75.0 Reference: Application, Volume I, Chapter 3, pp. 3-3 to 3-5; Chapter 6, p Budget Process and Variance Analysis

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1 Revenue Requirements Reference: Application, Volume I, Chapter 3, pp. 3-3 to 3-5; Chapter 6, p Budget Process and Variance Analysis Section 2 of Chapter 3 describes how the F2005 and F2006 OMA and capital spending forecasts used in the Application were developed For F2003 and F2004 please provide a list of the reports that were prepared throughout the period by the Senior Executive and Direct Reports as shown on the organization chart on Schedule 1-1 or the appropriate organization chart for that fiscal period. RESPONSE: BC Hydro s Peoplesoft financial management system provides managers at all levels of the organization the ability to see and manage their expenditures on-line through Business Performance Reporting (BPR). BPR provides the ability to see actual costs for month and year-to-date, compare against budgets and to identify the source of actual costs and variance against budget. BPR provides a number of standard reports, including: Business Performance Reports Standard Reports BPR Standard Report R 1 Resources / Recoveries by Resource type R 2 Resources / Recoveries by ABC Activities/External Products R 3 ABC Activities / External Products by Account Types (C, OMA) R 4 Resources / Recoveries by Account Types and ABC Activities/External Products R 7 Resources / Recoveries by Account Type (C, OMA) R 8 ABS Services by Organization R 8A ABS Services by Organization and Projects R 8B ABS Total Spend Report R 5 Income Statement for Service Providers R 6A Field Services Statement of Recoveries R 6B Field Services Statement of Recoveries by Products & Services R 6C Field Services Utilization Rates by Employees and Vehicles BTA Reports Flexible reports with keyword reference information. Choices available: Resources/Recoveries Resources/Recoveries by Activities/Products Resources/Recoveries by Account types Resources/Recoveries by Account types by Activities/Products

2 Revenue Requirements 2 BPR Standard Report Resources/Recoveries by Projects Resources/Recoveries by Account Types by Projects Account by Account Types These reports are available at each level in the organisation by month and year to date. Under BPR, a number of database reports are available that enable more detailed analysis of certain expenditures to take place, including: Business Performance Reports Non-Standard Reports Information Dimensions Performance Organization by Account Types by Activities/Products by Management Resources/Other Accounts by Month by Versions (Actual, Plan, Labour Analysis Organization by Account Types by Activities/Products by Labour Resources by Assigned Job Group by Unit of Measure (HRS vs $ amounts) by Month by Versions (Actual, Plan, Payroll Analysis Organization by Account by Compensation Type by Assigned Job Group by Employment Status by Employee Status by Pay Periods by Amount and Headcount ABS Analysis Organization by ABS Services by Total Spend by Units of Measure by Month by Volume by Versions of Actual, Plan, Base, Overhead, Finance Charges, Depreciation etc Asset Management Organization by Account by Business Function by Category by Analysis Distribution Reporting (WEB) Transmission Reporting (WEB) Field Services Analysis Power Smart Program Analysis Profile by Month Organization by Account Types by Activities/Products by Resources/Other Accounts by Projects by Location by Business Driver by Business Function by Versions (Actual, Plan, Organization by Account Types by Activities/Products by Resources/Other Accounts by Project by Location by Business Driver by Business Function by Versions (Actual, Plan, Organization by Performance View by Activities/Products by Resources/Other Account by Unit of Measure (labour hrs, vehicle hrs, amounts) by Month by Versions (Actual, Plan, Organization by Account by Activities/Products by Resources/Other Accounts by Power Smart Programs by Month by Versions (Actual, Plan, These reports provide managers with the primary information necessary to financially manage their area of responsibility. In addition, each group produces specific reports for its own business needs and internal financial management. The table below provides summary information by line of business.

3 Revenue Requirements 3 Line of Business Report BC Hydro Generation Annual Business Plan. of actual results against Plan for KBU and BC Hydro Generation. Composed of various statements including an Income Statement, a Performance report on Performance Measures and Targets, OMA by KBU. Capital expenditure information includes cost for month, year- todate and project to date, variances from Annual and Project Plan, and Forecast to Complete. Capital Project Status Reports for larger projects. Quarterly Reports. For F2004 each KBU prepares each quarter a report on its operations and performance which is reviewed in detail with the Executive Vice-President and Controller. This review includes performance targets, capital project status, OMA expenditures, safety, forced outages and other matters relating to management of the KBU. Some KBU s also produce their own business reports. BC Hydro Distribution Annual Business Plan. various statements including an Income Statement, a Performance report on strategic measures, OMA by KBU, capital expenditure information and domestic revenue information. KBU s also produce monthly and quarterly reports relevant to their business, including: maintenance schedules (cost, units completed and average unit cost); planning activity costs and review of projects; Distribution System Performance report; customer addition statistics; Operations Performance Measures; and Power Smart Program Analysis Life Cycle Report. Field Services Annual Business Plan. various statements including an Income Statement, a Performance report on strategic measures, OMA and recoveries by KBU and capital expenditure information. Labour Utilization Rate report.

4 Revenue Requirements 4 Vehicle Utilization Rate report. Station Key Performance Indicator report. Engineering Services Annual Business Plan. various statements including the Engineering Services Income Statement and income statements by KBU. Weekly dashboard report on labour utilization, safety, client feedback, and employee commitment. Transmission (Note: There has been no material change in reporting with the creation of BCTC. BCTC will be consolidated with BC Hydro for F2004 and F2005). Annual Business Plan. For F2003 and until the establishment of BCTC, Transmission prepared a monthly management report that was reviewed and discussed by the Senior Vice President, Transmission and direct reports. This report contained various financial reports including: Business Highlights and Performance Measures; Statement of Operations (Plan vs Actual); Balance Sheet; Revenue Statement (Plan vs Actual); Operating cost statement by Organization Unit, Resources and Activities (Plan vs Actual); Capital Statement (Plan vs Actual) and Major Projects; and Staffing Summary. With the establishment of BCTC, a Management Update report is prepared on a monthly basis for review by BCTC senior management. On a quarterly basis, this Management Update is submitted to BCTC Board and BC Hydro Board. This Management Update contains the following information: Statement of Operations; Capital Summary; Performance Measures; Major Milestones; and Major Projects. Corporate Groups (Finance and CFO, Sustainability, Corporate Resources) Annual Business Plan. Monthly Consolidated Financial Report composed of consolidated financial statements, consolidated Performance Report, consolidated capital expenditures and variance analyses at a consolidated level.

5 Revenue Requirements 5 Monthly "Corporate SBU OMA Variance" and "Corporate Resources OMA by Expenditure type" analyses compiled at the department or KBU level. The level of detail is based on a combination of materiality and risk. BC Hydro-wide Information Technology reporting Monthly "IT Capital Expenditures" for each EAR a comparison of Plan against Actual life-to-date to ensure costs are within Plan estimate and a summary of all IT EAR Year-to-Date costs compared to annual IT Capital Plan (ISTIP). "Large Capital Project Issues Summary" for projects greater than $3 million a quarterly comparison of Plan against Actual life-to-date and Actual Year-to-date, with explanations for variances to Plan (+/- 9%) and explanations for changes to Plan. With respect to Powerex reports, please see BC Hydro s response to BCUC IR #

Volume 1. Summary Table of Contents. Discussion of Financial Forecasts... BC Hydro Deferral Accounts...

Volume 1. Summary Table of Contents BC hydro CHAPTER 1. ApPLICATION OVERVIEW Introduction..... Context of Application........... Summary of Revenue Requirement... Overview of BC Hydro Organizational Structure...