ORDER NUMBER

R-3-23

 

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

 

and

 

British Columbia Hydro and Power Authority

Notice of Penalty with Reasons for Decision

for the Contravention of Mandatory Reliability Standards

Identified as:

 

BEFORE:

R. I. Mason, Panel Chair

M. Kresivo, KC, Commissioner

E. B. Lockhart, Commissioner

 

On January 30, 2023

 

ORDER

WHEREAS:

 

A.      On November 30, 2022, the British Columbia Utilities Commission (BCUC) issued a confidential order with Confidential Notice of Penalty and Reasons for Decision to British Columbia Hydro and Power Authority
(BC Hydro) for contraventions of the following Reliability Standards (Confidential Order with Reasons);

B.      By confidential Order R-10-22 dated March 22, 2022, the BCUC confirmed BC Hydro’s contravention of the eight FAC-003 Reliability Standards, as noted above;

C.      On November 30, 2022, the BCUC directed BC Hydro to file written submissions  with respect to the confidentiality of the Confidential Order with Reasons, amongst other materials, including proposed redactions, if any, that BC Hydro seeks prior to its potential publication, as may be ordered by the BCUC;

D.      On December 22, 2022, BC Hydro filed its submissions with respect to the public disclosure of Confidential Order R-37-22 with Reasons; and

E.       Following review of BC Hydro’s submissions, the Panel determines that release to the general public of both the Confidential Order with Reasons and confidential Order R-10-22 confirming the violations, is warranted and in the public interest.

 

NOW THEREFORE pursuant to section 125.2(10), Part 8.1 of the Utilities Commission Act and for the reasons for decision attached as Appendix A, the BCUC orders the following:

 

1.       Order R-10-22 is to be made public, as attached in Appendix B.

2.       Order R-37-22 with Reasons for Decision is to be made public, as attached in Appendix C.

3.       All other material filed in this proceeding will remain confidential, unless otherwise ordered by the BCUC.

DATED at the City of Vancouver, in the Province of British Columbia, this            30^th            day of January 2023.

 

BY ORDER

 

Original signed by:

 

R. I. Mason

Commissioner

 

 

Attachment

 

 

British Columbia Hydro and Power Authority

Notice of Penalty with Reasons for Decision

for the Contravention of Mandatory Reliability Standards

Identified as:

 

 

1.0              Introduction

On November 30, 2022, the British Columbia Utilities Commission (BCUC) issued confidential order R-37-22 which included a Notice of Penalty and Reasons for Decision to British Columbia Hydro and Power Authority (BC Hydro) for contraventions of the FAC-003 Reliability Standard (Confidential Order with Reasons). Directive 6 of the Confidential Order with Reasons directed BC Hydro to file written submissions with respect to the confidentiality of the Confidential Order with Reasons and other materials related to the contraventions in the proceeding.

 

On December 22, 2022, BC Hydro filed its submissions.

1.1              Rules of Procedure for Reliability Standards in British Columbia

Section 6.2 of the Rules of Procedure for Reliability Standards in British Columbia states:

All Information submitted to the Commission for the purposes of a Hearing … will be held in confidence pursuant to the Commission’s Rules of Practice and Procedure, Part IV (Order G‐1‐16), as amended from time to time, governing the handling of Confidential Information filed with the Commission.

1.2              BCUC Rules of Practice and Procedure

Part IV of the BCUC Rules of Practice and Procedure (Rules) outline the provisions for requests for confidentiality and the filing of confidential documents.

 

Section 20.01 outlines the considerations for the BCUC with respect to determinations on confidential information:

In determining whether the nature of the information or documents require a confidentiality direction, the BCUC will have regard to matters that it considers relevant, including:

(a)    whether the disclosure of the information could reasonably be expected to result in:

                                             i.      undue material financial loss or gain to a person;

                                           ii.      significant harm or prejudice to that person’s competitive or negotiating position; or

                                         iii.      harm to individual or public safety or to the environment;

(b)    whether the information is personal, financial, commercial, scientific, labour relations or technical information that is confidential and consistently treated as confidential by the person;

(c)     whether the person’s interest in confidentiality outweighs the public interest in the disclosure of the information or documents in the hearing;

(d)    whether the person submitting the document has any legal obligation to maintain confidentiality; and

(e)    whether it is practicable to hold the hearing in a manner that is open to the public.

With respect to documents not accepted as confidential, Section 22.01 states:

If a document is filed confidentially and the request for confidentiality is denied, the BCUC may allow the person that submitted the documents an opportunity to make submissions as to what should be done with the document, such as withdrawing the document.

2.0              BC Hydro Submissions

BC Hydro submits that confidential Order R-37-22 with Notice of Penalty and Reasons for Decision (together the Public Materials) could be made public, and that this would satisfy the public interest in transparency and disclosure.[1]

 

Further, BC Hydro submits that compliance materials related to the violations should remain confidential and not be made public.[2] The compliance materials include:

a)       Confidential Order R-10-22 dated March 22, 2022 which confirm the associated violations (Confirmation Order);

b)      The second revised Notice of Alleged Violation;

c)       BC Hydro’s responses to various versions of Notice of Alleged Violations;

d)      The compliance violation investigation report (CVI Report); and

e)      Materials and evidence filed in this proceeding (together the Compliance Materials).

 

BC Hydro submits that its proposal is also consistent with past BCUC practice of making public orders confirming violations (for non-critical infrastructure protection standards) and not making the associated notice of alleged violations or other compliance materials public.[3] However, BC Hydro does not consider that public release of the Compliance Materials would jeopardize the security of the bulk electric system.[4]

 

BC Hydro submits proposed redactions to the Compliance Materials should the BCUC determine that the Compliance Materials should be released. BC Hydro proposes no redactions to Confidential Order R-10-22 dated March 22, 2022, which confirm the associated violations.

 

Additionally, in the BCUC’s recent decision regarding the confidential treatment of materials related to the FAC-008-3 violation, the BCUC agreed with BC Hydro’s rationale that all compliance-related materials should remain confidential and only the order Confirming the Violation, the Final Order and redacted Reasons for Decision should be made public.[5]

Panel Determination

The Panel determines that the Public Materials should be released to satisfy the public interest of transparency and disclosure. BC Hydro does not object to the release of the Public Materials.

 

The Panel further determines that the Confirmation Order should be released to satisfy the public interest of transparency and disclosure. While BC Hydro proposes that the Confirmation Order remain confidential, it proposes no redactions should the BCUC determine otherwise, unlike other elements of the Compliance Materials. Further, BC Hydro does not consider that disclosure of any of the Compliance Materials would jeopardize the security of the bulk electric system.

 

While BC Hydro claims that keeping the Compliance Materials confidential is “consistent with past practice of the BCUC”, it also correctly observed that in order R-30-22 the BCUC agreed with BC Hydro’s rationale that “only the Order Confirming the Violation, the Final Order, and redacted Reasons for Decision should be made public.” The BCUC did, in fact, make public the order confirming the violation, Order R-3-22, included in Order R-30-22, and BC Hydro did not object.

 

The Panel makes no determination on whether the Compliance Materials other than the Confirmation Order should be released. The BCUC has another proceeding underway to consider this matter, and the Panel is satisfied that these materials may remain confidential pending the outcome of that proceeding.