BC Hydro System 2017 Annual Progress Report

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March 14, 2017 Philip Augustin, P.E. Chair, Technical Studies Subcommittee 503-464-7783 philip.augustin@pgn.com Mr. Enoch Davies WECC Technical Staff 155 North 400 West, Suite 200 Salt Lake City, UT 84103-1114 U.S.A. 2017 ANNUAL PROGRESS REPORT In accordance with reporting guidelines by the WECC Planning Coordinating Committee (PCC), please find attached BC Hydro s 2017 Annual Progress Report on significant additions and changes to our system. Please call me at (604) 528-3027 if you have any questions. Sincerely, British Columbia Hydro By Guihua Wang Manager Performance Planning, T&D AIM Phone: (604) 528-3027 Fax: (604) 528-2102 E-mail: Guihua.wang@bchydro.com BC Hydro System 2017 Annual Progress Report Major generation & transmission facilities planned and operated by British Columbia Hydro (BCH) over the next 10-year period from 2017 to 2027 are outlined below. 1. Major Generations Addition (>200 MW) Plants Capacity Planned In Status Mica G6 500 MW Jan. 2016 In service Site C G1 205.7 MW Apr. 2022 Site C G2 205.7 MW Apr. 2024 Site C G3 205.7 MW Apr. 2024 Site C G4 205.7 MW Apr. 2024 bchydro.com

Site C G5 205.7 MW Apr. 2024 Site C G6 205.7 MW Apr. 2024 Rev G6 500 MW Apr. 2026 2. Major Transmission Lines Addition for Site C Transmission Lines KV Planned In 5L5 South Bank x Peace Canyon 500 KV Dec. 2019 5L6 South Bank x Peace Canyon 500 KV Dec. 2022 5L15 Site C x South Bank 500 KV Dec. 2022 5L16 Site C x South Bank 500 KV Dec. 2022 5L17 Site C x South Bank 500 KV Dec. 2022 Status 3. Peace Region Electric Supply (PRES) Project Alternative 5 This alternative is to build two 500/230 kv 600 MVA transformers and two 230 kv line positions, and construct a 60 km 230 kv double circuit transmission line from South Bank to Shell Ground Birch (SGB). Transmission Lines KV Planned In Status 2L391 South Bank x Shell Groundbirch 2L392 South Bank x Shell Groundbirch 230 KV Aug. 2022 230KV Aug. 2022 4. Peace Canyon 5RX1 Replacement Planned in : April 2024 As part of the Peace Canyon to Kelly Lake reinforcement in conjunction with the in-service of Site C, single pole tripping and reclosing (SPR) will be required for 5L3 and 5L7 to improve system performance during planned or forced outage of 5L4. To achieve SPR on 5L3 and 5L7, following works are required: Replace the existing 135 MVAR fixed line reactor on 5L3 at PCN with a 65 MVAR reactor with a neutral reactor for acceptable SPR performance. 5. Add Series Compensation on 5L1, 5L2, 5L3 & 5L7 near Azu Mountain & Bear Lake Planned in : April 2024 Construct a new series capacitor station at or near Azu Mountain (~98 km South of GMS, 1/3rd of GMS-WSN) as follows to provide 32.5% series compensation on 5L1 and 5L2, and 65% compensation on 5L3. 2

Construct a new series capacitor station at or near Bear Lake (~98 km North of WSN, 2/3rd of GMS-WSN) as follows to provide 32.5% series compensation on 5L1 and 5L2, and 65% series compensation on 5L7. 6. Add Series Compensation on 5L11,5L12 & 5L13 In the Middle of WSN-MLS Section Planned in : April 2024 Install three 500 kv series capacitors in the middle of WSN-MLS section on 5L11, 5L12 and 5L13. Reduce series compensation on 5L11, 5L12 & 5L13 and increase nominal current rating of the series capacitor. 7. Metro North Area Reinforcement (230 KV) Alternative 3 Planned in : October 2021 The planning study is in progress and the following identified is only one alternative, may subject to changes: 1) Construct a new 21.5 km, 230 kv circuit from Meridian to Horne Payne (2L18). 2) Extend an underground circuit (2L51) from Barnard to Mount Pleasant. 3) Add 203 kv 60 MVAR switchable shunt reactor on dedicated 230 kv line position at Camosun 8. Prince George Terrace Compensation (PGTC) Planned in : June 2021 At preliminary planning stage, this project is to install 65% series compensation at 5L61, 5L62, 5L63 from WSN to SKA substation, to accommodate LNG loads in North Coastal BC region. Add 2 x 130 MVAR shunt capacitor at GLN500. Note: Project in-service-date may change which is dependent on the LNG loads. 9. Vancouver Island Shunt Reactor Addition at Pike Lake Planned in : Apr. 2018 Transmission System Planning recommends the installation of a 75 MVAR, 245 kv switchable shunt reactor at Pike Lake (PIK) to control the high voltage. 10. Bob Quinn SVC Addition Planned in : April 2019. Add +100/-40 SVC for system reinforcement to accommodate NTL (2L102) new mining loads. 3

11. Reconfigure Williston Shunt Elements Planned in : April 2024 This is a System reinforcement due to Site C project: a. Install a 200 MVAR mechanically switched shunt capacitor bank at WSN. b. Add a new fixed line reactor on 5L7 at WSN with a 65 MVAR reactor. c. Reconnect the existing switchable line reactor on 5L7 at WSN to the WSN 500 kv bus. 12. Mount Lehman Substation Upgrade Planned in Service date: May 2020. Replace existing 230 kv transformers with 2 150 MVA and add 2 x 10 MVAR 25 kv capacitors. 13. Southern Interior Series Compensation Project (SISC) Planned in : April 2025 The project is to add one 500 kv 250 MVAR switchable shunt capacitor at Nicola and series capacitor (50% compensation) on 5L98 transmission line from Nicola to Vaseux Lake. This project is a network reinforcement, tied to REV G6. 14. Transmission Lines Thermal Upgrade Transmission Lines Upgrade to Planned In 2L75 Fleetwood x McLellan 90 deg.c Oct. 2018 2L76 McLellan x Mount Lehman 90 deg.c Oct. 2018 2L77 Clayburn x Atchelitz 90 deg.c Oct. 2018 2L90 Bridge R. Terminal x Kelly 90 deg.c Mar. 2019 3L14 BR #2 x Bridge R. Terminal 90 deg.c Oct. 2018 3L15 BR #1 x Bridge R. Terminal 90 deg.c Oct. 2018 15. Transformers Addition For System Reinforcement Transformer MVA Planned In Bear Mountain T2-230/138/12.6 150 Nov. 2018 addition Bridge River T1 & T2 360/13.8 133 Oct. 2017 replacement Cheekye T4 230/138 168 Feb. 2017 replacement Horne Payne T7 & T8 230/25.2 150 Oct. 2018 addition Arnott T11 230/25 150 Nov. 2016 in service capacity upgrade 4

Arnott T12 230/25 150 Oct. 2017 capacity upgrade 16. Projects Now In Service:- Fraser Valley West Area Reinforcement (230 kv) Project in service on May 2016 Construction of a new substation and new transmission lines New station: Fleetwood Substation Splitting 2L75 from Ingledow to McLellan to 2 lines New lines: 2L75 (8 KM) McLellan to Fleetwood 2L74 (8 KM) Fleetwood to Ingledow Kitimat Modernization Project Project in service on January 2016. Kitimat Modernization Project consists of rebuilding the Kitimat smelter and adding 35% series compensation on the two Kemano to Kitmat 287 kv transmission lines by building a series capacitor station near Kitmat. Five 287/100/28 kv 219 MVA regulating transformers will be installed. Vancouver Island Cable Project Project in service on May 2016. Add a new 230 kv cable circuit (2L142) from George Tripp to Horsey and add one 150 MVA 230/138 (T14) transformer at George Tripp. 17. Projects Cancelled In 2016:- West End Substation (230 kv) This project is now on-hold. (Planned in : October 2019) The planning study is in progress and the following identified is only one alternative, may subject to changes: New station: West End substation Splitting 2L32 from Horne Payne to Cathedral Square to 2 lines 2L32 (7.5 KM) Horne Payne to Murrin 2L30 (1.2 KM) Murrin to Cathedral Square Reterminate 2L33 from Cathedral Square to West End (by extending 2.4 KM of new underground transmission) 5

Reterminate 2L3 from Horne Pane to West End (by extending 10.5 KM of new underground transmission). As a result, 2L3 becomes a mix of overhead and underground transmission from Walter to West End. Add new underground transmission from Cathedral Square to West End (2 KM) Terrace - Kitimat Transmission Project (Planned in : July 2020) Previously reported as Minette to Skeena Line Rating Upgrade (2L99). This project would replace the 60km transmission line that runs between Skeena and Minette substations and the 3km transmission line that runs between Minette and Kitimat substations with new lines on a new right of way. Skeena Substation Upgrade (Planned in : October 2019.) Add Skeena T3 (500/287/12.6) transformer due to new Shell Canada LNG2 load. Add series compensation on circuit 2L102 (Planned in : September 2020) Add series compensation on NTL (2L102) near Skeena due to new mine loads Sukunka MSC addition (Planned in Service date: August, 2017) Add a 230 kv, 45 MVAR MSC at Sukunka due to load increase West Kelowna Transmission Project (WKTP) This project is now on-hold. (Planned in Service date: October 2020) This project will provide a second transmission line (138 or 230 kv) to BC Hydro s Westbank Substation (WBK), to build the supply redundancy for city of Kelowna area 6