Orders

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, Commissioner                                          June 30, 2014

                                R.D. Revel, Commissioner

 

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 the following:

                     i.            Approval for a conservation Stepped Rate, with Customer Baseline Load (CBL) Guidelines, for all transmission voltage customers (Rate Schedule [RS] 34), an exempt Flat Rate (RS 36) as well as approval to close the existing Flat Rate (RS 31) and transfer customers to RS 34 and RS 36, as appropriate;

                   ii.            Approval for a Non-Embedded Cost Power (NECP) Rate Rider which incorporates the Entitlement Principals and the Matching Methodology into a rate;

                  iii.            Approval for a Stand-by Service Rate (RS 37);

                 iv.            Approval to close the transmission voltage customer Time-of-Use Rate (RS 33); and

                   v.            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 Pensioners’ and Seniors’ Organization et al (BCPSO) and the BC Municipal Electric Utilities (BCMEU) registered as Interveners and Tolko Industries Ltd. registered as an Interested Party;

 

 

D.      On May 28, 2013, BC Hydro filed an application with the Commission for approval to replace the existing 1993 Power Purchase Agreement (PPA) with FortisBC with a New PPA under RS 3808 (RS 3808 Proceeding).  The RS 3808 Proceeding addresses certain issues which overlap with parts of this Application including issues that relate to the NECP Rate Rider;

 

E.       On January 31, 2014, by Order G-12-14, the Commission determined that its review of the issues in the Application that do not overlap with the issues being considered in the RS 3808 Proceeding would proceed by way of a written hearing (RS 34 and RS 36 excluding its application to customers with self-generation, RS 31, RS 37 and RS 33).  The NECP Rate Rider, the application of the stepped rate to FortisBC’s customers with self-generation and the retro-active application of rates to Celgar would be deferred until after the Commission made a final determination on the RS 3808 Proceeding;

 

F.       On May 6, 2014, by Order G-60-14 and the attached Decision, the Commission made a final determination on the RS 3808 Proceeding.  As part of that determination, the Commission directed BC Hydro to initiate a consultative process leading to an application for Section 2.5 [GBL] Guidelines (which once approved, are to be added as an appendix to the New PPA) by November 1, 2014.  Order G-60-14 also directed FortisBC to initiate a concurrent consultation process leading to the filing of a comprehensive Self-Generation Policy Application for the FortisBC service territory by December 31, 2014;

 

G.     On May 26, 2014, by Order G-67-14 and the attached Decision, the Commission made a determination on the parts of this Application that did not overlap with the RS 3808 Proceeding.  Order G-67-14 denied FortisBC’s request to open RS 34 (Stepped Rate) and RS 36 and consented to the withdrawal of FortisBC’s request to close RS 31 and RS 33;

 

H.      In the Decision attached to Order G-67-14, the Commission further determined that there is no longer a need to consider the application of Stepped Rates for customers with self-generation facilities as the request for Stepped Rates was denied and, therefore, the rate class does not have stepped rates for which any application to self-generation customers can be made;

 

I.        Order G-67-14 also denied approval of RS 37 (Stand-by Service) as proposed in the Application and directed FortisBC to file a revised RS 37 incorporating the findings in the attached Decision;

 

J.        On June 26, 2014, FortisBC filed the RS 37 Compliance Filing as directed by Order G-67-14.

 

 

NOW THEREFORE the British Columbia Utilities Commission orders as follows:

 

1.       In accordance with the Regulatory Timetable attached as Appendix A, the initial review of FortisBC’s Rate Schedule 37 (Stand-by Service Rate) Compliance Filing is established and interveners are invited to file submissions on what further process, if any, is required after the events contemplated in the Timetable are completed.

 

2.       The scope of review is limited to the following:

a.       The Restrictions included in the Stand-by Rate;

b.      The Availability of Stand-by Service;

c.       Contract Demand:

                                             i.            Commission’s suggested Stand-by Contract Demand Approach;

                                           ii.            FortisBC’s Adjusted Contract Demand Approach; and

d.      Celgar Specific Issues.

 

3.       For further clarity, the determinations made in Order G-67-14 will not be revisited except for the determination of Contract Demand in the underlying transmission rate schedule (Rate Schedule 31) as it relates to the Commission’s suggested Stand-by Contract Demand Approach or FortisBC’s Adjusted Contract Demand Approach.

 

 

DATED at the City of Vancouver, in the Province of British Columbia, this            30^th                   day of June 2014.

 

                                                                                                                                BY ORDER

                                                                                                                               

Original singed by:

 

                                                                                                                                L.A. O’Hara

                                                                                                                                Commissioner

Attachment

FortisBC Inc.

Application for Stepped and Stand-By Rates for Transmission Voltage Customers

 

 

REGULATORY AGENDA AND TIMETABLE