Orders

ORDER NUMBER

G-30-16

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Corix Multi-Utility Services Inc.

Application for a Certificate of Public Convenience and Necessity for Additional Capital and

Amended Rates for UniverCity Neighbourhood Utility Service on Burnaby Mountain

BEFORE:

R. D. Revel, Commissioner

on March 8, 2016

ORDER

WHEREAS:

A.      On December 30, 2015, the British Columbia Utilities Commission (Commission) issued Order G-215-15 and accompanying Reasons for Decision regarding Corix Multi-Utility Services Inc.’s (Corix) Application for a Certificate of Public Convenience and Necessity (CPCN) for Additional Capital and Amended Rates for UniverCity Neighbourhood Utility Service (NUS) on Burnaby Mountain. As part of Corix’s application, it proposed to replace and expand the capacity of the existing temporary natural gas facilities with a larger capacity natural gas boiler plant (Project);

B.      Pursuant to Order G-215-15, the Commission dismissed Corix’s request for a CPCN as unnecessary based on the criteria established in the Thermal Energy Service (TES) Guidelines. The Commission approved Corix’s requested changes to the UniverCity NUS revenue requirements, rate base, rate design and rates; however, the Commission directed Corix to remove the existing temporary energy centre (TEC) from rate base at the time it is replaced with the new TEC and to classify the removed TEC as a non-regulated asset;

C.      On January 20, 2016, Corix filed a response to Order G-215-15 addressing the Commission directives. As part of its response, Corix informed the Commission that it has elected not to proceed with the Project as proposed in the CPCN application and has instead elected to retain the existing TEC in service and supplement this capacity with an additional and separate TEC. The impact of this change in capital plan is an increase to the UniverCity NUS levelized rate of 1.6 percent compared to the CPCN application (Application);

D.      On February 11, 2016, the Commission issued a letter to the interveners who were registered in the CPCN proceeding inviting them to comment on whether they would like an opportunity to ask questions on Corix’s filing related to the changes in rate base, revenue requirements and rates;

E.       The BC Sustainable Energy Association and Sierra Club of BC (BCSEA-SCBC) and the British Columbia Old Age Pensioners’ Organization et al. (BCOAPO) responded on February 18, 2016. BCSEA-SCBC stated that it would have questions on why Corix chose to change the capital plan as it did, but BCSEA-SCBC does not have questions on the updated rate base, revenue requirements and rates. BCOAPO expressed concerns over the increased costs resulting from Corix’s change in capital plan and stated that it would like the opportunity to ask questions on the proposed updated rate base, revenue requirements and rates;

F.       On March 3, 2016, Corix filed a reply to the interveners’ comments which provided a more detailed explanation regarding Corix’s change in capital plan. Corix also stated that it would not be opposed to a further round of information requests should interveners or the Commission believe this would be of value; and

G.     The Commission has reviewed the Application and the comments of all parties and considers that a written hearing process is warranted.

NOW THEREFORE the British Columbia Utilities Commission orders as follows:

1.       A written hearing process is established for the review of the Application in accordance with the Regulatory Timetable attached as Appendix A to this order. The review process will occur as a continuation of the Corix UniverCity Neighbourhood Utility Service CPCN proceeding.

2.       Corix must file with the Commission by March 16, 2016 the following non-confidential financial information in the same format as was provided in Corix’s CPCN application but updated for the change in capital plan: Tables 8 through 18 of Corix’s Application for a CPCN for Additional Capital and Amended Rates for UniverCity NUS on Burnaby Mountain.

DATED at the City of Vancouver, in the Province of British Columbia, this         8^th           day of March 2016.

BY ORDER

Original signed by:

R. D. Revel

Commissioner

Attachment

Corix Multi-Utility Services Inc.

Application for a Certificate of Public Convenience and Necessity for Additional Capital and

Amended Rates for UniverCity Neighbourhood Utility Service on Burnaby Mountain

REGULATORY TIMETABLE