LETTER NO. L-32-97 SIXTH FLOOR. 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660-4700 ROBERT J. PELLATT BC TOLL FREE: 1-800-683-1385 COMMISSION SECRETARY FACSIMILE: (604) 660-1102 VIA FACSIMILE (688-2511) July 3, 1997 Mr. J. Peter Campbell Manager, Environmental Affairs Huckleberry Mines Ltd. Suite 2000 - 1055 West Hastings Street Vancouver, B.c. V6E 3V3 Dear Mr. Campbell: Re: Huckleberry Mines Ltd. Application - Approval to Resell Power to Houston Forest Products Further to your June 11, 1997 application for Commission authorization to permit Huckleberry Mines Ltd.(lfHMLIf) to resell electricity from its 122 Ian - 138kV transmission line to Houston Forest Products Ltd. (lfHFPIf), the Commission has approved the arrangements in accordance with the June 17, 1997 Letter of Understanding between HML and HFP, attached as Appendix A to this letter. We note that the rate charged to HFP will be at British Columbia Hydro and Power Authority's ("B.C. Hydro") approved Rate Schedule 1821 - Transmission Service, and will also take into account prorated line losses and a share of maintenance costs from the B.C. Hydro Houston Substation to HML's substation. Please note that HML is responsible for the proper operation and safety of the electrical plant and line supplying HFP, consistent with the requirements of the Electrical Safety Branch. As well, provisions of Section 99 of the Utilities Commission Act applies to this approval a copy of which is enclosed for your reference. Yours truly, RJP/dw Enclosure( s) cc: Ms. Darlene M. Barnett Senior Vice-President Marketing and Customer Services British Columbia Hydro and Power Authority Mr. Norm Anderson General Manager, Houston Forest Products Ltd. BCHlCor/Huckleberry Resell Power
APPENDIX A Letter of Understanding June 20, 1997 Between Huckleberry Mines Ltd. and Houston Forest Products Ltd. Huckleberry Mines Ltd. (HML) and Houston Forests Products Ltd. (HFP) have reached. an agreement by which I:-ti\{L, in consideration of a grant of right of way access to HML for the purposes of constructing, operating and mamtaming a powerline by HFP across land held in fee simple by HFP, v,ill grant to HFP access to the powerline for the purposes of uking power for its operations at its Houston mill. The basic understandings upon which this agreement is based are as follows: • HFP ,,,ill grant to HML right of way access to be registered against title across certaIn portions of District Lots 2121. 2103, 2101, 2100, 2099 and 344A for the purposes of constnlcu.ng, operating and maintaining a powerline; • HML will provide HFP access to the powerline for the purposes of taking power for its operations at its Houston mill; • H:ML will provide a disconnect sWitch on its main line, tap point consisting of 2 tangent structures and a 2-3 pole dead end to HFP's mill. :md construct approximately OJ km of transmission line; • HFP \vi11 provide its ov..n substation with necessary protection devices, ctisconnect s"vitch and primary metering confanning to B.C. Hydro Standards; • B.C. Hydro will bill HML for toul power consumption as determined by primary metering at the B.C. Hydro substation; • HML ""ill bill HFP for power canswnpuon as detennmed by primary metering at the HFP substation at the same rate as HML is billed by B.c. Hydro. nus rate is currently understood to be under B.C. Hydro's 1821 rate schedule; • HML will bill HFP for its proporuonatc share of line losses for that portion of the lint! from the HML connection pomt to the HFP connectIon pomt. approxi.m.ately 4.3 km.; • HrvIL ""ill bill HFP for Its proportionate share in the maintenance costs for that portion of the line from the HML connection point to the HFP connection point. approximately 4.3 km.; • HML "\odlTants that all costs passed on to HFP will be done so on a revenue neutral basis, calculated based on mutually agreed upon formulae. 4~ .. -= Emile Btoh, Gt:neral Manager Norm Anderson, General Manager Huckleberry Mines Ltd. Houston Forest Products Ltd.
1996 UTILITIES COMMISSION RS CHAP. 473 Section 98 (3) While the commission continues to manage or direct the management of the utility, the commission may exercise, for the business and property, the powers, duties, rights and functions of the directors, officers or managers of the utility in all respects, including the employment and dismissal of officers or employees and the employment of others. (4) On the commission taking possession of the business and property of the utility, each officer and employee of the utility must obey the lawful orders and instructions of the commission for that business and property, and of any person placed by the commission in authority in the management of the utility or a department of its undertaking or service. (5) On taking possession of the business and property of a public utility, the commission may determine, receive or payout all money due to or owing by the utility, and give cheques and receipts for money to the same extent and to the same effect as the utility or its officers or employees could do. (6) The costs incurred by the commission under this section are in the discretion of the commission, and the commission may order by whom and in what amount or proportion costs are to be paid. Defaulting utility may be dissolved 98 (1) If a public utility incorporated under an Act of the Legislature fails to comply with a commission order, and the commission believes that no effective means exist to compel the utility to comply, the commission, in its discretion, may transmit to the Attorney General a certificate, signed by its chair and secretary, setting out the nature of the order and the default of the public utility. (2) Ten days after publication in the Gazette of a notice of receipt of the certificate by the Attorney General, the Lieutenant Governor in Council may, by order, dissolve the public utility. PART 7 - DECISIONS AND ApPEALS Reconsideration by commission 99 The commission may reconsider, vary or rescind a decision, order, rule or regulation made by it, and may rehear an application before deciding it. Requirement for hearing 100 If a hearing is held or required under this Act before a rule or regulation is made, the rule or regulation must not be altered, suspended or revoked without a hearing. Appeal to Court of Appeal 101 (1) An appeal lies from a decision or order of the commission to the Court of Appeal with leave of a justice of that court. 43
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