SCHEDULE "A" G-16-94 SIXTH FLOOR. 900 HOWE STREET. BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER. B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA FACSIMILE: (604) 660-1102 AN ORDER IN THE MATIER OF the Utilities Commission Act. S.B.C. 1980. c. 60. as amended and An Application by Elk Falls Forest Industries Ltd. BEFORE: M. K. Jaccard, Chairperson; and ) L.R. Barr, Deputy Chairperson ) March 3, 1994 ORDER WHEREAS: A. On November 12, 1993, Elk Falls Forest Industries Ltd. ("EFFIL") made application to the Minister of Energy, Mines and Petroleum Resources ("the Minister") for an exemption to sell steam pursuant to Section 27 of the Utilities Commission Act ("the Act"); and B. On November 16, 1993. EFFIL made application to the British Columbia Utilities Commission (the "Commission") for an exemption to re-sell electricity pursuant to Section 103(3) of the Act; and C. On December 1, 1993. EFFIL entered into a sales agreement with TimberWest Forests Ltd. ("TimberWest") whereby TimberWest acquired from EFFIL its Woodlands Operations Sawmill near Duncan Bay, British Columbia ("the Sawmill"); and D. EFFIL will continue to own a Pulpmill ("the Pulpmill") adjacent to the Sawmill; and E. The Sawmill and the Pulpmill are side-by-side and have shared, and will continue to share, a number of utilities and services including, inter alia, steam and electricity services; and F. The Sawmill's approximate requirement for electricity is presently 4800 MW.h per month, but may be up to a maximum of 5250 MW.h per month; and G. On December 1. 1993. British Columbia Hydro and Power Authority ("B.C. Hydro") advised Fletcher Challenge Canada Limited that it would not object to the re-sale of electricity by EFFIL to TimberWest at rates equivalent to that charged by B.C. Hydro; and H. EFFIL and TimberWest have entered into the Elk Falls Services Agreement ("the Services Agreement"), which sets out the terms upon which steam and electricity will be supplied to TimberWest for use by the Sawmill through equipment and facilities owned by EFFIL; and I. The Commission has considered EFFIL's application pursuant to Section 103(3) and is satisfied that an Order exempting EFFIL from certain sections of the Act properly conserves the public convenience and interest; and J. The Minister and the Commission have agreed that EFFIL's application under Section 27 for the sale of steam, be considered concurrently, pursuant to Section 103(3) of the Act; and
2 G-16-94 K. The Commission may, pursuant to Section 114 of the Act, reconsider, vary or rescind an Order made by it. NOW THEREFORE the Commission orders as follows: Pursuant to Section 103(3) of the Act, the Commission approves the Application by EFFIL for an exemption from provisions of the Act, other than Part 2 and Sections 42, 48, 49, 54, 114, and 140, in respect of the supply of electricity and steam to TimberWest for sale use by the Sawmill, subject to the following terms and conditions, namely: i) This Order shall be effective upon the execution of the Services Agreement or the date of this Order, whichever is later. ii) This Order shall terminate on the date on which EFFIL ceases to be obliged by the Services Agreement to supply electricity to TimberWest for use by the Sawmill. iii) This Order shall terminate in the event EFFIL materially alters those terms of the Services Agreement by which EFFIL is obligated to supply steam or electricity to TimberWest for use by the Sawmill. iv) This Order shall terminate if EFFIL charges TimberWest a rate for electricity higher than a rate B.C. Hydro would charge for a similar service. v) This Order encompasses the supply of steam and electricity to TimberWest from EFFIL using existing facilities at the time of this Order, and may be modified or rescinded at the discretion of the Commission if there are material alterations to the facilities used to produce and deliver steam and electricity, and the Commission will decide what constitutes a material alteration. DATED at the City of Vancouver, in the Province of British Columbia, this day of March, 1994. BY ORDER Dr. Mark K. J""""lU Chairperson Attch. BCUC/Order/ElkFallslnd-ExmptUCA
PROVINCE OF BRITISH COLUMBIA "'" ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIl:'~ Order in Council No. n 1 0]". . ,Approved and Ordered FEB 11.1994 I ,",nil" ct'rtifJ thlkt the rnlll',.'wfp j:I,. cnflV of II MII1Ufe the "onourahl.. the .:"rt'utivr (o'lIleOl ..nhc Pr"v,,>cf'o! British Columbia approved by lib Honour th,t') Administrator. /""j/" . 1 ...~.0t2g:~ 2v ?~I:l 4 7 / . ~ Deputy Order·In·Council Custodian ~.\t"'''E .Ad"'inisrrQ1CW Executive Council Chambers, Victoria , .Adminl3lrl!l~ On the recommendation of the undersigned, the J ielll"11 ilit ;n'''W)r, by and with the advice and consent of the Executive Council, orders that approval is given to the British Columbia Utilities Commission (the "Commission") to exempt Elk Falls Forest Industries Ltd., in respect of the sale of steam and electricity to Timber West Forest Ltd., from provisions of the Utilities Commission Act as set out in the Order of the Commission attached hereto as Schedule "A". ) ~ Minister of Energy, Mines and Petroleum Resources {Presiding Member of the Executive Council (This part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section:- Utilities Commission Act, section 103 (3) Other (specify):-January 12.1994 'J.I /94/37/ejk
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