'rABLE OF CONTENTS ances Background. Ev nee. 'rhe Decision. List of Exhibits Page ( i) 1 1 3
APPEARANCES K.C. MacKenzie J.W.M. lson G.D. Gillis Heari Secretary Commiss Staff Court rter Commiss Counsel Counsel r B.C. T r (former Canadian Cellu L i W.R. Ha r A. C. lson Al st rti ( i
BACKGROUND The hearing held on June 23, 1981, pursuant to Order No. G-36-81, resulted from inabili (former ian Cellulose Kootenay Power L t agreement as to whether or no should be inca rated in prov Cast owned Prior to , 1980 nco WKPL, s i e tr i to B.C. T operations. In S r of 1980 Commi s ace r fili , on an inte im basis, Rate S "Large Industrial Serv e - All Distr primari to provision of elect B.C. T r mill x at Cast Comrniss t a ri suff ient the rties to re As an agreement was not ieved the Commission set the matter down for public hearing. THE At the ring B.C. Timber was r Gillis, Counsel, Mr. Harry Papushka, Vice-Pres Pu Marketing, who gave ev majeure" ovis n. of B.C. T Ltd. L ) , West , Limited ("WKPL") to reach an II rce eure" provisions contract electric serv e ar 11 11 . , parent of r at its Cast ar Or r No. G-52-80 u 31 ts." is ies power by WKPL to the equent 30 a satisfactory agreement. esen Mr. G. Derek nt, nee to need a "force 1
WKPL was repre Mr. J.W.M. Wilson, wi by Mr. J.S. Brook, Treasurer and Ch Mr. S.A. Ash, er, Commercial Af spoke primari to the i i B.C. r's request granted, pr customers, and to a lesser extent shareho rs. Mr. a's ev nee was di ec appl abili of "force majeure" contracts and the ntial Company enter into a 10 year contract wi In addition, Mr. a rai a contract r to ta wi no igation financial the seller be to 1 WKPL did not dispute that other utilities' contracts contain II rce majeure" ovisions. It is a rna previous ier of e trici clause in contract tween itself WKPL's ev nee was pr ri costs incurred in ov ing serv e to a customer r a major WKPL also gave ev nee on e rcement of contract provis orcement of "force majeure" shou available, WKPL stated cons Company, in conjunction th availa to B.C. r. 2 ev nee given f Financial Off er and irs. The WKPL witnesses wh would be created ld ri ef t on o r effect on the to r ovis s in commercial t upon B.C. T r should the t this ovision. of i of 0 ity lief to ser should r . r of reco t a " ce eure" B.C. r. directed to the recovery of f esenting 's f ibili in In the instance of an ternative sa given the Commiss , on relief
THE DECISION The Commiss fi s that customer contracts must be sufficiently extensive in o foreseen areas of contention. circumstances, the Commiss position that a certain ree of flexibili maintai in o not specif ally ref c tariff must rly reflect the contract as ible. In addition, terms and it should not be eous as c lie to other rate clas es, whose customers experience similar iness risks. In ci curnstances B.C. T relief, B.C. •r r s i from "force majeure" situations. As B.C. T est i ial correspondingly greater with other WKPL indust ial customers. It is to no at re are circumstances surroundi this customer as B.C. Timber majeure" ivileges r its contract with Cominco Ltd. ivi es are now to whol subsidiary of Cominco. 3 r to deal 0 tively wi In the case of unforeseen is in reement wi WKPL's should be ems causes of wh are customer contracts. However the r as t is icable to one ate clas red to terms r t is at without "force majeure" osure to costs resulting is WKPL's of cost re is ial histor al ovision of "force eure" to evious enj 11 force These wi rawn WKPL, a
s incre WKPL's mon from B.C. ro and Power Au of " ce majeure" provis e agreement, and majeure" privi , WKPL would were not e rienc Cominco u Timber. r g ivi cons ration to circumstances dec is of II eure" ovis WKPL/B.C. Timber sales agreement at no T r customers ser mon s WKPL s c i d e r ite nee of failure of B.C. T to take the Should WKPL and B.C. 0 Timber is to g is i s r in in Commiss s an rtuni WKPL's ral rate des Amendments to Rate Schedule 3 fil wi Commiss 1982. 4 remained rt n of nter nee in the . c. r B.C. T r obtain " rce to fixed costs that er its contract wi B.C. current histor al Commission is to restore ibit 1, Tab B in it cost to B.C. WKPL. However, in the and energy from B.C. Hydro, the s ed 31 shall y in this II rce majeure" causing sa s reement. rce majeure" n B.C. ace a nee th t reement. t unt 1 as the to g cons ration to able to all customers. rsuant to this Decision are to are to ef tive October 1,
LIS'f Pre-fi Test • C. T West Koote Powe is ion and Test • J.S. Broo EXHIBI'rS Exh bit No. Ltd. 1 2 ( i
Documen Id: Document Name Comment s 0, OPERATION Created Last sed rJast ted Last i Tot Tot 1 to pr UMMARY IST WORK'riME 2 :00 to i 00 2A Total k :19 ta s 9 19
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