ORDER NUMBER
G-225-23
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Corix Multi Utility Services Inc.
Dockside Green Energy Flow Through Property Tax
BEFORE:
B. A. Magnan, Commissioner
on August 23, 2023
ORDER
WHEREAS:
A. On May 31, 2023, Corix Multi-Utility Services Inc. (Corix) applied to the British Columbia Utilities Commission (BCUC), pursuant to section 61(4) of the Utilities Commission Act (UCA) for approval to, among other things, establish a Property Tax Deferral Account (PTDA) to record the annual variance between the approved forecast property taxes and actual property taxes charged to Dockside Green Energy (DGE) for 2023 and onward, with an associated rate rider mechanism to recover from or refund to ratepayers the balance in the PTDA (Application);
B. By Order G-166-18 dated September 14, 2018, the BCUC approved, among other things, the sale and disposition of DGE assets and the transfer of the DGE Certificate of Public Convenience and Necessity from Dockside Green Energy LLP (DGELLP) to Corix and the establishment of a Revenue Deficiency Deferral Account (RDDA) to record a $1 million contribution from DGELLP to be used to offset future revenue deficiencies and limit rate increases during the initial years of Corix’s operation of DGE;
C. In the Application, Corix states that property tax variances are currently recorded in the RDDA and due to the actual property taxes being much higher than forecast, among other things, the contribution from DGELLP was depleted in 2022. Corix seeks to record the property tax variances in the PTDA, such that the RDDA operates in the traditional sense with recovery of the deficit deferral account balance over an extended period of time;
D. By Order G-181-23 dated July 10, 2023, the BCUC established a regulatory timetable that included one round of information requests. Corix filed its responses on August 14, 2023; and
E. The BCUC has completed its review of the Application and evidence filed in the proceeding and finds the following determinations are warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. Corix is directed to discontinue recording the annual variance between the BCUC approved forecast and actual property taxes in DGE’s existing RDDA, commencing in 2023.
2. Corix is approved to establish a non-rate base PTDA for DGE to record the annual variance between the BCUC approved forecast and actual property taxes charged to DGE from 2023 onwards, attracting interest at DGE’s weighted average cost of capital.
3. Corix is approved to use a rate rider mechanism (the PTDA Rate Rider) for the recovery or refund of the year-end balance in the PTDA over a one-year period in accordance with the methodology established in Section 4.2.7 of the Application.
4. Corix is directed to apply annually to the BCUC for review and approval of any rate rider for recovering or refunding the balance in the PTDA.
5. Corix is directed to include the following in its annual report for the DGE:
a. Year-end actual property tax costs;
b. The variance between the BCUC approved forecast and actual property taxes for the most recent calendar year; and
c. The supporting calculations and explanations for the PTDA Rate Rider.
6. Corix is directed to submit a compliance filing to the BCUC by no later than June 30, 2026, assessing the need to continue the use of the PTDA Rate Rider for recovering or refunding the variance between the BCUC approved forecast and actual property taxes. This compliance filing should consider alternative methods of recovering or refunding PTDA balances.
DATED at the City of Vancouver, in the Province of British Columbia, this 23rd day of August 2023.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner