IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by the British Columbia Utilities Commission
on behalf of Thermal Energy Systems, owned by a Strata Corporation
and Providing Thermal Energy Exclusively to the Strata Corporation Owners
for an Exemption from Regulation as a Public Utility
BEFORE: D.M. Morton, Commissioner
L.A. O’Hara, Commissioner August 27, 2014
R.D. Revel, Commissioner
O R D E R
WHEREAS:
A. On December 27, 2012, the British Columbia Utilities Commission (Commission) issued its Report on the Inquiry into the Offering of Products and Services in Alternative Energy Solutions and Other New Initiatives (AES Inquiry Report);
B. In the AES Inquiry Report, the Commission recommends the use of exemptions, which are contemplated under the Utilities Commission Act (UCA), where the Commission finds regulation is not warranted;
C. On May 9, 2013, Commission staff proposed a framework for exemption of certain classes of cases where a person, or the person’s lessee, trustee, receiver or liquidator, who owns or operates in British Columbia, equipment or facilities for the production, generation, storage, transmission, sale, delivery or provision of any agent for the production of heat or cold (Thermal Energy Systems, TES) from various provisions of the UCA (TES Framework). The Commission initiated a public comment process on the TES Framework which included two working sessions and the opportunity for stakeholders for comments;
D. The draft TES Framework proposes an exemption from active regulation for a Thermal Energy System owned or operated by a strata corporation exclusively for its Strata Owners;
E. The Strata Property Act, Part 10 outlines recourse measures Strata Owners may take against Strata Corporations and arbitration processes to resolve disputes;
F. On August 28, 2013, the Commission initiated a public hearing to review the proposed TES Framework including an exemption for certain Thermal Energy Systems;
G. On December 31, 2013, the Commission released its Reasons for Decision on the TES Framework recommending certain exemptions from regulation and on January 2, 2014, the Commission requested that the Lieutenant Governor in Council (LGIC) grant advance approval for exemptions;
H. By Order in Council No. 401, dated June 20, 2014, and attached as Appendix A to this Order, the LGIC grants advance approval to the Commission to exempt, from certain provisions of the UCA, the class of cases where a person is a Strata Corporation, or the person's lessee, trustee, receiver or liquidator, who owns or operates in British Columbia, equipment or facilities for the production, generation, storage, transmission, sale, delivery or provision of any agent for the production of heat or cold exclusively to or for its Strata owners, for compensation; and
I. The Commission has determined that this exemption from the UCA properly conserves the public interest.
1. NOW THEREFORE pursuant to subsections 88(1) and 88(3) of the Utilities Commission Act, the Commission orders that a person who is a Strata Corporation, or that person's lessee, trustee, receiver or liquidator, who owns or operates in British Columbia, a Thermal Energy System for the production, generation, storage, transmission, sale, delivery or provision of any agent for the production of heat or cold exclusively for that person’s Strata Owners, for compensation, is exempt from Part 3, except for sections 42, 43 and 44 of the Utilities Commission Act.
DATED at the City of Vancouver, in the Province of British Columbia, this 27th day of August 2014.
BY ORDER
Original signed by:
D.M. Morton
Commissioner
Attachment
PROVINCE OF BRITISH COLUMBIA
ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL