ORDER NUMBER
E-12-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Electricity Purchase Agreement Renewal for the Coats Hydroelectric Project
BEFORE:
B. A. Magnan, Panel Chair
E. A. Brown, Commissioner
E. B. Lockhart, Commissioner
W. E. Royle, Commissioner
on April 11, 2024
ORDER
WHEREAS:
A. On February 28, 2024, pursuant to section 71 of the Utilities Commission Act (UCA), British Columbia Hydro and Power Authority (BC Hydro) filed with the British Columbia Utilities Commission (BCUC) an electricity purchase agreement (EPA) with a 20-year term between BC Hydro and Crofter’s Gleann Enterprises for the Coats hydroelectric generating facility on Gabriola Island, BC (Coats Project), effective January 1, 2024 (Coats Project 2024 EPA) (Filing);
B. By Order G-61-12 dated May 17, 2012, the BCUC approved the Rules for Energy Supply Contracts for Electricity (Rules). Appendix A of Order G-61-12 contains the Rules, which are intended to facilitate the BCUC’s review of energy supply contracts for electricity, pursuant to section 71 of the UCA;
C. On December 21, 2021, BC Hydro filed its 2021 Integrated Resource Plan (2021 IRP) with the BCUC which provided BC Hydro’s long term energy needs and supply alternatives to meet future demand and included a near-term action to renew clean or renewable Independent Power Producer (IPP) projects with EPAs that expire prior to April 2026 at market-based prices;
D. In accordance with the 2021 IRP, BC Hydro developed an EPA renewal program for IPPs who have EPAs for clean or renewable projects set to expire before April 1, 2026 (EPA Renewal Program);
E. On June 15, 2023, BC Hydro filed an updated version of the 2021 IRP (Updated 2021 IRP) setting out BC Hydro’s updated long-term energy needs and supply alternatives to meet future demand. The Updated 2021 IRP confirmed the near-term action to renew clean or renewable IPP projects with EPAs that expire prior to April 2026 at market-based prices;
F. On February 27, 2024, the BCUC, by Order G-50-24, accepted for filing the first six EPA renewals under BC Hydro’s EPA Renewal Program;
G. On March 6, 2024, by Decision and Order G-58-24, the BCUC accepted BC Hydro’s Updated 2021 IRP pursuant to section 44.1(6) of the UCA;
H. BC Hydro submits the Coats Project is an eligible project under the EPA Renewal Program, and the Coats Project 2024 EPA is consistent with the terms of the EPA Renewal Program;
I. BC Hydro requests the unredacted version of the Filing, including the entirety of the Coats Project 2024 EPA, be held confidential as it contains information that is commercially sensitive, and the public disclosure of such information will harm BC Hydro’s negotiating position with respect to further electricity purchase agreements; and
J. The BCUC has reviewed the Filing and considers the acceptance of the Coats Project 2024 EPA is warranted.
NOW THEREFORE pursuant to section 71 of the UCA and the Rules the BCUC orders as follows:
1. The BCUC accepts the Coats Project 2024 EPA as filed.
2. The Coats Project 2024 EPA and the unredacted version of the Filing in its entirety will be kept confidential until the BCUC determines otherwise.
DATED at the City of Vancouver, in the Province of British Columbia, this 11th day of April 2024.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner