ORDER NUMBER

F-23-23

 

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

 

and

 

                                                                                            FortisBC Energy Inc.

Application for Acceptance of Demand-Side Management Expenditures Plan for 2023

Participant Cost Award Application

 

BEFORE:

B. A. Magnan, Panel Chair

W. M. Everett, KC, Commissioner

A. Pape Salmon, Commissioner

 

June 15, 2023

 

ORDER

WHEREAS:

 

A.      On July 5, 2022, FortisBC Energy Inc. (FEI) filed its Application for Acceptance of Demand-Side Management (DSM) Expenditures for 2023 (Application) with the British Columbia Utilities Commission (BCUC) pursuant to section 44.2 of the Utilities Commission Act (UCA). FEI sought acceptance of its proposed 2023 DSM expenditure schedule of $141.077 million for the year 2023 (DSM Expenditure Schedule);

B.      The regulatory process for the review of the Application included a written public hearing process, consisting of one round of written information requests, letters of comment, written final and reply arguments;

C.      The following parties registered as interveners in the proceeding:

•         British Columbia Sustainable Energy Association (BCSEA);

•         Residential Consumer Intervener Association (RCIA);

•         Movement Of United Professionals (MoveUp);

•         Commercial Energy Consumers Association of British Columbia (CEC);

•         British Columbia Hydro and Power Authority (BC Hydro); and

•         British Columbia Old Age Pensioners’ Organization et al. (BCOAPO).

D.      By Order G-45-23 dated March 6, 2023, the BCUC approved the Application;    

E.       The following participants filed Participant Cost Award (PCA) applications with the BCUC with respect to their participation in the proceeding:

 

F.       By letter dated April 24, 2023, FEI provided its comments on the PCA applications, stating that in accordance with rule 36.03(b) of the PCA Rules, it has reviewed the PCA applications and if the BCUC is satisfied that the participants have met the eligibility requirements, that the time claimed for participation is reasonable and appropriate in the circumstances of this proceeding, and that the level of participation has met with the BCUC’s criteria and requirements in accordance with the PCA Rules, then FEI has no further comment; and

G.      The BCUC has reviewed the PCA applications in accordance with the criteria and rates set out in the Rules of Practice and Procedure for Participant Cost Awards, attached to BCUC Order G-178-22 dated June 30, 2022 and amended by Order G-72-23 dated April 3, 2023, and finds that the PCA awards stipulated below are warranted.

 

NOW THEREFORE pursuant to section 118(1) of the Utilities Commission Act, the BCUC orders as follows:

 

1.       For the reasons outlined in Appendix A to this order, PCA funding is awarded to the following participants in the listed amounts for their participation in the proceeding:

 

2.       FEI is directed to reimburse the respective participants for the above noted PCA funding in a timely manner.

 

DATED at the City of Vancouver, in the Province of British Columbia, this          15^th           day of June 2023.

 

BY ORDER

 

Original signed by:

 

B. A. Magnan

Commissioner

 

Attachment

 

 

FortisBC Energy Inc.

Application for Acceptance of Demand-Side Management Expenditures Plan for 2023

Participant Cost Award Application

 

 

1.0               Background

On July 5, 2022, FortisBC Energy Inc. (FEI) filed its Application for Acceptance of Demand-Side Management (DSM) Expenditures for 2023 (Application) with the British Columbia Utilities Commission (BCUC). FEI sought acceptance of its proposed 2023 DSM expenditure schedule of $141.077 million for the year 2023 (DSM Expenditure Schedule).

 

By Order G-45-23 dated March 6, 2023, the BCUC approved the Application.

 

The Commercial Energy Consumers Association of British Columbia (the CEC), British Columbia Old Age Pensioners’ Organization et al. (BCOAPO), British Columbia Sustainable Energy Association (BCSEA) and Residential Consumer Intervener Association (RCIA) participated as interveners in the proceeding and have each made an application for a Participant Cost Award.

 

2.0               Legislative Framework

Section 118(1) of the Utilities Commission Act (UCA) provides that “The commission may order a participant in a proceeding before the commission to pay all or part of the costs of another participant in the proceeding.”

 

The new BCUC Participant Cost Awards (PCA) rules (which were established by Order G-178-22 dated June 30, 2022 and amended by Order G-72-23 dated April 3, 2023) are set out in Part VI of the BCUC Rules of Practice and Procedure. The PCA rules apply to proceedings initiated since June 30, 2022. The PCA rules stipulate the eligibility requirements and criteria used in assessing cost awards, including the process for applying for a cost award, eligible costs, and rates in BCUC proceedings.

 

Rule 30.01 establishes that the purpose of the PCA rules is to encourage effective participation in BCUC proceedings that contributes to a fair, cost effective and timely determination or completion of every proceeding on its merits.

 

Rule 36 provides that BCUC will determine the amount of a cost award, if any, in accordance with the purpose of the PCA rules as set out in Rule 30.01, and further provides that it will, so far as is applicable, consider the following criteria:

a)       Whether such costs were necessarily and properly incurred in the conduct of the proceeding;

b)      Whether such costs are reasonable;

c)       Whether the participant has demonstrated through its participation that it has:

 

                                             i.            Contributed to a better understanding by the BCUC of one or more of the issues in the proceeding;

                                           ii.            Made reasonable efforts to combine or coordinate its participation with that of one or more participants with similar interests, in order to avoid duplication and reduce costs;

                                         iii.            Engaged in conduct or activity that resulted in a more efficient and/or shorter proceeding;

                                         iv.            Refrained from conduct or activity that unnecessarily lengthened the duration of the proceeding or resulted in unnecessary costs;

                                           v.            Refrained from conduct or activities which the BCUC considers inappropriate or irresponsible;

                                         vi.            Made reasonable efforts to ensure participation in the proceeding, including information requests, issues raised, evidence, cross-examination, and arguments, was within the scope of the proceeding or not unduly repetitive; 

                                        vii.            Engaged in conduct consistent with the participant’s approved scope of participation in the proceeding;

                                      viii.            Incurred time participating in the proceeding that was proportionate to the scope of the proceeding and/or the complexity or novelty of the proceeding;

                                          ix.            Complied with the BCUC’s orders, directions, and rules; and

 

d)      Any other matter the BCUC determines appropriate in the circumstances.

 

3.0               PCA Applications

The CEC, BCOAPO, BCSEA, and RCIA filed their PCA applications with the BCUC with respect to their participation in the proceeding on December 8, 2022, February 21, 2023, March 7, 2023, and March 13, 2023, respectively. The following table summarizes the PCA funding sought by each intervener in its respective PCA application:

 

 

 

3.1               CEC PCA Application

The CEC seeks a cost award of $24,098.72 in its PCA Application, which includes[1]:

•         74 hours for consultants David Craig and Janet Rhodes;

•         11.5 hours for legal counsel Christopher Weafer; and

•         6.1 hours for legal counsel Patrick Weafer.

•         91.6 hours in total.

 

3.2               BCOAPO PCA Application

The BCOAPO seeks a cost award of $18,939.84 in its PCA Application, which includes[2]:

•         15.10 hours for legal counsel Leigha Worth;

•         0.70 hours for legal counsel Irina Mis;

•         12.70 hours for legal counsel Rene Kimmett; and

•         38.00 hours for consultant Darren Rainkie.

•         66.5 hours in total.

 

3.3               BCSEA PCA Application

The BCSEA seeks a cost award of $9,010.58 in its PCA Application, which includes[3]:

•         19.65 hours for legal counsel William Andrews; and

•         5.30 hours for consultant Thomas Hackney.

•         24.95 hours in total.

 

3.4               RCIA PCA Application

RCIA seeks a cost award of $16,092.56 in its PCA Application, which includes[4]:

•         32 hours for consultant Samuel Mason; and

•         42.75 hours for consultant Brady Ryall.

•         74.75 hours in total.

4.0               BCUC determination

The Panel has reviewed the PCA applications in accordance with the criteria and rates set out in the PCA rules. All four interveners that applied for PCA funding contributed to a better understanding by the BCUC of one or more of the issues in the proceeding, as evidenced by the citations to their information requests and arguments in the Decision.

 

BCOAPO, BCSEA and RCIA Claims for PCA

 

The Panel is satisfied that BCOAPO, BCSEA and RCIA are eligible for their requested PCA funding. The Panel finds those three interveners have claimed costs that are reasonable and that they incurred time participating in the proceeding that was proportionate to the scope and complexity of the proceeding. The FEI Application was for acceptance of one year of DSM expenditures that were for similar demand-side measures that were established in previous DSM expenditure schedules.

 

The CEC Claim for PCA

 

The Panel does not consider the CEC’s claim for funding hours is reasonable or proportionate to the scope and complexity of the proceeding. The Application scope was not complex or novel because it sought acceptance of one year of expenditures for demand-side measures that were established in previous DSM expenditure schedules and for which FEI had considerable experience and stakeholder engagement.

 

The Panel finds the extent of the CEC’s consultant effort (74 hours) to be disproportionate with their relative contributions to the proceeding, as compared to other interveners, given the lack of complexity or novelty of the Application. The CEC’s total hours for consultants and legal counsel (91.6 hours) were higher than all other interveners, and nearly 25% higher than that of RCIA, the next highest intervener time investment.

 

As a point of comparison, the BCOAPO acknowledges in its PCA application that junior legal counsel performed all work under the supervision of senior legal counsel and that they have avoided billing for duplicative work. For that reason, BCOAPO billed a lower PCA amount than the hours worked according to their breakdown of activities.

 

On the basis of the foregoing reasons, the Panel finds that reducing the CEC’s applied-for PCA award for consultants’ time by 25 percent will result in an award that is reasonable and in proportion to the scope and complexity of the proceeding. Accordingly, PCA funding is awarded to the CEC in the amount of $19,606.68, inclusive of applicable taxes. The CEC award is calculated as follows:

 

The CEC Participant	Hourly Rate ($)	Hours	Subtotal ($)	GST ($)	PST ($)	Total ($)
David Craig and Janet Rhodes - Consultants	231.25	55.5	12,834.38	641.72	-	13,476.09
Christopher P. Weafer - Legal Counsel	350.00	11.5	4,025.00	201.25	281.75	4,508.00
Patrick J. Weafer -  Legal Counsel	237.50	6.1	1,448.75	72.44	101.41	1,622.59
Total Award		73.10	18,308.13	915.41	383.16	19,606.68