ORDER NUMBER
C-2-22
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Oakridge Energy Limited Partnership
Application for a Certificate of Public Convenience and Necessity for a District Energy System
BEFORE:
R. I. Mason, Panel Chair
E. B. Lockhart, Commissioner
T. A. Loski, Commissioner
on February 15, 2022
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
WHEREAS:
A. On June 1, 2021, Oakridge Energy Limited Partnership (Oakridge Energy) submitted an application to the British Columbia Utilities Commission (BCUC) pursuant to sections 45 and 46 of the Utilities Commission Act seeking a Certificate of Public Convenience and Necessity (CPCN) to construct and operate a district energy system (Oakridge DES) for the provision of thermal energy service to the Oakridge Centre property redevelopment (Oakridge Centre Redevelopment) in Vancouver, B.C. (Application);
B. The Oakridge Centre Redevelopment is a joint venture project between Westbank Holdings and QuadReal Property Group (collectively, the Developers);
C. Oakridge Energy is a limited partnership of entities within the Corix Group of Companies and the Creative Energy group, established to meet the thermal energy needs of the Oakridge Centre Redevelopment;
D. The project involves the construction of a DES to serve the Oakridge Centre Redevelopment (Project). The proposed Oakridge DES has been designed as a low-carbon energy system that provides thermal energy through a combination of multiple heating and cooling energy sources, including a closed loop geo-exchange field, a waste heat recovery system, electric boilers, electric chillers, and natural gas boilers;
E. By Orders G-194-21, G-206-21 and G-272-21 dated June 24, 2021, July 7, 2021 and September 16, 2021, respectively, the BCUC established and amended a regulatory timetable for the review of the Application, which included Oakridge Energy filing of further information, public notification, intervener registration, one round of BCUC and intervener information requests (IRs) and Oakridge Energy responses to IRs No. 1;
F. By Orders G-300-21, G-308-21 and G-328-21 dated October 20, 2021, October 29, 2021 and November 10, 2021, respectively, the BCUC established and amended a further regulatory timetable, which included BCUC and intervener IRs No. 2, Oakridge Energy responses to IRs No. 2, and final and reply arguments;
G. On October 21, 2021, Oakridge Energy filed a submission with the BCUC, which included an amendment to approvals sought in the Application based on recent developments regarding the geo-exchange field. Oakridge Energy stated that due to scheduling constraints, the Developers would proceed to construct the first phase of the geo-exchange field at their own cost and risk, and Oakridge Energy would acquire the associated assets at net book value, subject to receiving BCUC approval. Oakridge Energy, therefore, amended its approvals sought in the Application to include approval to purchase the phase 1 geo-exchange field and associated assets (Phase 1 Geo-exchange Assets) at a cost not to exceed the net book value at the time of acquisition;
H. BC Sustainable Energy Association registered as a sole intervener in the proceeding; and
I. The BCUC has considered the Application, evidence and submissions from all parties and finds that public convenience and necessity require that the Project proceed and the following determinations to be warranted.
NOW THEREFORE pursuant to sections 45 to 46 of the Utilities Commission Act and for the reasons set out in the Decision issued concurrently with this order, the BCUC orders as follows:
1. A CPCN is granted to Oakridge Energy authorizing:
a. The construction and operation of a district energy system to provide space heating, space cooling and domestic hot water to the Oakridge Centre Redevelopment.
b. The purchase of the Phase 1 Geo-exchange Assets from the Developers at a cost not to exceed their net book value at the time of acquisition, subject to the term that Oakridge Energy submits to the BCUC a satisfactory purchase agreement between it and the Developers for the acquisition of the Phase 1 Geo-exchange Assets by June 30, 2022.
2. Oakridge Energy is directed to comply with all the directives outlined in the Decision issued concurrently with this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 15th day of February 2022.
BY ORDER
Original signed by:
R. I. Mason
Commissioner