ORDER NUMBER
G-76-16
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Rate Schedule 1892 – Freshet Energy – Baselines Application
BEFORE:
D. M. Morton, Commissioner
D. J. Enns, Commissioner
W. M. Everett, Commissioner
H. G. Harowitz, Commissioner
R. I. Mason, Commissioner
on May 26, 2016
ORDER
WHEREAS:
A. On April 29, 2016, British Columbia Hydro and Power Authority (BC Hydro) filed with the British Columbia Utilities Commission (Commission) alternative Light Load Hours and High Load Hours (HLH) Baselines and Reference Demands for seven of the 45 customers that have elected to participate in year one of the Rate Schedule (RS) 1892 Freshet Rate, and requested the Commission approve the alternative baselines and Reference Demands (Application). The seven customers are:
• Catalyst Paper Corporation:
o Crofton Division
o Port Alberni Division
o Powell River Division
• Canadian Forest Products Ltd. – Chetwynd
• Nanaimo Forest Products
• Skookumchuck Pulp Inc.
• Tree Island Industries;
B. On September 24, 2015, BC Hydro filed with the Commission the first module of a rate design application (2015 RDA);
C. Among the various approvals sought in the 2015 RDA, BC Hydro sought approval for a new optional RS 1892 Freshet Rate, which provides participating customers market pricing for incremental consumption during the freshet period on a pilot basis ending December 31, 2017;
D. After a Streamlined Review Process, on February 9, 2016, by Order G-17-16, the Commission approved RS 1892 effective the date of the order;
E. RS 1892 requires BC Hydro to determine a HLH Baseline, a LLH Baseline, and a Reference Demand for each participating customer. BC Hydro will use these baselines and Reference Demand in accordance with RS 1892 to determine the amounts of energy and demand to be charged under RS 1823 Transmission Service Stepped Rate and RS 1892, respectively;
F. Special condition 4 of RS 1892 provides as follows:
If BC Hydro and the Customer agree that the LLH and HLH Baselines or Reference Demand calculated in accordance with the provisions above are not representative of the Customer’s expected RS 1823 Electricity usage during the Freshet Period of 2016 or 2017, and the parties agree to alternative LLH and HLH Baselines or Reference Demand, BC Hydro will file the agreed-to baselines or Reference Demand with the British Columbia Utilities Commission (BCUC). Subject to direction from the BCUC, BC Hydro will use such filed baselines or Reference Demand for the purposes of applying this Rate Schedule and Rate Schedule 1823;
G. The Application includes evidence explaining why the LLH and HLH Baselines and Reference Demand calculated in accordance with the provisions of RS 1892 are not representative of the Customer’s expected RS 1823 electricity usage during the freshet period of 2016 or 2017, how the alternative baselines and Reference Demands were calculated, and that the seven customers agreed to the alternative baselines and Reference Demands;
H. BC Hydro explains that there was one outstanding signed customer RS 1892 Baselines statement for Tree Island Industries and that BC Hydro would file this missing document by Tuesday, May 3, 2016. On May 3, 2016, BC Hydro filed the signed statement;
I. On May 11, 2016, BC Hydro filed revised information that supersedes the original information filed with the Application; and
J. The Commission considered the Application and the revised information and determines that approval is warranted.
NOW THEREFORE pursuant to sections 58 to 61 of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The Adjusted Light Load Hours and High Load Hours Baselines and Adjusted Reference Demands contained in confidential Appendix D of the revised May 11, 2016 filing, are approved effective May 1, 2016.
2. The Commission will hold Appendices C and D in confidence as they contain commercially sensitive information.
DATED at the City of Vancouver, in the Province of British Columbia, this 27th day of May 2016.
BY ORDER
Original signed by:
D. M. Morton
Commissioner