Orders

ORDER NUMBER

G-105-23

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Powell River Energy Inc.

Status as a Public Utility

BEFORE:

T. A. Loski, Panel Chair

C. M. Brewer, Commissioner

A. Pape-Salmon, Commissioner

on May 3, 2023

ORDER

WHEREAS:

A.      Powell River Energy Inc. (PREI), a wholly owned subsidiary of Brookfield Renewable Partners L.P. (Brookfield), owns and operates two hydroelectric generating stations constructed in the early 1900’s, with an aggregate nameplate capacity of approximately 85 megawatts, and transmission and distribution facilities (Power Facilities) located on Powell Lake and Lois Lake in Powell River;

B.      By Ministerial Order M-22-0101, deposited January 30, 2001, the Minister of Employment and Investment granted PREI an exemption, pursuant to section 22 of the Utilities Commission Act (UCA), from regulation as a public utility under Part 3 and section 71 of the UCA (Exemption) with respect to electricity generated at the Power Facilities and sold to Catalyst Paper Corporation (Catalyst), under a Power Purchase Agreement (PPA), for use at its Powell River pulp and paper mill. Order M-22-0101 also allowed PREI to sell any electricity not purchased by Catalyst to participants in the wholesale electricity market;

C.      The Exemption was continued by Ministerial Order M039 (BC Reg. 26/2017) (M039), deposited on February 7, 2017 by the Minister of Energy, Mines, and Low Carbon Innovation (Minister);

D.      By Order G-17-17, also dated February 7, 2017, pursuant to section 88(3) of the UCA, the BCUC, having been granted advance approval by the Minister, exempted PREI from section 71 and Part 3 of the UCA, except for sections 25, 38, 42, and 43, for the duration of M039;

E.       PREI and Catalyst agreed to terminate the PPA effective May 31, 2021 (PPA Termination);

F.       Following the PPA Termination, by Ministerial Order M5 (BC Reg. 3/2022) deposited on January 12, 2022, repealed M039, thereby rescinding PREI’s partial exemption from the UCA;

G.      By Order G-38-23 dated February 27, 2023, the BCUC established a public hearing process for the review of PREI’s status as a public utility and set out a regulatory timetable directing PREI to, among other things, provide public notice of the proceeding to potentially affected parties (PREI Public Utility Status Proceeding);

H.      By letter dated March 20, 2023, PREI filed a request to reconsider and amend Order G-43-23 to (i) reduce the list of parties that PREI must notify, and (ii) adjourn the regulatory timetable until the BCUC responds to PREI’s request (Reconsideration Application);

I.         By Order G-58-23 dated March 20, 2023, the BCUC adjourned the PREI Public Utility Status Proceeding to review PREI’s Reconsideration Application; 

J.        By Order G-104-23 dated May 3, 2023, the BCUC summarily dismissed PREI’s Reconsideration Application; and

K.       The BCUC considers that the following determinations are warranted.

NOW THEREFORE the BCUC orders as follows:

1.       The PREI Public Utility Status Proceeding is resumed.

2.       The regulatory timetable established by Order G-43-23 is amended and attached as Appendix A to this order.

3.       PREI is directed, as soon as reasonably possible, but no later than Wednesday, May 10, 2023, to provide the amended public notice of the proceeding, attached as Appendix B, and a copy of this order, electronically where possible, to:

a.       All affected or potentially affected parties, including the Ministry of Energy, Mines and Low Carbon Innovation, the Ministry of Environment and Climate Change Strategy, British Columbia Hydro and Power Authority, Catalyst, the qathet Regional District, the City of Powell River, the Tla'amin, shíshálh, Klahoose and K’ómoks First Nations and all band offices for First Nations communities located fully or partially within the Powell and Lois Dam reservoir areas and downstream watersheds; and

b.       All registered parties, including interested parties and individuals that submitted letters of comments, participating in the 2021 Exemption Application.

4.       PREI is directed to publish the amended public notice and a copy of this order in a clearly visible location on the homepage of its website and its Twitter, Facebook, and LinkedIn social media platforms, as applicable.

5.       PREI is directed to provide to the BCUC, by Thursday, May 11, 2023:

a.       A list of all parties notified of the proceeding, as directed in Directive 3 of this order;

b.       Evidence of confirmation that all of the potentially affected parties noted in Directive 3a have received notice of the proceeding. Such evidence may be in the form of a phone log, reply email, or similar record; and

c.       Evidence of confirmation that PREI has provided notice of the proceeding on its website and social media platforms, as directed in Directive 4 of this order. Such evidence may be in the form of a web address or similar record.

6.       Parties wishing to provide comments are invited to submit letters of comment by the date established in the attached regulatory timetable. Letters of comment must be in the Letter of Comment form available on the BCUC’s website at: https://www.bcuc.com/Forms/LetterOfComment or by mail to the BCUC, Suite 410, 900 Howe Street, Vancouver, BC,  V6Z 2N3.

DATED at the City of Vancouver, in the Province of British Columbia, this                3^rd                day of May 2023.

BY ORDER

Original signed by:

T. A. Loski

Commissioner

Attachment

Powell River Energy Inc.

Status as a Public Utility

Powell River Energy Inc. Status as a Public Utility

On November 28, 2022, the British Columbia Utilities Commission (BCUC) issued a letter to Powell River Energy Inc. (PREI) requesting an update on PREI’s operations with respect to its two hydroelectric generating stations and transmission and distribution facilities located on Powell Lake and Lois Lake in Powell River, following Ministerial Order No. M5, deposited January 12, 2022 (BC Reg. 5/2022), which repealed PREI’s exemption from certain sections of the Utilities Commission Act (UCA).

By letter dated December 28, 2022, PREI stated that it has been exporting all its power production to the United States and does not sell to any other person or any end-use consumers in BC. PREI submits that it is not a public utility as it falls within the exclusion set out in section 1 (d) of the UCA. The BCUC has therefore initiated an investigation into PREI’s status as a public utility.

To participate in the proceeding, visit www.bcuc.com/get-involved.

Subscribe to a Proceeding on bcuc.com under “Get Involved” to receive email notifications when public documents are added to the proceeding.