ORDER NUMBER
G-318-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Corix Multi-Utility Services Inc.
Burnaby Mountain District Energy Utility
2020-2023 Revenue Requirements and Rates Application
BEFORE:
K. A. Keilty, Panel Chair
C. Brewer, Commissioner
B. A. Magnan, Commissioner
on December 7, 2020
ORDER
WHEREAS:
A. On July 30, 2020, Corix Multi-Utility Services Inc. (Corix) filed an application seeking British Columbia Utilities Commission (BCUC) approval of its Burnaby Mountain District Energy Utility (BMDEU) revenue requirements and rates from 2020 through to 2023, effective September 1, 2020 (Application);
B. By Order G-220-20 dated August 19, 2020, the BCUC established a regulatory timetable for the review of the Application and approved certain rates as proposed by Corix on an interim and refundable basis, effective September 1, 2020, for UniverCity and Simon Fraser University (SFU) customers;
C. The existing rates for UniverCity are as follows:
i. Basic Charge of $0.5769 per square meter per month;
ii. Variable rate charge of $0.0588 per kilowatt-hour; and
iii. 2020 4-month Rate Rider of $0.2748 per square meter per month from September 1, 2020 to December 31, 2020;
D. In the Application, Corix proposes to replace the current Variable Charge with a new Variable Energy Charge that Corix submits will facilitate the recovery of total energy costs from UniverCity customers on a flow-through basis. The balance of the revenue requirements would be addressed through the Basic Charge;
E. The existing rates for SFU are as follows:
i. Capacity Charge of $16,367 per megawatt of nominated capacity per month;
ii. Consumption Charge of $0.0226 per kilowatt-hour; and
iii. Availability Charge of $33,000 per month;
F. As part of the Application, Corix requests that the following items be approved on an interim and refundable basis, effective January 1, 2021:
For UniverCity:
i. Basic Charge of $1.0482 per square meter per month;
ii. Variable energy charge of $0.0293 per kilowatt-hour; and
iii. Approval to flow-through energy costs for the UniverCity customer group by establishing an Energy Cost Reconciliation Account;
For SFU:
i. Capacity Charge of $16,506 per megawatt of nominated capacity per month;
ii. Consumption Charge of $0.0235 per kilowatt-hour; and
iii. Availability Charge of $33,000 per month;
G. On November 30, 2020, Corix filed partial responses to BCUC information request (IR) No. 1 regarding Corix’s proposal for interim rates effective January 1, 2021, as outlined in BCUC IR series 1.0 and 2.0 (Exhibit B-6);
H. The BCUC has reviewed Corix’s proposal for interim rates effective January 1, 2021, for UniverCity and SFU and determines that approval is warranted.
NOW THEREFORE, pursuant to sections 59 to 61 and 89 of the Utilities Commission Act, the BCUC orders as follows:
1. Corix’s proposed rates are approved on an interim and refundable basis, effective January 1, 2021, as follows:
a. For UniverCity:
i. Basic Charge of $1.0482 per square meter per month;
ii. Variable energy charge of $0.0293 per kilowatt-hour; and
iii. Approval to flow-through energy costs for the UniverCity customer group by establishing an Energy Cost Reconciliation Account;
b. For SFU:
i. Capacity Charge of $16,506 per megawatt of nominated capacity per month;
ii. Consumption Charge of $0.0235 per kilowatt-hour; and
iii. Availability Charge of $33,000 per month.
3. Corix is directed to recover or refund any difference in revenue, as a result of the difference between the interim rates and the final rates approved by the BCUC, from/to customers with any applicable interest calculated based on Corix’s weighted average cost of capital, retroactive to the effective date(s) of the interim rates.
4. Consistent with Order G-220-20, Corix is directed to propose a method to recover or refund the difference in revenue, as a result of the difference between the interim rates and the final rates approved by the BCUC from/to customers as part of the Evidentiary Update.
DATED at the City of Vancouver, in the Province of British Columbia, this 7th day of December 2020.
BY ORDER
Original Signed By:
K. A. Keilty
Commissioner