April 2006 1

Columbia River

Treaty

Overview of Columbia River Treaty

Columbia River TreatyColumbia River Treaty

April 2006 2

Columbia River

Treaty

Topics

• Treaty Background and Projects

• Treaty Organization

• Treaty Provisions

• Treaty Studies and Operations

• Non-Treaty Storage

April 2006 3

Columbia River

TreatyWhy do we have a Treaty?

About 1/3 of the ColumbiaRiver water comes from Canada.

• Canada has 15% of the basin area, but produces, on average, 38% of the runoff for the total basin.

• 50% of the worst Columbia flood flows (1894) at Portland camefrom Canada.

• northern basins (Mica & Revelstoke) have highest and most consistent runoff

• runoff in southern basins is lower and more uncertain

April 2006 4

Columbia River

Treaty

• Damaged homes, farms, and dykes from BC (e.g. Trail) all the way to Astoria, OR

• 1948 flood destroyed Vanport, Oregon, a city of ~ 35,000.

• About 50-60 people were killed.

1948 Columbia River Flood1948 Columbia River Flood

Vanport, ORin 1948

Trail, B.C. in 1948 4

April 2006 5

Columbia River

TreatyColumbia is the most powerful Columbia is the most powerful river in North Americariver in North America

• Hydropower capability is measured by river flow multiplied by the head (or, change in elevation).

• St. Lawrence, Mississippi, and Mackenzie rivers have more flow, but less head.

• Grand Coulee has about twice the head of Niagara Falls.

Niagara Falls & Powerhouses

Grand Coulee

5

Grand Coulee Powerhouse & Spillway

April 2006 6

Columbia River

TreatyYear to Year Variation in FlowYear to Year Variation in FlowAbout +/- 50% of AverageAbout +/- 50% of Average

Year to year variations are almost random, and 95% confidence error for January forecast = +/- 25%

Columbia River at The Dalles, OregonAnnual Jan-July runoff volumes

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1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

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April 2006 7

Columbia River

TreatyWhat does the Treaty Do?

• The Treaty required Canada to:

• construct the Mica, Arrow, and Duncan storage reservoirs on the Columbia River system,

• operate these reservoirs for optimum power generation and flood control downstream in both countries

• The Treaty required the U.S. to:

• pay Canada 50% of the estimated value of the future flood control benefits

• deliver to Canada 50% of the increased power generated downstream at U.S. plants

• The Treaty allowed the U.S. to:

• construct and operate the Libby project on the Kootenai River in Montana

Columbia River

Treaty

Jan.1961

April 2006 8

Columbia River

Treaty

Treaty Term

The Treaty has no specified end date. However, either government has the option to terminate the Treaty after 60 years (2024) with 10 years’ advance notice. Upon termination:

• Mica, Arrow, Duncan, and Libby may continue to operate subject to the 1909 Boundary Waters Treaty

• Canada must provide “on-call” flood protection for the U.S. as long as the projects exist … but U.S. must pay Canada’s operating costs and power losses

• Canada may continue any Kootenay River diversions (although no diversions have been undertaken so far)

April 2006 9

Columbia River

Treaty

Duncan and Arrow

Treaty Non-Treaty Generator DamCompleted ___ _Storage Storage Capacity Height

DUNCAN 1967 1,730 km³ (1.4 Maf) None None 40 m (130 ft)ARROW 1968 8,760 km³ (7.1 Maf) .31 km³(.25 Maf) 170 MW 52 m (170 ft)

Duncan

Lake & Dam

Arrow Lakes

Keenleyside Dam

April 2006 10

Columbia River

Treaty

Mica and Libby

Treaty Non-Treaty Generator Dam Completed ___Storage Storage Capacity __ _Height____ MICA 1973 8.63 km³(7.0 Maf) 6.17 km³(5.0 Maf) 1740 MW 198 m (650 ft) LIBBY 1973 6.14 km³(5.0 Maf) None 604 MW 113 m ( 370 ft)

Libby

Mica

KoocanusaReservoir

Kinbasket Reservoir

April 2006 11

Columbia River

TreatyColumbia River Treaty Organization

CANADIAN GOVERNMENTMinistry of Foreign Affairs & Trade

Ministry Natural Resources

BRITISH COLUMBIAGOVERNMENT

UNITED STATESGOVERNMENT

Department of StateDepartment of the ArmyDepartment of Energy

TREATY& Protocol

PERMANENT ENGINEERING BOARD*

CANADIAN UNITED STATES

PEB ENGINEERING COMMITTEE***

CANADIAN UNITED STATES

CANADIANENTITY

*

CANADIANCOORDINATOR

&SECRETARY

**

United StatesENTITY

*

United StatesCOORDINATOR

&SECRETARY

**

OPERATING COMMITTEE**

CANADIAN UNITED STATES

HYDROMETEOROLOGICAL COMMITTEE**

CANADIAN UNITED STATES

U.S. Entity• Corps of Engineers• BPA

Canadian Entities• BC Hydro• BC Provincial Government

CANADIAN ENTITY

for Art.XIV2j*

* created by Treaty or governments, ** created by Entities, *** created by PEB

April 2006 12

Columbia River

TreatyTreaty Provisions for Flood Control

• 10.4 km³ (8.4 Maf) of storage at Arrow, Duncan, and Mica is assured for flood control operation until 2024.

• Other Canadian storage [8.7 km³ (7 Maf) of Treaty storage & 6.2 km³ (5 Maf) of non-Treaty storage] is available “on call” for large floods at a cost.

• Cash payment (US$ 64 million) was made from U.S. to Canada at the completion of the three Canadian projects for 50% of the estimated value of future flood damages prevented in the U.S. (to 2024).

• Corps has estimated that Treaty storage prevented over US$ 200 million of damages in each of the years 1972, 1974, and 1997

• Many Canadian and U.S. communities benefit from Treaty flood control

• After 2024, the U.S. has access only to “on-call” storage.

Portland levelsBank full = 16’, Major flood = 26’

UnReg. Reg.1997= 28.4’ 19’ 1996= 29’ 27.2’1974= 30.6’ 21.1’

1972= 31.5’ 21.5‘1964= 32.5’ 27.7’

1948= 31’ 31’ 1894= 35.6’ 35.6’

April 2006 13

Columbia River

Treaty

Flood Control Benefits in Canada

Columbia River at Birchbank (River flow gauge located between Castlegar and Trail)

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<===== start of localized flood damage (170 kcfs)

<===== start of minor regional flood damage (225 kcfs)

<===== start of major regional flood damage (280 kcfs)

April 2006 14

Columbia River

TreatyPeak Kootenay Lake levelsbefore and after Treaty storage

Kootenay Lake (at Queens Bay) annual maximum lake levels

1761.951961

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April 2006 15

Columbia River

TreatyTreaty Provisions for Hydropower

• 19.1 km³ (15.5 Maf) of Canadian storage is operated for optimum power generation in Canada and the U.S.

• Canada receives 50% of the increase in power generation capability at U.S. plants due to the operation of Canadian Treaty storage.

• Canada is required to operate Treaty projects according to specified monthly operating plans. However, Canada has flexibility to operate individual projects for maximum Canadian benefit as long as the overall Canadian storage operation meets Treaty targets.

• Downstream power and flood control benefits resulting from Libby storage operation belong to the country where they occur, i.e., Canadian benefits stay in Canada.

• Treaty made other power projects in Canada & U.S. feasible: e.g. Revelstoke, Arrow Lakes Hydro, Kootenay Canal, Wells, & additional powerhouses at Grand Coulee and Bonneville

April 2006 16

Columbia River

Treaty

Types of Treaty studies

Assured Operating Plan (AOP)

• done 6 years in advance (“planning” time horizon) … allows time for construction of new resources

• downstream benefits calculated from AOP Detailed Operating Plan (DOP)

• done just prior to the operating year … revises &/or confirms the operating rules that were agreed on in the AOP … only by mutual agreement

Treaty Storage Regulation (TSR)

• implements the DOP rules within the current operating year based on the actual & forecast runoff for each Columbia River project

April 2006 17

Columbia River

Treaty

Assured Operating Plans

• The Treaty requires that an Assured Operating Plan (AOP) for Canadian

Treaty storage be developed annually for the 6th succeeding year with

the goal of achieving optimum power benefits and specified flood

protection in Canada and the U.S.

• Optimum operating rules are judged based on the amount of firm and

non-firm energy & capacity produced by using the rules

• Non-power requirements (e.g. fish and recreation) cannot be included in

the AOP hydro-regulation studies.

• Once the AOP document is signed by both countries, it becomes the

“default” (assured) plan

• The AOP is then reviewed by the Permanent Engineering Board (PEB),

who determine if the plan meets the objectives of the Treaty and then

report back to the governments of Canada & the U.S.

April 2006 18

Columbia River

Treaty

Downstream Power Benefits

• Downstream Power Benefits (DSBs) are based on the AOP simulation studies, NOT on actual storage and power operations

• The Canadian Entitlement is 50% of the increase in energy & capacity downstream in the U.S. after adding Canadian Treaty storage.

• Canadian Treaty storage has “first-added” rights ahead of benefits from other U.S. storage projects built since the Columbia Treaty

• Canadian Entitlement deliveries are not affected or adjusted to reflect actual power benefits. (The U.S. can choose to use the resulting water for fish or ?, but the energy deliveries to Canada remain the same.)

As of 1 April 2003, the 30-year sale of power benefits was completed, and all of the Canadian Entitlement energy and capacity now returns to the BC border

15

April 2006 19

Columbia River

Treaty

DSBs now return to Canada

The Province of BC owns the Canadian Entitlement to DSBs Approximate value ~ C$ 300 million per year Powerex is the Province’s agent to sell the energy, either to BCH or to

other customers BC Hydro remains the Canadian Entity for Entitlement deliveries and

disputes – most disputes are related to firm transmission capacity to the U.S.-Canada border (e.g. PSANI)

Typically, Powerex schedules Entitlement deliveries in the highest-value times:• Maximum capacity in most heavy-load hours• No deliveries in most light-load hours

For 2005-06, energy deliveries can peak at 1195 MW and must average 535 MW each month (45% load factor)

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April 2006 20

Columbia River

TreatyTreaty Allows Mutually Beneficial Operating Agreements

• Treaty allows the Entities to develop and implement Detailed Operating Plans (DOP) that produce results more advantageous to both countries than the AOPs that were prepared in accordance with only power and flood control objectives.

• Entities have interpreted “more advantageous” to include fisheries, recreation, and other benefits.

• Examples:• DOP (annual)

• Libby Coordination Agreement (multi-year)

• Supplemental Operating Agreements (annual)

April 2006 21

Columbia River

Treaty

Detailed Operating Plan

DOP prepared each year for the following operating year: Aug-July

DOP must be accepted by agreement (or else we stay with the AOP)

DOP may include fisheries and other benefits (in addition to power and flood control) if agreed to by both countries -- must be mutual benefits

April 2006 22

Columbia River

Treaty

Treaty Storage Regulations

TSR = Treaty Storage Regulation implements the rules of the DOP within the

current operating year

• uses the 6 rule curves with priority on flood control, firm power, refill, secondary power

uses actual inflows to date plus forecast inflows to the end of the operating year

models the entire Columbia River basinmay allow proportional draft of Treaty storage

April 2006 23

Columbia River

Treaty

Actual operations

TSR study (monthly storage targets) provides the starting point (rights & obligations) for all operations of Treaty projects

U.S. & Canada can agree to deviate from the TSR study, typically using supplemental agreements

Weekly conference call (Thursday 11 am) with U.S. and FortisBC to discuss the Treaty flow request for the following week (starts Saturday 8 am)

Treaty flow agreement is finalized by Friday Noon Within-week flow shaping needs are accommodated

whenever possible

April 2006 24

Columbia River

Treaty

Actual operations (2)

Canada has rights to flexibility within Canada, i.e. transferring water between Mica, Revelstoke, Arrow, and Duncan reservoirs. Examples of this:

• running Mica/Rev more or less than that required by the TSR study (no Arrow discharge adjustment)

• running Duncan more or less than the TSR requirement (Arrow discharges must be adjusted in this case)

Non-Treaty activity is “superimposed on top of” Treaty activity for Mica, Rev, and Arrow

April 2006 25

Columbia River

Treaty

Arrow Actual and Treaty Contents1 August 2010 through 31 July 2011

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Actual vs Treaty Operation - FlexMica Actual and Treaty Discharge1 August 2010 through 31 July 2011

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April 2006 26

Columbia River

TreatyTypical Supplemental Operating Agreements

Since 1984, the annual Detailed Operating Plan has allowed supplemental operating agreements within each operating year as opportunities arise for mutual benefits.

Some examples:

• Nonpower Uses Agreement

• Libby/Canadian Treaty Storage Swap

• Summer Treaty Storage Agreement (July/01-Mar/02)

April 2006 27

Columbia River

Treaty

Non-Power Uses Agreement

adjusts Arrow outflows during Jan-Mar for whitefish spawning, and during April-June for trout spawning (Canadian fish benefit)

helps smooth the refill of Treaty reservoirs enables 1 Maf storage for salmon flow

augmentation and helps meet minimum fish flows at Vernita Bar (U.S. fish benefit)

April 2006 28

Columbia River

Treaty

Changes from TSR Operation

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Provisional Draft

Whitefish Reduction

Trout Spawning

Flow Augmentation

April 2006 29

Columbia River

TreatyNon-Treaty Storage Agreement

allows for coordination of additional storage in Canada that is not governed by the Treaty

designed as a bilateral agreement between BPA and BCH

has been used by both BPA and BCH since 1984 to provide additional flexibility for power and non-power benefits

BCH and BPA each have access to 1.5 MAF of storage

NTSA activity can affect reservoir levels and discharges at both Mica and Arrow due to Treaty flexibility

April 2006 30

Columbia River

Treaty

Benefits of NTS Agreements

Use of non-Treaty storage can provide both power and non-power benefits. Power benefits are created by:

• storing water when it has less economic value and releasing it when it has more economic value ($ gain)

• shaping water so that energy is produced from water that would otherwise be spilled ($ and MW gain)

In recent years, non-Treaty storage has become an important part of BPA’s ability to shape flows for fisheries, in addition to providing power benefits.

April 2006 31

Columbia River

Treaty

NTSA (cont.)

The most recent NTSA was executed on 10 April 2012 and will remain in effect until 15 September 2024

This agreement also provides BPA firm rights to water to support ESA-listed fish in the lowest 20th percentile of water years

BC Hydro has firm release rights for power planning purposes in their lowest water conditions

The NTSA provides additional flow shaping capability within the year and between years for both fish and power.

April 2006 32

Columbia River

Treaty

Questions?

Columbia River TreatyColumbia River Treaty