IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
FortisBC Inc.
Application for Stepped and Stand-By Rates for Transmission Voltage Customers
BEFORE: L.A. O’Hara, Panel Chair/Commissioner
R.D. Revel, Commissioner September 18, 2014
O R D E R
WHEREAS:
A. On March 28, 2013, FortisBC Inc. (FortisBC) filed an application with the British Columbia Utilities Commission (Commission) for approval of new rates for transmission voltage customers (the Application) under sections 58‑61 of the Utilities Commission Act;
B. The Application requested, among other things, approval for a conservation Stepped Rate and a Stand-by Service Rate (RS 37) for transmission voltage customers, and a determination of the retroactive application of rates to Zellstoff Celgar Limited Partnership (Celgar);
C. The British Columbia Hydro and Power Authority (BC Hydro), Celgar, International Forest Products Limited, the British Columba Old Age Pensioners’ and Seniors’ Organization et al (BCOAPO) and the BC Municipal Electric Utilities (BCMEU) registered as Interveners and Tolko Industries Ltd. registered as an Interested Party;
D. On May 26, 2014, by Order G-67-14, the Commission denied FortisBC’s request for approval of a Stepped Rate for transmission voltage customers and declined to approve the Stand-by Service Rate as proposed in the Application;
E. Order G-67-14 directed FortisBC to file a revised Stand-by Service Rate incorporating the findings in the Decision and to address certain Celgar specific matters, which FortisBC filed on June 26, 2014 (Revised Stand-by Rate Filing);
F. On June 30, 2014, by Order G-81-14, the Commission limited the scope of the Revised Stand-by Rate Filing review and established a Regulatory Timetable for its initial review. Order G-81-14 also provided Interveners with an opportunity to file submissions on what further process, if any, is required after the events contemplated in the Regulatory Timetable were completed;
G. On August 20, 2014, by Order G-118-14, the Commission established a further Regulatory Timetable for the review of the Revised Stand-by Rate. Order-G-118-14 also further defined the scope of the review to include, among other things, bypass alternatives available to Celgar;
H. In accordance with the Regulatory Timetable established by Order G-118-14 Celgar filed Intervener evidence on September 8, 2014 (Exhibit C2-22). Celgar also filed a request for confidential treatment, in accordance with the Commission’s Confidential Filing Practice Directive, for evidence filed separately relating to bypass options (Confidential Evidence, Exhibit C2-22-1);
I. Celgar states that the Confidential Evidence is proprietary and includes confidential detailed information which, if released, could disadvantage Celgar’s position relative to its power-sector and pulp-sector competitors and could result in undue material financial loss or significant harm or prejudice;
J. On September 17, 2014, FortisBC filed a letter with the Commission regarding the Confidential Evidence (Exhibit B-31) stating that at this point in time they do not object to such evidence being held in confidence; however, FortisBC further states that if such evidence is to be given weight in the determination of the rates to be approved during the current regulatory process, then FortisBC reserves the right to make a future submission on the appropriateness of keeping such information confidential and unavailable to it;
K. FortisBC in its September 17, 2014, letter submits that the Celgar bypass options as presented in Exhibit C2-22 and C2-22-1 should be given little or no weight or consideration in the review of the Revised Stand-by Rate Filing because bypass options are not a proper consideration in establishing initial rates. FortisBC states that bypass options may potentially be a consideration at a time in the future in relation to an approved rate as demonstrated in the Commission’s Bypass Application Guidelines that currently exist; and
L. In order to ensure procedural fairness is upheld, a determination needs to be made as to the weight that should be afforded to Celgar’s bypass options in the Commission’s ruling on the Revised Stand-by Rate Filing in order for FortisBC to be able to make a meaningful submission on the appropriateness of keeping the Confidential Filing unavailable.
NOW THEREFORE the British Columbia Utilities Commission (Commission) orders as follows:
1. In response to FortisBC Inc.’s filing marked as Exhibit B-31, Interveners are invited to file submissions, no later than Thursday, September 25, 2014, on the weight that should be afforded to the Zellstoff Celgar Limited Partnership (Celgar) bypass options marked as Exhibits C2-22 and C2-22-1 in the Commission’s determination on the Revised Stand-by Rate Filing.
2. FortisBC Inc. may reply by Tuesday, September 30, 2014.
3. The Commission will, if necessary, provide parties with an opportunity to make a further submission on the appropriateness of Celgar’s Exhibit C2-22-1 being held confidential, once a determination has been made on the weight of such evidence.
4. The Regulatory Timetable as established in Order G-118-14, is temporarily suspended until these matters have been resolved.
DATED at the City of Vancouver, in the Province of British Columbia, this 18th day of September, 2014.
BY ORDER
Original signed by:
L.A. O’Hara
Panel Chair/Commissioner