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 Approval of a Certificate of Public Convenience and Necessity for
Tsay Keh Electrification Project Application
BEFORE: L.F. Kelsey, Commissioner
D.A. Cote, Commissioner February 17, 2011
D. Morton, Commissioner
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
WHEREAS:
A. On June 25, 2007, the BC Government enacted the Remote Communities Regulation and issued Special Direction No. 10 that directs the Commission to ensure BC Hydro makes available to customers in remote communities the same rates and services it makes available in the Non‐Integrated Areas (NIA);
B. On December 23, 2010, British Columbia Hydro and Power Authority (BC Hydro) filed its Remote Community Electrification (RCE) Application (the Application) for the community of Tsay Keh, which is named in the Remote Communities Regulation, pursuant to sections 45 and 46 of the Utilities Commission Act (Act);
C. BC Hydro applied for a Certificate of Public Convenience and Necessity (CPCN) because Tsay Keh is a new service area that will not be interconnected to the existing BC Hydro electrical system;
D. BC Hydro in the filing applies for orders which grant a CPCN to serve the community of Tsay Keh, conditional on BC Hydro taking over and owning the distribution system in the community, and for electricity tariff amendments to have Tsay Keh listed as a Rate Zone ll community;
E. On June 11, 2010, BC Hydro filed the RCE Program Regulatory Review Proposal (the Streamlined Process) setting out a streamlined regulatory process and form for remote community CPCN applications;
F. To serve Tsay Keh, the Commission has considered alternatives as set out in the Application and determined that Alternative 1a, an exclusive diesel generating station, to be the most cost-effective alternate at a total BC Hydro 25-Year NPV Cost less Revenue estimated to be $10.75 million and that it can be implemented in a timely way.
NOW THEREFORE the Commission orders as follows:
1. Pursuant to sections 45 and 46 of the Act, a CPCN is granted to BC Hydro to serve Tsay Keh for Alternative 1a as set out in the Application, conditional on BC Hydro taking over and owning the distribution system in
Tsay Keh.
2. Pursuant to section 61 of the Act, the revised tariff sheets to include Tsay Keh as a Rate Zone ll community are approved as set out in Appendix A.
3. BC Hydro is directed to monitor and report annually on demand side measures and electricity consumption at Tsay Keh relative to an energy usage baseline established in the filing for the Tsay Keh Project, with the purpose of assessing the extent of fuel switching to electric energy and identifying tariff and other ways to prevent undesirable fuel switching.
DATED at the City of Vancouver, in the Province of British Columbia, this 21st day of February 2011.
BY ORDER
Original signed by:
D. Morton
Commissioner
Attachment