IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Application for Approval of
Charges Related to Meter Choices Program
BEFORE: L.F. Kelsey, Panel Chair/Commissioner October 9, 2013
O R D E R
WHEREAS:
A. British Columbia Hydro and Power Authority (BC Hydro) filed on October 7, 2013, pursuant to sections 58 to 61 of the Utilities Commission Act (Act) and Direction No. 4 to the British Columbia Utilities Commission (BCUC) (BC Reg. 203/2013) an application for approval of new standard charges, new Electric Tariff Terms and Conditions, and regulatory accounting treatment (Application);
B. The Lieutenant Governor in Council issued Direction No. 4 on September 25, 2013, and provides direction to the BCUC with respect to implementing the Government of British Columbia policy that BC Hydro will offer new meter options and related services to eligible customers who choose not to have a smart meter at their premises, and that eligible customers choosing an alternative meter option will have to pay additional charges designed to recover the costs attributable to their chosen option;
C. Section 3(2) of Direction No. 4 provides direction to the BCUC to allow BC Hydro to establish a regulatory account for the recovery of program costs, investigation costs and infrastructure costs not recovered from customers at premises where a legacy meter or radio-off meter is installed, and costs related to smart meters, which are incurred during the period of January 1, 2013 to March 31, 2014. In accordance with section 3(2), BC Hydro proposes to add these costs to the existing SMI Regulatory Account established pursuant to Commission Order G-64-09 to avoid the creation of a new regulatory account, to enable BC Hydro to recover those costs in the same manner as SMI Program costs, and is consistent with Direction No. 4;
D. Section 3(3) of Direction No. 4 provides the BCUC with direction to issue an order within 30 days of the date Direction No. 4 comes into force (i.e., by October 25, 2013) to amend BC Hydro’s Electric Tariff to incorporate prescriptive conditions as set out in the Appendix of Direction No. 4 that will be applied to eligible customers who choose or are deemed to choose alternative meters;
E. Pursuant to the Government policy, BC Hydro is offering the following meter options to eligible customers that do not have a smart meter installed at their premises:
1. the installation of a standard smart meter,
2. the installation of a radio‑off meter, or
3. the existing legacy meter can remain installed at the premises;
F. For those eligible customers who choose the standard smart meter, BC Hydro will install a smart meter at the customer’s premises and no additional charges will apply. For those eligible customers who choose a radio‑off meter, BC Hydro will install a radio‑off meter at the customer’s premises and additional charges as approved by the BCUC will apply. For those eligible customers who choose the legacy meter option, BC Hydro will leave in place the legacy meter currently installed at the customer’s premises and additional charges as approved by the BCUC will apply;
G. Pursuant to Direction No. 4, BC Hydro is also seeking BCUC approval of new Electric Tariff Terms and Conditions that will specify eligibility for the new meter options, and the conditions that will apply to customers who choose or are deemed to choose the legacy or radio‑off meter option, in accordance with the Appendix of Direction No. 4;
H. Pursuant to section 3(1)(c) of Direction No. 4, BC Hydro is also seeking BCUC approval of a new failed installation charge to recover the costs related to attendance at a customer’s premises to install a legacy meter, radio‑off meter or smart meter, as applicable, and installation is not carried out because of an objection made by a customer or an obstruction;
I. The Application requests that the failed installation charge take effect on an interim and refundable basis as of October 25, 2013; and
J. The Commission has considered the Application and Direction No. 4 and determined that approval is warranted.
NOW THEREFORE, pursuant to sections 60 and 61 of the Utilities Commission Act, the Commission orders as follows:
1. The failed installation charge, as shown in the schedule of Miscellaneous Charges in the First Revision of Page 40 of the Electric Tariff filed in Appendix C of the Application, is approved on an interim and refundable basis effective as of October 25, 2013. BC Hydro is directed to file the schedule with the Commission reflecting the approved interim failed installation charge.
2. The approved failed installation charge is subject to adjustment, by further Commission order, with interest at BC Hydro’s weighted average cost of debt for its most recent fiscal year.
3. The new Terms and Conditions in sections 4 and 6 of the Electric Tariff and related changes to the Electric Tariff, as filed in Appendix C of the Application, are approved effective as of October 25, 2013.
4. BC Hydro is authorised to include in its existing SMI Regulatory Account the program costs, investigation costs and infrastructure costs that are not recovered from eligible customers at premises where a legacy meter or radio-off meter is installed, and costs related to smart meters, which are incurred during the period January 1, 2013 to March 31, 2014, in accordance with section 3(2) of Direction No. 4 to the BCUC.
DATED at the City of Vancouver, in the Province of British Columbia, this Ninth day of October 2013.
BY ORDER
Original signed by
L.F. Kelsey
Panel Chair/Commissioner