ORDER NUMBER
G-337-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Application with Respect to Directives 28 and 33 of the BC Hydro Fiscal 2020 to Fiscal 2021 Revenue Requirements Application Decision
BEFORE:
A. K. Fung, QC, Panel Chair
on December 17, 2020
ORDER
WHEREAS:
A. On February 25, 2019, the British Columbia Hydro and Power Authority (BC Hydro) filed its Fiscal 2020 to Fiscal 2021 Revenue Requirements Application (F2020–F2021 RRA) with the British Columbia Utilities Commission (BCUC) pursuant to sections 44.2, 58 to 61 and 99 of the Utilities Commission Act (UCA);
B. On October 2, 2020, the BCUC issued Order G-246-20 and the accompanying decision in the matter of the F2020–F2021 RRA (RRA Decision). In the RRA Decision, the BCUC issued, among other things:
1. Directive 28 which states, “[t]he Panel directs BC Hydro to remove from its revenue requirement all forecast operating costs related to EV charging infrastructure in the Test Period, including those identified in the department of the Vice President, Customer Service Department and the Distribution Planning Department, and also the cost of energy to serve BC Hydro-owned EV charging stations in the Test Period. BC Hydro is further directed to remove from the appropriate cost of energy deferral account the cost of energy incurred prior to the Test Period to serve BC Hydro-owned EV charging stations. BC Hydro is also directed to provide in its compliance filing a report of all the adjustments directed in this section and any supporting calculations”; and
2. Directive 33, which states, “[t]herefore, the Panel directs BC Hydro to provide as part of its compliance filing, a proposal for a mechanism to capture the actual project write-off costs in the Test Period for recovery over the subsequent test period”;
C. On December 9, 2020, BC Hydro filed an application regarding Directives 28 and 33 of the RRA Decision (Application), requesting the following:
1. A variance to Directive 28 because the directive to remove costs in regulatory accounts associated with years prior to the F2020 to F2021 test period contradicts section 4(1) of Direction No. 8 to the BCUC; and
2. Approval for the establishment of the new Project Write-off Costs Regulatory Account to capture actual project write-off costs where BC Hydro believes future recovery from ratepayers is appropriate. BC Hydro submits that it will seek approval of the proposed recovery mechanism for this account in its F2022 Revenue Requirements Application;
D. Part V of the BCUC’s Rules of Practice and Procedure, which are attached to Order G-15-19, sets out the Rules for the reconsideration process (Reconsideration Rules);
E. By letter dated December 10, 2020, the Panel invited registered interveners and interested parties in the F2020–F2021 RRA proceeding to provide written submissions on the matters in the Application and provided BC Hydro the opportunity to reply to the submissions received;
F. On December 15, 2020, the B.C. Sustainable Energy Association provided its submission, indicating its support for BC Hydro’s requests in the Application. On December 16, 2020, BC Hydro filed its reply submission, indicating that it had no further comments. No other submissions were received by the BCUC; and
G. The BCUC has reviewed the Application and the submissions filed in the proceeding in accordance with the Reconsideration Rules and determines that approval of the Application is warranted.
NOW THEREFORE pursuant to Direction No. 8 to the BCUC and sections 58 to 61 and 99 of the UCA, the BCUC approves the following:
1. Variance of Directive 28 of the RRA Decision by rescinding the directive for BC Hydro to remove from the appropriate cost of energy deferral account the cost of energy incurred prior to the F2020 to F2021 test period to serve BC Hydro-owned electric vehicle charging stations.
2. In compliance with Directive 33 of the RRA Decision, the establishment of the new Project Write-off Costs Regulatory Account to capture actual project write-off costs where BC Hydro believes future recovery from ratepayers is appropriate.
DATED at the City of Vancouver, in the Province of British Columbia, this 17th day of December 2020.
BY ORDER
Original signed by:
A. K. Fung, QC
Commissioner