B R IT IS H C O L U M B I A U T IL I T I E S C O M M I S S I O N O R D E R N U M B ER C-12-00 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by West Kootenay Power Ltd. for a Certificate of Public Convenience and Necessity for an Upgrade and Life Extension to Unit No. 2 of its South Slocan Generating Plant BEFORE: P. Ostergaard, Chair ) L.R. Barr, Deputy Chair ) June 8, 2000 B.L. Clemenhagen, Commissioner ) N.F. Nicholls, Commissioner ) CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY WHEREAS: A. On December 23, 1999, West Kootenay Power Ltd. (“WKP”) applied, pursuant to Section 45 of the Utilities Commission Act (“the Act”), for a Certificate of Public Convenience and Necessity (“CPCN”) for an Upgrade and Life Extension to Unit No. 1 of its South Slocan Generating Plant located on the Kootenay River between Castlegar and Nelson, B.C. The Commission, by Order No. C-2-00, approved the project and issued a CPCN; and B. On April 28, 2000, WKP advised the Commission that the condition of South Slocan Unit No. 2 had deteriorated significantly relative to Unit No. 1. Therefore, WKP requested cancellation of CPCN Order No. C-2-00 and submitted an application for a CPCN for the South Slocan Unit No. 2 Upgrade and Life Extension; and C. The Upgrade and Life Extension of Unit No. 2 is estimated to cost $9,990,000 and will replace equipment that has exceeded its useful life; and D. WKP proposed a cost collar incentive mechanism that would limit project costs, excluding the entitlement replacement cost, that would enter rate base to between 90 and 110 percent of the $8,687,000 estimate of such costs; and E. The Commission has reviewed the costs, timing, and justification for the Upgrade and Life Extension to South Slocan Unit No. 2 and finds that it should be approved. . . ./2
2 NOW THEREFORE the Commission orders as follows: 1. Pursuant to Section 45 of the Act, a CPCN is issued to WKP for the South Slocan Unit No. 2 Upgrade and Life Extension. 2. The Commission declines to approve the cost collar incentive mechanism as proposed by WKP. 3. Order No. C-2-00, which approved the Upgrade and Life Extension to South Slocan Unit No. 1, is cancelled. 3. WKP is to file with the Commission a project report and cost summary upon completion of the project. DATED at the City of Vancouver, in the Province of British Columbia, this 15 Order/WKP-SthSlocan#2UpgradeB R I T I S H C O LU M B I A U T I L IT I E S C O M M I S S I O N O R D E R N U M B ER C-12-00 th day of June 2000. BY ORDER Original signed by: Peter Ostergaard Chair
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