Via Email
RBerezan@berezan.ca January 30, 2014
Mr. Ralph Berezan
Berezan Management Ltd.
210 - 8399 - 200th Street
Langley, BC V2Y 3C2
Dear Mr. Berezan:
Re: Hemlock Utility Services Ltd.
British Columbia Utilities Commission Request to
Confirm Summary of Facts Relating to
Compliance with Orders G-159-13 and G-173-13
The British Columbia Utilities Commission writes to acknowledge your December 23, 2013 Compliance Filing (Compliance Filing) in accordance with G-224-13. The required documentation was provided by Hemlock Utility Services Ltd. (Hemlock) in the Compliance Filing and it appears Hemlock fulfilled its obligations under certain Directives in G-159-13 and G-173-13. Below, the Commission provides a summary of facts which will form the Commission’s record of Hemlock’s fulfilment of those Directives.
As Hemlock is under relatively new ownership, the Commission reminds Hemlock that as a public utility operating under the Utilities Commission Act, Hemlock is responsible for timely compliance with Commission Orders. Should circumstances beyond the control of Hemlock arise which make Hemlock unable to comply with a Commission Order, Hemlock should apply to the Commission for relief before the timeline for compliance has passed and provide reasons why Hemlock is unable to comply within the timeline given.
The following summary forms the Commission’s understanding of events surrounding Hemlock’s fulfilment of directives made in Orders G-159-13 and G-173-13:
1. On October 1, 2013, the Commission issued Order G-159-13 with respect to Hemlock’s Revenue Requirements Application, which directed Hemlock to, amongst other things, provide: a) Hemlock customers with notice of new permanent rates effective September 1, 2012 by way of written notice to be included in the next electrical invoice; and b) to refund all Hemlock customers, the difference between the permanent rates and the previously approved interim rates, with interest at the short term debt rate of Hemlock’s principal bank (Directives 3 and 4).
2. On October 24, 2013, the Commission issued Order G-173-13, clarifying directives made in Order G‑159‑13, and directing Hemlock to: a) provide a draft of the notice of permanent rates established by Order G-159-13 to Hemlock’s customers for the Commission’s approval within 5 business days of the date of the Order; b) include a copy of the Commission approved Notice and disclose the amount of the customer’s total bill credit in the October 2013 mailing of customer invoices; and c) where a customer credit was to be provided it must be applied to electricity charges commencing on October 1, 2013 (Directives 1 through 3).
3. On October 31, 2013, legal counsel acting on behalf of Hemlock notified the Commission by email of Hemlock’s intent to use the form of notice of permanent rates as prepared by the Commission and included as Appendix A of Order G-173-13 (Log No. 45009).
4. On November 5, 2013, the Commission acknowledged receipt of Hemlock’s intended notice as being in compliance with Directive 1 of Order G-173-13 (Log No. 45009).
5. On November 15, 2013, after receiving complaints from Hemlock customers alleging Hemlock was not in compliance with certain directives of Orders G-159-13 and G-173-13, the Commission issued Letter L‑66‑13 to Hemlock. The letter requested: “confirmation that Hemlock has complied with each directive of Order G-173-13. In the event that Hemlock is not compliant with each directive of Order G‑173‑13 it must provide a full explanation including a clear plan to remedy non-compliance. The response must provide an explanation for each directive of the Order on a stand-alone basis” (Log No. 45009).
6. Hemlock did not respond by November 19, 2013.
7. On November 21, 2013, the Commission issued letter L-68-13 indicating no response was received by the date required and requesting Hemlock respond to Commission letter L-66-13 by November 22, 2013 by 12 Noon (Log No. 45009).
8. On November 22, 2013, Mr. Ralph Berezan responded by email indicating Hemlock would comply with Orders G-159-13 and G-173-13 (Log No. 45009).
9. On November 22, 2013, by way of email correspondence, Hemlock staff provided a draft letter to be sent to Hemlock customers notifying them of new permanent rates and indicating if they were entitled to a credit, it would appear on their December 1, 2013 electrical invoice. The draft letter was dated November 21, 2013 and Hemlock staff indicated the letter would be sent at the end of the week (Log No. 45009).
10. On December 19, 2013, the Commission issued Order G-224-13, which directed Hemlock to provide information to confirm Hemlock was in compliance with Directives 3 and 4 or Order G-159-13 and Directives 2 and 3 of Order G-173-13. Order G-224-13 directed Hemlock to file the following information by December 30, 2013:
a. a statement as to whether Hemlock is or is not in full compliance with Directives 3 and 4 of Order G‐159‐13 and Directives 2 and 3 of Order G‐173‐13;
b. one copy of the actual Notice of permanent rates sent to Hemlock customers; and
c. a spreadsheet or other document showing:
i. a list of all customers that were customers on September 1, 2012;
ii. the amount of each customers’ refund;
iii. if the refund has been made, the billing period the refund was first applied or mailed; and
iv. the remaining balance, if any, of the refund and when it will be applied or mailed.
11. On December 19, 2013, in response to Commission Order G-224-13, Hemlock staff requested clarification of Order G-224-13 (Log No. 45009).
12. The Commission responded by letter dated December 23, 2013, indicating the Directives in G-224-13 are self-explanatory and require formal response by Hemlock by December 30, 2013 (Log No. 45009).
13. On December 23, 2013, Hemlock submitted the Compliance Filing which includes the information in accordance with Order G-224-13.
14. The information provided by Hemlock in the Compliance Filing includes the following:
a. a statement that Hemlock is in compliance with Directives 3 and 4 of Order G-159-13 and 2 and 3 of Order G-173-13;
b. a copy of the notice sent to Hemlock customers. The letter notifying customers of new permanent rates effective September 1, 2012, was dated November 21, 2013;
c. a copy of a customer invoice dated November 21 and November 30, 2013, showing the customer’s bill credit applied to electrical charges on November 21 and November 30;
d. a spreadsheet showing a list of customers as at September 1, 2012 entitled to a bill credit and the total amount of the customer bill credit(s);
e. the date the customer bill credits were first applied – November 21, 2013 – and cheque numbers, for those no longer customers but who were customers on September 1, 2012, whom Hemlock mailed a cheque to; and
f. the date the remainder of the bill credit would be applied – in future invoices.
Should Hemlock disagree with any items in the summary above, please notify the Commission by February 6, 2014. If no response is received by the date noted, the Commission will treat the summary above as fact.
Yours truly,
Erica Hamilton
AG/yl
cc: Ms. Dianne LeChasseur
Administration Manager Resort and Utilities
20955 Hemlock Valley Road
Hemlock Valley, BC V0M 1A1
DLeChasseur@hemlockresort.ca