BRITISH COL UMBIA
UTILITIES COM MISSION
ORDER
NUMBER
G -32-07
SIXTH FLOOR, 900 HOWE STREET, BOX 250
TELEPHONE: (604) 660-4700
VANCOUVER, B.C. V6Z 2N3 CANADA
BC TOLL FREE: 1-800-663-1385
web site: http://www.bcuc.com
FACSIMILE: (604) 660-1102
IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473, as amended
and
the Insurance Corporation Act, R.S.B.C. 1996, Chapter 228, as amended
and
An Application by Insurance Corporation of British Columbia
for approval of the 2007 Revenue Requirements for Universal Compulsory Automobile Insurance
and
A Filing of Information Relating to Matters Referenced in the July 13, 2006 Decision
and
An Application by Insurance Corporation of British Columbia
respecting Rate Design for Universal Compulsory Automobile Insurance
BEFORE:
L.F. Kelsey, Panel Chair and Commissioner
March 19, 2007
A.W.K. Anderson, Commissioner
P.E. Vivian, Commissioner
O R D E R
WHEREAS:
A. On March 16, 2007 the Insurance Corporation of British Columbia (“ICBC”) submitted an application to the
British Columbia Utilities Commission (“Commission”) for approval of the 2007 Revenue Requirements for
Universal Compulsory Automobile Insurance (“Basic Insurance”) including a filing of Information relating to
matters referenced in the Commission’s Decision of July 13, 2006 (the “Revenue Requirements
Application”); and
B. In the Revenue Requirements Application ICBC is applying for a permanent 3.3 percent increase in Basic
Insurance rates, to apply to all new and renewal policies with an effective date on or after May 1, 2007 that:
(i) have premiums determined through the use of the Schedule of Basic Insurance Premiums as filed with the
Commission, excluding rate classes 800 and 900 – 906 and excluding policies relating to vehicles located on
isolated islands; or (ii) have premiums determined under a Fleet Reporting Policy, (together the “Plate Owner
Basic and Fleet Reporting Policies”); and to apply to all other new and renewal policies to be effective
following the Commission’s final decision on ICBC’s Application; and
…/2
BRITISH COLUMBIA
UTILITIES COMMISSION
ORDER
NUMBER
G-32-07
2
C. In the Revenue Requirements Application ICBC also applied, pursuant to section 89 of the Utilities
Commission Act, for the 3.3 percent increase to apply on an interim basis for all new and renewal Plate
Owner Basic and Fleet Reporting Policies with an effective date on or after May 1, 2007; and
D. In the Revenue Requirements Application ICBC requests, if the Commission’s final decision determines that
a portion of the interim increase should be refunded, that any refunds be dealt with in the manner set out in
Appendix A to the Revenue Requirements Application; and
E. The Commission has reviewed and considered the application for a refundable interim increase and by Order
No. G-31-07 has approved the application for the interim increase of 3.3 percent; and
F. By letter dated March 16, 2007 ICBC advised the Commission that on or before March 30, 2007 ICBC will
file with the Commission a separate application relating to the design and structure of ICBC’s Basic Insurance
rates (the “Rate Design Application”) and has requested that the Revenue Requirements Application and the
Rate Design Application be reviewed in a combined process.
NOW THEREFORE the Commission orders as follows:
1. ICBC is to lead a Workshop with respect to the Revenue Requirements Application and the Rate Design
Application, commencing at 9:00 a.m. Monday, April 23, 2007, in the Commission’s Hearing Room on the
12
th
Floor, 1125 Howe Street, Vancouver, B.C.
2. The Revenue Requirements Application and the Rate Design Application will be reviewed in accordance with
a Regulatory Agenda and Timetable to be established following a Pre-hearing Conference to be held on
Monday, April 23, 2007, commencing at 1:30 p.m., in the Commission’s Hearing Room on the 12
th
Floor,
1125 Howe Street, Vancouver, B.C.
3. ICBC will publish, by Wednesday, March 28, 2007 or as soon as possible thereafter, in display-ad format, the
Notice of Pre-hearing Conference, attached as Appendix A, in the business sections or other appropriate
sections of local news publications as may properly provide adequate notice to the public.
4. The Revenue Requirements Application, the Rate Design Application once it is filed with the Commission,
and supporting material will be made available for inspection at major ICBC locations including, Campbell
River, Cranbrook, Fort St. John, Kelowna, Nanaimo, Nelson, Prince George, Terrace, Victoria, Burnaby,
Surrey, the Head Office of ICBC at 151 West Esplanade, North Vancouver, B.C., on ICBC’s website, and at
the Commission Offices, Sixth Floor, 900 Howe Street, Vancouver B.C. V6Z 2N3.
…/3
3
5. Intervenors or Interested Parties should register with the Commission, in writing or electronic submission, by
Monday, April 16, 2007, and advise whether they intend to attend the Pre-hearing Conference. Intervenors
should specifically state the nature of their interest in the Revenue Requirements Application, or the Rate
Design Application, or both applications, and identify generally the nature of the issues that they may intend
to pursue during the proceeding and the nature and extent of their anticipated involvement in the review of the
two applications.
6. Intervenors intending to apply for participant assistance must submit a budget estimate by Friday,
May 4, 2007, consistent with the Commission’s Participant Assistance/Cost Award Guidelines and Order
No. G-15-04. Copies are available upon request or can be downloaded from the Commission’s web site at
http://www.bcuc.com.
DATED at the City of Vancouver, in the Province of British Columbia, this 19
Attachment
Orders/G-32-07_ICBC 2007RR-RD Ntce PHC
BRITISH COLUMBIA
UTILITIES COMMISSION
ORDER
NUMBER
G-32-07
th
day of March 2007.
BY ORDER
Original signed by:
L.F. Kelsey
Panel Chair and Commissioner
SIXTH FLOOR, 900 HOWE STREET, BOX 250
VANCOUVER, B.C. V6Z 2N3 CANADA
web site: http://www.bcuc.com
NOTICE OF PRE-HEARING CONFERENCE
INSURANCE CORPORATION OF BRITISH COLUMBIA
An Application by Insurance Corporation of British Columbia
for approval of the 2007 Revenue Requirements for Universal Compulsory Automobile Insurance, including a
Filing of Information Relating to Matters Referenced in the Commission’s July 13, 2006 Decision
and
An Application by Insurance Corporation of British Columbia
respecting Rate Design for Universal Compulsory Automobile Insurance
Date of Workshop:
Time:
Date of Pre-hearing Conference:
Time:
Location:
THE APPLICATIONS
On March 16, 2007, the Insurance Corporation of British Columbia (“ICBC”) filed an application for approval of
the 2007 Revenue Requirements for Universal Compulsory Automobile Insurance (“Basic Insurance”) including a
filing of Information relating to matters referenced in the Commission’s Decision of July 13, 2006 relating to
ICBC (the “Revenue Requirements Application”).
In the Revenue Requirements Application ICBC applied for a 3.3 percent increase in Basic Insurance rates on an
interim and permanent basis for most policies with an effective date on or after May 1, 2007 and a 3.3 percent
permanent increase for the balance of policies to be effective following the Commission’s final decision on
ICBC’s application for a rate increase. In the Revenue Requirements Application ICBC requested, if in the
Commission’s final decision determines that a portion of the interim increase should be refunded, that any refunds
be dealt with in the manner set out in Appendix A to the Revenue Requirements Application.
APPENDIX A
to Order No. G-32-07
Page 1 of 3
TELEPHONE: (604) 660-4700
BC TOLL FREE: 1-800-663-1385
FACSIMILE: (604) 660-1102
Monday, April 23, 2007
Commencing at 9:00 a.m.
Monday, April 23, 2007
Commencing at 1:30 p.m.
12
th
Floor, 1125 Howe Street
Vancouver, B.C. V6Z 2K8
APPENDIX A
to Order No. G-32-07
Page 2 of 3
The Commission has approved by Order No. G-31-07, pursuant to section 89 of the Utilities Commission Act, on
an interim basis an increase in Basic Insurance rates by 3.3 percent for most new and renewal policies with an
effective date on or after May 1, 2007. The interim increase is subject to refund with interest calculated for the
refund period at the average prime rate of the principal bank with which ICBC conducts its business.
ICBC has advised the Commission that on or before March 30, 2007 ICBC will file with the Commission a
separate application relating to the design and structure of ICBC’s Basic Insurance rates (the “Rate Design
Application”) and has requested that the Revenue Requirements Application and the Rate Design Application be
reviewed in a combined process.
THE REGULATORY PROCESS
The Commission wishes to ensure that all parties affected by the Revenue Requirements Application or the Rate
Design Application have an opportunity to understand the basis for the Applications. The Revenue Requirements
Application and the Rate Design Application will be reviewed in accordance with a Regulatory Agenda and
Timetable to be established following a Pre-hearing Conference to be held on Monday, April 23, 2007,
commencing at 1:30 p.m., in the Commission’s Hearing Room on the 12
th
Floor, 1125 Howe Street, Vancouver,
B.C. A Workshop with respect to the two Applications will be held on the same date and location commencing at
9:00 a.m.
PUBLIC INSPECTION OF THE APPLICATIONS
The Revenue Requirements Application, the Rate Design Application once it is filed with the Commission, and
supporting material will be made available for inspection at the following ICBC field office locations:
• Campbell River Claim Services, 820 - 12
th
Avenue, Campbell River, B.C.
• Cranbrook Claim Centre, 126 Briar Avenue, N.W., Cranbrook, B.C.
• Fort St. John Claim Centre, 10507 - 100 Street, Fort St. John, B.C.
• Kelowna Claim Centre, 1720 Springfield Road, Kelowna, B.C.
• Nanaimo Claim Centre, 6460 Applecross Road, Nanaimo, B.C.
• Nelson Claim Centre, 114 McDonald Drive, Nelson, B.C.
• Prince George Claim Centre, 4001 - 15
th
Avenue, Prince George, B.C.
• Terrace Claim Centre, 4612 Keith Avenue, Terrace, B.C.
• ICBC/Victoria Operations, 910 Government Street, Victoria, B.C.
• Lower Mainland Regional Office, 501 - 4180 Lougheed Hwy, Burnaby, B.C.
• Fraser Valley Regional Office, 207 - 7565-132
nd
Street, Surrey, B.C.
The Applications and supporting material will also be made available at the ICBC Head Office at 151 West
Esplanade, North Vancouver, B.C., on the ICBC website at http://www.icbc.com, and at the Commission Offices,
Sixth Floor, 900 Howe Street, Vancouver B.C. V6Z 2N3.
REGISTERING TO PARTICIPATE
Persons who expect to attend the Pre-hearing Conference and actively participate in the hearing process should
register as Intervenors with the Commission. Intervenors will receive copies of the filings, all correspondence and
filed documents.
Persons with an interest in the proceedings but who are not expecting to actively participate should register as
Interested Parties and will receive a copy of the Executive Summaries of the filings, all Orders issued, and the
Commission’s Decision.
APPENDIX A
to Order No. G-32-07
Page 3 of 3
Intervenors and Interested Parties should inform the Commission Secretary, in writing or electronic submission,
by Monday, April 16, 2007 of their intentions, and advise whether they intend to attend the Pre-hearing
Conference. Intervenors should specifically state the nature of their interest in the Revenue Requirements
Application, or the Rate Design Application, or both applications, and identify generally the nature of the issues
that they may intend to pursue during the proceeding and the nature and extent of their anticipated involvement in
the review of the two applications. Notification by courier delivery, fax or e-mail is acceptable.
All submissions and/or correspondence received from active participants or the public relating to the applications
will be placed on the public record and posted to the Commission’s web site.
FURTHER INFORMATION
A copy of the document “Understanding Utility Regulation: A Participants’ Guide to the British Columbia
Utilities Commission” is available on the Commission’s website at http://www.bcuc.com >Guidelines &
Resources>Guidelines.
For further information, please contact Mr. Robert J. Pellatt, Commission Secretary as follows:
Telephone:
(604) 660-4700
E-Mail: Commission.Secretary@bcuc.com
Facsimile:
(604) 660-1102
Telephone: (B.C. Toll Free) 1-800-663-1385
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.