BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER F -15-08 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 An Application by British Columbia Transmission Corporation for Approval to Incur Capital Expenditures to Construct the 5L51 and 5L52 Thermal Upgrade Project BEFORE: R.H. Hobbs, Chair L.A. O’Hara, Commissioner May 23, 2008 A.A. Rhodes, Commissioner O R D E R WHEREAS: A. On December 12, 2007 British Columbia Transmission Corporation (“BCTC”) applied, pursuant to Section 45(6.2)(b) of the Utilities Commission Act (“the Act”) and as directed in the F2008 Capital Plan Decision, for public interest approval of capital expenditures for a thermal upgrade of transmission circuits 5L51 and 5L52 (the “Thermal Upgrade Project”); and B. The Thermal Upgrade Project involves upgrading the 500 kV 5L51 and 5L52 transmission circuits that comprise the Ingledow-Custer transmission tie, also referred to as the western tie of the B.C.-U.S. intertie. The circuits connect the Ingledow substation in the BCTC Control Area to the Custer substation in the Bonneville Power Administration Control Area. By increasing the circuit ratings of 5L51 and 5L52 from 2,520 and 2,000 Amperes respectively, to 3,000 Amperes, the upgrade will result in an additional 870 Megawatts (“MW”) of south-to-north firm transmission capacity on the B.C.-U.S. intertie; and C. The estimated cost for the Thermal Upgrade Project is $3.1 million based on the preferred Upgrade Option 2 and the expected in-service date is March 31, 2010; and D. Special Direction No. 9 (“SD-9”) authorizes the Commission to consider, as part of the justification for investment in new transmission facilities, the anticipated future demand for electricity and electricity services. SD-9 also authorizes the Commission to allow the recovery of costs from current rates, which are justified based on future benefits from proposed equipment or facilities; and E. While the Thermal Upgrade Project is the first project to be advanced for approval under BCTC’s Transmission Expansion Policy (“TEP”), BCTC is not seeking approval of the TEP or its TEP implementation plan; and F. National Energy Board public interest approval for the project is required before construction can commence because 5L51 and 5L52 are international power lines; and …/2
2 G. On December 24, 2007 by Order No. G-163-07, the Commission directed that a Written Public Hearing be conducted for deciding the matters brought forward in the Application, established a Regulatory Timetable for the proceeding and directed BCTC to provide adequate notice in local news publications to the public in the vicinity of the project; and H. By Order No. G-58-08 dated April 22, 2008, the Commission granted approval for BCTC to Incur Capital Expenditures to construct the 5L51 and 5L52 Thermal Upgrade Project, Option 2, as set out in the Application; and I. By letter dated March 31, 2008, the British Columbia Public Interest Advocacy Centre applied for a cost award on behalf of the BC Old Age Pensioners Organization et al. for its participation in the proceeding; and J. By letter dated April 15, 2008, the Independent Power Producers Association of British Columbia applied for a cost award for its participation in the proceeding; and K. By letter dated April 16, 2008, Joint Industry Electricity Steering Committee applied for a cost award for its participation in the proceeding; and L. The Commission has reviewed the applications for cost awards with regard to the criteria and rates set out in Order No. G-72-07. NOW THEREFORE pursuant to Section 118(1) of the Utilities Commission Act, the Commission orders as follows: 1. The Commission awards funds to the following for their participation in the BCTC Application process. Participant Joint Industry Electricity Steering Committee British Columbia Old Age Pensioners’ Organization, et al. Independent Power Producers Association of British Columbia 2. BCTC is directed to reimburse the Applicants for the total amounts awarded in a timely fashion. BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER F-15-08 Application Award $856.80 $856.80 $5,882.63 $5,882.63 $13,314.00 $8,851.50 …/3
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER F-15-08 3 DATED at the City of Vancouver, in the Province of British Columbia, this 2 nd day of June 2008. BY ORDER Original signed by: Robert H. Hobbs Chair Attachment Order/F-15-08_BCTC_Thermal Upgrade-PACA Awards & Reasons
APPENDIX A to Order No. F-15-08 Page 1 of 4 British Columbia Transmission Corporation for Approval to Incur Capital Expenditures to Construct the 5L51 and 5L52 Thermal Upgrade Project Certificate of Public Convenience and Necessity Application Participant Assistance/Cost Award Applications REASONS FOR DECISION 1.0 INTRODUCTION The Commission issued its Decision and Order No. G-58-08 dated March 19, 2008 in response to the British Columbia Transmission Corporation (“BCTC”) Application for public interest approval of capital expenditures for a thermal upgrade of transmission circuits 5L51 and 5L52 (the “Thermal Upgrade Project”). As set out in the Order that accompanies these Reasons for Decision, the Commission received applications pursuant to Section 118 of the Utilities Commission Act for Participant Assistance/Cost Award (“PACA”) funding for this written proceeding. Section 118 provides that the Commission Panel may make cost awards for participation in a proceeding. The Commission’s PACA Guidelines are set out in Appendix A to Order No. G-72-07 and state: “Participants other than “ratepayer groups” may be eligible for funding in energy supply contract, rate design, resource plan, and CPCN proceedings provided that the Participant meets the “substantial interest in a substantial issue” criterion. The Commission Panel will then consider the following: i. Will the Participant be affected by the outcome? ii. Has the Participant contributed to a better understanding of the issues by the Commission? iii. Are the costs incurred by the Participant for the purposes of participating in the proceeding fair and reasonable? iv. Has the Participant joined with other groups with similar interests to reduce costs? v. Has the Participant engaged in any conduct that tended to unnecessarily lengthen the duration of the proceeding? (This criterion will not, by itself, disqualify a Participant for pursuing a relevant position in good faith and with reasonable diligence) vi. Any other matters appropriate in the circumstances.
APPENDIX A to Order No. F-15-08 Page 2 of 4 If the Commission panel considers it to be an appropriate consideration in a proceeding, the Commission panel may consider the Participant’s ability to participate in the proceeding without an award.” On April 17, 2008, pursuant to the PACA Guidelines, BCTC was provided with copies of the cost award applications and the opportunity to comment on them. In a letter dated May 14, 2008 to the Commission, BCTC indicated that it has reviewed the three applications and finds that the claims to be substantially consistent with the Commission Participant Assistance/Cost Award Guidelines. 2.0 PROCEEDING AND PREPARATION DAYS Section 4 of the PACA Guidelines states that proceeding days may include workshop days, negotiation days, pre-hearing conference days, hearing days, and oral argument days, and will not include town hall meeting days; and that the Commission Panel may award costs for preparation days, typically on a ratio of up to two preparation days per proceeding day. Maximum daily costs for legal counsel and consultants are based on an eight-hour day and are to be prorated for partial days. As the Application for the Thermal Upgrade Project was reviewed in a written hearing process, the PACA Guidelines cannot be applied directly for this proceeding. After reviewing the extent of the review process, the Commission Panel determines that the review process was equivalent to 1.5 proceeding days. Consequently, as shown by the following table and based on a ratio of two preparation days for each proceeding day, the total maximum number of days for funding for this proceeding is 4.5 days for each of legal counsel and consultants. Application Written Preparation Total Maximum number of Proceeding Days (at 2 days Days for PACA Funding (Days) for each Proceeding Day) Thermal 1.5 3 4.5 Upgrade Project
APPENDIX A to Order No. F-15-08 Page 3 of 4 3.0 PACA APPLICATIONS The Commission received PACA applications from Independent Power Producers Association of British Columbia (“IPPBC”), British Columbia Old Age Pensioners’ Organization et al. (“BCOAPO”), and the Joint Industry Electricity Steering Committee (“JIESC”). The PACA application amounts are summarized as follows: Participant Amount Joint Industry Electricity Steering Committee $856.80 British Columbia Old Age Pensioners’ Organization, et al $5,882.63 Independent Power Producers Association of British Columbia $13,314.00 Total $20,053.43 4.0 ADJUSTMENTS TO INDIVIDUAL PACA APPLICATION AMOUNTS JIESC The JIESC applied for a cost award of $856.80. The Commission Panel considers that JIESC met the “substantial interest in a substantial issue” criterion of the PACA Guidelines. The Commission Panel notes that while no details of the expenditures were received that JIESC did register as an intervenor, did not file any information requests, and did file a Reply and considers that the amount applied for is just less than one-half a day of counsel’s time. The JIESC cost award amount is $856.80. BCOAPO BCOAPO applied for a cost award of $5,882.63 based on 3.41 funding days and total counsel fees of $4,032.00, consulting fees of $1,850.63, all inclusive of applicable taxes. BCOAPO applied for participant funding based on two days for counsel and 1.41 days for the consultant. The daily rates used by BCOAPO are: $1,800 for counsel (Quail), and $1,250 for the consultant. These rates are consistent with the PACA Guidelines.
APPENDIX A to Order No. F-15-08 Page 4 of 4 The Commission Panel considers that BCOAPO met the “substantial interest in a substantial issue” criterion of the PACA Guidelines. The BCOAPO cost award amount is $5,882.63. IPPBC The IPPBC applied for a cost award of $13,314 based on eight funding days and total counsel fees of $8,064.00, consulting fees of $5,250.00, all inclusive of applicable taxes. IPPBC applied for participant funding based on four maximum funding days for counsel and four maximum funding days for the consultant. The daily rates used by IPPBC are: $1,800 for counsel and $1,250 for the consultant. These rates are consistent with the PACA Guidelines. The Commission Panel considers that IPPBC has somewhat met the “substantial interest in a substantial issue” criterion of the PACA Guidelines. However, the Commission Panel considers that the IPP members have a substantial self-interest in how this B.C.-U.S. intertie may affect present and future IPP projects and whether this project will alleviate congestion on the BCTC/BC Hydro system to the benefit of IPP projects. The Commission Panel considers that the consultant Mr. Weimer’s contribution to the proceeding was more consistent with that of a case manager than a consultant and warrants funding at the lower case manager rate of $500/day. Also, the Commission Panel considers that the level of effort and the value of IPPBC’s participation to the Commission Panel for its decision making was not significantly greater than that of BCOAPO based on the material submitted, and determines that the consultant should be funded for 1.5 days. Therefore, the amount of PACA funding awarded to IPPBC for this proceeding is determined as follows: Days Rate Maximum Rate GST PST Amount Requested Requested Funding Awarded 5% 7% Awarded Days IPPBC Counsel 4 $1,800 4 $1,800 $360.00 $504.00 $8,064.00 D. Austin Consultant 4 $1,250 1.5 $500 $37.50 0 $787.50 J. Weimer Total 8 4.5 $8,851.50 The IPPBC adjusted cost award amount is $8,851.50.
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