G-20-95 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 MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and British Columbia Hydro and Power Authority Application for Approval of Industrial Service Options/Rate Design and Commission Review into Electricity Markets and the Unbundling of Services BEFORE: M.K Jaccard, Chairperson; ) L.R. Barr, Deputy Chairperson; and ) February 24, 1995 KL. Hall Commissioner ) ORDER WHEREAS: A. On September 20, 1994 British Columbia Hydro and Power Authority ("B.C. Hydro") applied to the Commission for approval of an Application with respect to short-term and standard Generation Standby Service; and B. On October 14, 1994 the Power Exchange Operation ("PEO") applied to the Commission for approval of an Application with respect to Access to the PEO; and C. On January 3, 1995 B.C. Hydro applied to the Commission for approval of an Application with respect to Industrial Service Options/Rate Design ("ISOIRD"); and D. On December 16, 1994 the Lieutenant Governor in Council ordered the Commission to hold a public review of British Columbia's electricity market structure and issued Order in Council No. 1536, 1994 ("OIC 1536") and Terms of Reference pursuant to Section 6 of the Utilities Commission Act (lithe Act"). A panel consisting of Dr. Mark K Jaccard, Chair, Ms. Lorna Barr, Deputy Chair and Mr. Kenneth Hall, Commissioner were appointed for the review; and E. The Terms of Reference, attached as Appendix A to this Order, requires the Commission to submit the report by April 30, 1995; and F. On January 20, 1995 the Commission held a workshop attended by parties interested in the ISO/RD Applications and the Commission review into Electricity Market Structure (lithe Review"). At the workshop, several parties expressed the view that the hearing into the Applications should not proceed until after the Review was completed and no party expressed interest in proceeding with the Applications at this time. In addition, all parties which spoke at the workshop expressed the view that an extension of time for conducting the Review was desirable; and G. On January 23, 1995 the Commission asked the Lieutenant Governor in Council for an extension with respect to the Review to May 31, 1995, or as soon thereafter as may be practical; and H. On February 23, 1995 the Lieutenant Governor in Council issued Order in Council No. 0169, 1995 approving the extension.
2 G-20-95 NOW THEREFORE the Commission orders as follows: 1. A public hearing, under OIC 1536, 1994 and OIC 0169, 1995 and the Terms of Reference, is set down for Monday, May 8, 1995 at 8:30 a.m. in the Commission's Hearing Room, 6th Floor, 900 Howe Street, Vancouver, B.C. 2. The Commission will hold a series of Town Hall Meetings as follows: City Location Date Prince George Inn of the North March 13, 1995 Victoria Coast Harbourside March 14, 1995 Cranbrook Town and Country March 15, 1995 Kelowna Royal Ann Hotel March 16, 1995 All meetings will run from 2:00 p.m. to 5:00 p.m. and from 7:00 p.m. to 9:00 p.m. 3. Parties intending to make information requests from other parties to the proceeding should do so by March 6, 1995. Information Requests made by March 6 shall be responded to by the parties to whom they are made on or before March 27, 1995. Information Requests will be vetted by the Commission, for applicability to the proceeding and level of effort required to respond, upon complaint by the party receiving the request. 4. Parties intending to file written submissions must do so by April 18, 1995, with copies to the Commission and all Registered Parties. Any Information Requests made regarding written submissions shall be made by April 24, 1995. Information Requests made by that date are to be responded to by May 1, 1995. 5. The Commission will hold Workshops, during the week of April 24 - 28, 1995, aimed at determining those issues on which consensus has or can be reached and those which need a fuller exploration through a hearing process. 6. The Commission will schedule one or a series of Hearings into the various B.C. Hydro Applications following the completion of the Review. The Commission will consider advancing the processing of filings related to specific tariffs if there is substantial interest and sufficient information on which to proceed. DATED at the City of Vancouver, in the Province of British Columbia, this day of February, 1995. BY ORDER Dr. Mark K. Jaccar'd Chairperson Attachments Orders/BCH - ISOAppl & EMR
Appendix A to Order No. G-20-95 Page 1 of 5 PROVINCE OF BRlTISH COWMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. 1536 ,Approved and Ordered lit. 15. f994 Ueutenant Governor Executive Council Chambers, Victoria On the recommendation of the undersigned. the Lieutenant Governor. by and with the advice and Consent of the Executive Council. orders that . 1. the British Columbia Utilities Commission is requested to undertake a public review ofwheeIing in British Columbia and the Terms ofReference attached to this order are specified to require and empower the Commission under section 6 ofthe Utilities Commission Act, 2. Dr. Mark K. Jaccard, Chair and ChiefExecutive Officer ofthe British Co!umbia Utilities Commission, Ms. Lorna Barr, Deputy Chair and Mr. Kenneth L. HaIl, temporary Commissioner; are Commissioners for this review. . . L ~b ~ ~h ~/~ Minister ofEnergy, Mines . Presiding Member of and Petroleum Resources Executive Council I This part is for administraliVI! pll.rpoSU o"'y and IS not part of rhe Ortier.) Authority under which Ordel"~ made: . ~ • uWtttes COmmlSSIQn Act, section 6 Act and sec:tion: .. ,................... . ". . , ",,, '" ", ..
Appendix A to Order No. G·20·95 Page 2 of 5 TERMS OF REFERENCE IN THE MA'ITER OF THE UTILlTIES COMM:ISSION ACf (the Act) S.B.C. 1980, C.60 and IN THE MATIER OF A PUBUC REVIEW OF ELEcrRICITI' DEREGULAnON IN BRITISH COLU1\1B1A \¥..tl.t;.RE:AS•....tb~.....el~t.ricity industry .. .is.becoming....subject...·to....competitive··forces··throughout···Nonh America., and these developments could have implications for utilities, regulators, electricity consumers and other stakeholders in British Columbia; and WHEREAS, the province wishes to ensure that British Columbians continue to be served with adequate supplies of low cost and reliable electricity, carefully balancing other social and envirorunental objectives; and WHEREAS, B.C. Utilities Commission (the CoITlJTlission) has directed B.C. Hydro to file proposals for industrial service options and wheeling by January 3, 1995; and WHEREAS, B.C. Hydro has filed proposals for new industrial services and access to the Power Exchange Operation (PEO) and B.C. Hydro plans to file a wholesale wheeling application early in 1995 but \\liB not file a retail wheeling proposal until after the province's electricity policy allows retail wheeling; and WHEREAS, the province has a desire to consult \\lith various interest groups in the electricity industry (including but not limited to B.C. utilities, independent power producers, seIfgenera.tors, the Commission, and industrial, commercial and residential electricity consumers) to clarifY and define the implications ofand the appropriate pricing structure for wheeling and power service to best serve the electricity needs ofBritish Columbia in the future; and WHEREAS, wheeling is the transmission of electric energy generated by one party to another party using the transmission system of a third pany that may have implications for the whole electric system;
Appendix A to Order No. G-20-95 Page 3 of 5 -2-NOW THEREFORE, the Commission shall conduct a public review in accordance with the following Tenns ofReference. 1. The general purpose of the public review is to assist the province in the development of electricity policy by continuing the process ofobtaining informed public input on the goals and objectives ofBritish Columbians for their electricity industry. The specific purpose of this review is to canvass the public and interest groups on unbundled transmission or wheeling services and its implications; more divetsified services orunbUndleciseiVices··and the appropriate rate setting for such services and its implications. 2. Without limiting the generality of the foregoing, but as an aid, the Commission is directed t~ review and report on the implications of retail wheeling in the context of the current and future competitive position of electricity services in British Columbia from the following points ofview: a) the needs ofeach customer class and what new services are desirable to meet their needs; b) wheeling rates that promote efficiency within the electricity markets and associated implications and distributional effects; c) rate design (encompassing rates based upon geographic differentiation and services such as backup and standby) and its effect on efficiency within the electricity market, the pricing ofthese services, and associated implications and .distributional effects;· d) the role ofthe PED in relationship to domestic :wheeling; e) the potential effect of retail wheeling on recovery ofstranded costs and other social, uneconomic and public interest investments; f) the appropriateness of the utility's traditional obligation to serve; g) integrated resource planning, including demand-side management and accounting for envirorunental externalities; and h) further policy or regulatory steps including the appropriate regulatory regime that should be considered in the future; 3. The Commission shall consider all available current and historical inf-ormation that it considers relevant to these proceedings. 4. The Commission may wish to seek public input through workshops to limit or clarifY issues in advance of public hearings and in other ways supplement the review process. 5. In its review, the Commission shall give due consideration for the following a) ensuring a safe, secure, reliable and efficient system; b) ensuring a clean and environmentally acceptable supply; c) providing provincial economic development benefits;
Appendix A to Order No. G-20-95 Page 4 of 5 d) fair and competitive products and services; e) balancing the interests of and effects on existing customers' historical positions; f) maintaining and protecting electric utilities' financial perfonnance. 6. The Commission shall invite written and oral comments from all interested parties. 7. 'The Commission shall determine: a) the appropriate forum to consult with the public; b) where and when public consultation shall take place; and c) in which order the issues before the Commission shall be considered. &. In its review the Commission shall consider any other matters that may be specified in supplementary Terms ofReference by the Lieutenant Governor in Council (LGIC). 9. During the review. the Commission shall not suspend or otherwis.e delay initiatives undertaken under its existing regulatory mandate, notably with respect to the rates and services offered and any applications filed by the province's electric utilities, including B.C. Hydro's anticipated wholesale wheeling application. 10. On conclusion ofthe review the Commission shall submit a report and recommendations to the LGIC by Aprii 30. 1995.
Appendix A to Order No. G·20·95 Page 5 of 5 PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. 0169 'Approved and Ordered FEB. 23.1995 , I Je' dpt tal ,t A, 112p' t it It Executive Council Chambers, Victoria n On the recommendation of the undersigned, the;:Jj4f:r:ta'r:'JlMlilr, by and with the advice and consent of the Executive Council, orders that section 10 of the Terms of Reference for the public review of wheeling in British Columbia established by order in council 1536 is amended by striking out "April 30, 1995" and substituting "May 31, 1995 or as soon thereafter as may be practical". Presiding Member of Executive Council (This part is for administrative purposes only and is not part of the Order.) Authoritv under which Order is made: . Utilitie~ Commission Act, section 6 ::[era~s:e:~;::on:~t ..J53(Or~q'fHH npj{}~31
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 COMMISSION REVIEW INTO ELECTRICITY MARKETS AND Date: Monday, May 8, 1995 Time: 8:30 a.m. Location: British Columbia Utilities Commission Hearing Room 6th Floor, 900 Howe Street Vancouver, B.C. THE REVIEW By Orders in Council No. 1536, 1994 and 0169, ]995 the Minister of Energy, Mines and Petroleum Resources ordered the Commission to undertake a public review of electricity markets and wheeling in the Province ("the Review"). The issues identified in the Tenns of Reference are: (a) development of electricity policy; (b) unbundling of transmission or wheeling services; and (c) retail wheeling and the future competitive position of electricity services. THE PUBLIC HEARING The public hearing into the Review of Electricity Markets will commence at the above-noted location, at 8:30 a.m. on Monday, May 8, 1995. TOWN HALL MEETINGS The Commission will hold a series of Town Hall Meetings as follows: City Location Date Prince George Inn of the North March ] 3, 1995 Victoria Coast Harbourside March 14, 1995 Cranbrook Town and Country March 15, 1995 Kelowna Royal Ann Hotel March 16, 1995 All meetings will run from 2:00 p.m. to 5:00 p.m. and from 7:00 p.m. to 9:00 p.m. . . ./2
2 PUBLIC INSPECTION OF MATERIALS The Terms of Reference, supporting material, submissions and Order No. G-20-95 are available for inspection at the following locations: • British Columbia Hydro and Power Authority • Local District Offices located in B.C. Head Office Information Centre Hydro's and West Kootenay Power's service 333 Dunsmuir Street areas Vancouver, B.C. • 6th Floor, 900 Howe Street Vancouver, B.C. INFORMATION REQUESTS Registered Parties requesting additional information from the any other party to the Review should do so as soon as possible, but not later than Monday, March 6, 1995. Information Requests shall be responded to by the parties before Monday, March 27, 1995. SUBMISSIONS BY PARTIESIINFORMATION REQUESTS Written evidence and submissions from Parties are required to be filed, one copy each, with the Commission Secretary and other Registered Parties by April 18, 1995. Information Requests regarding written submissions shall be made by April 24, 1995 and are to be responded to by May I, 1995. CLARIFICATION Persons intending to participate in the public hearing and who are uncertain as to the manner in which to proceed, may contact Mr. Robert J. Pellatt, Commission Secretary or Ms. Deborah Emes, Manager, Strategic Services; by telephone at (604) 660-4700, or B.C. Toll Free: 1-800-663-1385, or in writing to the above address or by fax at (604) 660-1102. The Commission can also be reached on the Internet at RPELLAT@GALAXY.GOV.BC.CA or on the Government Electronic Mail System ("GEMS") at RPELLAT@BCSC. BY ORDER Robert J. Pellatt Commission Secretary Orders/BCH-ISOAppl&EMR-HrgNlce
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