Orders

ORDER NUMBER

G-12-18

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Creative Energy Vancouver Platforms Inc.

2018–2022 Revenue Requirements Application

BEFORE:

D. A. Cote, Commissioner/Panel Chair

A. K. Fung, QC, Commissioner

on January 17, 2018

ORDER

WHEREAS:

A.      On December 1, 2017, Creative Energy Vancouver Platforms Inc. (Creative Energy) filed its 2018-2022 Revenue Requirements Application with the British Columbia Utilities Commission (Commission) seeking, among other things, approval of a multi-year index based ratemaking mechanism to be applied to setting steam rates (Steam Rates) for the years 2018-2022, including interim and final approval to increase Steam Rates by 2.15 percent, effective January 1, 2018 (Application);

B.      By Order G-200-17 dated December 22, 2017, the Commission approved, on an interim and refundable basis, a Steam Rates increase of 2.15 percent effective January 1, 2018; and

C.      The Commission has commenced review of the Application and finds the establishment of a written public proceeding and regulatory timetable is warranted.

NOW THEREFORE the Commission orders as follows:

1.       A regulatory timetable for the review of the Application is established, as set out in Appendix A to this order.

2.       Creative Energy is directed to provide notice of the Application and this order to all parties who participated in the Creative Energy 2016-2017 Revenue Requirements Application and 2017 Long-Term Resource Plan proceedings, and to post a copy of the Public Notice attached as Appendix B to this order, the Application and this order on the Creative Energy website, as soon as reasonably possible. Creative Energy is also directed to provide by mail, as soon as reasonably possible but by no later than Thursday, January 25, 2018, the Public Notice attached as Appendix B to this order to all affected customers.

3.       Interveners are to register with the Commission by completing a Request to Intervene form, available on the Commission’s website 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 Procedures attached to Order G-1-16.

4.       Creative Energy is directed to supplement the Application with the additional information outlined in Appendix C to this order by no later than Wednesday, February 28, 2018.

DATED at the City of Vancouver, in the Province of British Columbia, this              17^th             day of January 2018.

BY ORDER

Original signed by:

D. A. Cote

Commissioner/Panel Chair

Attachment

Creative Energy Vancouver Platforms Inc.

2018–2022 Revenue Requirements Application

On December 1, 2017, Creative Energy Vancouver Platforms Inc. (Creative Energy) filed its 2018-2022 Revenue Requirements Application with the British Columbia Utilities Commission (Commission) requesting approval of a multi-year index based ratemaking mechanism to be applied to setting Steam Rates for the years 2018-2022, including an increase to Steam Rates by 2.15 percent, effective January 1, 2018.

Creative Energy Vancouver Platforms Inc.

2018–2022 Revenue Requirements Application

1.       Appendix 1 – Financial Schedules – Please provide the Audited 2016 Actual results and the Preliminary 2017 Actual results (if audited results are not available).

2.       Appendix 2 – 2017 Revenue Requirements Summary - Please provide the Audited 2016 Actual results and the Preliminary 2017 Actual Results (if audited results are not available). Please provide this information as additional columns to the 2017 information provided in Appendix 2 for ease of comparison. Please also provide explanations for variances between 2016 Approved and 2016 Actual results, and for variances between 2017 Approved and 2017 Actual results for each revenue requirement line item.

3.       Appendix 4 – Cost Allocation Analysis – Please revise Table 11 “SG&A Expenses” in Appendix 4 of the Application to include Audited 2015 Actual amounts, Audited 2016 Actual amounts and Preliminary 2017 Actual amounts (if audited amounts are not available). Please also provide explanations for variances between 2016 Approved and 2016 Actual amounts, and 2017 Approved and 2017 Actual amounts for each line item in the table.

4.       Page 19, Table 2 of the Application shows an actual 2017 amount for the Long Term Resource Plan (LTRP) of $714,880. Please provide the following information regarding this expense:

a.       A detailed breakdown and description of the costs incurred by year.

b.      The number of consultants utilized, the number of hours incurred per consultant, and the rate charged by each consultant.

c.       The amount of time and associated cost spent on the LTRP in the preparation of the application and the amount of time and associated cost spent after the application was filed (i.e. costs and time related to the regulatory proceeding).

d.      Creative Energy’s plan with respect to addressing directive 1 contained within Order G-147-17 to file a complete and updated LTRP when filing a Revenue Requirements Application (RRA) for the 2020‑2021 test period.

5.       Section 6.1 of the Application – Previous Variances – Please provide Preliminary 2017 Actual Results (if audited results are not available) and provide explanations for variances between 2017 Approved and 2017 Actual results.

6.       Section 8.0 of the Application – Summary of Directives – For each instance where the “Solution” to the directive refers to how the directive will be/is addressed in the 2018 RRA (i.e. the current application), please provide a specific reference to where and how it has been addressed in the Application. Please also provide this information for the directives noted on pages 19, 40 and 57 of the 2015-2017 RRA Application Decision, and pages 46, 54 and 71 of the 2016-2017 RRA Application Decision in Section 8.0 of the Application.

7.       Please explain why the Operating & Maintenance Expense amounts provided in Schedule 15 of Appendix 1 and in the table on page 3 of Appendix 4, do not agree with the amounts provided in Appendix 6. Please provide revised schedules where necessary.