IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Cove Power Society
for an Exemption from Part 3 of the Utilities Commission Act
– Regulation of Public Utilities, Except for Certain Sections
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner June 7, 2012
N.E. MacMurchy, Commissioner
D.M. Morton, Commissioner
O R D E R
WHEREAS:
A. On July 29, 2011, Cove Power Society (CPS) submitted a description of CPS as a non-profit society, provided a copy of the CPS agreement to purchase the electrical distribution facilities in Bird’s Eye Cove from Bird’s Eye Cove Estates Ltd., carrying on business as Birds Eye Cove Power (BECP), and requested a letter from the British Columbia Utilities Commission (Commission) confirming that CPS would not be considered to be a public utility under the Utilities Commission Act (the Act);
B. On September 14, 2011, the Commission replied to CPS stating that it considered CPS would be a public utility under the Act;
C. On September 23, 2011, CPS filed an application pursuant to section 88(3) of the Act requesting that the Commission seek advance approval from the Lieutenant Governor in Council (LGIC) to allow the Commission to exempt CPS from the application of the provisions of Part 3 of the Act – Regulation of Public Utilities, except for sections 23 – General supervision of public utilities, 25 – Commission may order improved service, 38 – Public Utility must provide service, 41 – No discontinuance without permission, 43 – Duty to provide information and 57 – Reserve funds;
D. By Order G-186-11 dated November 10, 2011, the Commission approved the sale and disposition of the utility assets of Bird's Eye Cove Estates Ltd. to Cove Power Society with the condition that if BECP and CPS fail to complete the sale and disposition of the utility assets as set forth in the Purchase Agreement within 14 calendar days after February 15, 2012, the Application is dismissed. In Order G-186-11, the Commission also granted permission to BECP to cease operation as a public utility upon completion of the sale and disposition of the utility assets;
E. Section 88(3) of the Act provides that the Commission may, on conditions it considers advisable, with the advance approval of the LGIC, exempt a person, equipment or facilities from the application of all or any of the provisions of the Act;
F. By Order in Council No. 367 dated May 31, 2012, and attached as Appendix A to this Order, the LGIC granted advance approval to the Commission to exempt CPS from the requirements of Part 3 of the Act – Regulation of Public Utilities, except for sections 23, 25, 38, 41, 42, 43, 44 and 57 for the purpose and subject to the terms set out in the draft Commission Order attached to the Order in Council;
G. The Commission has reviewed the Application and determined that an exemption for CPS from certain provisions of Part 3 of the Act is in the public interest if CPS and BCEP complete the sale and disposition of the utility assets as provided for in Order G-18-12.
NOW THEREFORE the Commission orders as follows:
1. If CPS and BECP complete the sale and disposition of the utility assets as provided for in Order G-18-12, then the Commission pursuant to section 88(3) of the Act exempts CPS from the requirements of Part 3 of the Act – Regulation of Public Utilities, except for sections 23, 25, 38, 41, 42, 43, 44 and 57.
2. This exemption, granted pursuant to this Order, shall remain in effect until the Commission orders otherwise following the determination of any complaint it receives from a person whose interests are affected.
3. The exemption will be effective from the date of the sale and disposition of the utility assets.
4. In the event that BECP and CPS do not complete the sale and disposition of the utility assets as provided for in the Purchase Agreement and pursuant to Order G-18-12 within 14 calendar days after the date that is fifteen business days from the date in which the Purchaser receives the Exemption Order, but no later than August 15, 2012, the Application for an exemption is dismissed.
DATED at the City of Vancouver, in the Province of British Columbia, this 12th day of June 2012.
BY ORDER
Original signed by:
D.M. Morton
Commissioner
Attachment