BC Hydro Amends Standing Offer Program Rules

 On March 26, 2013, BC Hydro revised the rules for its Standing Offer Program (the SOP). BC Hydro states that these revisions were intended to “re-affirm the original spirit and intent of the program (to enable small, standalone clean energy projects in BC), while ensuring that the amount of energy acquired fits with BC Hydro’s outlook for its future energy needs”.

The amendments serve to bolster the language restricting the eligibility of clustered projects in the SOP program. In particular, the amended SOP rules indicate that BC Hydro will generally reject SOP applications if the applicant’s project is part of a “Project Cluster”. BC Hydro will generally determine that a Project Cluster exists where two or more existing or proposed projects have common direct or indirect ownership and share tenures, permits, facilities or other infrastructure such as roads, power lines, interconnection facilities or point of interconnection. BC Hydro may determine that an applicant’s project forms part of a Project Cluster or a common generation facility even if such overlap does not exist if BC Hydro considers that project components were separated for the purpose of complying with the SOP eligibility requirements.

The amendments to the SOP rules also provide BC Hydro with an option to delay commercial operation dates (at BC Hydro’s expense), and extend the wait period for projects with terminated electricity purchase agreements from three years to five.

BC Hydro has now published updated versions of the Standing Offer Program Rules, Standard Form EPA and Application Form.

Project Cluster SOP SOP eligibility Standard Form EPA Standing Offer Program


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