ORDER NUMBER
E-20-17
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Application Requesting the Commission Set a Rate for Boralex LP’s Electricity Service to BC Hydro
BEFORE:
M. Kresivo, QC, Commissioner
R. D. Revel, Commissioner
on November 08, 2017
ORDER
WHEREAS:
A. On August 29, 2017, British Columbia Hydro and Power Authority (BC Hydro) filed with the British Columbia Utilities Commission (Commission) the Application Requesting the Commission Set a Rate for Boralex LP’s (Boralex) Electricity Service to BC Hydro (Application);
B. In the Application, BC Hydro requested the Commission:
i. Approve an amendment to Commission Order G-26-10 and make Boralex subject to the rate regulation provisions of the Utilities Commission Act (UCA) with respect to its service to BC Hydro (the Order Amendment Application );
ii. Determine and by order set a rate for Boralex’s service to BC Hydro pursuant to sections 58 to 60 of the UCA (Rate Setting Request); and
iii. Accept the Energy Purchase Agreement (EPA) extension agreement, effective July 1, 2017, between BC Hydro and Boralex (the Parties) in relation to the hydroelectricity generating facility at Ocean Falls (Amendment Agreement #2) as being in the public interest pursuant to section 71 of the UCA (Extension Request). BC Hydro states the extension agreement provides that the term continue “until the earlier of (i) June 30, 2018, and (ii) the effective date as agreed to by the Parties or as may be ordered by the Commission for the new terms and conditions….”;
C. By Order G‐61‐12 dated May 17, 2012, the Commission established “Rules for Energy Supply Contracts for Electricity” (Rules) to facilitate the Commission’s review of energy supply contracts for electricity. As stated in the Rules, the Commission will rely on all information it considers necessary to determine whether an energy supply contract is in the public interest;
D. On February 27, 2017, pursuant to Section 71 of the UCA, BC Hydro filed with the Commission a quarterly energy supply contract filing for the period ending December 31, 2016, which includes, among other things, an amending agreement between BC Hydro and Boralex dated December 22, 2016 (Amendment Agreement #1);
E. By Order E-12-17 dated June 14, 2017, the Commission accepted, among other things, Amendment Agreement #1 to extend the EPA term by six months to June 30, 2017;
F. On October 16, 2017, BC Hydro filed a response to Commission staff questions regarding the Extension Request, and requested that the un-redacted Application and the un-redacted response be held confidential as they contain commercially sensitive information, the release of which could result in prejudice to BC Hydro’s negotiating position to the detriment of ratepayers; and
G. The Commission reviewed the Extension Request contained in the Application in accordance with the criteria under section 71(2.21) of the UCA and requirements under the Rules, and finds Amendment Agreement #2 is in the public interest and should be accepted for filing.
NOW THEREFORE pursuant to section 71 of the UCA and the Rules, the Commission orders as follows:
1. Amendment Agreement #2 effective July 1, 2017 between BC Hydro and Boralex is in the public interest and is accepted for filing under section 71 of the UCA.
2. The Commission will hold confidential the un-redacted Application and the un-redacted response to staff questions on the basis that disclosure of commercially sensitive information may result in prejudice to BC Hydro’s negotiating position to the detriment of ratepayers.
3. The Order Amendment Application and the Rate Setting Request contained in the Application will be reviewed in a separate process.
DATED at the City of Vancouver, in the Province of British Columbia, this 8th day of November 2017.
BY ORDER
Original signed by:
R. D. Revel
Commissioner