BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -43-08 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 and British Columbia Hydro and Power Authority (“BC Hydro”) 2008 Standing Offer Program and Negotiated Settlement Process BEFORE: A.J. Pullman, Commissioner March 19, 2008 O R D E R WHEREAS: A. BC Hydro filed on December 14, 2007 pursuant to Section 45(6.1)(b) of the Utilities Commission Act (the “Act”) an application for the Standing Offer Program (“SOP”); and B. Policy Action No. 11 of the Provincial Government’s 2007 Energy Plan: A Vision for Clean Energy Leadership (“2007 Energy Plan”) directs BC Hydro to establish a standing offer for clean electricity projects up to 10 megawatts (“MW”); and C. BC Hydro seeks an order pursuant to Section 45(6.2)(b) of the Act, which determines expenditures of $514,000 required to conduct the implementation phase of the SOP, including administration and program review for the first two years, are in the interests of persons within British Columbia who receive, or may receive, service from BC Hydro; and D. By Order No. G-169-07 dated December 19, 2007, the Commission established a Regulatory Timetable for the SOP comprising the filing of Information Requests and the responses thereto by BC Hydro; a Workshop held on February 13, 2008 in Vancouver, B.C.; followed by a Negotiated Settlement Process (“NSP”) commencing on February 13, 2008; and E. The NSP took place on February 13 to 15, 2008 with the participation of Commission staff, wherein a Settlement Agreement was proposed and agreed to by BC Hydro and the parties participating in the NSP discussions. The Settlement Agreement was circulated to the participants in the NSP for their review and comments by March 7, 2008; and F. On March 7, 2008, the Settlement Agreement and the Letters of Comment and the Letters of Support on the proposed Settlement Agreement from the parties participating in the NSP discussions were released to the Commission and to registered Intervenors. The Settlement Agreement and the letters from the participants in the NSP are attached as Appendix A to this Order; and . . ./2
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-43-08 2 G. Intervenors who did not participate in the NSP were requested to file Letters of Comment or Letters of Support on the Settlement Agreement by March 14, 2008. None of the Intervenors, who did not participate in the NSP, filed letters; and H. The Commission has reviewed the Letters of Comment and Letters of Support received and notes that although there is a majority of support for the proposed Settlement Agreement, the support comes with certain comments; and I. The Commission notes that the Hagwilget Village Council and Northern Engineered Wood Products Inc. did not fully support the proposed Settlement Agreement and these letters are included in Appendix A to this Order; and J. The Commission notes that no letters were received that opposed the proposed Settlement Agreement; and K. The Commission considers that approval of the Settlement Agreement is in the public interest. NOW THEREFORE the Commission orders as follows: 1. The Commission approves pursuant to Section 45(6.2)(b) of the Utilities Commission Act expenditures in the amount of $514,000 required by BC Hydro to conduct the implementation phase of the SOP, including administration and program review for the first two years, and determines that these expenditures are in the interests of persons within British Columbia who receive, or may receive, service from BC Hydro. 2. The Commission approves the Settlement Agreement attached as Appendix A to this Order. 3. The Commission directs BC Hydro to provide to the Commission in final form, reflecting changes that have been agreed as set out in the Settlement Agreement, a copy of the following SOP documents: Rules; Standard Form Electricity Purchase Agreement; and Application Form and to post these documents in final form to its website, in a timely manner, together with a copy of this Order. DATED at the City of Vancouver, in the Province of British Columbia, this 19 th day of March 2008. BY ORDER Original signed by: A.J. Pullman Commissioner Attachments Order/G-43-08_BCH_2008 SOP Negotiated Settlement
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APPENDIX A to Order No. G-43-08 Page 14 of 29 Mar 5, 2008 British Columbia Utilities Commission 6th Floor – 900 Howe Street Vancouver, BC V6Z 2V3 Attention: William J. Grant Dear Sir: Re: British Columbia Utilities Commission (“BCUC”) British Columbia Hydro and Power Authority (BC Hydro) – 2008 Standing Offer Program (SOP) Negotiated Settlement Process (NSP) Howe Sound Pulp & Paper Limited Partnership (HSLP) has reviewed the final NSA circulated under Mr. Bill Grant’s cover letter dated February 29, 2008 and hereby acknowledges support for that agreement. Yours truly, Howe Sound Pulp and Paper Limited Partnership By its General Partner, HSPP General Partner Ltd. By: Pierre Lamarche Manager Energy "The obligations of Howe Sound Pulp and Paper Limited Partnership (the "Partnership") hereunder shall not be binding upon nor shall resort hereunder be had to the property of the limited partners of the Partnership but shall only be binding upon and resort shall only be had to the property and assets of the Partnership and HSPP General Partner Ltd." Mill Office: 3838 Port Mellon Highway, Port Mellon, B.C., Canada V0N 2S0 Telephone (604) 884-5223 Facsimile (604) 884-2170 E-mail hsppcomments@hspp.ca Web www.hspp.ca Registered Office: 100 – 1700 West 75 th Avenue, Vancouver, B.C., Canada V6P 6G2 Telephone (604) 661-5241 Facsimile (604) 661-5235 E-mail info@canfor.ca Web www.canfor.ca Owned by Oji Paper Co., Ltd. and Canfor Corporation
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BY EMAIL British Columbia Utilities Commission 6 th Floor – 900 Howe Street Vancouver, BC V6Z 2V3 Attention: Erica M. Hamilton Commission Secretary Dear Sirs/Mesdames: Re: British Columbia Utilities Commission (“BCUC”) British Columbia Hydro and Power Authority (BC Hydro) – 2008 Standing Offer Program (SOP) Negotiated Settlement Process (NSP) and the Draft Negotiated Settlement Agreement (NSA) We write on behalf of the Joint Industry Electricity Steering Committee (“JIESC”). The JIESC participated in the NSP in this matter and has reviewed the final NSA forwarded to NSP participants on February 29, 2007. The JIESC supports the NSA and urges the Commission to approve it. Yours truly, Bull, Housser & Tupper LLP R. Brian Wallace RBW/sg/1641525 APPENDIX A to Order No. G-43-08 Page 18 of 29 Reply Attention of: R. Brian Wallace Direct Phone: 604.641.4898 Direct Fax: 604.646.2622 E-mail: RBW@bht.com Our File: 07-3815 Date: March 5, 2008
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