ORDER NUMBER
G-71-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Corix Dockside Green DE LP
Amendment to the Variable Energy Charge and Rate Rider 1
BEFORE:
B. A. Magnan, Panel Chair
E. A. Brown, Commissioner
E. B. Lockhart, Commissioner
W. E. Royle, Commissioner
on March 14, 2024
ORDER
WHEREAS:
A. On February 21, 2024, pursuant to section 61(4) of the Utilities Commission Act, Corix Dockside Green DE Limited Partnership (Corix) filed its Energy Cost Reconciliation Account (ECRA) and Property Tax Deferral Account (PTDA) Report for Dockside Green Energy (DGE). This report included a request for British Columbia Utilities Commission (BCUC) approval to amend the DGE Variable Energy Charge in accordance with the rate-setting mechanism approved through Order G-269-20 and amended through Order G-315-23, and set the DGE Rate Rider 1 in accordance with the rate rider mechanism approved through Order G-225-23, (Application);
B. Through BCUC Orders G-248-19, G-269-20, and G-315-23, DGE is approved to flow-through energy costs via an ECRA to record actual energy costs and revenue from the Variable Energy Charge, and the annual Variable Energy Charge rate setting mechanism;
C. The approved rate-setting mechanism utilizes an ECRA ratio and established ECRA ratio thresholds of 0.95 and 1.05 (Trigger Ratios). The ECRA ratio is the ratio of expected 12-month Variable Energy Charge recovery revenue to the sum of the expected 12-month energy costs, plus the ECRA balance at the beginning of the forecast period. A rate change is warranted if the ECRA ratio falls outside the range established by the Trigger Ratios;
D. The current DGE Variable Energy Charge of $0.072 per kilowatt-hour (kWh) was approved through
Order G-95-21, effective April 1, 2021;
E. DGE is forecast to have a surplus balance of $72,122 in its ECRA by March 31, 2024. Based on forecast energy costs and the Variable Energy Charge revenue at the current rate, DGE forecasts a surplus balance of $145,598 in its ECRA by March 31, 2025;
F. Based on the current Variable Energy Charge, the ECRA ratio is calculated to be 1.73 for the 12-month period April 2024 to March 2025, and the tested rate required to produce a 1.00 ECRA ratio is calculated to be $0.042 per kWh. Therefore, as the ECRA ratio falls outside the range established by the Trigger Ratios, a change to the Variable Energy Charge is indicated effective April 1, 2024;
G. The proposed Variable Energy Charge increase utilizes a 12-month amortization period and is consistent with the rate-setting mechanism;
H. Through BCUC Order G-225-23, DGE is approved to flow-through property taxes via a PTDA to record the variance between the approved forecast and actual property taxes, and associated rate rider setting mechanism;
I. Based on the approved rate rider mechanism, the 2023 year-end balance in the PTDA, and the average floor area projected for 2024, a rate rider of $0.121 per square metre per month is indicated effective April 1, 2024; and
J. The BCUC has reviewed the DGE ECRA and PTDA 2023 Annual Report and determines that the requested rate changes are warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, the BCUC orders as follows:
1. Corix is approved:
a. to decrease the current DGE Variable Energy Charge from $0.072 per kWh
to $0.042 per kWh effective April 1, 2024; and
b. to set the PTDA Rate Rider 1 for DGE at $0.121 per square metre per month (m2/month) effective from April 1, 2024 to March 31, 2025 inclusive.
2. Corix is directed to notify DGE customers with a bill insert or bill message to be included with the next monthly billing.
DATED at the City of Vancouver, in the Province of British Columbia, this 14th day of March 2024.
BY ORDER
Original signed by:
B.A. Magnan
Commissioner