G-45-95 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 An Application by Kanelk Transmission Company Limited for Approval of Rates for Transmission and Other Services BEFORE: M.K. Jaccard, Chairperson; ) L.R. Barr, Deputy Chair; and ) May 15, 1995 K.L. Hall, Commissioner ) ORDER WHEREAS: A. On April 28, 1995 Kanelk Transmission Company Limited ("Kanelk") applied to the Commission for approval of rates on an interim basis, pursuant to Section 106 of the Utilities Commission Act ("the Act"), and on a permanent basis pursuant to Section 64 of the Act, for transmission and other services provided by or through Kanelk to the British Columbia Hydro and Power Authority ("B.C. Hydro") effective June 1, 1995; and B. Kanelk has advised the Commission that since 1989 they have tried to negotiate compensatory rates for transmission services to B.C. Hydro through the Elk Valley 138 kV transmission line facilities. Kanelk stated that current revenue provided from the contracts does not meet current direct costs to provide the service and an interim rate increase effective June 1, 1995 is required to eliminate the subsidy; and C. Kanelk advised that B.C. Hydro agreed that it would be appropriate for TransAlta Utilities to request the Commission to hear the matter; and D. On May 11, 1995 Fording Coal Limited ("Fording") advised the Commission that it is opposed to Kanelk's interim rate application and requested additional time to investigate the Application. Fording also asked that the interim increase be denied and a public hearing into the matter be held; and E. The Commission has reviewed the Application and finds that refundable interim rates are necessary and in the public interest. NOW THEREFORE the Commission orders as follows: The Commission approves for Kanelk interim rates effective June 1, 1995 based on the following: 1. An annual charge, payable in equal monthly installments, to recover the costs for services and facilities directly related to Kanelk, totaling $478,700 for 1995, as detailed in Schedule B of the Application; and 2. An annual charge, totaling $595,600 for 1995, payable in equal monthly installments for the Network Services provided by TransAlta Utilities, based on the TransAlta Rate 820, as approved by the Alberta Energy and Utilities Board, for similar services. This charge will only be made if B.C. Hydro requires Network Services in order to provide an acceptable quality of service to its customers in the Elk Valley. . . ./2
2 3. The interim rate increase is subject to refund with interest at the average prime rate of Kanelk's principal bank following a public hearing. 4. A public hearing into the Application will take place on Wednesday, September 6, 1995, with the location and specific timing details to be announced by way of a future Commission Order. 5. A Pre-hearing Conference into the Application will be held commencing at 8:30 a.m. local time on Monday, June 19, 1995 in the Commission's Hearing Room located at the 6th Floor, 900 Howe Street, Vancouver, B.C., V6Z 2N3. The Pre-hearing Conference will address substantive and procedural matters to include, but not limited to: • scheduling; • the completeness of the Application; • the identification of principal issues; • the location of the hearing; and • any other matters that will enable the hearing to efficiently cover and thoroughly review all aspects of the service. 6. Following the Pre-hearing Conference, the Commission will issue an Order outlining the process that will be followed. DATED at the City of Vancouver, in the Province of British Columbia, this day of May, 1995. BY ORDER Dr. Mark K. Jaccard Chairperson Orders/Kanelk·Interim Iner.
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