consist of a wide range of housing types. Anticipating this, employee or residentrestricted housing has been integrated throughout the plan. It includes a spectrum of accommodation, ranging from rental units made available to the transient seasonal workers; to multi-family rental units; to employee restricted rental suites within individual homes; to resident/employee-restricted, fee simple, multi- and single-family units made available for purchase. Ten percent of the total bed units at Mount Baldy have been assigned for employee/resident use. At buildout, this translates to a total of 770 bed units. Employee and resident restricted housing will be organized administered, monitored and enforced by the MBSC. Parking Based on the buildout resort capacity, parking must be available for approximately 7,775 guests and residents. Assuming that 85% of this capacity will arrive by car, and based on an average of 3 occupants per car, the parking areas must be capable of accommodating about 2,200 cars. The remaining 15% of guests would be expected to arrive by bus. Assuming 40 visitors per bus, approximately 29 buses would have to be accommodated on a busy day. The actual parking requirement will be a function of the establishment of an expanded shuttle system from Oliver and Osoyoos. Day use parking has been planned and delineated to accommodate 670 cars in the Upper Base parking lots. Likewise, parking lot capacity in the Village totals 720 cars. All parking requirements associated with the Village core commercial development and public accommodation are provided for in underground parking below the core for approximately 400 cars. The remaining car parking requirements are attached to the site of each of the residential developments. The resort roads have been designed to be wide enough for two-way through traffic. This will minimize the cut and fill requirements to build the roads, reduce the paved road surface area, and reduce the amount of snow clearing and snow storage. This in turn, will minimize the environmental impact of the roads developed at Mount Baldy. As such, there will be no on street parking permitted. Page VI Brent Harley & Associates Inc. The Resort Planning Group

61 Mount Baldy Resort Expansion Master Plan February 2005 Design Guidelines Design Guidelines will be developed to ensure consistency of character, construction quality and built form performance (e.g. Energy efficiency, product procurement and other green building standards) throughout the resort. These will be applied to all buildings in the base areas, including on-mountain facilities and the residential and commercial buildings throughout the resort. The guidelines will be created and put in place immediately so as to ensure that the tone, ambiance and character of the first phases of resort development are consistent with the envisioned result at buildout. Acknowledging that the Design Guidelines are critical to both the short and long-term success of the resort, Mt. Baldy Ski Corporation will ensure that the appropriate covenants are placed on all development at the resort, regardless of the who the ultimate developer may be. MBSC will maintain control of the administration and enforcement of the Design Guidelines. Zoning The development lands at Mount Baldy will be zoned based on submissions and dialogue with the Regional District of Kootenay Boundary. To create the desired character, ambiance and quality, it is anticipated that a Comprehensive Development Zone will be created specifically for Mt. Baldy. SUSTAINABILITY CHARACTERISTICS It is the intent of the Mount Baldy Ski Corporation to create a resort community and ski area product that is premised on the principles of stewardship and responsibility. These principles have informed the planning and design processes. Through the adoption of best management practices that, in many cases, exceed the relevant legislation, MBSC seeks to ensure that natural values are protected, that associated ecological integrity is respected and that the operations of the ski area product continually strive to improve their environmental performance through informed procurement and leading-edge technologies. Implementation Strategy In order to achieve a balanced, well considered and coordinated development plan for achieving the planned end result at buildout, a detailed phasing strategy has been created. The Implementation Strategy anticipates four phases of development. Each phase takes into account all aspects of the mountain plan such that it will be a completed well balanced resort product at the end of each stage of the development process. This balance ensures that base area facilities are integrated and supportive of the mountain capacity at any given time, and that lift infrastructure is capable of servicing the skiers in a manner consistent with both their expectations as well as the goal of providing a unique and desirable mountain experience. Each phase will be market driven. A phase could be as short as one to two years or as long as necessary for the market to create sufficient demand to move to the next phase. Ultimately, economic conditions, financial costs and/or emerging business opportunities will dictate the pace by which the phasing plan eventually unfolds. Typically, subsequent phases of development are not triggered until a given threshold of utilization is achieved with the existing infrastructure and trail opportunities (generally 35% utilization). Page VII Brent Harley & Associates Inc. The Resort Planning Group

62 Mount Baldy Resort Expansion Master Plan February 2005 As planned, Phase One will see the CCC of the resort grow from its existing 646 guests per day to 1,987. Subsequently Phase Two grows to 4,229 guests, Phase Three to 5,707 guests, and; Phase Four to 7,776 guests at buildout. Servicing and Infrastructure The current water supply and sanitary sewer infrastructure at Mt. Baldy were designed for the existing development, which in total represents a buildout capacity of approximately 1,000 bed units. The phased development plan represents an 800% increase in the capacity requirements. Associated with the development plan, water supply and sanitary sewer infrastructure will be expanded. The infrastructure plan illustrates that the site is capable to accommodate the necessary expansion. In the initial phases of the implementation of the Mt. Baldy development plan, additional assessment studies and detailed engineering will be completed to accommodate the planned development. Further, in an effort to remain consistent to the values and vision of the Resort Expansion Plan, the MBSC has committed to undertaking a detailed alternative and renewable power systems capacity study to explore the feasibility of integrating local renewable energy systems into the resort development. Conclusions The Expansion Master Plan carefully outlines a comprehensive approach to ensure the long-term success of the Mt. Baldy Resort. The unique all-mountain product, the competitive positioning, the strong sense of environmental responsibility and the carefully constructed Implementation Plan provide the tools requisite to ensure that Mt. Baldy provides a successful complement to the Southern Okanagan s existing tourism products. This methodical expansion of Mt. Baldy should prove to be very positive for all involved, adding significant economic and social benefit to the South Okanagan Region, the Osoyoos Indian Band, and to the Province of British Columbia in general. Page VIII Brent Harley & Associates Inc. The Resort Planning Group

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