Orders

ORDER NUMBER

G-212-21

 

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

 

and

 

Kyuquot Power Ltd.

Investigation into the Safety and Reliability of the KPL System

 

BEFORE:

D. M. Morton, Panel Chair

C. Brewer, Commissioner

T. A. Loski, Commissioner

 

on July 9, 2021

 

ORDER

WHEREAS:

 

A.      On May 15, 2020, by Order G-115-20, the British Columbia Utilities Commission (BCUC) established a hearing to review the safety and reliability of the Kyuquot Power Ltd. (KPL) system, following a complaint by a representative of the Ka:’yu:'k't'h' / Che:k'tles7et'h' First Nations (KCFN);

B.      The KPL power distribution system (KPL System) is interconnected to the British Columbia Hydro and Power Authority (BC Hydro) electric system and supplies customers, including KCFN, the Village of Houpsitas and others on the outer coast of Kyuquot Sound, with electricity; 

C.      By Orders G-115-20, G-182-20, G-221-20, G-296-20, G-29-21, and G-39-21 the BCUC established, amended, and furthered a regulatory timetable to review the safety and reliability of the KPL System;

D.      On October 19, 2020, by Order G-261-20, the BCUC directed KPL to provide a vegetation management plan identifying urgent vegetation work on the KPL system (Vegetation Plan) and a maintenance plan identifying all outstanding maintenance work on the KPL system (Maintenance Plan). On January 27, 2021, by Order G-29-21, the BCUC directed KPL to file quarterly progress reports outlining the status of completion of the remaining items identified in the Vegetation and Maintenance Plans (Quarterly Report);

E.       In January 2020, KCFN installed a gang-operated load break Switch S3 (GOLB S3) on a KCFN-owned structure to respond to safety concerns;

F.       On March 1, 2021, KPL submitted its Final Argument, on March 8, 2021, KCFN submitted its Final Argument and on March 15, 2021, KPL submitted its Reply Argument;

G.      On March 8, 2021, the BCUC issued Order G-65-21, which, among other things, directed KPL, as soon as reasonably possible, but no later than March 12, 2021, to request the dispute regarding the locking arrangement and terms of a joint operating order GOLB S3 be referred to mediation, pursuant to Section 11 of the Right of Way Agreement;

H.      On March 12, 2021, KCFN submitted an application with the BCUC for reconsideration and variance of Directives 3 and 4 of Order G-65-21 (Reconsideration Application);

I.         On March 17, 2021, by Order G-79-21, the BCUC established a regulatory timetable seeking submissions from parties on the Reconsideration Application;

J.        After reviewing the submissions, the BCUC established an Oral Hearing on April 21, 2021 to receive further submissions from both parties;

K.       Crown Corridor is defined in Chapter 7 of the Maa-nulth First Nations Final Agreement and after considering the evidence and submissions made at the Oral Hearing, and because the GOLB S3 is on land that is within the Crown Corridor, the BCUC, on April 28, 2021, issued Order G-126-21 which rescinded Order G-65-21;

L.       At the Oral Hearing, KPL submitted that in the case of an emergency such as a short circuit, the fuses within the KPL system or the KCFN system would operate to de-energize the downstream line and that neither KPL nor KCFN would require emergency access to the GOLB S3;

M.    On April 28, 2021, by Order G-129-21, the BCUC established a regulatory timetable seeking submissions from parties on the need for access to GOLB S3, submissions on whether, with respect to the portion of the line on the Crown Corridor, KCFN meets the definition of a public utility and submissions on the applicability of section 27 of the Utilities Commission Act on shared KCFN infrastructure;

N.      On June 2, 2021, KCFN submitted a complaint with the BCUC regarding KPL’s recent power outages without adequate notification;

O.      On June 2, 2021, KCFN submitted correspondence to KPL addressing a number of safety, reliability and legal matters, including concerns that KPL is transmitting power across KCFN’s infrastructure on the Crown Corridor without appropriate legal agreements and KCFN’s concerns over the safety of KPL’s “fly-over” line through Houpsitas;

P.       Section 24 of KPL’s Electric Tariff states, “Electric service may be temporarily suspended to make repairs or improvements to the Company’s system or in the event of fire, flood, cable failure, or other emergency. The Company will, whenever practicable, give notice of such suspension to the Customer and will restore service as soon as reasonably possible”;

Q.     On June 16, 2021, KPL submitted its response to KCFN’s submissions. With respect to the complaint regarding power outages, KPL submits that they follow established processes for notifying customers when a planned outage is scheduled. However, this process was not followed for two days where the planned outages were scheduled. KPL submits that this was due to an error, and states that they will provide KCFN’s Chief Administrative Officer 48 hours advance email-notice of any future planned service outages;

R.      With respect to the safety, reliability and legal matters raised by KCFN, KPL submits that they had previously suggested a 20-year wheeling agreement for the continued movement of KPL electricity over KCFN’s infrastructure located in the Crown Corridor. However, KPL submits that they now believe that the optimal solution is the separation of KPL’s system from KCFN’s infrastructure. KPL submits that they expect to file an application with the BCUC for a certificate of public convenience and necessity (CPCN) for the work required to separate the two systems. KPL submits that in the interim, they will seek to negotiate a limited term agreement with KCFN for the continued movement of electricity in the Crown Corridor and Treaty Lands in the vicinity of Houpsitas;

S.       KPL also submits that as an alternative to the capital investment required to separate the two systems, KPL is prepared to sell KPL’s system to KCFN;

T.       On June 30, 2021, pursuant to Directive 5 of BCUC Order G-29-21, KPL submitted its Quarterly Report outlining the progress of actions taken with respect to KPL’s Vegetation Plan and Maintenance Plan; and

U.      The BCUC, after considering the evidence and submissions made, finds that a further regulatory timetable is warranted.

 

NOW THEREFORE the BCUC orders as follows:

1.       A further regulatory timetable is established as set out in Appendix A

2.       KPL is directed to follow Section 24 of its Electric Tariff with respect to providing notice to Customers when suspending service for repairs or improvements on the KPL system. KPL is directed to provide, at a minimum, 48 hours written notice to its customers when suspending service for repairs or improvements on the KPL system that are not of an emergent nature.

3.       KPL is directed to provide an itemized list of all priority 2 and 3 items identified in the Maintenance Plan and Vegetation Plan with completed items marked and uncompleted items explained, in accordance with the regulatory timetable.

4.       KPL is directed to include in KPL’s next Quarterly Report to the BCUC, a report demonstrating the completion of all priority 2 and 3 items identified in the Maintenance Plan and Vegetation Plan (each the Maintenance Plan Completion Report and Vegetation Plan Completion Report). The Maintenance Plan Completion Report shall be approved by a qualified professional engineer. The Vegetation Plan Completion Report shall be approved by a certified utility arborist.

5.       Parties are requested to make submissions on the following, in accordance with the regulatory timetable as set out in Appendix A to this order:

a.       Submissions from KCFN and KPL on whether the BCUC has jurisdiction on treaty land, with respect to the fly-over line through Houpsitas on shared KCFN/KPL poles and KPL-owned poles; and

b.       Submissions from KCFN and KPL on who is currently responsible for the maintenance of the fly-over line through Houpsitas on shared KCFN/KPL poles and KPL-owned poles, respectively.

 

 

 

 

 

 

 

 

 

DATED at the City of Vancouver, in the Province of British Columbia, this                 9^th                 day of July 2021.

 

BY ORDER

 

Original signed by:

 

D. M. Morton

Commissioner

 

Attachment

 

 

Kyuquot Power Ltd.

Investigation into the Safety and Reliability of the KPL System