January 24, 2011

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171 MAIN STREET. PENTlCTON. B.C. V2A 5A9 TEL: (250) 49()'2400 FAX: (250) 49().2402 VtIWW.PENTlCTON.CA

Ms. Erica Hamilton Commission Secretary Sixth Floor

900 Howe Street P.O. Box 250

VANCOUVER, BC V6Z 2N3

Dear Ms. Hamilton:

Re: Recently Installed OTR Transmission Poles Your File: Log 34932

We wish to confirm receipt of your December 22, 2010 letter wherein you acknowledge receiving a copy of a complaint the City made to Fortis BC regarding the unsightly Okanagan Transmission Reinforcement (OTR) project transmission line poles. In our letter to Fortis BC, the City indicated that the poles that were installed are very shiny silver and in their current iIIuminant state are visual impediments resulting in many complaints to Council. In response, Council wrote to Fortis BC asking that this be resolved by having the poles painted or measures taken to mitigate their reflective appearance.

Fortis replied in a letter dated December 17, 2010 stating that they did not plan to change the appearance of the poles and indicated that renderings of the poles were given to Council prior to installation. Enclosed are the pictures presented to Council at that presentation. As you will see, the poles do not appear as shiny silver. ln fact, it illustrates a muted grey finish that one typically sees of poles across British Columbia. Therefore, it was reasonable to expect that poles with this similar muted grey finish would have been installed in Penticton.

Fortis indicated that they were confident the galvanizing shine should dull over time; however, this is not confirmed as 100% and no one is aware of how long that process might take. In the interim, the poles are blight on Penticton's landscape. As Penticton is a tourist town we rely heavily on our natural landscape of water, trees, wineries, etc. to attract tourists. As such, Council respectfully requests that the BC Utilities Commission intervene and ask Fortis BC to reconsider its decision to mitigate the problem.

Should a representative from the BC Utilities Commission wish to view the poles first hand to see how greatly it has affected the landscape, Council would be happy to make the necessary arrangements for you to take a tour.

On behalf of Council, we [oak forward to working with the Commission and Fortis BC to resolve this issue.

cc: Mr. John Walker, President of Fortis BC

October 27,2010

File No: 5501-01

Mr. John Walker, President FORTIS Be

100 - 1975 Springfield Road KELOWNA, Be V1Y 7\17

Dear Mr. Walker:

Re: Installation of Power Poles in the South Okanagan-Similkameen

I wish to advise that Council, at its October 18, 2010 regular meeting, discussed the newly installed power poles along the east side of Penticton and passed a motion requesting that the poles be painted or measures taken to mitigate their reflective appearance.

The poles in their current iIIuminant status are a visual impediment which has become a community issue resulting in many complaints from our constituents.

The City of Penticton, as always, would like to continue its positive relations with FORTIS BC and is looking for a solution that is respectful of the wishes of the community and our pristine vistas.

On behalf of Council, we welcome your suggestions as to how best resolve this issue as quickly as possible.

Please feel free to contact me directly at (250) 809-2540.

cc: Utilities Commission

171 MAIN STREET, PENTICTON, BRITISH COLUMBIA, CANADA V2A SAg

TELEPHONE (250) 490-2400 FAX (250) 490-2402

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Lot No.. 34931

VIA. FACSOIDLE 1-2SCJ.490-24D2

December 22, 2010

Mr. D. Ashton

Mayor, Oty of Penticton

Dear Mr. Ashton:

Re: FortisBC Inc.

CUstomer Reqyest - Oty of pentictpn - Power POles

We are In receipt of a copy of FortIs8C's response to your concerns related to the power palm Installed as a result of the OIcanasan Transmission Re;nfo n:ement Project. We understand that Fortis met with you personally to provjde you with Its written reply to your eencerns, as well as to dkaJss the matter with you further.

As we have been copied on correspond~nce from you as well as from FortisBC, we simply ask that you advise us at your earnest convenience If you require any addltIonallnfo rmatlon or assistance from the Commission.

Vou~truIV.

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Erfca M. Hamilton

cc: Ms. Sanlh Wagner Resulatary Analyst FortJs8C Inc.

(lila email: regulatoryfl/ortisbc.com)

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FORTISBC

John C. Walker President and

ChIef ExewtIve OffIcer Ter.lsen Inc.. and FortisBC

Suite 100,1975 Spring!leld Road KeloWM, Brillsh CQumbia V1 Y 7V7 Tel: 25Q..4S&.8090

FalC 250-717.()8()2 Iohn.wal!g!n:li)!brt!sbc,com Igbn,wplkdlarisan,C9!JJ www.fur1fsbc;q:m wwwJem!i1!Hxxn

December 17, 2010

Mayor Dan Ashton

The City of Pen tic ton 171 Main Street Penticton, Be V2A SA9

Dear Mayor Ashton:

Thank. you for your letter dated October 27,2010 regarding the new Okanagan Transmission Reinforcement (OTR) project transmission line constructed in 2010. Upon completion, the OTR project will enhance the supply of electricity to the region, and win address both capacity and reliability needs.

While FortisBC understands your concern and values feedback from customers and stakeholders. we do not plan to change the appearance of the recently installed OTR transmission poles. Galvanizing is the preferred corrosion prevention method among utilities when using steel poles and we are not aware of any utilities painting galvanized poles after they have been installed.

As the City is aware, FortisBC undertook extensive public consultation on the OTR project and met with Penticton city staff and council members on May 22, 2007 as part of that consultation. For your reference, a copy of the presentation which includes renderings of the poles and the galvanized finish is enclosed. The City did not express a concern on the pole finish at that time. but did ask if other route alternatives were available. We also note - by way of example - that the City of Penticton is in the process, and has been for some time, of replacing its older electrical distribution wood poles with galvanized unpainted steel poles

ln response to the feedback we did receive from the city, and other feedback heard from various stakeholders, FortisBC researched and included in its application to the British Columbia Utilities Commission (BCUC) an option for an alternative route. The alternate route would have replaced the existing line with a new line and right of way further up the mountainside. The Company also proposed a number of different structure types of varying benefits. The City ofPenticton was an intervener in the Beue regulatory public hearing, which through the process included renderings of the galvanized steel poles to be installed as part of the project.

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Page 2

This public review process also included significant input from local residents and other stakeholders. After weighing all interests represented through the public process. the BCUe approved the OrR project for construction. In their decision, the BevC determined the existing right of way route using galvanized steel pole structures as the solution which on balance best met the public's interest. This more expensive single pole structure type was selected to - among other things - minimize the infrastructure on the right of way and address aesthetic concerns raised by loca1 property owners.

During the material procurement process for the steel poles, FortisBC requested interest from the market on both a galvanized steel option and a weathered steel option. A single weathered steel response was received, but it did not meet the requirements of the project and as such the Company proceeded with the galvanized poles as was initially planned, consulted on and approved by the BeUe.

In addition, we met with the City this spring to provide a construction update. A copy of the presentation from the spring meeting is enclosed. Contained within the presentation are photographs of the installed and to be installed galvanized steel poles. The City did not raise any concerns with the pole finish at that time.

As you are aware, the line is now operating for the benefit of supplying electricity to customers in Penticton and other communities. The new 230-kV transmission line is helping meet customer's electricity demand through additional transmission capacity, enhanced supply of electricity to the region, and improved reliability.

For a number of reasons, painting or camouflaging the poles as some stakeholders have suggested is not as simple as it may seem, and we have been unable to find any practical solutions which would address your concerns given that the line is now constructed and in operation. Any alteration to the existing structures would create additional reliability, environmental, and worker safety concerns, as well as potentially create ongoing maintenance issues.

Therefore, while we value feedback from customers and stakeholders, we have no plans to alter the appearance of the poles, through either paint or camouflage as has been suggested. Our experience has been that the galvanizing shine will dulJ over time, and we are confident this will occur on the OTRline.

Pagc2

This public review process also included significant input from local residents and other stakeholders. After weighing all interests represented through the public process. the BCUe approved the OTR project for construction. In their decision, the BCUC determined the existing right of way route using galvanized steel pole structures 8S the solution which on balance best met the public's interest. This more expensive single pole structure type was selected to - among other things - minimize the infrastructure on the right of way and address aesthetic concerns raised by loca1 property owners.

During the material procurement process for the steel poles, FortisBC requested interest from the market on both a galvanized steel option end a weathered steel option. A single weathered steel response was received, but it did not meet the requirements of the project and as such the Company proceeded with the galvanized poles as was initially planned, consulted on and approved by the BeUe.

In addition, we met with the City this spring to provide a construction update. A copy of the presentation from the spring meeting is enclosed. Contained within the presentation are photographs of the installed and to be installed galvanized steel poles. The City did not raise any concerns with the pole finish at that time.

As you are aware, the line is now operating for the benefit of supplying electricity to customers in Penticton and other communities. The new 230-kV transmission line is helping meet customer's electricity demand through additional transmission capacity, enhanced supply of electricity to the region, and improved reliability.

For a number of reasons, painting or camouflaging the poles as some stakeholders have suggested is not as simple as it may seem, and we have been unable to find any practical solutions which would address your concerns given that the line is now constructed and in operation. Any alteration to the existing structures would create additional reliability, environmental, and worker safety concerns, as well as potentially create ongoing maintenance issues.

Therefore; while we value feedback from customers and stakeholders, we have no plans to alter the appearance of the poles, through either paint or camouflage as has been suggested. Our experience has been that the galvanizing shine will dull over time, and we are confident this will occur on the OTRline.