ORDER NUMBER
G-210-22
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Fiscal 2023 Rate Schedule 1101, 1121 Residential Service Pricing Principles Application
BEFORE:
R. I. Mason, Panel Chair
A. C. Dennier, Commissioner
A. Pape-Salmon, Commissioner
on July 25, 2022
ORDER
WHEREAS:
A. On February 11, 2022, British Columbia Hydro and Power Authority (BC Hydro) filed with the British Columbia Utilities Commission (BCUC) an application for approval of revised pricing principles (Residential Service Pricing Principles) for Rate Schedule 1101, 1121 (collectively, RS 1101) effective April 1, 2022 (Application or Residential Pricing Principles Application);
B. By Order G-124-08, the BCUC approved BC Hydro’s application to implement a Residential Inclining Block (RIB) rate for its residential customers, with approval of pricing principles for BC Hydro’s fiscal 2009 to fiscal 2010 periods. By Orders G-180-10, G-45-11, and G-13-14, respectively, the BCUC approved RIB rate pricing principles for BC Hydro’s fiscal 2011, fiscal 2012 to fiscal 2014, and fiscal 2015 to fiscal 2016 periods;
C. By Order G-5-17, the BCUC approved a RIB rate pricing principle of uniformly increasing the basic charge, Step-1 energy rate, and Step-2 energy rate by the amount of the approved revenue requirements application rate increases (Uniform RIB Rate Pricing Principle) for BC Hydro’s fiscal 2017 to fiscal 2019 period. By Orders G-214-18 and G-62-20, respectively, the BCUC approved the extension of the Uniform RIB Rate Pricing Principle for BC Hydro’s fiscal 2020 and fiscal 2021 to fiscal 2022 periods;
D. BC Hydro requests approval in the Application to apply any fiscal 2023 general rate increases approved in its Fiscal 2023 to Fiscal 2025 Revenue Requirements Application (F2023 to F2025 RRA) proceeding effective April 1, 2022, to the three RS 1101 charges as follows:
• Basic Charge: apply the fiscal 2023 RRA general rate increase;
• Step 2 Energy Charge: hold the Step 2 Energy Charge constant at its current level of 14.08¢ per kilowatt hour (kWh); and
• Step 1 Energy Charge: apply the rate increase necessary so that, on a forecast basis, BC Hydro will earn the same revenue in fiscal 2023 from its RS 1101 customers as if the fiscal 2023 RRA general rate increase had been applied equally to all three charges of RS 1101;
E. By Order G-40-22, the BCUC approved the Residential Service Pricing Principles for RS 1101 on an interim basis, effective April 1, 2022. Order G-40-22 also established the regulatory timetable for the review of the Application, which included one round of BCUC Information Requests to BC Hydro, letters of comment, and BC Hydro’s final argument and reply to letters of comment;
F. As part of the separate, ongoing proceeding to review BC Hydro’s F2023 to F2025 RRA, BC Hydro requested a general rate increase of 0.62 percent and a Deferral Account Rate Rider of (2.0) percent, resulting in a net bill decrease of 1.4 percent for fiscal 2023, effective April 1, 2022.
G. By Order G-47-22, the BCUC approved the requested general rate increase and decrease to the Deferral Account Rate Rider for fiscal 2023 on an interim basis and directed BC Hydro to file its applicable tariff sheets for endorsement reflecting the interim rates for fiscal 2023 approved by Orders G-47-22 and G-40-22; and
H. The BCUC has reviewed the Application, evidence, letters of comment, and BC Hydro’s final argument and reply to letters of comment and determines that approval of the Residential Service Pricing Principles for fiscal 2023 on a permanent basis is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, for the reasons stated in the decision issued concurrently with this order, the BCUC orders as follows:
1. The Residential Service Pricing Principles for RS 1101 as set forth in the Application are approved for fiscal 2023 on a permanent basis, effective April 1, 2022.
2. BC Hydro is directed to file with the BCUC an updated RS 1101 reflecting the approved Residential Service Pricing Principles and the permanent April 1, 2022 rate change approved in the F2023 to F2025 RRA, pursuant to any final orders made by the BCUC in the F2023 to F2025 RRA proceeding.
DATED at the City of Vancouver, in the Province of British Columbia, this 25th day of July 2022.
BY ORDER
Original signed by:
R. I. Mason
Commissioner