THE MANDATE OF COLUMBIA POWER CORPORATION

Columbia Power Corporation (Columbia Power) is a Crown corporation wholly owned and controlled by the Province of British Columbia. Pursuant to the Columbia Basin Accord signed in 1995, the primary mandate of Columbia Power is to undertake power project investments as the agent of the Province in partnership with Columbia Basin Trust (CBT).

The core projects to be undertaken by Columbia Power and CBT are the Arrow Lakes Generating Station (completed), Brilliant Expansion Project (completed) and the current Waneta Expansion Project. The partners may also undertake other generation, transmission or distribution projects in the Columbia Basin.

The purchase of the Brilliant Dam in 1996 was the first investment by the partners. Construction of the first major construction project, the Arrow Lakes Generating Station, commenced in 1999.

The objective of Columbia Power in making power project investments is to support the employment, economic development and resource management objectives of the Province and CBT, within the constraints of a commercial corporation.

POWER PROJECT FUNDING

Pursuant to the Columbia Basin Accord, the Province of British Columbia committed to contribute $500 million over ten years to Columbia Power and CBT to be used as equity funding for joint venture power projects. These contributions consisted of ten payments of $50 million and commenced on April 1, 1996 and concluded on April 1, 2005. These funds were combined with commercial debt financing provided by private sector lenders to facilitate a total investment of over $1 billion in the Columbia Basin.

SUSTAINABLE ENERGY FOR THE COLUMBIA BASIN

Columbia Power Corporation (Columbia Power) sees the development of hydroelectric power projects in the Columbia Basin as a way to provide clean, green power to an energy-hungry market. Our projects use water that would otherwise be spilled over existing dams to produce constantly renewable electric power.

In addition to generating new electricity and creating thousands of jobs, our power projects provide other benefits as well:

community involvement and input during project planning and construction
improved fish and aquatic habitat downstream
lowered greenhouse gas emissions by offsetting the demand for electricity generated by burning fossil fuels
local spending on goods and services
preference to local, qualified workers
equity hiring provisions for First Nations, women and disabled workers