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ERICA M. HAMILTON COMMISSION SECRETARY Commission.Secretary@bcuc.com web site: http://www.bcuc.com LETTER NO. L‐18‐09 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660‐4700 BC TOLL FREE: 1‐800‐663‐1385 FACSIMILE: (604) 660‐1102 VIA E‐MAIL All Regulated Companies: March 24, 2009 Re: British Columbia Utilities Commission (“Commission”) Annual Forecasting of Commission Regulatory Filing Requirements In order to effectively plan the regulatory requirements for the current and upcoming fiscal year, the Commission requests that you provide a list of expected regulatory requirements and when you anticipate making the filing. Prospective applications would include: 1. Revenue Requirements, 2.
Rate Design, 3.
Certificates of Public Convenience and Necessity, 4.
Long‐Term Action Plans or Integrated Energy/Resource Plans 5.
Tariffs, and 6.
Other filing matters. The Commission will use the information provided to balance its regulatory schedule and effectively assign its resources. We acknowledge that there are unanticipated matters such as complaint reviews, cost of service product pass‐throughs and other normal, routine tariff filings that may be beyond the control of the utility and the Commission to effectively forecast and thus cannot be accurately planned for. However, the initiative in providing planning for anticipated events will result in a more efficient regulatory service not only to the applicants but also to the public. The information supplied should include brief descriptions of the following: 1. Applications to be submitted to the Commission, 2.
Approximate date (month/year) of the expected filings, and 3.
Indication of any special filings anticipated that will require involvement of Commissioner and staff time. While the forecasts are not binding, the Commission would appreciate receiving, every January 1st and July 1st, a rolling 12‐
month forecast of anticipated filings. The Commission’s “Timing and Guidelines for Filing of Information” is attached for your information. Your assistance and cooperation is appreciated. Yours truly, Original signed by: Erica M. Hamilton cms MiscCor/L‐18‐09_Regulatory Filing Guidelines APPENDIX 1 to Letter No. L‐18‐09 Page 1 of 1 BRITISH COLUMBIA UTILITIES COMMISSION TIMING AND GUIDELINES FOR THE FILING OF INFORMATION These guidelines cover the filing of information required by the Commission to carry out its responsibilities under the Utilities Commission Act (“Act”). The guidelines are intended to provide sufficient lead time to enable the Commission and its staff to make and implement decisions efficiently and expeditiously. ∗ Filings should be received by the Commission Secretary a minimum of 30 days in advance of the desired effective date. Please provide an explanation if the application is filed under this minimum. ∗ The timing of the filings should accommodate at least 30 days customer notice prior to the desired effective date in cases such as rate increases where customer notification is required prior to Commission approval. An exception to this requirement would be filings made under subsection 61(4) of the Act for pass‐through of uncontrollable costs. ∗ The timing of filings for hearings will be established on an individual basis, by Order of the Commission, depending on the complexity of issues, the number of interested parties, urgency, and other factors. ∗ The filing of an application may include a proposed regulatory schedule and a proposed review process. Any proposed regulatory schedule should allow for sufficient review of the filing by all stakeholders. ∗ In order to avoid unnecessary delays or extensive information requests, every effort should be made to ensure that filings are complete, self‐explanatory, and follow any applicable published filing guidelines. ∗ In a filing, the figures contained in the body of the text should reference back to the relevant financial schedule. Financial schedules should be cross‐referenced (both source and destination). Reconciliations should be provided where appropriate to enable greater transparency. Totals and subtotals should be used in the financial schedules to aid in understanding. ∗ Parties are encouraged to discuss filing schedules periodically with Commission staff to exchange information on upcoming filings by the regulated entity and on the regulatory schedule anticipated by the Commission. In addition, where specific filings will contain unusual complexity or innovation, the prospective applicant is encouraged to pre‐file some or all of the material, or to request a pre‐filing conference with Commission staff in order to plan an efficient regulatory review of the application. ∗ While the Commission normally commences dealing with a filing in less than 30 days, this will depend on the complexity and completeness of the filing and the Commission’s workload at the time of filing. The Commission recognizes that, in exceptional circumstances, certain filings may be received and processed on an emergency basis. MiscCor/L‐18‐09_Regulatory Filing Guidelines BRITISH COLUMBIA
UTILITIES COMMISSION
ORDER
NUMBER
SIXTH FLOOR, 900 HOWE STREET, BOX 250
VANCOUVER, B.C. V6Z 2N3 CANADA
web site: http://www.bcuc.com
G-47-10
TELEPHONE: (604) 660-4700
BC TOLL FREE: 1-800-663-1385
FACSIMILE: (604) 660-1102
IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by British Columbia Hydro and Power Authority
for Review of its F2011 Revenue Requirement Application
BEFORE:
D. A. Cote, Commissioner
M.R. Harle, Commissioner
L.A. O’Hara, Commissioner
March 15, 2010
O R D E R
WHEREAS:
A.
British Columbia Hydro and Power Authority (BC Hydro) filed on March 3, 2010 with the British Columbia Utilities Commission
(Commission), pursuant to sections 44.2 and 58 to 61 of the Utilities Commission Act (the Act), its F2011 Revenue Requirements
Application (the F11 RRA, or Application) for, among other things, final approval of an across-the-board rate increase of 6.11
percent, effective April 1, 2010, and final approval to increase the Deferral Account Rate Rider from 1.0 percent to 4.0 percent,
effective April 1, 2010; and
B.
The Application also seeks refundable interim relief pursuant to sections 58 to 61, 89 and 90 of the Act, and section 15 of the
Administrative Tribunals Act, to allow BC Hydro to increase its rates by 6.11 percent on an across-the-board basis, and to increase
its Deferral Account Rate Rider from 1.0 percent to 4.0 percent, both effective April 1, 2010, pending the hearing into the F11 RRA
and orders subsequent to that hearing, on the basis that on April 1, 2010 BC Hydro’s current rates would otherwise no longer be
fair, just and not unduly discriminatory; and
C.
For the residential inclining block (RIB) rate schedules 1101 and 1121, BC Hydro is proposing to apply the 6.11 percent increase
equally to the Basic charge and Step 1 and Step 2 energy charges; and
D.
In the Application, BC Hydro proposes an initial regulatory process of Commission Information Requests (IRs), registration of
Interveners and Interested Parties; Intervener IRs; BC Hydro responses to all IRs, and a Procedural Conference on or about Tuesday,
April 27, 2010 to consider further process issues, including consideration of whether the Application might be resolved through
negotiated settlement or written process; and
E.
The Commission has reviewed BC Hydro’s proposed regulatory timetable and considers that the requested interim rate increase
should be approved and an Initial Regulatory Timetable should be established.
NOW THEREFORE the Commission orders, as follows:
1.
The 6.11 percent across-the-board, refundable interim increase in rates including RIB rates is approved for BC Hydro effective
April 1, 2010, to be applied as set out in the Rate Schedules in Appendix A2 of the F11 RRA. The refundable interim increase in
BC Hydro’s Deferral Account Rate Rider, from 1.0 percent to 4.0 percent, is approved effective April 1, 2010. Both interim
increases are subject to refund with interest at BC Hydro’s weighted average cost of debt for its most recent fiscal year.
…/2
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2.
BC Hydro is to provide customers with notification of the interim rate increases as soon as is practicable.
3.
The deadlines for Commission and Intervener IR No. 1 to BC Hydro, the responses from BC Hydro, and a proposed deadline for
Commission and Intervener IR No. 2, the registration of Interveners and Interested Parties, and the filing of Intervener participant
assistance budgets are set out in the Initial Regulatory Timetable attached as Appendix A to this Order.
4.
The Commission will hold a Workshop to review the issues in the Application on Wednesday, April 7, 2010 commencing at
9:00 a.m., in the Commission’s Hearing Room on the 12th Floor, 1125 Howe Street, Vancouver, BC.
5.
A Procedural Conference regarding the further regulatory process for the review of the F11 RRA will be held on Tuesday, May 25,
2010 commencing at 9:00 a.m., in the Commission’s Hearing Room on the 12th Floor, 1125 Howe Street, Vancouver, BC. After the
Procedural Conference, the Commission will issue a further procedural order and regulatory timetable for the review of the
F11 RRA.
6.
BC Hydro is to provide a copy of this Commission Order and the Initial Regulatory Timetable attached as Appendix A to this Order
to all parties who participated in the F09/F10 Revenue Requirements Application proceeding.
7.
BC Hydro will publish, as soon as possible, in display-ad format, the Notice of Application, Workshop and Procedural Conference
attached as Appendix B to this Order, in such appropriate news publications as may properly provide adequate notice to the public
in its service areas.
8.
BC Hydro will make available for inspection the F11 RRA, with any supporting materials, at the BC Hydro Head Office in Vancouver
and BC Hydro offices in Burnaby, Fort St. John, Kamloops, Surrey, Nanaimo, North Vancouver, Prince George, Salmon Arm, Vernon,
and Victoria. BC Hydro will also make the F11 RRA available on BC Hydro’s website at http://www.bchydro.com.
9.
Interveners and Interested Parties should register for the F11 RRA with the Commission, in writing or by online web registration, by
Friday, March 26, 2010, and advise whether they will attend the Workshop and the Procedural Conference. Interveners should
specifically state the nature of their interest in the F11 RRA, and identify generally the nature of the issues that they intend to
pursue during the F11 RRA proceeding and the nature and extent of their anticipated involvement in the review process.
10. Interveners intending to apply for participant assistance must submit a budget estimate by Tuesday, May 11, 2010, consistent with
the Commission’s Participant Assistance/Cost Award Guidelines and Order G-72-07. Copies are available upon request, or can be
downloaded from the Commission’s website at http://www.bcuc.com.
DATED at the City of Vancouver, in the Province of British Columbia, this
15th
day of March 2010.
BY ORDER
Original signed by:
Dennis A. Cote
Panel Chair/Commissioner
Attachments
Orders/G-47-10_BCH F2011 RRA Notice Procedural Conference-Timetable
BChgdro
m
BC HYDRO 2011 REVENUE REQUIREMENTS
EXHIBIT B-16
FOR GENERATIONS
Joanna Sofield
Chief Regulatory Officer
Phone: (604) 623-4046
Fax:
(604)623-4407
bchydroregulatorygroup@bchydro.com
November 2,2010
Ms. Erica M. Hamilton
Commission Secretary
British Columbia Utilities Commission
Sixth Floor - 900 Howe Street
Vancouver, BC V6Z2N3
Dear Ms. Hamilton:
RE:
Project No. 3698592
British Columbia Utilities Commission (BCUC)
British Columbia Hydro and Power Authority (BC Hydro)
F2011 Revenue Requirement Application (F11 RRA)
BC Hydro writes further to BCUC Order NO. G-163-10 which reinstated the negotiated
settlement process (NSP) for the F11 RRA established by Order No. G-136-10.
BC Hydro is pleased to advise that the NSP parties have achieved agreement on the
substantive terms of a comprehensive settlement of all issues arising from the F11 RRA,
with the possible exception of the Independent Power Producers Association of British
Columbia and the Line Contractors Association of BC. The parties to the settlement are
now negotiating the terms of a final settlement agreement. BC Hydro anticipates that a
final settlement agreement will be submitted to the BCUC Panel and registered
interveners that did not participate in the NSP by the end of November.
For further information, please contact the undersigned.
Yours sincerely,
VU/lIJ
Joanna Sofield
Chief Regulatory Officer
js/af
c. BCUC Project No. 3698592 (F11 RRA) Registered Intervener Distribution List.
British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3
www.bchydro.com
BRITISH COLUMBIA
UTILITIES COMMISSION
ORDER
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SIXTH FLOOR, 900 HOWE STREET, BOX 250
VANCOUVER, B.C. V6Z 2N3 CANADA
web site: http://www.bcuc.com
G-40-08
TELEPHONE: (604) 660-4700
BC TOLL FREE: 1-800-663-1385
FACSIMILE: (604) 660-1102
IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by
British Columbia Hydro and Power Authority (“BC Hydro”)
for the Review of F2009 and F2010 Revenue Requirements
BEFORE:
L.F. Kelsey, Panel Chair
L.A. O’Hara, Commissioner
A.A. Rhodes, Commissioner
March 14, 2008
O R D E R
WHEREAS:
A. BC Hydro filed on February 20, 2008, pursuant to sections 58 to 61 of the Utilities Commission Act (the
“Act”), its F2009 and F2010 Revenue Requirements application for, among other things, approval of acrossthe-board rate increases of 6.56 percent and 8.21 percent, effective April 1, 2008 and April 1, 2009,
respectively, and approval of a reduction of the Deferral Account Rate Rider from 2.0 percent to 0.5 percent,
effective April 1, 2008 ( the “F09/F10 RRA” or “Application”); and
B. The Application also seeks refundable interim relief pursuant to sections 58 to 61 and section 90 of the Act to
allow BC Hydro to increase its rates by 6.56 percent on an across-the-board basis and to decrease its Deferral
Account Rate Rider from 2.0 percent to 0.5 percent, both effective April 1, 2008, pending a full hearing into
the F09/F10 RRA and orders subsequent to that hearing, on the basis that on April 1, 2008 BC Hydro’s
current rates would otherwise no longer be fair, just, sufficient and not unduly discriminatory; and
C. On February 22, 2008 the Commission issued Letter No. L-5-08 establishing, among other things, the
regulatory timetable for parties to address, by written submission, BC Hydro’s request to implement the
interim rates described in the F09/F10 RRA effective April 1, 2008 and the BC Hydro Transmission Service
Rate Re-pricing Application (the “TSR Re-pricing Application”); and
D. By Order No. G-21-08 dated February 25, 2008, the Commission established the Regulatory Timetable for
the F09/F10 RRA, which included a Workshop on the F09/F10 RRA for March 6, 2008 and also a Procedural
Conference for April 28, 2008 to hear submissions on the regulatory process for the review of the F09/F10
RRA, the TSR Re-pricing Application, and the anticipated BC Hydro Residential Inclining Block Rate
Application (the “RIB Rate Application”); and
…/2
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E. By Order No. G-28-08 dated February 28, 2008, the Commission issued orders under the style of all three
applications, which again related to the date of the Procedural Conference referred to in Order No. G-21-08,
and also provided some details of the matters to be addressed at the Procedural Conference and further
ordered BC Hydro to publish notice of the three applications and the Procedural Conference; and
F. The Commission received Intervenor Submissions by March 7, 2008 from the Joint Industry Electricity
Steering Committee (“JIESC”) and Mr. Alan Wait opposing, either wholly or in part, the proposed F09/F09
RRA interim rate changes; and
G. BC Hydro filed its Reply Submission on March 11, 2008; and
H. The Commission has reviewed the F09/F10 RRA and the submissions on BC Hydro’s requested interim rate
changes and considers that approval is warranted.
NOW THEREFORE the Commission orders with Reasons attached, pursuant to section 89 of the Act, as
follows:
1. The 6.56 percent across-the-board refundable interim increase in rates is approved for BC Hydro effective
April 1, 2008 to be applied as described in Appendix R of the F09/F10 RRA.
2. The refundable interim decrease in BC Hydro’s Deferral Account Rate Rider, from 2.0 percent to 0.5 percent,
is approved effective April 1, 2008.
3. The interim rate increase and interim decrease in BC Hydro’s Deferral Account Rate Rider are both subject to
refund with interest at BC Hydro’s weighted average cost of debt for its most recent fiscal year.
4. BC Hydro is to provide customers with notification of the interim rate increase as soon as practicable.
5. The Commission will accept, subject to timely filing by BC Hydro, amended Electric Tariff Rate Schedules in
accordance with the terms of this Order.
DATED at the City of Vancouver, in the Province of British Columbia, this
14th
BY ORDER
Original signed by:
L.F. Kelsey,
Panel Chair
Attachment
Orders/G-39-08_BCH_F2009-2010RR_Interim Rates-Reasons
day of March 2008.
SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA web site: http://www.bcuc.com BRITISH COLU
MBIA U T I L I T I E S C O M M I S S I O N ORDER NUMBER G‐16‐09
TELEPHONE: (604) 660‐4700 BC TOLL FREE: 1‐800‐663‐1385 FACSIMILE: (604) 660‐1102 BEFORE: IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by British Columbia Hydro and Power Authority for Review of the F2009 and F2010 Revenue Requirements Application L.A. O’Hara, Panel Chair R.J. Milbourne, Commissioner March 13, 2009 A.A. Rhodes, Commissioner (dissenting in part) O R D E R WHEREAS: A. British Columbia Hydro and Power Authority (“BC Hydro”) filed on February 20, 2008, pursuant to sections 58 to 61 of the Utilities Commission Act (“the Act”), its F2009 and F2010 Revenue Requirements Application for, among other things, approval of across‐the‐board rate increases of 6.56 percent and 8.21 percent, effective April 1, 2008 and April 1, 2009, respectively, and approval of a reduction of the Deferral Account Rate Rider from 2.0 percent to 0.5 percent, effective April 1, 2008 (the “F09/F10 RRA” or “Application”); and B. The Application also sought refundable interim relief pursuant to sections 58 to 61 and section 90 of the Act to allow BC Hydro to increase its rates by 6.56 percent on an across‐the‐board basis and to decrease its Deferral Account Rate Rider from 2.0 percent to 0.5 percent, both effective April 1, 2008, pending a full hearing into the F09/F10 RRA and orders subsequent to that hearing, on the basis that on April 1, 2008 BC Hydro’s current rates would otherwise no longer be fair, just, sufficient and not unduly discriminatory; and C. On February 25, 2008 the Commission issued Order G‐21‐08 establishing the Regulatory Timetable for the F09/F10 RRA. The Regulatory Timetable included a Workshop on March 6, 2008 and a Procedural Conference on April 28, 2008; and D. On February 28, 2008 the Commission issued Order G‐28‐08 that included a requirement for the publication of a Notice of Applications; and …/2 B R I T I S H C O L U M B I A UTILITIES COMMISSION O R D ER NUMBER G‐16‐09 2 E. On March 14, 2008 the Commission issued Order G‐40‐08 that approved interim refundable rate changes for the 6.56 percent across‐the‐board rate increase and the decrease in BC Hydro’s Deferral Account Rate Rider from 2.0 percent to 0.5 percent, both effective April 1, 2008; and F. Following the April 28, 2008 Procedural Conference the Commission by Order G‐78‐08 dated April 30, 2008 established a Regulatory Timetable for review of the F09/F10 RRA through an Oral Public Hearing to commence on Monday, October 6, 2008 at 9:00 a.m., if the Negotiated Settlement Process (“NSP”) scheduled to commence on August 18, 2008 did not conclude in an agreement; and G. On July 2, 2008 BC Hydro filed an Evidentiary Update to the F09/F10 RRA that included F2008 actual results and F2008 closing balances of all regulatory and deferral accounts, an update on the Demand Side Management (“DSM”) energy savings and expenditures to be consistent with forecasts in BC Hydro’s 2008 Long Term Acquisition Plan Application (“2008 LTAP”), as well as updated forecasts for energy sales, revenues and cost of energy; and H. On August 13, 2008, the Joint Electricity Steering Committee (“JIESC”) filed a letter requesting that the Commission cancel the NSP and proceed to the full public hearing on Monday, October 6, 2008. The British Columbia Old Age Pensioners’ Organization et al. (“BCOAPO”) and Rental Owners and Managers Society of BC supported the JIESC’s request. BC Hydro replied to the JIESC’s and BCOAPO’s letters noting it would not be worthwhile to proceed with the NSP in the circumstances; and I. By Order G‐119‐08 the Commission cancelled the NSP and established a Pre‐hearing Conference on August 21, 2008 to receive submissions from Intervenors and BC Hydro on further regulatory process; and J. Following the August 21, 2008 Pre‐hearing Conference the Commission issued Order G‐122‐08 that among other things confirmed the commencement of the Oral Public Hearing date of October 6, 2008; and K. In its Final Argument, BC Hydro seeks final rate increases of 6.56 percent and 7.50 percent effective April 1, 2008 and 2009, respectively, subject to the resolution of the 2008 LTAP; and L. The oral evidentiary phase concluded on October 29, 2008. Subsequently, the oral argument phase took place on January 16 & 19, 2009; and M. On February 17, 2009 the B.C. Government issued Order‐In‐Council (“OIC”) No. 074, which amended sections 4 and 7 of Heritage Special Direction No. HC2 to the Commission, effective February 17, 2009. OIC No. 074 requires the Commission to set rates for BC Hydro to enable it to achieve an annual rate of return on deemed equity equal to the sum of the pre‐income tax annual return on equity allowed by the Commission to the most comparable investor‐owned energy utility and an additional 1.63 percent; and …/3 B R I T I S H C O L U M B I A UTILITIES COMMISSION O R D ER NUMBER G‐16‐09 3 N. The Commission has considered the Application and evidence all as set forth in the Decision issued concurrently with this Order. NOW THEREFORE the Commission, for reasons stated in the Decision, orders as follows: 1. The applied‐for across‐the‐board rate increase of 6.56 percent and 7.50 percent, effective April 1, 2008 and 2009, respectively, subject to a revenue requirement compliance filing incorporating any further transfers to the NHDA in F2009 and F2010 necessary to maintain final rate increases of 6.56 percent and 7.50 percent, effective April 1, 2008 and 2009, respectively, after incorporating the impacts of certain determinations regarding DSM in the 2008 LTAP are not approved as filed. 2. The interim decrease in the Deferral Account Rate Rider from 2.0 percent to 0.5 percent, effective April 1, 2008, is approved. 3. BC Hydro is to calculate revised interim F2009 and F2010 rates and to submit in a compliance filing two sets of financial schedules including the spreadsheet model in accordance with the directives in the Commission’s Decision, on or before March 27, 2009. The first set is to reflect the Commission’s Decision, without regard for the amendments to Heritage Special Direction No. HC2 arising from OIC No. 074 dated February 17, 2009, while the second set is to reflect the Commission’s Decision, but show the effect of the amendments on the F2010 revenue requirement. 4. If the F2009 revised interim rates are less than the interim rates of 6.56 percent, BC Hydro is to refund to customers the difference in revenue including interest at BC Hydro’s most recent annual weighted average cost of debt for its most recent fiscal year, as soon as practicable. If the F2009 revised interim rates exceed 6.56 percent, the under‐collection of revenues from April 1, 2008 to March 31, 2009 are to be placed in a deferral account for recovery at a future time. BC Hydro is to report on the average refund or rate increase by customer class. 5. BC Hydro is directed to submit a second compliance filing within 30 days of the Commission’s final Decision and Order regarding the 2008 LTAP to finalize the F2009 and F2010 rates. The second compliance filing is to incorporate the further transfers to the NHDA in F2009 and F2010 necessary to maintain the final and permanent rate increase at the revised interim rate increase level, after incorporating the impacts of certain determinations in the 2008 LTAP regarding DSM. The revised interim rates for F2009 and F2010 are then approved as final and permanent rates for the period from April 1, 2008 to March 31, 2010 inclusive. …/4 B R I T I S H C O L U M B I A UTILITIES COMMISSION O R D ER NUMBER G‐16‐09 4 6. The Commission will accept, subject to timely filing, amended Electric Tariff Rate Schedules which conform to the Commission’s Decision for both the revised interim rates and the permanent and final rates. BC Hydro is to provide all customers with a notice of the change in rates, by way of an information notice and media publication. 7. BC Hydro will comply with all other directives in the Decision accompanying this Order. DATED at the City of Vancouver, in the Province of British Columbia, this 13th day of March 2009. BY ORDER Original signed by: L.A. O’Hara Panel Chair Orders/G‐16‐09_BCH‐F2009‐2010RR_Decision BRITISH COLUMBIA
UTILITIES COMMISSION
ORDER
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G-143-06
TELEPHONE: (604) 660-4700
BC TOLL FREE: 1-800-663-1385
FACSIMILE: (604) 660-1102
SIXTH FLOOR, 900 HOWE STREET, BOX 250
VANCOUVER, B.C. V6Z 2N3 CANADA
web site: http://www.bcuc.com
IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by British Columbia Hydro and Power Authority (“BC Hydro”)
for the Review of the F2007 and F2008 Revenue Requirements Application (“F07/F08 RRA”)
BEFORE:
R.H. Hobbs, Chair
N. F. Nicholls, Commissioner
A.J. Pullman, Commissioner
November 10, 2006
O R D E R
WHEREAS:
A. In a letter dated March 15, 2006, BC Hydro applied for Commission approval to set its current rates as interim
effective April 1, 2006 and in the same letter informed the Commission that the balance of the F07/F08 RRA
would be filed in or about late April 2006; and
B. By Order No. G-32-06 dated March 23, 2006, the Commission approved current customer rates as interim
effective April 1, 2006; and
C. By Commission Order No. G-103-05 dated October 5, 2005 the Commission approved a Negotiated
Settlement in the Resource Expenditure Acquisition Plan (“REAP”) proceeding. In the REAP Negotiated
Settlement, BC Hydro committed to seek, pursuant to Section 45 (6.2) of the Utilities Commission Act (the
“Act, “UCA”), regulatory approval of the 2006 Long-Term Acquisition Plan (“LTAP”), to be included with
the 2006 Integrated Electricity Plan (“2006 IEP”); and
D. On March 29, 2006, BC Hydro filed, pursuant to Section 45 (6.1) of the Act, the 2006 IEP and the LTAP with
the Commission for review; and
E. The 2006 IEP is a long-term plan that describes how BC Hydro could meet customers’ electricity needs over
a 20-year planning horizon and the resource options available to meet those needs under a variety of
assumptions and risks; and
F. The LTAP is an action plan that is supported by the 2006 IEP. It itemizes the actions BC Hydro intends to
take in the next ten years to meet customers’ electricity needs as part of BC Hydro’s overall planning and
resource acquisition process; and
G. BC Hydro seeks an Order which: (i) states that the 2006 LTAP meets the requirements of Section 45 (6.1) of
the UCA; (ii) makes specific determinations under Subsection 45 (6.2)(b) of the UCA with respect to certain
BRITISH COLUMBIA
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planned expenditures; and (iii) approves the transmission LTAP plan and contingency plans for inclusion in
the Utility’s Network Integrated Transmission Service application; and
H. In its cover letter dated March 29, 2006, BC Hydro proposes a Pre-hearing Conference to assist with
establishing a Regulatory Agenda or Agendas for both its F07/F08 RRA and the 2006 IEP and LTAP; and
I.
By Order No. G-37-06, the Commission established a Procedural Conference to hear submissions on the
regulatory process for the review of the both the F07/F08 RRA and the 2006 IEP and LTAP. The Procedural
Conference was scheduled for May 19, 2006; and
J.
In a letter dated May 1, 2006, BC Hydro informed the Commission and all Intervenors and Interested Parties
of a delay and that the balance of its F07/F08 RRA would be filed towards the end of May 2006; and
K. The Joint Industry Electric Steering Committee (“JIESC”) submitted to the Commission in a letter dated
May 5, 2006 that participants should not be required to file Information Requests with respect to the 2006
IEP, LTAP or F07/F08 RRA prior to the filing of the F07/F08 RRA because the applications are intertwined.
It submitted that the Procedural Conference be postponed to the week of June 19, 2006. The JIESC also
requested that the Commission reconsider its Order No. G-32-06 making BC Hydro’s rates interim; and
L. On May 10, 2006, the Commission issued a letter with a draft regulatory timetable and an accompanying
Order No. G-51-06 (IEP Exhibit A-4) to address issues raised by Intervenors with respect to the delay by BC
Hydro in filing the F07/08 RRA; and
M. The Commission held a Procedural Conference on May 19, 2006 wherein the Commission Panel considered
submissions on whether or not the Order on interim rates should be reconsidered, whether a rate design
application should be filed, and the scheduling for the regulatory review of the 2006 IEP and LTAP, the
F07/08 RRA and a rate design application; and
N. By Order No. G-59-06 dated May 24, 2006 the Commission approved the reconsideration of Order
No. G-32-06 on interim rates and set the regulatory timetable leading to the Second Procedural Conference;
and
O. On June 19, 2006, the Commission issued Order No. G-70-06 denying the Reconsideration Application. In
the same Order, the Commission approved the request in the F07/F08 RRA for a regulatory asset (deferral
account) to record the revenue deficiency incurred during the period from April 1, 2006 to June 30, 2006, net
of any disallowance of F07 revenue requirements. The Order also required that if BC Hydro expected to
bring an application for carrying costs then BC Hydro was to do so within 30 days of the Order; and
BRITISH COLUMBIA
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P. By letter dated July 27, 2006, the Commission asked BC Hydro and Intervenors to comment on the
consolidation of the 2006 IEP, LTAP and F07/F08 RRA; the use of the negotiated settlement process (NSP);
the filing date for the rate design application; the proposed regulatory timetables; and a contemplated change
to the Commission Panel; and
Q. By letter dated July 28, 2006 BC Hydro informed the Commission that BC Hydro would not be charging
carrying costs to the regulatory asset (deferral account) approved by Order No. G-70-06 and accordingly
would not be filing an application; and
R. By letter dated July 28, 2006, BC Hydro asked the Commission to confirm if the F2006 Call Energy Supply
Contracts (“ESC”) as filed on August 31, 2006 will proceed without any further regulatory process; and
S. At the Second Procedural Conference on August 1, 2006, JIESC and BC Hydro separately provided revisions
to the proposed regulatory timetables; and BC Hydro advised that it is ready to file the rate design application
within thirty days of receipt of a decision on the F07/F08 RRA; and
T. Following the Second Procedural Conference the Commission issued Order No. G-96-06, dated August 3,
2006, which established, among other things, a NSP for the F07/08 RRA; and
U. On August 31, 2006 BC Hydro filed an Evidentiary Update to the F07/08 RRA; and
V. The NSP commenced immediately following a Workshop led by BC Hydro on October 16, 2006; and
W. The participants in the NSP reached a Negotiated Settlement Agreement, dated November 2, 2006 (“NSA”);
and
X. On November 6, 2006, the NSA, together with the Letters of Support and one Letter of Dissent (the
“Settlement Package”) received from the participants in the NSP, was made public and circulated to the
Commission Panel. On the same date the Settlement Package was also distributed to Registered Intervenors in
the F07/08 RRA review who did not participate in the settlement negotiations (“other Intervenors”). The
other Intervenors were requested to provide their comments on the Settlement Package to the Commission at
the Third Procedural Conference, which took place on November 8, 2006. The Commission Panel received
no comments at the Third Procedural Conference from other Intervenors regarding the Settlement Package.
One other Intervenor, EPCOR Utilities Inc.(“EPCOR”), submitted a letter dated November 7, 2006, which
stated that EPCOR accepts and supports approval of the NSA; and
Y. At the Third Procedural Conference the Commission Panel also posed questions, primarily to BC Hydro,
regarding the NSA, including the scope of review during the 2006 IEP and LTAP proceeding.; and
Z. The Commission has determined that the NSA is in the public interest and should be approved.
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NOW THEREFORE the Commission orders as follows:
1. The Negotiated Settlement Agreement, dated November 2, 2006, attached as Appendix A to this Order is
approved.
2. The Commission will accept revised Electric Tariff Rate Schedules in accordance with the terms of the NSA.
3. BC Hydro is to inform all customers in a timely manner of the rate changes approved by this Order.
DATED at the City of Vancouver, in the Province of British Columbia, this
10th
BY ORDER
Original signed by:
Robert H. Hobbs
Chair
Attachment
Orders/G-143-06/BCH F07-08 RRA-NSA
day of November 2006.
BRITISH COLUMBIA
UTILITIES COMMISSION
ORDER
NUMBER
G-71-06
TELEPHONE: (604) 660-4700
BC TOLL FREE: 1-800-663-1385
FACSIMILE: (604) 660-1102
SIXTH FLOOR, 900 HOWE STREET, BOX 250
VANCOUVER, B.C. V6Z 2N3 CANADA
web site: http://www.bcuc.com
IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by British Columbia Hydro and Power Authority (“BC Hydro”)
for the Review of the F2007 and F2008 Revenue Requirements Application (“F07/08 RRA”)
and for the Review of the 2006 Integrated Electricity Plan (“2006 IEP”)
and the Approval of the 2006 Long-Term Acquisition Plan (“2006 LTAP”)
BEFORE:
R.H. Hobbs, Chair
L.A. Boychuk, Commissioner
A.J. Pullman, Commissioner
June 19, 2006
O R D E R
WHEREAS:
A. On May 25, 2006, BC Hydro filed the balance of its F07/08 RRA as proposed in its letter to the Commission
dated March 15, 2006. The F07/08 RRA requests approval, pursuant to Sections 58, 59, 60 and 90 of the
Utilities Commission Act (the “Act”), for an across-the-board rate increase of 4.65 percent from July 1, 2006
to allow a partial recovery of its F07 revenue requirements, a further increase of 2.71 percent effective
April 1, 2007 and a regulatory asset (deferral account) to record the F07 revenue deficiency between April 1,
2006 and the date its rates are raised on an interim basis, net of any disallowance of F07 revenue
requirements; and
B. In a letter dated March 15, 2006, BC Hydro had applied for Commission approval to set its current rates as
interim effective April 1, 2006, and in the same letter informed the Commission that it proposed to file its
F07/08 RRA in late April 2006; and
C. By Order No. G-32-06 dated March 23, 2006, the Commission approved current customer rates as interim
effective April 1, 2006; and
D. On May 10, 2006, the Commission issued a letter with a draft regulatory timetable and an accompanying
Order No. G-51-06 (IEP Exhibit A-4) to address issues raised by Intervenors with respect to the delay by BC
Hydro in filing the F07/08 RRA; and
E. Following a Procedural Conference held on May 19, 2006, by Order No. G-59-06 the Commission approved
the request for a reconsideration of Order No. G-32-06 with Reasons attached to Letter No. L-21-06; and
F. By Order No. G-60-06, the Commission established a timetable for submissions on BC Hydro’s requested
July 1, 2006 interim rate increase; and
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BRITISH COLUMBIA
UTILITIES COMMISSION
ORDER
NUMBER
G-71-06
2
G. In accordance with the timetable established by Order No. G-60-06, by letters dated June 7 and June 8, 2006
respectively, the BC Old Age Pensioners Organization et al. did not oppose and the Sierra Club of Canada
(B.C.) Chapter et al. supported BC Hydro’s requested July 1, 2006 interim rate increase. By letter dated
June 14, 2006 BC Hydro responded to the intervenor submissions and requested approval of its July 1, 2006
interim rate increase; and
H. The Commission has reviewed the submissions on BC Hydro’s requested interim rate increase and considers
that approval is warranted.
NOW THEREFORE the Commission orders as follows:
1. Pursuant to Section 89 of the Act, a 4.65 percent interim increase in rates is approved effective July 1, 2006 to
be applied to the rates as described in Appendix B of the F07/08 RRA.
2. The interim rate increase is subject to refund with interest at the average prime rate of the principal bank with
which BC Hydro conducts its business.
3. The Commission will accept, subject to timely filing by BC Hydro, amended Electric Tariff Rate Schedules in
accordance with the terms of this Order.
4. BC Hydro is to provide customers with notification of the interim rate increase as soon as practicable.
DATED at the City of Vancouver, in the Province of British Columbia, this
21st
BY ORDER
Original signed by:
Robert H. Hobbs
Chair
Orders/BCH_F2007-08RR/July 1, 2006 Interim Rates
day of June 2006