ORDER NUMBER
G-207-23
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Compliance with Directive 33 of Order G-91-23 and Directive 2 of Order G-154-23
BEFORE:
R. I. Mason, Commissioner
on August 3, 2023
ORDER
WHEREAS:
A. On July 19, 2023, British Columbia Hydro and Power Authority (BC Hydro) submitted a compliance filing (Compliance Filing) to the British Columbia Utilities Commission (BCUC) related to its Fiscal 2023 to Fiscal 2025 Revenue Requirements Application, in accordance with various directives in Orders G-91-23 and G-154-23;
B. Pursuant to Directive 33 of Order G-91-23, BC Hydro provided an explanation in the Compliance Filing of why the submarine High Voltage Direct Current (HVDC) assets that have been decommissioned but have not been removed or fully retired, including related substation and other assets, have not been removed from rate base. BC Hydro also adjusted the rates for the test period to exclude the depreciation expense (i.e. $0.6 million) associated with these decommissioned assets and states that it will write off the remaining $2.3 million of net book value of these assets from rate base in fiscal 2024 to the account of the shareholder;
C. Pursuant to Directive 2 of Order G-154-23, BC Hydro proposes in the Compliance Filing a mechanism to recover the difference between the interim and permanent rates. For customers who no longer have an active account, BC Hydro proposes, among other things, to not apply the rate adjustment to these customers when the respective debit (i.e. the amount underbilled from April 1, 2022 to August 31, 2023) is less than $500. This is due to the costs associated with collection efforts as compared to the amount outstanding;
D. The Panel has reviewed BC Hydro’s compliance with Directives 33 and 2 of Orders G-91-23 and G-154-23, respectively, and makes the following determinations.
NOW THEREFORE the BCUC orders as follows:
1. The Panel accepts that BC Hydro has satisfied Directive 33 of Order G-91-23.
2. The Panel accepts that BC Hydro has satisfied Directive 2 of Order G-154-23; however, for clarity, nothing in this acceptance impairs BC Hydro’s normal practices to pursue amounts otherwise owing from customers, whether or not such customers no longer have an active account with BC Hydro.
DATED at the City of Vancouver, in the Province of British Columbia, this 3rd day of August 2023.
BY ORDER
Original signed by:
R. I. Mason
Commissioner