Orders

ORDER NUMBER

G-229-23

 

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

 

and

 

British Columbia Hydro and Power Authority

Request to Amend Major Capital Project Filing Guidelines

 

BEFORE:

A. K. Fung, KC, Panel Chair

A. C. Dennier, Commissioner

W. M. Everett, KC, Commissioner

 

on August 25, 2023

 

ORDER

WHEREAS:

 

A.      On March 17, 2023, British Columbia Hydro and Power Authority (BC Hydro) filed an application with the British Columbia Utilities Commission (BCUC) to request to amend the major capital project filing guidelines (Application);

B.      On December 2, 2019, by Order G-313-19, the BCUC approved the 2018 Major Capital Project Filing Guidelines (2018 Guidelines), including BC Hydro’s commitment to submit applications to the BCUC for major capital projects with authorized cost estimates that exceed the following thresholds:

1.       $100 million for Power System projects;

2.       $50 million for Buildings projects; and

3.       $20 million for Information Technology projects.

C.      In the Application, BC Hydro seeks approval of:

                                 i.            An increase to the major capital filing thresholds, escalated annually by their respective price index for the previously completed calendar year, starting from fiscal 2019; and

                               ii.            BCUC confirmation that a Certificate of Public Convenience and Necessity is not required for Customer IPID 901943 Project.

D.      By Order G-113-23, dated May 9, 2023, the BCUC established a regulatory timetable for review of the Application. By Orders G-118-23, dated May 17, 2023, G-132-23, dated June 7, 2023, and G-184-23, dated July 14, 2023, the BCUC amended the regulatory timetable;

E.       On May 25, 2023, BC Hydro filed its responses to the BCUC request for further information, including amending the approvals sought as follows:

a.       Amending the escalation price index for Power System projects to the non-residential building construction price index, from the BC-CPI;

b.       Notifying the BCUC that BC Hydro will file a section 44.2 application for the Mica Units 1 to 4 Circuit Breakers and Iso Phase Bus Replacement Project;

c.       An update to the 2018 Major Capital Project Filing Guidelines and to the applicable directives for the John Hart Dam Seismic Upgrade Project, Bridge River 1 Units 1 to 4 Generator Replacement Project, Peace to Kelly Lake Stations Sustainment Project and Mainwaring Substation Upgrade Project to move to annual progress reports in instances where Material Change Reports are a separate reporting requirement; and

d.       Adjustments to the timing of filing Final Reports for the John Hart Dam Seismic Upgrade Project, Bridge River 1 Units 1 to 4 Generator Replacement Project, Peace to Kelly Lake Stations Sustainment Project and Mainwaring Substation Upgrade Project so that the Final Reports are due three months after review by BC Hydro’s Board of Directors rather than three months after substantial completion of the project, consistent with the 2018 Guidelines and to seek an amendment to the 2018 Guidelines to clarify that the BC Hydro Board of Directors review, rather than approves, the Final Reports.

F.       By letter dated July 18, 2023, BC Hydro requested the BCUC hold its approval sought related to the Customer IPID 901943 Project in abeyance. By letter dated July 25, 2023, the BCUC granted BC Hydro’s abeyance request;

G.      By letter dated August 23, 2023, BC Hydro requested an extension to the regulatory timetable for the filing of its responses to IR No. 2, and subsequent extension to submissions on further process; and

H.      The BCUC has reviewed BC Hydro’s request and determined that an amendment to the regulatory timetable is warranted.

 

 

NOW THEREFORE the BCUC orders that the regulatory timetable is amended as set out in Appendix A to this order.

 

DATED at the City of Vancouver, in the Province of British Columbia, this         25^th          day of August, 2023.

 

BY ORDER

 

Original signed by:

 

A.K. Fung, KC

Commissioner

 

Attachment

 

British Columbia Hydro and Power Authority

Request to Amend Major Capital Project Filing Guidelines