Orders

ORDER NUMBER

G-49-16

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Creative Energy Vancouver Platforms Inc.

Application for Approval of 2016-2017 Revenue Requirements

and Rate Design for Northeast False Creek

BEFORE:

D. A. Cote, Commissioner/Panel Chair

N. E. MacMurchy, Commissioner

W. M. Everett, Commissioner

on April 12, 2016

ORDER

WHEREAS:

A.      On April 1, 2016, pursuant to sections 59 to 61, and 89 and 90 of the Utilities Commission Act (UCA), Creative Energy Vancouver Platforms Inc. (Creative Energy) filed with the British Columbia Utilities Commission (Commission) a 2016-2017 Revenue Requirements Application (RRA) for steam service and a rate design and RRA for Northeast False Creek (NEFC) hot water service (Application);

B.      Upon final review of the Application Creative Energy requests, among other things, the following:

             (i)            An increase in rates for steam service (Steam Rates) of 6.23 percent effective May 1, 2016, on a final basis and an increase of 6.23 percent effective January 1, 2017, on an interim basis. Creative Energy requests that the revenue deficiency for the period January 1, 2016 to December 31, 2017, be smoothed out over the remaining 20 months of the two-year test period starting May 1, 2016. The steam service tariff consists of a Steam Rate and a Fuel Adjustment Charge (FAC). The forecast cumulative annual bill impact of the requested Steam Rate increase when taking into consideration the FAC is a rate reduction of 3.82 percent in 2016 and a rate increase of 2.97 percent in 2017;

           (ii)            Final approval for initial NEFC hot water service rates (NEFC Hot Water Rates) with a monthly fixed charge of $0.33/m² and a variable charge of $43 per MWh effective August 1, 2016, and interim approval for and an increase of $0.01/m² to the monthly charge and $0.89 to the variable charge effective January 1, 2017;

C.      Creative Energy also seeks interim relief, pursuant to sections 89 and 90 of the UCA, to allow it to amend the Steam Rates effective May 1, 2016, and the NEFC Hot Water Rates effective August 1, 2016, as applied for in the Application, on an interim and refundable basis pending a final determination on the Application;

D.      Creative Energy proposes that the Application be heard through a written process that includes one round of information requests, and a second if necessary, followed by written arguments;

E.       For the reasons set out in the cover letters to Exhibits B-1 and B-1-2, Creative Energy requests that Exhibits B-1-1 and B-1-3 be held in confidence; and

F.       The Commission has reviewed the Application and determined a regulatory timetable should be established.

NOW THEREFORE the British Columbia Utilities Commission orders as follows:

1.       Creative Energy Vancouver Platforms Inc. (Creative Energy) request for interim rates effective May 1, 2016, for the steam division (Steam Rates) pursuant to sections 89 and 90 of the Utilities Commission Act (UCA) is approved as applied for.

2.       Any difference between the 2016 interim and permanent rates determined by the British Commission Utilities Commission (Commission) following the final review of the Application are subject to refund/recovery, with interest at the average prime rate of Creative Energy’s principal bank for its most recent year, in the manner as set out by a Commission order that establishes permanent rates.

3.       Creative Energy must file within ten days of the date of this order amended interim rate schedules in accordance with the terms of this order.

4.       Creative Energy’s request for interim rates for the Northeast False Creek (NEFC) hot water division, effective August 1, 2016, will be addressed by the Commission in due course.

5.       The Regulatory Timetable for the initial review of the Application is established as set out in Appendix A to this order.

6.       Interveners who wish to participate in the regulatory proceeding are to register with the Commission by completing a Request to Intervene Form, available on the Commission’s website at http://www.bcuc.com/Registration-Intervener-1.aspx, by the date established in the Regulatory Timetable attached as Appendix A to this order and in accordance with the Commission’s Rules of Practice and Procedure

7.       In accordance with the Regulatory Timetable set out in Appendix A, registered interveners are requested to provide submissions on further process addressing the regulatory timetable for comment set out in Appendix B to this order. The Commission will make a determination on further process upon consideration of these submissions.

8.       Creative Energy is to provide a copy of this order, electronically where possible, to all parties who participated in the Creative Energy 2015-17 Revenue Requirements Application, the NEFC Certificate of Public Convenience and Necessity, and the NEFC Neighbourhood Energy Agreement Amendments proceedings.

9.       Creative Energy must publish in display-ad format, as soon as possible but no later than Monday, April 18, 2016, the Notice of Application attached as Appendix C to this order, in such appropriate news publications as may properly provide adequate notice to the public in its service area.

10.   The Application and supporting material will be made available for inspection at the head office of Creative Energy located at Suite 1, 720 Beatty Street, Vancouver, BC, V6B 2M1, and at the Commission’s offices at 6^th Floor, 900 Howe Street, Vancouver, BC, V6B 1S1. Creative Energy is also to make the Application available on its website at http://www.creativeenergycanada.com.

11.   Creative Energy is to provide its customers with a bill message notice of the interim rate increase with its next customer mailing.

12.   Creative Energy’s request to hold Exhibits B-1-1 and B-1-3 in confidence is approved; however Creative Energy must file the following non-confidential documents as prescribed below:

a.       Exhibit B-1-1: Table 1, lines 1-9; and Table 2, lines 1-12 and 26-37, by no later than April 15, 2016;

b.      Exhibit B-1-1, Appendix 7: A non-confidential version of the Compensation Benchmark Report, by no later than April 21, 2016; and

c.       Exhibit B-1-3, Appendix 14 and Appendix 15: the total volume per customer and total revenue per customer on a monthly basis used to develop the revenue requirements by no later than April 15, 2016.

13.   By no later than April 20, 2016, Creative Energy is to file with the Commission additional information on the capital requirements data filed in Appendix 11 of Exhibit B-1-2 that: (a) summarizes the data by capital project; (b) identifies by capital project if any previous Commission approval was granted for the project; (c) for any capital project not previously approved by the Commission provides a high level summary of the project, the total forecast cost of the project over its life and the expected date of completion; and (d) for any capital project previously approved by the Commission provides an explanation for any variance between approved and forecast.

DATED at the City of Vancouver, in the Province of British Columbia, this                12^th                 day of April, 2016.

BY ORDER

Original signed by:

D. Cote

Commissioner

Attachments

Creative Energy Vancouver Platforms Inc.

Application for Approval of 2016-2017 Revenue Requirements

and Rate Design for Northeast False Creek

REGULATORY TIMETABLE

Creative Energy Vancouver Platforms Inc.

Application for Approval of 2016-2017 Revenue Requirements

and Rate Design for Northeast False Creek

REGULATORY TIMETABLE

FOR COMMENT

*When making any submission on further process, please note the earliest IR No. 2 can be file by the Commission in Friday, June 24^th.

Public Notice of Creative Energy Vancouver Platforms Inc.

Application for Approval of 2016-2017 Revenue Requirements

and Rate Design for Northeast False Creek

On April 1, 2016, Creative Energy Vancouver Platforms Inc. (Creative Energy) filed with the British Columbia Utilities Commission (Commission), pursuant to sections 59 to 61 and 89 and 90 of the Utilities Commission Act, a 2016-2017 Revenue Requirements Application (RRA) for steam service and a rate design and RRA for Northeast False Creek (NEFC) hot water service (Application);

Upon final review of the Application Creative Energy requests, among other things, the following:

        I.            An increase in rates for steam service of 6.23 percent effective May 1, 2016, on a final basis and an increase of 6.23 percent effective January 1, 2017, on an interim basis. Creative Energy requests that the revenue deficiency for the period January 1, 2016 to December 31, 2017, be smoothed out over the remaining 20 months of the two-year test period starting May 1, 2016. The steam service tariff consists of a Steam Rate and a Fuel Adjustment Charge (FAC). The forecast cumulative annual bill impact of the requested Steam Rate increase when taking into consideration the FAC is a rate reduction of 3.82 percent in 2016 and a rate increase of 2.97 percent in 2017; and

      II.            Final approval for initial NEFC hot water service rates with a monthly fixed charge of $0.33/m² and a variable charge of $43 per MWh effective August 1, 2016, and interim approval for and an increase of $0.01/m² to the monthly charge and $0.89 to the variable charge effective January 1, 2017.

How to get involved

Persons who are directly or sufficiently affected by the Commission’s decision, or who have relevant information or expertise, and that wish to actively participate in the proceeding can request intervener status by submitting a completed Request to Intervene Form to the Commission by April 27, 2016. Forms are available on the “Participate in a Proceeding” page at www.bcuc.com. Interveners will receive notification of all non-confidential correspondence and filed documentation, and should provide an email address if available.

Persons not expecting to participate, but who have an interest in the proceeding, should register as interested parties through the Commission’s website. Interested parties receive electronic notice of submissions and the decision when it is released.

Letters of comment may also be submitted using the Letter of Comment Form found online at www.bcuc.com. By participating and/or providing comment on the application, you agree to your comments being placed on the public record and posted on the Commission’s website. All submissions and/or correspondence received, including letters of comment are placed on the public record, posted on the Commission’s website, and provided to the Panel and all participants in the proceeding.

For more information about becoming involved in a Commission proceeding please see the Rules of Practice and Procedure available at www.bcuc.com. Alternatively, persons can request a copy of the Rules of Practice and Procedure in writing. All forms are available on the Commission’s website or can be requested in writing.

View the application

The application and all supporting documentation are available on the Commission’s website on the “Current Applications” page. If you would like to review the material in hard copy, it is available to be viewed at the locations below:

For more information please contact Laurel Ross, Acting Commission Secretary, using the contact information above.