ROBERT J. PELLATT COMMISSION SECRETARY Commission.Secretary@bcuc.com web site: http://www.bcuc.com VIA FACSIMILE Mr. A.K. MacMillan, P. Eng Consultant c/o Canadian Forest Products Ltd. Bentall 5 1500 – 550 Burrard Street Vancouver, B.C. V6C 2C1 Facsimile: 604-948-0895 Dear Sirs: Re: British Columbia Hydro and Power Authority (“BC Hydro”) Complaint by Canadian Forest Products Ltd. (“Canfor”) regarding Retention of the Guarantee Balance The Commission has reviewed the complaint filed by Canfor on September 16, 2004, and BC Hydro’s response on October 1, 2004. The Commission denies Canfor’s request that the revenue generated from incremental sales of electricity on Rate Schedule 1821 should be used to reduce the amounts owing under the revenue guarantee. The Commission agrees with BC Hydro that Canfor’s proposal would result in a stranded investment and that other transmission customers would ultimately pay for the upgrade to the distribution line. The Commission considers that granting Canfor’s request would result in an unfair allocation of the costs of the distribution upgrade to transmission customers because revenues that otherwise would be allocated to offset a share of transmission costs would be returned to Canfor as an offset to the guarantee for the distribution upgrade. The Commission requests that BC Hydro recalculate the amount owing under the guarantee when Canfor commences service under Rate Schedule 1821, returning to Canfor the amount that has been reduced from the guarantee while retaining the balance. RG/rt cc: Mr. Jim Engleson Vice President, Wood Products 1391 Madrona Drive Canadian Forest Products Ltd. PO Box 9000 E-mail: akmacmillan@shaw.ca 5162 Northwood Pulp Mill Road Prince George, B.C. V2L 4W2 MisCor/Canfor_BCH Retention Guarantee Balance LETTER NO. L-53-04 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 Log No. 7327, 7462 October 14, 2004 Mr. Richard Stout Chief Regulatory Officer British Columbia Hydro and Power Authority 17 th Floor, 333 Dunsmuir Street Vancouver, B.C. V6B 5R3 Facsimile: 604-623-4407 Yours truly, Original signed by: Robert J. Pellatt Mr. Kirke MacMillan Nanoose Bay, B.C. V9P 9C9
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.