ORDER NUMBER
G-95-18
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Repricing of Tranche 2 Energy Price of Rate Schedule 3808
Transmission Service – FortisBC Inc. Application
BEFORE:
B. A. Magnan, Commissioner
on May 15, 2018
ORDER
WHEREAS:
A. On March 29, 2018, pursuant to sections 58 to 61 of the Utilities Commission Act (UCA), the British Columbia Hydro and Power Authority (BC Hydro) filed with the British Columbia Utilities Commission (BCUC) an application to reprice the Tranche 2 Energy Price (Tranche 2) of Rate Schedule 3808 (RS 3808);
B. By Order G-60-14 dated May 6, 2014, the BCUC approved a 20-year Power Purchase Agreement (PPA) between BC Hydro and FortisBC Inc. (FBC);
C. Section 7.2(b) of the PPA states “If a new proxy for the LRMC is accepted by the Commission for rate-making purposes, the Tranche 2 Energy Price shall be amended accordingly and, if required, BC Hydro shall apply to the Commission for approval thereof”;
D. By Directive 1 of Order G-5-17 dated January 20, 2017, the BCUC approved the Residential Inclining Block (RIB) Pricing Principles for F2017-F2019 in BC Hydro’s 2015 Rate Design, updating its long-run marginal cost used for rate-making purposes (2015 RDA LRMC); and
E. The BCUC has reviewed the Application and considers that the approval requested is warranted.
NOW THEREFORE pursuant to sections 58 to 61 of the UCA, the BCUC orders the following:
1. The Application to reprice the Tranche 2 Energy Price of RS 3808 from ₵12.97/kWh to ₵9.509/kWh using the 2015 RDA LRMC is approved as of the effective date of this order.
2. BC Hydro is directed to file with the BCUC amended tariff sheets within 15 business days of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 17th day of May 2018.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner