Orders

ORDER NUMBER

G-10-25

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Corix UBCDE Limited Partnership

UBC Neighbourhood District Energy System

2025-2027 Revenue Requirement and Rates

BEFORE:

W.E. Royle, Panel Chair

E.B. Lockhart, Commissioner

on January 23, 2025

ORDER

WHEREAS:

A.      On December 31, 2024, Corix UBCDE Limited Partnership (Corix) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 and 89 of the Utilities Commission Act (UCA), seeking approval of the revenue requirement and rates for its Neighbourhood District Energy System at the University of British Columbia (UBC NDES) for 2025 to 2027, effective January 1 of each respective year (Application);

B.      By Order G-84-15 dated May 25, 2015, the BCUC approved a 20-year, levelized two-part rate structure with a Basic Charge and Variable Charge, through which a portion of the annual revenue requirement is deferred in the early stages of development for UBC NDES. In the same order, the BCUC also approved the establishment of a Revenue Deficiency Deferral Account (RDDA) in order to capture the revenue requirement variances under the levelized rate structure;

C.      In a compliance filing to Order G-84-15, Corix filed with the BCUC its revised levelized rates and residential rate schedule, based on certain adjustments outlined in that order and the associated decision, for its Basic Charge and Variable Charge for the years 2015 to 2034, which included the following Basic Charges for 2025, 2026 and 2027:

D.      By Order G-284-23 dated October 20, 2023, the BCUC approved Corix to replace the Variable Charge with a Variable Energy Charge, which recovers only flow-through energy costs, and to establish an Energy Cost Reconciliation Account, to capture energy costs related variances, commencing on September 1, 2023. In the same order, the BCUC also approved Corix’s request to discontinue capturing energy related variances in the RDDA after August 31, 2023 and rescinded the Variable Charges that were previously approved in Order G-84-15 for the period from September 1, 2023 to year 2034;

E.       In the Application, among other things, Corix requests approval to increase the previously approved Basic Charge for each of 2025, 2026 and 2027, as outlined below. Corix explains that it has considered various scenarios of potential rate increases and its proposal in the Application strikes an optimal balance between minimizing immediate rate increases, supporting rate stability and affordability, controlling long-term financing costs, and maintaining RDDA stability;

F.       In the Application, among other things, Corix requests interim approval of the Basic Charge of $0.7580 per m² per month, effective January 1, 2025 as set out above and in the proposed rate schedule filed in Section C of Appendix F to the Application; and

G.      The BCUC has commenced review of the Application and determines that approving an interim Basic Charge for UBC NDES customers and establishing a regulatory timetable are warranted.

NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the BCUC orders as follows:

1.       Corix is approved to charge a Basic Charge of $0.7580 per square metre per month as set forth in Section C of Appendix F to the Application, on an interim and refundable/recoverable basis, effective January 1, 2025.

2.       Corix is directed to amend the proposed rate schedule in the tariff included in Section C of Appendix F to the Application to indicate that for each of 2026 and 2027, the Basic Charge and Rate Rider 1 are proposed rates and subject to BCUC approval. Corix is directed to file this amended rate schedule as a tariff page for endorsement by the BCUC by Thursday, February 6, 2025.   

3.       A regulatory timetable for the review of the Application is established as set out in Appendix A to this order.

4.       On or before Thursday, January 30, 2025, Corix is directed to:  

(i)         Provide notice of the Application and this order, or post the Public Notice attached as Appendix B to this order, on its website at https://www.corix.com/ubc-ndes/and its existing social media platforms. Social media monthly reminder posts must be published during the first week of each month until the conclusion of the letters of comment period;

(ii)       Provide a copy of this order and the Public Notice attached as Appendix B to this order, electronically where possible, to all customers of the UBC NDES and registered interveners in the Corix Multi-Utility Services Inc. Application for Approvals relating to Restructuring and Business Combination Transactions proceeding; and

(iii)      Request each customer to post the Public Notice attached as Appendix B to this order on major notice boards of the customer’s buildings served by the UBC NDES and request each customer to provide confirmation of this posting to Corix.

5.       Corix is directed to provide to the BCUC:

(i)         Confirmation of compliance with Directive 4’s public notice requirements, except for the monthly social media reminder posts, including a list of all parties notified and a list of the social media platforms on which the Public Notice was posted, in accordance with the regulatory timetable.

(ii)       Confirmation of compliance with Directive 4’s public notice requirement regarding monthly social media reminder posts in accordance with the regulatory timetable.

DATED at the City of Vancouver, in the Province of British Columbia, this      23^rd      day of January 2025.

BY ORDER

Electronically signed by Wendy Royle

W.E. Royle

Commissioner

Attachment

Corix UBCDE Limited Partnership

UBC Neighbourhood District Energy System 2025-2027 Revenue Requirement and Rates

Corix UBC NDES 2025-2027 Revenue Requirement and Rates

On December 31, 2024, Corix UBCDE Limited Partnership (Corix) filed its 2025-2027 Revenue Requirements Application requesting approval of its revenue requirements and Basic Charges for the Neighborhood District Energy System at the University of British Columbia (UBC NDES) for the years 2025, 2026 and 2027, with rates effective January 1 of each year, as shown below:

The BCUC approved an interim Basic Charge of $0.7580 per m² per month, on an interim and refundable/recoverable basis, effective January 1, 2025, pending the final outcome of the proceeding.

Subscribe to this Proceeding on bcuc.com under “Get Involved” to receive email notifications when public documents are added to the proceeding. Please visit the Proceeding webpage on bcuc.com under “Our Work” to learn more.