BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2016 AND 2015
British Columbia Hydro and Power Authority
deferred. The account is amortized over the average remaining service life of the employee group.
In September 2015, the BCUC issued order G-148-15, approving the Company’s transfer of the operating
cost variance between the fiscal 2015-2016 Revenue Requirements Rate Application plan amount and
actual fiscal 2016 post-employment benefits current service costs. The deferral for fiscal 2016 was $17
million.
SITE C
Site C expenditures incurred in fiscal 2007 through the third quarter of fiscal 2015 have been deferred. In
December 2014, the Provincial Government approved a final investment decision for the Site C project,
resulting in expenditures being capitalized in property, plant and equipment starting in the fourth quarter of
fiscal 2015. BC Hydro plans to seek BCUC approval to begin amortizing the balance of the Site C
regulatory account once the assets are in service.
CONTRIBUTIONS IN AID (CIA) OF CONSTRUCTION AMORTIZATION
This account captures the difference in revenue requirement impacts of the 45 year amortization period the
Company uses as per a depreciation study and the 25 year amortization period determined by the BCUC.
ENVIRONMENTAL PROVISIONS & COSTS
A liability provision and offsetting regulatory asset has been established for environmental compliance and
remediation arising from the costs that will likely be incurred to comply with the Federal Polychlorinated
Biphenyl (PCB) Regulations enacted under the Canadian Environmental Protection Act, the Asbestos
requirements of the Occupational Health and Safety Regulations under the jurisdiction of WorkSafe BC
and the remediation of environmental contamination at a property occupied by a predecessor company. The
regulatory asset for PCB remediation is amortized based on actual expenditures incurred during the year.
Balances related to non-PCB environmental regulatory provisions are not amortized – amounts are
transferred to environmental cost regulatory assets based on actual expenditures incurred attributable to the
provision. Environmental cost regulatory assets are amortized over the term covered by the Company’s
next revenue requirements filing.
SMART METERING & INFRASTRUCTURE
Net operating costs incurred by the Company in fiscal 2015 and fiscal 2016 with respect to the Smart
Metering & Infrastructure program were deferred through the end of fiscal 2016 when the project was
completed. Costs relating to identifiable tangible and intangible assets that meet the capitalization criteria
were recorded as property, plant and equipment or intangible assets respectively. The Smart Metering &
Infrastructure costs incurred prior to fiscal 2015, including net operating costs, amortization of capital
assets, and finance charges have been deferred and commenced amortization, based on the fiscal 2014
ending balance, over 15 years starting in fiscal 2015. Furthermore, per Direction 6, net operating costs
incurred in fiscal 2015 and fiscal 2016 were deferred. Pursuant to Direction 7 to the BCUC, the BCUC may
not disallow recovery in rates of the costs deferred to the Smart Metering & Infrastructure regulatory
account.
IFRS PENSION
Unamortized experience gains and losses on the pension and other post-employment benefit plans
recognized at the time of transition to the Prescribed Standards were deferred to this regulatory account to