ORDER NUMBER
G-60-23
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Fiscal 2023 to Fiscal 2025 Revenue Requirements Application
BEFORE:
D. M. Morton, Panel Chair
A. K. Fung, KC, Commissioner
R. I. Mason, Commissioner
A. Pape-Salmon, Commissioner
on March 21, 2023
ORDER
WHEREAS:
A. On August 31, 2021, the British Columbia Hydro and Power Authority (BC Hydro) filed its Fiscal 2023 to Fiscal 2025 Revenue Requirements Application (Application) with the British Columbia Utilities Commission (BCUC) pursuant to sections 44.2, and 58 to 61 of the Utilities Commission Act requesting, among other things, interim and, after certain future determinations in other proceedings, permanent approval of the following:
(i) Increase in rates by 0.62 percent, effective April 1, 2022, by 0.97 percent, effective April 1, 2023 and by 2.18 percent, effective April 1, 2024; and
(ii) The fiscal 2023, fiscal 2024, and fiscal 2025 Open Access Transmission Tariff (OATT) rates as set out in Table 9-4 of the Application;
B. In the Application, BC Hydro also requested to set the Deferral Account Rate Rider (DARR) on an interim and permanent basis at (2.0) percent, effective April 1, 2022 for fiscal 2023; and, on a permanent basis at (1.0) percent, effective April 1, 2023 for fiscal 2024 and (0.5) percent, effective April 1, 2024 for fiscal 2025;
C. On January 19, 2022, BC Hydro filed an errata to the Application, which included, among other things, corrections to the OATT rates set out in Table 9-4 of the Application;
D. By Order G-47-22, the BCUC approved, on an interim and refundable basis, the requested fiscal 2023 rate increase of 0.62 percent, the requested OATT rates, and the DARR, effective April 1, 2022;
E. By letter dated February 13, 2023, BC Hydro requested approval of interim rates for fiscal 2024, effective
April 1, 2023, pending a final BCUC decision on the Application. BC Hydro requests that the fiscal 2024 interim rates be subject to any interim or final orders issued by the BCUC in relation to a separate BC Hydro application for approval of revised pricing principles for Rate Schedules 1101, 1121 – Residential Service (Residential Pricing Principles);
F. On March 8, 2023, BC Hydro filed an application with the BCUC to establish the Residential Pricing Principles for fiscal 2024 effective April 1, 2023 (Residential Pricing Principles Application);
G. By Order G-59-23, the BCUC approved the Residential Pricing Principles requested in the Residential Pricing Principles Application on an interim basis, effective April 1, 2023; and
H. The BCUC has considered BC Hydro’s letter dated February 13, 2023 and determines that approval of interim rates for fiscal 2024 is warranted.
NOW THEREFORE pursuant to sections 58 to 61 and 89 of the UCA, the BCUC orders as follows:
1. The requested rate increase of 0.97 percent for fiscal 2024 as applied for in the Application is approved on an interim basis effective April 1, 2023.
2. The requested OATT rates for fiscal 2024 as set out in the corrected Table 9-4 of the Application filed on January 19, 2022 are approved on an interim basis effective April 1, 2023.
3. The requested DARR of (1.0) percent for fiscal 2024 as applied for in the Application is approved on an interim basis effective April 1, 2023.
4. The rates approved by this order will remain interim and are subject to refund/recovery or adjustment with interest at BC Hydro’s weighted average cost of debt until further order of the BCUC.
5. BC Hydro is directed to file with the BCUC for endorsement the applicable tariff sheets reflecting the interim rates for fiscal 2024 approved by this order and the Residential Service Pricing Principles approved on an interim basis by Order G-59-23 for fiscal 2024 within 30 days of the issuance of this order.
6. BC Hydro is directed to provide all BC Hydro customers with notification of the interim rate changes for fiscal 2024 as soon as is practicable.
DATED at the City of Vancouver, in the Province of British Columbia, this 21st day of March 2023.
BY ORDER
Original signed by:
D. M. Morton
Commissioner