ORDER NUMBER
G-103-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Corix UBCDE Limited Partnership
Stream B Thermal Energy System Extension to BCR5 and BCR6
BEFORE:
T. A. Loski, Commissioner
on April 5, 2024
ORDER
WHEREAS:
A. On March 7, 2024, Corix UBCDE Limited Partnership (Corix) filed with the British Columbia Utilities Commission (BCUC) a Stream B Thermal Energy System (TES) System Extension Form to extend its Neighbourhood District Energy System at the University of British Columbia (UBC NDES) to connect and provide thermal energy service to two adjacent lots, Lot 5 - EPP86350 (BCR5) and Lot 6 - EPP86350 (BCR6) (Application);
B. By Order G-127-14, dated August 28, 2014, the BCUC approved and issued the TES Regulatory Framework Guidelines (TES Guidelines). Revisions to the TES Guidelines were approved by Order G-27-15. Section 2.4.5 provides guidance regarding extensions to Stream B TES, including the requirement to file a Stream B TES Extension Form with the BCUC if a planned extension meets certain conditions;
C. By Order C-2-15, dated March 10, 2015, the BCUC granted a Certificate of Public Convenience and Necessity (CPCN) to Corix for Phase 1 of the UBC NDES to serve certain new buildings in Wesbrook Place that were originally scheduled for completion between 2015 and 2023. The energy source for Phase 1 was designed as a temporary gas fired boiler system and at that time, it was contemplated that a renewable energy source would be considered once thermal load could support its installation in a future phase 2 of the project;
D. In the Application, Corix identifies that since granting of the CPCN in 2015, there have been changes to the timing of the completion of Wesbrook Place. Corix states that the buildings that are part of Phase 1 are being delayed from the original buildout schedule and the last lot is now expected to be complete in 2030;
E. Corix states that lots BCR5 and BCR6 were not part of the 2015 CPCN scope but are now planned to be completed in May 2024 and summer 2025, respectively. In order to connect these lots, Corix proposes to install approximately 5 meters of buried piping to connect the existing UBC NDES distribution piping system to a new energy transfer station, which both buildings will use;
F. Corix explains that the UBC NDES is currently separated into two heating loops. Temporary energy centre east (TEC-E) and temporary energy centre west (TEC-W) serve the connections on the east and west side of Wesbrook, respectively. Corix is connecting these two heating loops into one nodal system, which it expects to complete by mid to late April 2024, ahead of the proposed BCR5 and BCR6 connection. Corix confirms that the installed capacity of the existing temporary energy centres can provide thermal energy to serve the additional requirements for the BCR5 and BCR6 buildings;
G. Corix states that it is currently exploring options for decarbonization of the UBC NDES, at which point the existing gas boilers in TEC-W and TEC-E would be used for peaking loads and backup. Corix states it will continue to explore various low-carbon energy options and will include the necessary information when seeking future capital project approval from the BCUC;
H. The estimated cost of the proposed extension is $800,200 in 2024 dollars and Corix states that the extension will have a positive impact on its revenue deficiency deferral account (RDDA);
I. The BCUC issued BCUC Staff Questions No. 1 regarding the Application on March 20, 2024, with responses filed by Corix on March 26, 2024; and
J. The BCUC finds that the public convenience and necessity require the construction and operation of the proposed extension to connect lots BCR5 and BCR6 to the UBC NDES. The BCUC considers that the UBC NDES has capacity to provide thermal energy service to lots BCR5 and BCR6 and notes that the proposed extension is forecast to have a positive impact on Corix’s RDDA. The BCUC also acknowledges that Corix continues to explore options for decarbonization of the UBC NDES.
NOW THEREFORE pursuant to section 46(7) of the Utilities Commission Act, the BCUC orders that the CPCN granted by Order C-2-15 is amended to include connection of the UBC NDES to lots BCR5 and BCR6.
DATED at the City of Vancouver, in the Province of British Columbia, this 5th day of April 2024
BY ORDER
Original signed by:
T. A. Loski
Commissioner