ORDER NUMBER
G-349-21
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Creative Energy Vancouver Platforms Inc.
2021 Revenue Requirements Application for the Core Steam System
BEFORE:
A. K. Fung, QC, Panel Chair
K. A. Keilty, Commissioner
B. A. Magnan, Commissioner
on November 30, 2021
ORDER
WHEREAS:
A. On December 1, 2020, Creative Energy Vancouver Platforms Inc. (Creative Energy) submitted its 2021 Revenue Requirements Application (RRA) for the core steam system (Core Steam System) to the British Columbia Utilities Commission (BCUC), seeking approval of 2021 steam rates for the Core Steam System, among other things (Application);
B. The Application also seeks approval of a proposed Inter-Affiliate Conduct and Transfer Pricing Policy (Proposed IAC/TPP) in respect of all BCUC-regulated Thermal Energy Systems (TES) that are part of the Creative Energy Group as shown in Appendix A to the proposed policy;
C. By Orders G-11-21A and G-88-21, the BCUC established a regulatory timetable for the review of the Application, which included intervener registration and two rounds of BCUC and intervener information requests (IRs) to Creative Energy, followed by written final and reply arguments;
D. By Order G-310-21A dated October 29, 2021, the BCUC rendered a separate decision approving, among other things, a 2021 average steam rate of $9.78 per thousand pounds of steam for the Core Steam System, equivalent to a 20.3 percent increase above 2020 approved average steam rates, on a permanent basis, effective January 1, 2021; and
E. The BCUC has reviewed the evidence and submissions by all parties in this proceeding and makes the following determinations regarding Creative Energy’s request for approval of the Proposed IAC/TPP.
NOW THEREFORE for the reasons provided in the decision issued concurrently with this order (Decision), the BCUC orders as follows:
1. Creative Energy’s Proposed IAC/TPP is not approved as filed.
2. Creative Energy is directed to provide further evidence demonstrating how its labour rates are reflective of the higher of market pricing or full cost recovery where resources are shared with non-regulated affiliates in its next RRA for the Core Stream System.
3. Creative Energy is directed to cease sharing, by no later than the time of filing of its 2023 RRA for the Core Steam System, its staff resources with Creative Energy’s non-regulated affiliates, to the extent that those staff allocate more than a minimal amount of their time to activities of its non-regulated affiliates.
4. Creative Energy is directed to request advance BCUC approval, unless otherwise ordered, for any material cost or resource sharing by Creative Energy with any non-regulated affiliate. When seeking such approval, Creative Energy must provide the basis and any justification for the proposed amounts of the cost or resource sharing.
5. Creative Energy is directed to file its total annual gross costs as part of its future RRAs for the Core Steam System.
DATED at the City of Vancouver, in the Province of British Columbia, this 30th day of November 2021.
BY ORDER
Original signed by:
A. K. Fung, QC
Commissioner