ORDER NUMBER
G-341-21
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Application for Approval of Rate Design and Rates
for Electric Vehicle Direct Current Fast Charging Service
BEFORE:
D. M. Morton, Panel Chair/Commissioner
A. K. Fung, QC, Commissioner
on November 24, 2021
ORDER
WHEREAS:
A. On December 22, 2017, FortisBC Inc. (FBC) submitted an application (Original Application) to the British Columbia Utilities Commission (BCUC) for Approval of Rate Design and Rates for Electric Vehicle (EV) Direct Current Fast Charging (DCFC) Service and Tariff Rate Schedule 96 (RS 96) pursuant to sections 59 to 61 and 90 of the Utilities Commission Act (UCA);
B. By Order G-9-18 dated January 12, 2018, the BCUC:
i. approved a time-based rate of $9.00 per 30-minute period for EV charging at FBC owned DCFC stations, as set out in RS 96, on an interim basis, effective January 12, 2018;
ii. directed FBC to separately track and account for all costs associated with the EV DCFC stations and exclude all such costs from its utility rate base until the BCUC directs otherwise; and
iii. adjourned the review of the FBC Application until further notice;
C. By Order G-10-18 dated January 12, 2018, the BCUC established an inquiry (Inquiry) into the regulation of EV charging service in British Columbia as the BCUC noted that certain regulatory matters related to the rate design and rates for EV charging should be canvassed before undertaking a full review of the FBC Original Application;
D. By Order in Council No. 339 (OIC 339/20), as approved and issued on June 22, 2020, the Lieutenant Governor in Council amended the Greenhouse Gas Reduction (Clean Energy) Regulation (GGRR) to add Section 5 regarding prescribed undertaking – electric vehicle charging stations;
E. On September 30, 2020, FBC filed a revised and updated application (Revised Application), seeking BCUC approval of the following:
i. permanent approval of RS 96 – Electric Vehicle Charging, which includes a $0.27 per minute EV charging rate for service at FBC-owned DCFC 50 kW stations and a $0.54 per minute EV charging rate for service at FBC-owned DCFC 100 kW stations;
ii. approval that Rate Schedule 96 shall not be subject to general rate increases, unless otherwise directed by the BCUC;
iii. approval of a straight-line 10 percent depreciation rate for FBC’s EV charging stations; and
iv. approval for FBC to include the assets associated with the EV charging stations, and related revenues and expenses, in FBC’s regulated accounts, as set out in section 4 of the Application.
F. As updated during the course of the proceeding, FBC seeks approval of permanent rates for EV charging service at FBC-owned DCFC stations at $0.26/minute at 50 kW stations and $0.54/minute at 100 kW stations, to be effective within 30 days of the date of the BCUC’s order approving the rates. FBC also seeks approval pursuant to section 52 of the UCA to dispose FBC’s EV DCFC station in New Denver and in Nakusp to the British Columbia Hydro and Power Authority (BC Hydro);
G. By Orders G-183-20, G-223-20, G-254-20, G-33-21, G-58-21, and G-90-21, the BCUC established a regulatory timetable for the proceeding, which included dates for intervener registration, FBC’s evidentiary update, public notice, two rounds of written information requests (IRs), and written final and supplemental arguments. By letter dated May 10, 2021, the BCUC requested oral submissions from FBC and interveners, to be held on May 27, 2021, to clarify and elaborate on their arguments;
H. By Order G-215-21 with reasons for decision dated July 14, 2021, the BCUC approved, among other things, FBC’s request to include the assets associated with its EV DCFC stations that meet the definition of a prescribed undertaking under the GGRR in FBC’s rates base, as set out in section 4 of the Revised Application, and the disposition of FBC’s EV DCFC station in New Denver and Nakusp to BC Hydro; and
I. Upon completion of its review of this proceeding, the BCUC makes the following determinations.
NOW THEREFORE, pursuant to sections 56, 59 to 61 of the UCA and the decision issued concurrently with this order, the BCUC orders as follows:
1. FBC will be approved to offer on a permanent basis Rate Schedule (RS 96) - Electric Vehicle Charging for EV charging service at FBC-owned DCFC stations at $0.26/minute at 50 kW stations and $0.54/minute at 100 kW stations, upon FBC submitting a letter clarifying the electricity input cost within 15 days of this Decision, to the satisfaction and approval of the BCUC.
2. Upon FBC submitting the clarifying letter set out in directive 1 of this order, the BCUC will review the letter and, if satisfied, will set RS 96 permanent rates to be effective within 30 days of its determination.
3. The rates specified in RS 96 shall not be subject to general rate increases, unless otherwise directed by the BCUC.
4. FBC is approved to apply a straight-line 10 percent depreciation rate for FBC-owned EV DCFC stations.
5. FBC is directed to comply with all other directives contained in the decision issued concurrently with this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 24th day of November 2021.
BY ORDER
Original signed by:
D. M. Morton
Commissioner