IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

An Application by British Columbia Hydro and Power Authority

for Review of its F2011 Revenue Requirement Application

BEFORE:                 D. A. Cote, Commissioner

                                M.R. Harle, Commissioner                                                  March 15, 2010

                                L.A. O’Hara, Commissioner

O  R  D  E  R

WHEREAS:

A.       British Columbia Hydro and Power Authority (BC Hydro) filed on March 3, 2010 with the British Columbia Utilities Commission (Commission), pursuant to sections 44.2 and 58 to 61 of the Utilities Commission Act (the Act), its F2011 Revenue Requirements Application (the F11 RRA, or Application) for, among other things, final approval of an across-the-board rate increase of 6.11 percent, effective April 1, 2010, and final approval to increase the Deferral Account Rate Rider from 1.0 percent to 4.0 percent, effective April 1, 2010; and

B.       The Application also seeks refundable interim relief pursuant to sections 58 to 61, 89 and 90 of the Act, and section 15 of the Administrative Tribunals Act, to allow BC Hydro to increase its rates by 6.11 percent on an across-the-board basis, and to increase its Deferral Account Rate Rider from 1.0 percent to 4.0 percent, both effective April 1, 2010, pending the hearing into the F11 RRA and orders subsequent to that hearing, on the basis that on April 1, 2010 BC Hydro’s current rates would otherwise no longer be fair, just and not unduly discriminatory; and

C.       For the residential inclining block (RIB) rate schedules 1101 and 1121, BC Hydro is proposing to apply the 6.11 percent increase equally to the Basic charge and Step 1 and Step 2 energy charges; and

D.       In the Application, BC Hydro proposes an initial regulatory process of Commission Information Requests (IRs), registration of Interveners and Interested Parties; Intervener IRs; BC Hydro responses to all IRs, and a Procedural Conference on or about Tuesday, April 27, 2010 to consider further process issues, including consideration of whether the Application might be resolved through negotiated settlement or written process; and

E.        The Commission has reviewed BC Hydro’s proposed regulatory timetable and considers that the requested interim rate increase should be approved and an Initial Regulatory Timetable should be established.

NOW THEREFORE the Commission orders, as follows:

1.       The 6.11 percent across-the-board, refundable interim increase in rates including RIB rates is approved for BC Hydro effective April 1, 2010, to be applied as set out in the Rate Schedules in Appendix A2 of the F11 RRA.  The refundable interim increase in BC Hydro’s Deferral Account Rate Rider, from 1.0 percent to 4.0 percent, is approved effective April 1, 2010.  Both interim increases are subject to refund with interest at BC Hydro’s weighted average cost of debt for its most recent fiscal year.

2.       BC Hydro is to provide customers with notification of the interim rate increases as soon as is practicable.

3.       The deadlines for Commission and Intervener IR No. 1 to BC Hydro, the responses from BC Hydro, and a proposed deadline for Commission and Intervener IR No. 2, the registration of Interveners and Interested Parties, and the filing of Intervener participant assistance budgets are set out in the Initial Regulatory Timetable attached as Appendix A to this Order.

4.       The Commission will hold a Workshop to review the issues in the Application on Wednesday, April 7, 2010 commencing at 9:00 a.m., in the Commission’s Hearing Room on the 12^th Floor, 1125 Howe Street, Vancouver, BC.

5.       A Procedural Conference regarding the further regulatory process for the review of the F11 RRA will be held on Tuesday, May 25, 2010 commencing at 9:00 a.m., in the Commission’s Hearing Room on the 12^th Floor, 1125 Howe Street, Vancouver, BC.  After the Procedural Conference, the Commission will issue a further procedural order and regulatory timetable for the review of the F11 RRA.

6.       BC Hydro is to provide a copy of this Commission Order and the Initial Regulatory Timetable attached as Appendix A to this Order to all parties who participated in the F09/F10 Revenue Requirements Application proceeding.

7.       BC Hydro will publish, as soon as possible, in display-ad format, the Notice of Application, Workshop and Procedural Conference attached as Appendix B to this Order, in such appropriate news publications as may properly provide adequate notice to the public in its service areas.

8.       BC Hydro will make available for inspection the F11 RRA, with any supporting materials, at the BC Hydro Head Office in Vancouver and BC Hydro offices in Burnaby, Fort St. John, Kamloops, Surrey, Nanaimo, North Vancouver, Prince George, Salmon Arm, Vernon, and Victoria.  BC Hydro will also make the F11 RRA available on BC Hydro’s website at http://www.bchydro.com.

9.       Interveners and Interested Parties should register for the F11 RRA with the Commission, in writing or by online web registration, by Friday, March 26, 2010, and advise whether they will attend the Workshop and the Procedural Conference.  Interveners should specifically state the nature of their interest in the F11 RRA, and identify generally the nature of the issues that they intend to pursue during the F11 RRA proceeding and the nature and extent of their anticipated involvement in the review process.

10.    Interveners intending to apply for participant assistance must submit a budget estimate by Tuesday, May 11, 2010, consistent with the Commission’s Participant Assistance/Cost Award Guidelines and Order G-72-07.  Copies are available upon request, or can be downloaded from the Commission’s website at http://www.bcuc.com.

DATED at the City of Vancouver, in the Province of British Columbia, this        15^th        day of March 2010.

                                                                                                                                BY ORDER

                                                                                                                                Original signed by:

        Dennis A. Cote

                                                                                                                                Panel Chair/Commissioner

Attachments

INITIAL REGULATORY TIMETABLE

NOTICE OF WORKSHOP

NOTICE OF PROCEDURAL CONFERENCE

Application by British Columbia Hydro and Power Authority

for Review of its F2011 Revenue Requirements

NOTICE OF APPLICATION

WORKSHOP AND PROCEDURAL CONFERENCE

                                           WORKSHOP                                                                          PROCEDURAL CONFERENCE

The APPLICATION

On March 3, 2010 British Columbia Hydro and Power Authority (BC Hydro) filed with the British Columbia Utilities Commission (the Commission) pursuant to sections 44.2 and 58 to 61 of the Utilities Commission Act (the Act), the F2011 Revenue Requirements Application (F11 RRA).  The F11 RRA requests, among other things, approval of an across-the-board rate increase of 6.11 percent, on an interim and refundable basis effective April 1, 2010, to be made permanent following the Commission’s review process.  The F11 RRA also seeks interim approval to increase its Deferral Account Rate Rider from 1.0 percent to 4 percent, effective April 1, 2010, to be made permanent following the Commission’s review process.

The Commission wishes to ensure that affected parties have an opportunity to understand the Application and its implications for customer rates.  The Commission also wishes to hear from affected parties before determining the public process necessary for the disposition of the Application.

THE REGULATORY PROCESSES

The Commission will hold a Workshop on April 7, 2010 in Vancouver, BC to discuss issues in the Application and a Procedural Conference on Tuesday, May 25, 2010 in Vancouver, BC to discuss procedural matters related to the F11 RRA.  On-line broadcasting services of the Procedural Conference will be provided by Allwest Reporting Ltd.

Public Inspection of the ApplicationS

The F11 RRA is available for inspection at the following locations:

REGISTERING TO PARTICIPATE

Persons who expect to actively participate in the review processes and Procedural Conference should register as Interveners.  Interveners will receive copies of the Application, all correspondence and filed documents.  Persons not expecting to actively participate should register with the Commission as Interested Parties and will receive a copy of the Application summary and the Commission’s Decision.

Interveners and Interested Parties should inform the Commission Secretary, in writing or online web registration, by Friday, March 26, 2010 of their intention to become Interveners or Interested Parties with respect to the F11 RRA and their intention to attend the Procedural Conference.

Further Information

For further information, please contact Ms. Erica M. Hamilton, Commission Secretary, as follows:

Telephone:           (604) 660-4700                        BC Toll Free:             1-800-663-1385

Facsimile:              (604) 660-1102                        E-mail:            commission.secretary@bcuc.com