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
NOTE 22: RELATED PARTY TRANSACTIONS
Subsidiaries
The principal subsidiaries of BC Hydro are Powerex, Powertech, and Columbia.
All companies are wholly owned and incorporated in Canada and all ownership is in the form of common
shares. Powerex is an active participant in western energy markets, buying and selling wholesale power,
natural gas, ancillary services, clean and renewable power, and environmental products in Canada and the
United States. Powertech offers services to solve technical problems with power equipment and systems in
Canada and throughout the world. Columbia provides construction services in support of certain BC Hydro
capital programs.
All intercompany transactions and balances are eliminated upon consolidation.
Related Parties
As a Crown corporation, the Company and the Province are considered related parties. All transactions
between the Company and its related parties are considered to possess commercial substance and are
consequently recorded at the exchange amount, which is the amount of consideration established and
agreed to by the related parties. The related party transactions are summarized below:
(in millions) 2016 2015
Consolidated Statement of Financial Position
Accounts receivable $ 103 $ 91
Accounts payable and accrued liabilities 381 320
Amounts incurred/accrued during the year include:
Water rental fees 327 334
Cost of energy sales 116 130
Taxes 132 125
Interest 720 674
Payment to the Province 326 264
The Company’s debt is either held or guaranteed by the Province (see Note 16). Under an agreement with
the Province, the Company indemnifies the Province for any credit losses incurred by the Province related
to interest rate and foreign currency contracts entered into by the Province on the Company’s behalf. At
March 31, 2016, the aggregate exposure under this indemnity totaled approximately $62 million (2015 -
$74 million). The Company has not experienced any losses to date under this indemnity.
The Company and British Columbia Investment Management Corporation (bcIMC) are related parties and
are both wholly owned by the Province. The Company has responsibility for administration of the British
Columbia Hydro and Power Authority Pension Plan and uses internal and external service providers for
this purpose. It has engaged bcIMC to manage investments on behalf of the plan. bcIMC uses internal and
external investment managers for this purpose. Refer to Note 18 for the Company contributions to the
pension plan for 2016 and 2015.