Orders

ORDER NUMBER

G-304-23

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

River District Energy Limited Partnership

2024 to 2025 Interim Rates

BEFORE:

E. B. Lockhart, Panel Chair

W. E. Royle, Commissioner

on November 9, 2023

ORDER

WHEREAS:

A.      On October 6, 2023, River District Energy Limited Partnership (RDE) submitted an application with the British Columbia Utilities Commission (BCUC) for approval of a 3.94 percent annual rate increase to the Monthly Capacity Charge and the Thermal Energy Charge for all customers for each of 2024 and 2025, pursuant to sections 59 and 60 of the Utilities Commission Act (UCA) (Application);

B.      On December 19, 2011, by Order C-14-11, RDE was granted a Certificate of Public Convenience and Necessity (CPCN) to construct and operate temporary and permanent natural gas fuelled energy centres and related thermal distribution piping system and energy transfer stations for the River District Development (River District). The BCUC also approved a 20‐year levelized rate structure and the establishment of a revenue deficiency deferral account in which RDE would defer a portion of its annual revenue requirement during the early years of the development;

C.      On November 4, 2019, by Order G-271-19, RDE was approved to establish a permanent rate increase of 3.94 percent, effective January 1, for each of the years 2020, 2021, 2022 and 2023;

D.      On June 27, 2023, by Order C-3-23, RDE was granted a CPCN for the second phase of the district energy utility system serving River District to construct and operate a Community Energy Centre (CEC) and related thermal energy distribution piping system, energy transfer stations and facilities as required by RDE to serve future customer buildings within River District;

E.       In the Application, RDE states that it anticipates submitting a revenue requirements application in the summer of 2025 following the completion of the CEC and the BCUC’s final decision on Stage 2 of the BCUC’s Generic Cost of Capital proceeding;

F.       The BCUC has commenced review of the Application and considers that approval of interim rates, effective January 1, 2024, and the establishment of a regulatory timetable are warranted.

NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the BCUC orders as follows:

1.       RDE is approved to increase the Monthly Capacity Charge and Thermal Energy Charge by 3.94% on an interim basis, effective January 1, 2024, as set forth in the Application. Any differences in rates resulting from the approved interim and final interim rates, including interest if any, will be refundable to/recoverable from customers in the manner determined by the Panel at the time it renders its final decision on the Application.

2.       A regulatory timetable for the review of the Application is established as set out in Appendix A to this order.

3.       RDE is directed to file, by December 1, 2023, amended tariff pages reflecting the approved interim rates for 2024 for endorsement by the BCUC.

4.       RDE is directed to include a notice of the approved interim rates for 2024 with the next bill for each customer.

5.       On or before Thursday, November 16, 2023, RDE must:

a.       Provide notice of the Application and this order on its website at www.rdenergy.ca, on its existing social media platforms, and to registered interveners in the RDE 2022 Application for a CPCN to Construct and Operate the Second Phase of the District Energy Utility System for the River District Development proceeding;

b.       Provide a copy of this order and the Public Notice attached as Appendix B to this order, electronically where possible, to all Residential Strata Managers and Commercial Property Managers for the properties it serves; and

c.       Post the Public Notice, attached as Appendix B to this order, at all major entryways of each customer site, the River District Neighbourhood Centre and the River District Sales Centre.

6.       RDE is directed to provide to the BCUC, by November 23, 2023, a list of all parties notified of the proceeding as directed in Directive 5 of this order.

DATED at the City of Vancouver, in the Province of British Columbia, this              9^th           day of November 2023.

BY ORDER

Original signed by:

E. B. Lockhart

Commissioner

Attachment

River District Energy Limited Partnership

2024 to 2025 Interim Rates

RIVER DISTRICT ENERGY 2024 AND 2025 INTERIM RATES

On October 6, 2023, River District Energy applied to the British Columbia Utilities Commission (BCUC) seeking approval of interim rate increases of 3.94% for each 2024 and 2025. The annual rate increases, for the Monthly Capacity and Thermal Energy charges, would apply to all customers. The BCUC has approved the 3.94% rate increases for 2024 on an interim and refundable or recoverable basis, effective January 1, 2024.

The BCUC is holding an open and transparent proceeding to review River District Energy’s rates application and invites feedback and participation in the proceeding.

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

For more information about the application, please visit the Proceeding webpage on bcuc.com under “Our Work – Proceedings.” To learn more about getting involved, please visit our website at www.bcuc.com/get-involved or contact us at the information below.