IN THE MATTER OF THE ENERGY IN THE MATTER OF AN APPLI WEST KOOTENAY COMPANY, LIMITED MAY 30, 1980 e Norman R. Gis , ate, D • • k, J.D. Ki AND BY AND airman, irman, F.E. en,
TABLE OF APPEARANCES LIST OF EXHIBITS BACKGROUND ISSUES Securi of S Ar tration Price nanc.i In Surplus Power Future WKPL Access to Power from ants 5 6 • • • • • • • • • • THE ISION COSTS . . . . . . . . . . . . . . . . . . . . 1 Cost Power • 3 4 4 i 5 6 8 8 10
P.W. Butler J.A. Angus D.C. D f G.D. Gillis J.E. i e D.M.M. ie, Q.C. M. lan R.J. Bauman D. ts P.A. G 1 R.B. Power , L r B.C. Hvdro and Power C 1 e , Ci K r for nco L e Ci of e Ci a ion the Summerl e Cor ation e Ci son Consumers' Association of a .C. Division) r Forest Products L Louisiana-Pacific canada I,
CONTINUED R.B. ace It) or L it Forks Division Division Forest Pr ucts L T & H Sawmills i haeuser a . Box & r • • G. Go Princeton Li t & Power ' L L. Wanj f On His Own f R.J. Gi , Q.C. ssion Couns
LIST EXHIBITS i t No. Letter of April 18, 1980 confi publication ic Hearing in various s 1 fidavit Service on Intervenors of J.A. Angus, i 30, 980 2 Letter, with att s, da 980 from WKPL to B.C.E.C. tificate ic Necessi 3 WKPL written evi J.A. Drennan, J.S. Brook, R.G. S 1, F.R. Wri t W.B. r fil April 16, 1980 4 WKPL written evidence materi fi uar 28, 1980 suant to B.C.E.C. r G~ 80 5 Volume I, WKPL r to r st itional i ion, Mar 17, 1980 6 Volume II, WKPL r to r itional i ion, Mar 17, 7 Volume III, WKPL r to r iti i tion, 8, 8 J.E. Ogi ie, City 9 to Exhi t 9, i Kimber , revis res rates rison 10 Amendment to Exhibit 9, brief Kimberl , r i 1 ra ison 11
LIST OF EXHIBITS CONTINUED Letter from Ci District 1980, s Region i e to Forestry Intervenors r iti i on, Letter from B.C. ro to WKPL, Oc confirmi r quot Cost Document fi as i t 39, in rate ina January 3, Water ts Br , ition WKPL ecast earnings for r 31, 1979 to 1984 usive Submission fi on ation Sched s WGS-1, WGS-2 WGS-3 from Cominco's written ence, Application ion Section 101(3) Submission of Trail Distr ct January 4, 1980 Prepar testimony of Dr. W.H. Cons s' i (B.C.) WKPL-Cominco transmission sin 1 am _Ex _h , i _ _t No. e Re on ary, April 17, strict's 12 st il 2, 1980 13 r 12, 1979 study pur es 14 common costs 15 WKPL 980 16 water licence 7 18 the Nelson 19 ibit 20 r ot commerce, on behalf a 22 tern 23
LI OF EXHIBITS CONTINUED Points law in ants & Sur rais by Mr. Brian Wallace Consent and Wa Cominco Ltd. re paragr ants & Sur Agreement Letter of April , 1980 from R.J. Gi (Alberta) to Messrs. D.M.M. and P.W. Bu re Internati Commission treaties orders Reply by P.W. Butler to letter from R.J. Gibbs, Q.C. (Alberta) Letter 4, 1978 from Cominco to WKPL re notice restriction in B.C. Hydro & Power Authority revision 111-114 April 1, 1979 B.C. ro & Power Aut eventh revision April 1, 1980 WKPL ed e of dividends 1916 to 1951 Graph 1 Minutes a meeting WKPL 3, 1980 memorandum of resolution Exhi t No. us Agreement 24 us 25, 980 25 , Q.C. ie, Q.C. Joint 26 April 21, 1980 26A r supply 27 ectric tariff, tive 28 tric tariff, 11 114 effect ve 29 on common ares, 30 esource 31 32
WEST KOOTENAY POWER AND LIGHT COMPANY LIMITED CERTIFICATE APPLICATION DECISION DATED MAY 30, 1980 On January 3, 1980 West Company, L i re ter descri ication pursuant to Sect on 32( ) of section 30(1) the Ener Act Certificate ic ience agreement wi ts ent ication was Sur us Ener Agreement i i ter ci as " reement") acquire ex usive use ants on Kootenay River long-term e. Agreement purchase those ants ana to purchase from Cominco power sur Cominco's s i grant ion from rsuant to t en Section Cominco ication was ication. Power Li t as "WKPL") f lea an Ene Act (now r 108 1979) a Necessi _ an Cominco ("Corninco") . a ants was s t execu re WKPL ee of Cominco's roe1ect ic a i 25 s wi an ion was con i t Cominco sions Ener Act 05(3), now Section 1 (3). iat owi WKPL
The ication the Certificate Convenience Necessi was heard commencing April 22, 1980 was il 30, 1980 in Vancouver, British ation transmission within the service area is involving i various r e reement wi umbia River Tr . re are to be cons er in the use that is publicly-owned natur resources r stor ity terns. Ener Act iaes give its a certificate unless it determines the ivil , concession or fr is necessary ic convenience public i erest. The Commission ng are issues to WKPL is a wholly-owned s idiary c ly non-arms- relationsh i idiary must - Securi of - Arbitration - Price - Financi I ri - us Power Future Access to Power from 2 ic ia. ectric , inco inte B.C. ro e interests t es stream-d'Oreille ssion 1 not ise propos to grant r conserves termined re , in mi that Cominco in such a all agreements between the v exami : Cost Power ants 5 6.
The Agr i No. 2, 3 4 for a riod ion to r se e ants at a future determined by ar tration. In view WKPL its Corni nco, never be exercis , rticular i e or si ificant incent ve in s an eavor. reement s r a riod s tanti ly less to B.C. ro. However, it aooea s to unilater nation provisions exercis the term e Agreement e. Commission Agreement, in ts esent WKPL's securi . It is therefore view t ic interest, the Agreement must be amended to provide s e nco re tively as Upper Bonni ton, South S that is transaction 1980. Ownership of P s No. 2, 3 supply covering imate 3 se WKPL ants twen five s, witn an to tionsh tween ion to e in li t a Cominco to s t WKPL ovi WKPL a right to five s at a ice li v wise to id e Comm ssion that e Cominco duri e WKPL in no ition than e, concl t the , not significan enhance Commission t, in s No. 2, 3 4 known Corra Linn; fected on or before December 31, 4 will e security 70% of WKPL's current ener
r irements at r sona cost. not in its f result in any inc ease in consumer rate since ownership will ie a power cost no g eater than pr reement. ARBI'rRA'riON The Agreement ovide three, to determine ce purchase is exercised. The arbi rat on pa one en WKPL, on airman to s rbitr i non-arms- ength wea sse inherent Cominco relationship. It also usu jur sd ct on of Commission under the Act particul r the matter of apprais ng asset values. concl t is not in Certificate of ic Convenience conjectur 1 basis. The Comrni si ia ice. PRICE It was ent the values co attri to rnethodolooies. ss on finds to be WKPL r ant 4 Pur ase of se ants wil er e an arbitrat on e ants tv hen ion to s to cons st of r Cominco wi the i st two s . ed and re si il ies in e Commission oubl c interest to s Necess on a ll therefore de ermine the ari a ide r of ese er various t iat 1 , 3 4 ,~ '"' ic lv elat
to their operating or tion Kootenay/Pend d'Oreille tern of ice e determi is, by directly r ating value 1 Cominco's valued at $39.2 1 ion) • 1 oportion that enerav enti Agreement Plants No. 2, 3 tot energy entit ts Avg. MW) . Commission WKPL to Cominco r tr ssion facilities million. Average ann MW X $39.2 F In light its current financi unlik t WKPL can finance $10.4 million as 1 as refinance in ss $32 mi li , w lExhibit 44, GHS-15, in March 7, 1980. (WKPL ication 5 v ue within total i form a t. , on a utili accounti ue Plants 2, 3 4 to r ts . 2 to 6 i usive s onship is in er e t 4 ( 36.4 Avg. MW) to ants No. 2 to 6 i us ( 5.1 es t opriate ice to ants No. 2, 3 4 no eater $10.4 llion = $10.4 llion) it on it is e ice to t term bank loans, t s t com1nco ssion Decision rate r ief)
The Commission ther and actical consi ations facilitate the necessary financing by WKPL of the Plant Nos. 2, 3 and 4 one or more i) accepti long term notes interest ii) guaranteeing instruments iii) prov i or means as may acce is matter been de companion Cominco ication POWER The Commission is concer de ing th the propos pur from Cominco on an interrupti e load is firm, such interrupti e power or no value to it. Until Cominco's its own forecast s there is no apparent reason why the surplus power should not is. ilure so will i to provi iti st facilities. 6 e concludes that re ities i e that Cominco undert to chase of i : inq reasona e iate long term outs e d itional equity investment de iate e to t wi in e Decision on e ion. about those clauses by WKPL sur us r is. Since utility's s to little requirements r e avail e to WKPL on a firm e ition cos on or ati
e Commission ieves ision in the Agreement ener not r r or ta by West , stor or exchanged by Cominco Power or in the U.S.A. The Commission, of Cominco's i ustri Cominco should not be the s e the surplus ener circumstances, e this wo its i ustrial ations. The sur us ener to as fol 1980 606 Gwh 981 639 Gwh 1982 0 Gwh 1983 569 Gwh 1984 474 Source: WKPL Exhibit 6 Tab 3 - for ition provision this firm energy to WKPL will still leave Cominco th 1 t energy it will r e ion modernization exceed Cominco's requirements, to WKPL. is so 7 t t a ence a take or s appropriate since sur us can r i B.C. ro, Calgary , is cognizant r ir s and concl es that honour the firm power status r under " ce eure" resuLt in Cominco curtailing i as firm to WKPL is SURPLUS 1985 456 Gwh 1986 350 Gwh 1987 237 Gwh 1988 114 Gwh 1989 0 Response to t I tion B.C. ire its announced am ough 1986. Should is exces must first f t wi in the Cominco Decision.
Commission its , t nco will s to ating i t non-arms-length r ationship greater certainty, t Commission t feet sho i will so r. Commission ieves Ide its s loss cost commitment must e i to transfer its i rest in to any r s transfer is first i e r atory au i is matter Cominco ication. Commission fi s Convenience and Necessi provides the basis for the best solution avail e in circumstances, certificate rel f owi conditions: 8 t eement , in t an ication by WKPL at Brilliant Waneta. In view tween rties ieves t a commitment to in the body the Agreement, at Agreement must so some otection ag nst the e Bri iant Waneta plants. A Cominco agrees Brilliant or Waneta ants de t in e Decision on t a Certificate ic 11 issue s a eement, subject to
1. at on or Commission 4 1 r transmission facilities, necessari to ice not to 2. That on or before S into and file with of firm from (Waneta), surplus to of Cominco, on t 3 of i t 6 in hearing, at a the Agreement, subject use in industri reasons would otherw industrial ations t at the 1n1ng scale, whi requirements of Cominco in its i operations, will first be WKPL at same price the "firm surplus", ers. 3. ise May, increasing its power supply for the purpose of meeting its e the 4. on into s necessary transmission that terns as one i 9 , 1980, WKPL satis owner of Plants 2, and associat ration ovals t to f 1 ownersh all havi been acquir $10.4 m llion. r 1, 1980, WKPL enter Commission Cominco oviding for e ants 5 (Brilliant) i ustri requirements d ining sc e shown under certificate as descri in to interruption ration Cominco in such cir ances as interr in the Cominco, ding power in excess shown on is sur fer e as ore i to Commission on or fore ar, its i load, i i ts s Pl s 5 6. e December 31, 1980, WKPL enter Commission for Cominco as y for common facilities to be opera .
ssion costs t i i l1 Intervenors in the costs ati to e t evi f t Consumers' Associa ion her t ou Commission, will Company, L to Cominco L t amount of s DATED at Ci Brit sh a, this 30 10 i to ou t tne d Dr. on a. se costs, t costs incurr to West Power Light . on a 50/50 is ter costs the Commission. Vancouver, in Province , 1980. , rman
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.