ORDER NUMBER
G-9-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Creative Energy Vancouver Platforms Inc.
Application
for Interim Heating Rates
for the Thermal Energy System at the Vancouver House Development
BEFORE:
T. A. Loski, Panel Chair
E. B. Lockhart, Commissioner
on January 16, 2020
ORDER
WHEREAS:
A. On October 2, 2019, Creative Energy Vancouver Platforms Inc. (Creative Energy) filed an application with the British Utilities Commission (BCUC) for the approval of interim rates, terms and conditions of service, and a Revenue Deficiency Deferral Account (RDDA) effective November 1, 2019, for its provision of thermal energy service for heating at the Vancouver House Development in the South Downtown area of Vancouver (Application);
B. By Order G-260-19, dated October 28, 2019, the BCUC approved Creative Energy’s interim rates, terms and conditions of service, and an RDDA on an interim and refundable basis, effective November 1, 2019;
C. By Order G-264-19, dated October 31, 2019, the BCUC established a regulatory timetable for the review of the Application, which included, among other things, intervener registration, and one round of information requests (IRs);
D. On December 20, 2019, Creative Energy submitted responses to BCUC IR No. 1, and sought approval to summarize its final detailed accounting and verification of the costs of Phase 1 and Phase 2 of the Heating thermal energy system (TES) when the system is complete; and
E. The BCUC has considered the Application, evidence, and submissions from all parties filed in the proceeding, and finds that an adjournment of the proceeding is warranted.
NOW THEREFORE for the Reasons for Decision attached as Appendix A to this Order, the BCUC adjourns this proceeding until July 31, 2020 to allow Creative Energy to provide a final detailed accounting and verification of
the costs of Phase 1 and Phase 2 of the Heating TES for the BCUC’s review and approval of final rates for the Heating TES, and at which time Creative Energy is directed to file an evidentiary update containing an application for multi-year permanent rates.
DATED at the City of Vancouver, in the Province of British Columbia, this 16th day of January 2020.
BY ORDER
Original signed by:
T. A. Loski
Commissioner
Attachment
Creative Energy Vancouver Platforms Inc.
Application for Interim Heating Rates for the Heating Thermal Energy System
at the Vancouver House Development
REASONS FOR DECISION
1.0 Introduction
1.1 Application and regulatory process
On October 2, 2019, Creative Energy Vancouver Platforms Inc. (Creative Energy) filed an application with the British Utilities Commission (BCUC) for the approval of interim rates, terms and conditions of service, and a Revenue Deficiency Deferral Account (RDDA) effective November 1, 2019, for its provision of thermal energy service for heating at the Vancouver House Development in the South Downtown area of Vancouver (Application). Creative Energy states that an application for final rates is pending full occupancy of Vancouver House upon completion of Buildings 3 and 4 and a Commission-directed report into the final costs of the Heating TES to follow at that time.[1]
On October 28, 2019, by Order G-260-19, the BCUC approved Creative Energy’s interim rates, terms and conditions of service, and an RDDA on an interim and refundable basis, effective November 1, 2019, and on October 31, 2019, by Order G-264-19, the BCUC established a regulatory timetable for the review of the Application, which included a deadline to provide notice of the Application, intervener registration, and one round of information requests. Commercial Energy Consumers Association of British Columbia registered as an intervener and submitted information requests. No letters of comment were received and nor did anyone register as an interested party.
1.2 Final detailed accounting and verification of Heating TES Costs
By letter dated December 20, 2019, Creative Energy clarified that it seeks to summarize at one time for the BCUC’s review and approval of final rates for the Heating TES a final detailed accounting and verification of the costs of Phase 1 and Phase 2 of the Heating TES when the system is complete.[2]
Creative Energy states that approval of final rates for the Heating TES remains contingent on all of the following:[3]
• Permanent approval of the Variable Charge and levelized Capacity Charge components of the rate design;
• Completion of the Heating TES at Buildings 3 and 4 in 2020, when final costs of the system will be known and properly accounted for the purpose of their inclusion in and recovery through rates over a multi-year period;
• Allowance for the review of final costs of the Heating TES in 2020;
• A Commission decision into Creative Energy’s request for approval to apply a modified 2-factor Massachusetts formula as included in its 2020 Revenue Requirements Application for the Core and North East False Creek systems (noting that applicable allocations across all Creative Energy projects must use the same formula); and
• Further application by Creative Energy for multi-year permanent rates for the period 2020-2023 when the matters above are resolved and complete, and prior to any applicable impact on rates from a relocation of the temporary boiler plant.
2.0 Panel Determination
The Panel is of the view that the issue regarding the final detailed accounting and verification of Heating TES costs amongst others, should be examined before undertaking a full review of the Creative Energy Application. Additionally, the Panel finds that there is merit in reviewing the final costs of the Heating TES prior to making any determinations on permanent approval of a rate design. Accordingly, the review of the Creative Energy Application is adjourned until July 31, 2020, at which time Creative Energy is directed to file an evidentiary update containing an application for multi-year permanent rates.