BC HYDROOne major concept floating around the industry is that BC HYDRO which awarded the EF EPA through competitive process 2 years ago has found a loop hole to re-price the current EPA. Since the old EPA requires a two stage process which includes the CRCE Test Phase of 24 MW, the EPA selling party has the right and obligation to determine the economic merits of the phase 1 program. Since Phase 1 is not economic this gave BC HYDRO the right to re-price the balance of the EPA to the current price of $120 per Mwh.
At $120 per Mwh the Dokie has a discounted NPV of $130 Million. Will a candidate pay $65 Million to buy EF at 50% the NPV of Dokie and receive additional tax credits from all the loss carry forwards.
Good work to the CRO and Blair Franklin if they close on this.
WG