ORDER NUMBER
G-256-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
British Columbia Hydro and Power Authority
Application to Vary or Rescind Specific Reporting Requirements
BEFORE:
E. B. Lockhart, Commissioner
B. A. Magnan, Commissioner
W. E. Royle, Commissioner
on October 2, 2024
ORDER
WHEREAS:
A. On October 17, 2023, the British Columbia Utilities Commission (BCUC) issued Letter L‑46‑23, amending the BCUC’s Public Utility Annual Reporting Requirements. In Letter L-46-23, the BCUC invited public utilities to seek a review of specific filing requirements that are either burdensome or of diminished relevance;
B. By letter dated August 13, 2024 (Application), the British Columbia Hydro and Power Authority (BC Hydro) requests that the BCUC vary or rescind the following five reporting requirements: 1) John Hart Generating Station Replacement Project (John Hart Project) Semi-Annual Progress Report, 2) COVID-19 Impacts to revenue requirements reporting, 3) Storm Restoration Costs Regulatory Account reporting, 4) Waneta 2017 Transaction Annual Report, and 5) Annual Deferral Account Report Appendices 1 and 2;
C. On February 8, 2013, the BCUC issued Decision and Order C-2-13, regarding BC Hydro’s application for the John Hart Project. Among other things, the Panel directed BC Hydro to file semi-annual reports that should specify, at a minimum, the amounts paid under the project agreement, and the amounts and reasons for any deductions made to availability payments;
D. On March 6, 2014, BC Hydro filed the first John Hart Project Semi-Annual Progress Report, and has since filed reports on a semi-annual basis. In the Application, BC Hydro requests the BCUC amend the frequency of the John Hart Progress Reports from semi-annual to annual. BC Hydro states that the relevance of the John Hart Project Semi-Annual Progress Report is diminished because availability payments have remained consistent, and any deductions have been immaterial;
E. On October 2, 2020, the BCUC issued Decision and Order G-246-20, regarding BC Hydro’s Fiscal 2020 to Fiscal 2021 Revenue Requirements Application (RRA). Among other things, the Panel directed BC Hydro to report in all future RRAs, until directed otherwise, on the impact of the COVID-19 pandemic with respect to its operations and how it plans to handle the resulting impact on its revenue requirement, rates and regulatory accounts;
F. BC Hydro reported on the impacts of the COVID-19 pandemic in its Fiscal 2022 RRA and Fiscal 2023 to Fiscal 2025 RRA. In the Application, BC Hydro states that the COVID-19 pandemic reporting is of diminished relevance because the COVID-19 pandemic is no longer considered a public health emergency, and it no longer has a material impact on the revenue requirement, rates or regulatory accounts. For these reasons, BC Hydro requests that the BCUC rescind the COVID-19 pandemic reporting requirement;
G. On August 14, 2020, the BCUC issued Decision and Order G‑215‑20, regarding BC Hydro’s Evacuation Relief Tariff Amendment and Regulatory Account Treatment Application. Among other things, BC Hydro was directed to provide a breakdown between storm restoration costs and evacuation relief costs in the Storm Restoration Costs Regulatory Account as part of its Annual Report to the BCUC;
H. In the Application, BC Hydro states that it currently provides, and will continue to provide, a breakdown between storm restoration costs and evacuation relief costs in the Storm Restoration Costs Regulatory Account in its RRAs, specifically in Appendix A, Schedule 2.2. BC Hydro states that reproducing this breakdown in the Annual Report to the BCUC is redundant and including it in two separate filings does not provide any additional value. For these reasons, BC Hydro requests that the BCUC rescind the requirement to provide a breakdown between storm restoration costs and evacuation relief costs in the Storm Restoration Costs Regulatory Account as part of its Annual Report to the BCUC;
I. On July 18, 2018, the BCUC issued Decision and Order G‑130‑18, regarding BC Hydro’s Waneta 2017 Transaction Application. Among other things, BC Hydro was directed to provide an annual Waneta 2017 Transaction Report to include related activities and financial schedules as specified in Directive 4 (e) and (f) as part of the BC Hydro Annual Report to the Commission and as an appendix in its RRAs;
J. BC Hydro has filed the Waneta 2017 Transaction Report in its Annual Report to the BCUC and as an appendix to its RRAs since the issuance of Decision and Order G-130-18. In the Application, BC Hydro states that this reporting is burdensome and requests that the BCUC rescind the requirement to file the Waneta 2017 Transaction Report. BC Hydro further states the reporting is of diminished relevance for the following reasons: information regarding Teck Metals Ltd.’s share of the costs related to the 2017 Waneta Transaction is filed in BC Hydro’s RRAs; the amounts reported in the Annual Report are not material relative to BC Hydro’s overall operations; and BC Hydro does not report on the operating results of any other generating plant in the Annual Report to the BCUC;
K. On September 14, 2017, the BCUC issued Decision and Order G-140-17, regarding BC Hydro’s Deferral Account Report. BC Hydro was directed to file the Deferral Account Report in the BC Hydro Annual Report to the BCUC within four months following the end of the fiscal year and to include the same level of detail as has been provided in the F2016 Annual Deferral Account Report filed with the BCUC for the 12 months ending March 31, 2016;
L. BC Hydro has filed the Deferral Account Report in its Annual Report to the BCUC in the format required under Order G-140-17 since the issuance of the Order. In the Application, BC Hydro requests that the BCUC rescind the requirement to file Appendices 1 and 2 of the Annual Deferral Account Report as they are burdensome to prepare and are of diminished relevance. BC Hydro states the information in Appendices 1 and 2 is not directly related to BC Hydro's deferral accounts and BC Hydro provides, and will continue to provide, a detailed breakdown of these costs in its RRAs, specifically in Appendix A, Schedules 1, 2.1, 2.2, and 14; and
M. The BCUC has reviewed the Application and determines that amendments to the reporting requirements are warranted.
NOW THEREFORE pursuant to section 99 of the Utilities Commission Act, the BCUC orders as follows:
1. The second and third bullets in Directive 5 of Order C-2-13, requiring BC Hydro to file semi-annual progress reports on the John Hart Project that should specify, at a minimum, the amounts paid under the project agreement, and the amounts and reasons for any deductions made to availability payments, are rescinded.
2. The directive on page 182 of the Decision issued concurrently with Order G-246-20, requiring BC Hydro to report on the impact of the COVID-19 pandemic, is rescinded.
3. Directive 5 of Order G-215-20, requiring BC Hydro to include a breakdown between storm restoration costs and evacuation relief costs in the Storm Restoration Costs Regulatory Account in its Annual Report, is rescinded.
4. Directives 4 (e) and (f) of Order G-130-18, requiring BC Hydro to include the Waneta 2017 Transaction Report in its Annual Report and as an Appendix to its RRAs, are rescinded.
5. Directive 2 of Order G-140-17 regarding BC Hydro’s Deferral Account Report is varied to read as follows:
The annual Deferral Account Report is to be filed with the BC Hydro Annual Report to the Commission and is to include the same level of detail as has been provided in the F2016 Annual Deferral Account Report filed with the Commission for the 12 months ending March 31, 2016, except that Appendix 1 (Consolidated Statement of Operations) and Appendix 2 (Intersegment Revenues) are no longer required.
DATED at the City of Vancouver, in the Province of British Columbia, this 2nd day of October 2024.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner