ORDER NUMBER
G-23-25
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Creative Energy Vancouver Platforms Inc.
2025 Core Steam Revenue Requirements
BEFORE:
E. A. Brown, Panel Chair
A. C. Dennier, Commissioner
B. A. Magnan, Commissioner
on February 5, 2025
ORDER
WHEREAS:
A. On December 18, 2024, Creative Energy Vancouver Platforms Inc. (Creative Energy) filed with the British Columbia Utilities Commission (BCUC) its 2025 Revenue Requirements Application (RRA) for the thermal energy system serving downtown Vancouver, Northeast False Creek (NEFC), and the Butterfly Development (together, Core TES) (Application), seeking interim and permanent approval of rates, effective January 1, 2025;
B. By Order G-11-25, the BCUC approved on an interim and refundable/recoverable basis, effective January 1, 2025, thermal energy service rates for the Core TES equivalent to an average rate of $14.08 per thousand pounds of steam (M#) as well as system contribution charges of $10.99 per megawatt hour of thermal energy (MWh) for customers connected to the NEFC hot water distribution system and $9,516 per month for the residential tower owned by Nelson Burrard Holdings Inc. and connected to the Butterfly hot water distribution system. By the same order the BCUC established a regulatory timetable for the proceeding;
C. On October 24, 2024, the BCUC issued Decision and Order G-272-24 (2024 RRA Decision) in the matter of the Creative Energy 2024 RRA and approved, effective January 1, 2024, the 2024 thermal energy service rates for the Core TES of $14.42/M# (Updated Interim Rate), updated in accordance with the directives and determinations outlined in the 2024 RRA Decision, and subject to determinations in the Generic Cost of Capital (GCOC) Stage 2 decision. This decision also directed Creative Energy to continue charging customers the interim thermal energy service rates previously approved by Order G-13-24 of $12.58/M# (Original Interim Rate) and to establish a Revenue Variance Deferral Account (RVDA) to record the revenue difference between the Original Interim Rate and the Updated Interim Rate;
D. On November 29, 2024, the BCUC issued Decision and Order G-321-24 (GCOC Stage 2 Decision) on the GCOC Stage 2 proceeding, which established a deemed equity component of 51.0 percent and an allowed return on equity of 10.40 percent, effective January 1, 2024, for the Core TES. This decision also approved the Original Interim Rate as permanent, effective January 1, 2024, and directed Creative Energy to establish a GCOC Variance Deferral Account to record the revenue difference between the Updated Interim Rate and the rates that reflect the new cost of capital of $14.46/M# (Final Rate);
E. In the Application, Creative Energy provided details on the RVDA, where it recorded the difference between the Original Interim Rate and the Final Rate, including a proposed rate rider recovery mechanism. Creative Energy stated it would provide further details on the calculation of the RVDA final balance, including the proposed rate rider amount, in a future submission as part of the 2025 RRA proceeding;
F. On January 27, 2025, Creative Energy filed an evidentiary update to the Application, which included a request for interim approval of a new rate rider to recover the 2024 ending balance of the RVDA over a two-year period, effective January 1, 2025. The proposed rate rider is set at $0.88/M# for customers connected to the Core steam distribution system and $2.54/MWh for customers connected to the NEFC and Butterfly hot water distribution systems; and
G. The BCUC has commenced review of the Application and evidentiary update and considers approval of the RVDA rate rider is warranted.
NOW THEREFORE the BCUC orders as follows:
1. Creative Energy is approved to recover the 2024 ending balance in the RVDA through an RVDA rate rider, set at $0.88/M# for customers connected to the Core steam distribution system on a permanent basis, $2.54/MWh for customers connected to the NEFC hot water distribution system on a permanent basis, and $2.54/MWh for customers connected to the Butterfly hot water distribution system on an interim basis. These charges are approved to be applied over a 24-month period, effective January 1, 2025.
2. Creative Energy is directed to file with the BCUC updated tariff pages reflecting the approvals of the RVDA rate rider for endorsement by February 13, 2025.
DATED at the City of Vancouver, in the Province of British Columbia, this 5th day of February 2025.
BY ORDER
Electronically signed by Elizabeth A. (Lisa) Brown
E. A. Brown
Commissioner