Orders

Via Email

rhanson@parklane.com                                                                               June 12, 2014

Mr. Ross Hanson, CA, MBA

Chief Financial Officer

River District Energy Limited Partnership

20^th Floor, Four Bentall Centre

1055 Dunsmuir Street

Vancouver, BC  V7X 1L5

Dear Mr. Hanson:

Re:  Generic Cost of Capital Proceeding (Stage 2) Decision and Order G-47-14

The Commission is in receipt of a letter filed by the River District Energy Limited Partnership (RDE) dated May 9, 2014, in response to Order G-47-14 which was issued concurrently with the Generic Cost of Capital (Stage 2) Decision dated March 25, 2014.

The Order established, among other things, an allowed default common equity component of 42.5 percent and an equity risk premium of 75 basis points for thermal energy system Stream B projects, effective January 1, 2013.  Directive 6 directed RDE to file a document setting out:  (a) whether it would implement the minimum default capital structure and equity risk premium for rate setting, and if so, the time line; or (b) whether it would let the existing contractual customer rates, if applicable, take their course, and if not, its proposed treatment of the difference between the current rates being charged to the customers and the allowed rates as determined by the Order.

The Commission finds RDE’s response to Directive 6 to be in compliance with Order G-47-14.

                                                                                                                                                Yours truly,

                                                                                                                                                Erica Hamilton

EC/dg