ORDER NUMBER
G-186-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Shannon Estates Utility Ltd.
Energy Costs Deferral Account Rate Rider
BEFORE:
B. A. Magnan, Panel Chair
E. A. Brown, Commissioner
E. B. Lockhart, Commissioner
on July 11, 2024
ORDER
WHEREAS:
A. On May 9, 2024, Shannon Estates Utility Ltd. (SEUL) applied to the British Columbia Utilities Commission (BCUC) for approval of a rate rider effective August 1, 2024 to January 31, 2025 to recover cost variances arising from differences between forecast unit energy costs and actual unit energy costs for electricity and natural gas, as well as a shortfall in the rate rider from August 1, 2022, to January 31, 2023, which have accumulated in its Energy Costs Deferral Account (ECDA) (Application);
B. On June 11, 2024, SEUL provided an updated recalculation of the ECDA rate rider based on an amortization period from August 1, 2024 to July 31, 2025;
C. By Decision and Order G-36-21 dated February 2, 2021, the BCUC approved a 10-year levelized rate structure, effective January 1, 2021, for the SEUL Thermal Energy System. The BCUC approved an equal rate increase for fixed and variable charges for Year 1 of the approved 10-year levelized rate structure and rate increase on a levelized basis as follows:
• Years 2-3 (F2023-F2024) +1.5%/year;
• Year 4 (F2025) +2.0%/year;
• Year 5-6 (F2026-F2027 +2.5%/year;
• Years 7-10 (F2028-F2031) +3.0%/year;
D. By Decision and Order G-36-21, the BCUC also approved SEUL to establish the ECDA to capture forecast variances in electricity and natural gas expenses and to use a rate rider mechanism to recover any variances in SEUL’s energy expenses;
E. The current ECDA rate rider of $0.037/kWh was approved through Order G-174-23 for the period August 1, 2023 to January 31, 2024;
F. Based on forecast energy costs, capacity levy and energy charge revenue and projected kWh usage of 4,706,772, the ECDA is forecasted to have a balance of $120,351 at July 31, 2025;
G. SEUL seeks approval to apply a rate rider of $0.026/kWh to the energy charge (space cooling, space heating and domestic hot water) portion of customers' bills for the period of August 1, 2024 to July 31, 2025; and
H. The BCUC has reviewed the Application and considers that approval of the proposed rate rider effective August 1, 2024 is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, the BCUC orders as follows:
1. SEUL is approved to apply a $0.026/kWh rate rider to the energy charge portion of customers' bills for the period August 1, 2024 to July 31, 2025.
2. SEUL is to file amended tariff pages for endorsement with the BCUC within 15 days of this order.
3. SEUL must notify all customers that are affected by the rate changes by way of a bill insert or bill message included with the next monthly billing.
DATED at the City of Vancouver, in the Province of British Columbia, this 11th day of July 2024.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner