ORDER NUMBER
C-5-17
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 the Burnaby Mountain District Energy Utility
BEFORE:
D. A. Cote, Panel Chair/Commissioner
D. J. Enns, Commissioner
W. M. Everett, QC, Commissioner
B. A. Magnan, Commissioner
on September 15, 2017
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
WHEREAS:
A. On February 28, 2017, Corix Multi-Utility Services Inc. (Corix) applied to the British Columbia Utilities Commission (Commission) to construct and operate the next stage of the development of its UniverCity Neighbourhood Utility Service (NUS) and to extend service to the Simon Fraser University (SFU) Campus. The expanded system will be named the Burnaby Mountain District Energy Utility (DEU). In its application, Corix requested approval of:
i. A Certificate of Public Convenience and Necessity (CPCN) pursuant to section 45 of the Utilities Commission Act (UCA) authorizing the construction and operation by Corix of the biomass central energy plant and the associated facilities (Project Facilities); and
ii. Approval pursuant to sections 60 and 61 of the UCA of the Amended and Restated Thermal Energy Services Agreement , dated as of January 27, 2017, between Corix and SFU including the cost of service, cost allocation and rate design principles set out in Schedule 1 (Cost of Service Parameters) and Schedule 2 (Cost Allocation and Rate Design Principles) (Application);
B. On November 26, 2010, Corix filed an application for a CPCN under sections 45 and 46 of the UCA to construct and operate an alternative energy-based district energy system for the UniverCity developments on Burnaby Mountain;
C. On May 6, 2011, by Order C-7-11, the Commission granted a CPCN to Corix to construct and operate the initial phase of the NUS district energy utility at UniverCity using temporary natural gas central energy plants;
D. On October 7, 2015, Corix filed an application for a CPCN for additional capital and amended rates for UniverCity NUS on Burnaby Mountain requesting approval for expenditures to replace and expand the capacity of the existing temporary natural gas facilities with a larger capacity boiler. According to Corix, when combined with expenditures on the NUS, the replacement would trigger the requirement to file a CPCN under the Thermal Energy Systems Regulatory Framework Guidelines (TES Guidelines). As part of that application, Corix also requested approval of amended levelized rates;
E. On December 30, 2015, the Commission issued Order G-215-15 and accompanying reasons for decision regarding Corix’s Application for a CPCN for Additional Capital and Amended Rates for UniverCity NUS on Burnaby Mountain;
F. On January 20, 2016, Corix filed a response to Order G-215-15 and informed the Commission that it had elected not to proceed with the project as proposed in its October 7, 2015 CPCN application and instead elected to retain the existing temporary energy centre (TEC) in service and supplement the capacity with an additional TEC operating separately;
G. On April 11, 2016, the Commission issued Order G-48-16A, approving the updated rate base and revenue requirements as outlined in Corix’s January 20, 2016 submission;
H. On March 20,2017, by Order G-40-17, the Commission established a written hearing process and Regulatory Timetable to review Corix’s Application for a CPCN for the Burnaby Mountain DEU; and
I. The Commission has considered the evidence and submissions and finds the Burnaby Mountain DEU project is in the public interest.
NOW THEREFORE, the British Columbia Utilities Commission orders as follows:
1. Pursuant to sections 45 and 46 of the UCA, a CPCN is granted to Corix Multi-Utility Services Inc. authorizing the construction and operation of a biomass central energy plant and the associated facilities.
2. Pursuant to sections 60 and 61 of the UCA, the Commission orders that the amended and restated TESA as of January 27, 2017, including Schedule 1 and Schedule 2, is approved subject to the amendment of Schedule 1 as discussed in Section 4.1.5 of the decision issued concurrently with this order.
3. Corix is directed to file with the Commission an amended and updated TESA to reflect the revisions to Schedule 1 within 60 days from the date of this order.
4. Corix is directed to file with the Commission the following reports, the form of which is detailed in Section 7.0 of the decision issued concurrently with this order:
• Semi-annual progress reports within 45 days of the end of each reporting period with the first due December 31, 2017;
• As soon as practicable but no longer than 30 days upon the identification of a material change on an exception basis, a Material Change Report identifying deviations from forecasts that could affect costs and rates; and
• Within six months of the final in-service date, a Final Report.
5. Corix is directed to file an updated load demand and energy forecast along with its rates application that it expects to file in 2018.
6. Corix is directed to comply with all the directives of the Commission set out in the decision issued concurrently with this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 15th day of September 2017.
BY ORDER
Original Signed By:
D. A. Cote
Commissioner