BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-61-86 PROVINCE OF BRITISH COLUMBIA BRITISH COLUMBIA UTILITIES COMMISSION IN THE MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and IN THE MATTER OF Matters in Dispute between British Columbia Hydro and Power Authority and West Kootenay Power and Light Company, Limited BEFORE: M. Taylor, ) Chairman: ) J.D.V. Newlands, ) Deputy Chairman: ) D.B. Kilpatrick, ) October 15, 1986 Commissioner; and ) N. Martin, ) Commissioner ) o R D E R WHEREAS Commission Orders No. G-88-85 and G-89-85 established that a public hearing of certain matters in dispute between B.C. Hydro and Power Authority ("B.C. Hydro") and West Kootenay Power and Light Company, Limited ("WKPL") should commence on December 11, 1985; and WHEREAS the said hearing was adjourned to April 18, 1986 in accordance with the Commission's Adjournment Decision dated December 18, 1985 following an Application by B.C. Hydro; and WHEREAS the said hearing was adjourned to May 12, 1986 as a result of extensive evidence filed on March 25, 1986 by B.C. Hydro; and WHEREAS the hearing enabled the Commission to review the following issues, formally identified in the aforementioned Adjournment Decision, as follows: (a) The November 7, 1985 application of WKPL pursuant to Sections 28, 32, 88 and 100 of the Utilities Commission Act ("the Act") to allow wheeling of WKPL power over B.C. Hydro facilities between South Slocan and delivery points at Vernon, Princeton and Creston at existing rates. Further, to allow emergency wheeling over B.C. Hydro facilities in the event of the loss of the Waneta-Boundary (transmission) line • . . . /2 FOURTH FLOOR. 800 SMITHE STREET VANCOUVER Be V6Z 2E1, CANADA. TELEPHONE 1604)660-4700, TELEX 04-54536
BRITISH COLUMBIA UTILITIES COMMISSION ORDER 2 NUMBER G-61-86 (b) The November 22, 1985 complaint of WKPL pursuant to Section 64 of the Act that B.C. Hydro Rate Schedule 1211 proposed to be charged for service to WKPL is unjust and unreasonable. (c) The November 29, 1985 application by B.C. Hydro pursuant to Section 67 of the Act to establish rates with respect to the unexecuted General Wheeling Agreement. (d) The complaint of WKPL in connection with B.C. Hydro's proposed General Wheeling Agreement rates; and WHEREAS the Commission has considered the evidence adduced at the hearing. NOW THEREFORE the Commission hereby orders B.C. Hydro and Power Authority and West Kootenay Power and Light Company, Limited as follows: 1. Both parties are to enter into a long-term contract which will recognize a transitional period to December 31, 1990; followed by a conventional period thereafter to and including 2005. 2. For the transitional period the rate for electric power purchased by WKPL from B.C. Hydro will be predicated on a Demand Charge of $3,500 per MW per month and an Energy Charge equal to the sum of such charges in Rate Schedules 1821 and 1899, or currently approximately 22.4 mills per kWh, with the further provision that a Demand Ratchet clause will apply as follows: Year % Ratchet 1986 Zero 1987 10 1988 20 1989 30 1990 40 Thereafter 50 3. Firm wheeling rates covering the transmission of WKPL energy over the transmission facilities of B.C. Hydro will be as follows: To Vernon $19,000/MW/Year To Creston $ll,OOO/MW/Year To Princeton $45,000/MW/Year Such firm wheeling rates will require firm nominations and WKPL is required to nominate for 5 years. . .. /3
4. The contract for the aforementioned rates for power purchased by WKPL from B.C. Hydro and for wheeling of WKPL energy over B.C. Hydro transmission facilities is to be concluded between the two parties as soon as possible and will cover the period from the date of this Order to December 31, 2005. include terms and conditions covering purchased power rates as specified in Section 4.3 of the Decision issued concurrently with this Order, and terms and conditions covering wheeling as specified in Section 6.3 of the Decision. 5. Future changes in the rates determined by this Decision shall be limited to and applied on the same percentage basis as any future approved changes in Rate Schedules 1821 and 1899. DATED at the City of Vancouver, in the Province of British Columbia, this /~~ day of October, 1986. BRITISH COLUMBIA UTILITIES COMMISSIOI ORDER 3 NUMBER G-61-86 Such contract shall BY ORDER vI~~ Chairman
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