IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
Kyuquot Power Ltd.
Application for Amendments to Revenue Requirements
along with Certain Rate Matters
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner
H.G. Harowitz, Commissioner
K.A. Keilty, Commissioner
N.E. MacMurchy, Commissioner July 10, 2014
I.F. MacPhail, Commissioner
B.A. Magnan, Commissioner
D.M. Morton, Commissioner
O R D E R
WHEREAS:
A. On April 28, 2014, Kyuquot Power Ltd. (KPL) filed an application pursuant to section 58 of the Utilities Commission Act (Act) for amendments to its Revenue Requirements along with Certain Rate Matters (Application);
B. In order for KPL to achieve a fair return on common equity (ROE) for fiscal 2015 that approaches the 9.50 percent approved by Order G-105-13, the Application seeks, among other things, amendments to Rate Schedules 1101 and 1102 whereby an increase to customer energy tariff rates are sought upon commencement of the Houpsitas billing services;
C. KPL has indicated that the most significant reasons for requesting amendments to the rate schedules are:
(1) increases in the electricity rates charged by British Columbia Hydro and Power Authority, and
(2) commencement of the Houpsitas billing services;
D. The Application requests approval to include a one percent depreciation of the powerline asset (including Contribution in Aid of Construction);
E. The Application requests approval to include the amortization of the cost or renewal of the 20 year License of Occupancy lease (Lease Asset) on a straight-line basis over 20 years. The amortization would commence July 1, 2013 and would end on the lease end date of March 31, 2031;
F. The Application also requests approval pursuant to section 50(3) of the Act for amendments to a loan agreement with Canadian Western Bank; and
G. The Commission reviewed the Application and determines that interim rates should be established.
NOW THEREFORE pursuant to sections 58 to 61, 89 and 90 of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The current rates for Kyuquot Power Ltd. Rate Schedules 1101 and 1102 are made interim effective July 1, 2014.
2. Interveners and Interested Parties are to register with the Commission by Thursday, July 31, 2014.
3. A further Regulatory Timetable shall be issued by the Commission for review of the Application in due course.
4. Kyuquot Power Ltd. is to inform all affected customers of the interim approval of the Application and the deadline for intervener and interested party registration by way of a customer notice.
DATED at the City of Vancouver, in the Province of British Columbia, this 10th day of July 2014.
BY ORDER
Original signed by:
D.M. Morton
Commissioner