LETTER No. L·33·96 SIXTH FLOOR. 900 HOWE STREET. BOX 250 VANCOUVER. B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660-4700 ROBERT J. PELLATT BC TOLL FREE: 1-800-663-1385 COMMISSION SECRETARY FACSIMILE: (604) 660-1102 VIA FACSIMILE August 30, 1996 Mr. R. Brian Wallace Bull Housser & Tupper Barristers & Solicitors 2500 1055 West Georgia Street PO Box 11130 Vancouver, B.C. V6E3R3 Dear Mr. Wallace: Re: British Columbia Hydro Power and Authority ("B.C. Hydro") Complaints Regarding Services to B.C. Hydro International Limited ("BCHIL") Your complaint with respect to services that B.C. Hydro has provided to BCHIL in respect of the International Power Corporation investment have been outstanding for some time. B.c. Hydro provided a response to the complaints on March 19, 1996 and the Commission forwarded that documentation to you for your consideration on March 20, 1996. The Commission also notes your letter of April 23, 1996 requesting more time to also consider the expected report of Mr. Brian Smith. At this time we consider that your complaint is in abeyance and the Commission will not take further action on it unless you wish to reactivate it following the Smith report. However, the Commission has a concern of its own as a result of B.C. Hydro's response to the initial complaints. As identified in the separation of Non-Regulated Businesses document dated May 30, 1995, all services provided by B.C. Hydro to its subsidiary BCHIL are to be paid for by the non-regulated entity. These payments will ensure that the ratepayers of the utility will get full compensation for the B.c. Hydro services which they have paid for in their rates. To safeguard the utility customers from the initiatives of the non-regulated entity, it is important that any services provided by B.C. Hydro are billed for promptly and repaid by the subsidiary company without undue delay. . . .12
2 Therefore, in a separate letter, the Commission has directed B.C. Hydro to prepare a monthly chronology, starting in January 1994, ofB.C. Hydro's personnel activities related to BCHIL in respect of the Pakistan project. The chronology is to identify when a service, such as engineering design, was requested by BCHIL, when it was undertaken by B.C. Hydro employees, when the bill was sent to BCHIL and when the bill for each service was paid by BCHIL. We have asked B.c. Hydro to submit this information no later than September 20, 1996. Yours truly, WJGlcms cc: Mr. D.A. Harrison Senior Vice President and Chief Financial Officer British Columbia Hydro and Power Authority Mr. Gordon Campbell, MLA Office of the Official Opposition Liberal Caucus of British Columbia BCH/IPCRev/CorlBCHIUW allace&Campbell
-<..\s~ COl.. :--. ~ *.:a: C() ~ C ~ ..A .!-..~ ,.,,,,1 ~. 02: /~~~ ..... "/ .' 'Gl!Ji.. '/.• '> ,. ••••••••• ROBERT J. PELLATT /~ COMMISSION SECRETARY /$"8 CO~~' VIA FACSIMILE Mr. Gordon Campbell, MLA Office of the Official Opposition Liberal Caucus of British Columbia Parliament Buildings Victoria, B.C. V8V lX4 Dear Gordon Campbell: Re: British Columbia Hydro Power and Authority ("B.C. Hydro") Complaints Regarding Services to B.C. Hydro International Limited ("BCHIL") Your complaint with respect to services that B.C. Hydro has provided to BCHIL in respect of the International Power Corporation investment have been outstanding for some time. B.C. Hydro provided a response to the complaints on March 19, 1996 and the Commission forwarded that documentation to you for your consideration on March 20, 1996. Mr. Wallace of Bull, Housser and Tupper wrote to the Commission on April 23, 1996 requesting more time to also consider the expected report of Mr. Brian Smith. At this time we consider that your complaint is in abeyance and the Commission will not take further action on it unless you wish to reactivate it following the Smith report. However, the Commission has a concern of its own as a result of B.c. Hydro's response to the initial complaints. As identified in the separation of Non-Regulated Businesses document dated May 30,1995, all services provided by B.C. Hydro to its subsidiary BCHIL are to be paid for by the non-regulated entity. These payments will ensure that the ratepayers of the utility will get full compensation for the B.c. Hydro services which they have paid for in their rates. To safeguard the utility customers from the initiatives of the non-regulated entity, it is important that any services provided by B.C. Hydro are billed for promptly and repaid by the subsidiary company without undue delay. LETTER No. L·33·96 UA _ ~ .m. , ''7 ; ~ ... -' ~ ',._ T .: -1-" ~'" "Y P"'_" F _-....:: :iII SIXTH FLOOR, 900 HOWE STREET. BOX 250 VANCOUVER. B.C. CANADA V6Z 2N3 '::> TELEPHONE: (604) 660-4700 " .. • . • . • ••• <0 BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 August 30, 1996 . . .12
2 Therefore, in a separate letter, the Commission has directed B.C. Hydro to prepare a monthly chronology, starting in January 1994, ofB.C. Hydro's personnel activities related to BCHIL in respect of the Pakistan project. The chronology is to identify when a service, such as engineering design, was requested by BCHIL, when it was undertaken by B.C. Hydro employees, when the bill was sent to BCHIL and when the bill for each service was paid by BCHIL. We have asked B.C. Hydro to submit this information no later than September 20, 1996. Yours truly, WJG/cms cc: Mr. D.A. Harrison Senior Vice President and Chief Financial Officer British Columbia Hydro and Power Authority Mr. R. Brian Wallace Bull Housser & Tupper BCH/IPCRev/BCHIUWallace&Campbell
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