FOR IMMEDIATE RELEASE
No. 168

BC Hydro and Accenture Plan to Offer Services to Utilities Throughout North America

Accenture Creates BC Hub for Delivery of a Range of Services

VANCOUVER, British Columbia, July 18, 2002 - BC Hydro and Accenture (NYSE: ACN) today announced plans to offer a range of services to the utility industry throughout North America. The services, to be delivered through a newly created entity, are expected to include customer relationship management, IT, human resources, financial and procurement services.

BC Hydro and Accenture have entered into a memorandum of understanding that will enable Accenture to establish the new entity and develop a service agreement with BC Hydro. The new entity is expected to employ approximately 2,000 employees and assume BC Hydro's Customer Services (including the development of a new Customer Information System), IT services provided by Westech, Network Computing Services, HR Services, Financial Systems, Purchasing, Disbursement Services, Property Services, Business and Office Services.

"This is the next step toward creating an entity that will maintain BC Hydro's mandates of providing exceptional customer service while decreasing costs," said BC Hydro Chair and CEO, Larry Bell. "When fully operational, the new entity will provide a broad scope of services to both BC Hydro and new external customers, providing significant growth and development opportunities."

"Accenture is committed to building a strong business in British Columbia that will contribute to economic growth and provide employees with expanded career opportunities," said Charles Filewych, a Vancouver-based partner in Accenture's Utilities practice. "The new venture is an important hub offering a broad range of outsourced service capabilities to BC Hydro and the North American utilities market, and will allow BC Hydro to better focus on its core business of generating, transmitting, and distributing electricity."

"Our clients in the utilities sector are under pressure to reduce costs while improving the level of service they provide to customers, all in an increasingly competitive business environment," said Mary Tolan, Group Chief Executive of Accenture's Resources Operating Group. "We believe that through the business we are building together with BC Hydro, we will provide a full suite of outsourced capabilities that will provide BC Hydro and our North American utilities clients with an immediate opportunity to reduce costs and receive higher quality of services in a number of important areas of their business."

Today's agreement is the result of the Request for Expressions of Interest that BC Hydro solicited from the private sector in October 2001. After reviewing 19 proposals, BC Hydro employees were informed that the discussions had narrowed to a single proponent, Accenture, on April 19, 2002. The final terms of today's agreement are subject to negotiation, due diligence and other customary conditions. The new entity is expected to be fully operational and begin serving clients by early calendar year 2003.

About BC Hydro:

BC Hydro and Power Authority is a provincial crown corporation, serving more than 1.8 million customers across the province of British Columbia, Canada. More than 80 per cent of BC Hydro's electricity is produced by hydroelectric generation on the Columbia and Peace River systems. The home of the successful demand-side management Power Smart program, BC Hydro is working towards a sustainable future by providing integrated energy solutions in an environmentally and socially responsible manner. BC Hydro's web site is www.bchydro.com, where you can find information related to this MOU.

About Accenture:

Accenture (NYSE: ACN) is the world's leading management consulting and technology services organization. Through its network of businesses approach -- in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities, Accenture delivers innovations that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, the company generated net revenues of $11.44 billion for the fiscal year ended August 31, 2001. Its home page is www.accenture.com. Accenture has operated in Canada since 1989 and employs 1,200 people across the country. ###

Contacts:
For Accenture - Anne Barlow
1 (604) 646-5107

For BC Hydro - Elisha Odowichuk
1 (604) 623-4099

BC Hydro's RFEI process and MOU signing with Accenture

* On October 19, 2001, BC Hydro issued a Request for Expressions of Interest (RFEI) to the private sector for Westech, Customer Services and Fleet Services.

* On November 14, 2001, The RFEI closed with 19 proponents formally submitting proposals. Those interested in Westech and Customer Services were: (Siebel Systems, Inc., Phoenix Management Consultants, CorporaTel, DMR Consulting Ltd., Westech Employee Group, Adex Industries, Inc., MacDonald Dettwiler & Associates Ltd., IBM / Utilicorp, Serco Group Inc., Accenture Inc. / Telus, Smart Centre Services (CGEY Canada Inc. / CustomerWorks LLP / Vertex Data Science Limited))

* In January 2002, BC Hydro split the RFEI into two discussions by combining Westech and Customer Services into one "combined bid" process. This decision was based on the interest shown by proponents who responded to the RFEI.

* On April 19, 2002, BC Hydro employees were informed that discussions had narrowed to a single proponent - Accenture. The scope of the RFEI was also broadened to include other competitive service areas: Network Computing Services (NCS), HR Services, Shared Services (which includes Property Services, Financial Services, Disbursement Services, Purchasing Services and Building/Office Services) and Financial and Business Services. Total BC Hydro employees potentially involved is now approximately 2,000.

* The lead proponent - Accenture - is an international company and leading provider of management and technology consulting services and solutions, operating with 1,200 employees in Canada, and 32 Canadian partners since 1989. Canadian offices are located in Vancouver, Calgary, Edmonton, Toronto, Ottawa, Montreal and Fredericton. Accenture also has a significant history in working on a number of projects with BC Hydro including the current upgrade to the BC Hydro Customer Information System.

* On July 18, 2002, BC Hydro and Accenture signed an MOU as the next step in the transfer of in-scope services to a new joint entity.

* For BC Hydro, the benefits are continued (or potentially higher) levels of customer service at lower costs. BC Hydro will also receive growth benefits from the new joint entity as it competes for new business.

* For Accenture, the benefits include an increase in its BC presence through a wholly-owned subsidiary, a 10-year service contract with BC Hydro, and a business positioned to grow and service new clients throughout Canada and the US.

* The next steps in this process are to work through and formalize the details of the MOU to contractually establish the Service Agreement and the transfer of assets and employees to the new business that is expected to come into existence formally in early 2003.

BC Hydro/Accenture MOU Key Agreements

The MOU is a non-legally binding document that outlines BC Hydro and Accenture's commitment to negotiate a definitive contract by year-end 2002, with the start-up of a business by early 2003. The MOU is a commercial document and is subject to final negotiation. While the introductory letter will be made public, the term sheets are not. These term sheets include:

* Joint Venture Agreement: specifies the relationship between BC Hydro, Accenture and the new business;

* Master Transfer Agreement: specifies the terms and conditions of transferring both assets and people into the new business;

* Master Services Agreement: specifies the services to be provided to BC Hydro and establishes the terms and conditions for the performance of the Services by the business to BCH;

* Marketing Alliance Agreement: an agreement between BC Hydro and the new business to work together to market and grow the business

* Support Services Agreement: establishes the terms and conditions under which BCH will contract to provide services and facilities to the business for time periods which vary based on the different services being provided.

A severed version of the MOU introductory letter will be available at www.bchydro.com later today.

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Elisha Odowichuk
BC Hydro Media Relations Manager
16th Floor, 333 Dunsmuir Street
Vancouver, B.C.
Phone: (604) 623-4099
Fax: (604) 623-3937
elisha.odowichuk@bchydro.bc.ca