ORDER NUMBER
G-225-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Creative Energy Vancouver Platforms Inc.
Vancouver House Development District Cooling System Rates Application
BEFORE:
T. A. Loski, Panel Chair
E. B. Lockhart, Commissioner
on August 31, 2020
ORDER
WHEREAS:
A. On August 11, 2020, Creative Energy Vancouver Platforms Inc. (Creative Energy) applied to the British Columbia Utilities Commission (BCUC) seeking, among other things, interim and permanent approval for rates, terms and conditions for service as set out in the Customer Service Agreement (CSA), a Revenue Deficiency Deferral Account (RDDA) and a Regulatory Cost Variance Deferral Account (RCVDA), for its provision of cooling service at the Vancouver House Development (Development) in the South Downtown area of Vancouver (Application);
B. In the Application, Creative Energy requests interim approval be effective the date that it completes the transaction to acquire the District Cooling System (DCS) from the owner of the Development (Transaction) and begins providing cooling service as per the terms of the Construction and Purchase Agreement (Date of Completion), and prior to the end of September, 2020. The Transaction is expected to complete by August 31, 2020 at the earliest;
C. Creative Energy’s proposed rate design consists of a levelized capacity charge per kilowatt (kW) per month (Capacity Charge) and a variable charge per megawatt hour (MWh) (Variable Charge) for the five-year period commencing September 2020 through December 2025;
D. Creative Energy proposes to record forecast annual revenue deficiencies or surpluses resulting from the difference between annual revenue at the approved rates and the annual cost of service in the RDDA and requests the RCVDA to record the difference between the regulatory cost forecast provided in the Application and the final actual costs;
E. Creative Energy also proposes that the Application be heard at the same time as Creative Energy’s Application for Interim Heating Rates for the Thermal Energy System at the Vancouver House Development, currently before the BCUC; and
F. The BCUC has commenced its review of the Application and considers that the proposed rates should be approved on an interim basis.
NOW THEREFORE pursuant to sections 59-61 and 90 of the Utilities Commission Act, the BCUC orders as follows:
1. Creative Energy is approved to charge the Capacity Charge as set out in Appendix B-1 to the Application, on an interim and refundable basis, effective the Date of Completion and subject to further order of the BCUC. The BCUC will determine the manner by which any variance between the approved interim rates and permanent rates, including interest if any, will be refunded to or collected from ratepayers at the time the BCUC renders its final decision on the Application.
2. Creative Energy is approved to charge the Variable Charge set out in Appendix B-1 to the Application, on an interim and refundable basis, effective the Date of Completion and subject to further order of the BCUC. The BCUC will determine the manner by which any variance between the approved interim rates and permanent rates, including interest if any, will be refunded to or collected from ratepayers at the time the BCUC renders its final decision on the Application.
3. A CSA, identical to the CSA that was approved by Order G-260-19, without the addition of the standard Assignment provision, is approved effective the Date of Completion.
4. Creative Energy is approved to establish the proposed RDDA.
5. Creative Energy is directed to notify the BCUC upon completion of the Transaction. If the Transaction is not completed by September 30, 2020, Creative Energy is directed to provide the BCUC an update as to the expected Date of Completion.
6. Creative Energy is to file with the BCUC the rate schedules reflecting the interim rate approvals in this Order for endorsement by the BCUC within 15 days of the Date of Completion.
7. The regulatory timetable for review of the Application will be established in due course.
DATED at the City of Vancouver, in the Province of British Columbia, this 31st day of August 2020.
BY ORDER
Original signed by:
T. A. Loski
Commissioner