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
The value of domestic and trade accounts receivable, by age and the related provision for doubtful accounts
are presented in the following table.
Domestic and Trade Accounts Receivable Net of Allowance for Doubtful Accounts
(in millions) 2016 2015
Current $ 362 $ 381
Past due (30-59 days) 27 26
Past due (60-89 days) 6 6
Past due (More than 90 days) 3 6
398 419
Allowance for doubtful accounts (8) (8)
Total $ 390 $ 411
At the end of each reporting year, a review of the provision for doubtful accounts is performed. It is an
assessment of the potential amount of domestic and trade accounts receivable which will not be paid by
customers after the statement of financial position date. The assessment is made by reference to age, status
and risk of each receivable, current economic conditions, and historical information.
Financial Assets Arising from the Company’s Trading Activities
A substantial majority of the Company’s counterparties associated with its trading activities are in the
energy sector. This industry concentration has the potential to impact the Company’s overall exposure to
credit risk in that the counterparties may be similarly affected by changes in economic, regulatory,
political, and other factors. The Company manages credit risk by authorizing trading transactions within
the guidelines of the Company’s risk management policies, by monitoring the credit risk exposure and
credit standing of counterparties on a regular basis, and by obtaining credit assurances from counterparties
to which they are entitled under contract.
The Company enters into derivative transactions under International Swaps and Derivatives Association
(ISDA) and Western Systems Power Pool (WSPP) or similar master netting agreements and presents these
transactions on a gross basis under derivative commodity assets/liabilities in the statement of financial
position. These master netting agreements do not meet the criteria for offsetting as the Company does not
have the legally enforceable right to offset recognized amounts. The right to offset is enforceable only on
the occurrence of future events such as a credit default.
Under the Company’s trading agreements, the amounts owed by each counterparty that are due on a single
day in respect of all transactions outstanding in the same currency under the same agreement are
aggregated into a single net amount being payable by one party to the other. Such receivable or payable
amounts meet the criteria for offsetting and are presented as such on the Company’s statement of financial
position.