Orders

ORDER NUMBER

G-249-25

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Bluestem Multi-Utility Services ULC

Nexus Cost Allocation Methodology

BEFORE:

W. E. Royle, Commissioner

on October 15, 2025

ORDER

WHEREAS:

A.      On June 30, 2025, Bluestem Multi-Utility Services ULC (Bluestem or BMUS) filed its proposed cost allocation methodology with the British Columbia Utilities Commission (BCUC) further to Order G-279-23 (Application);

B.      Bluestem owns and operates several energy utility systems in British Columbia, including Sun Rivers Gas, Sun Rivers Electric, Sonoma Pines Gas, Sonoma Pines Electric, and Panorama Propane;

C.      By Decision and Order G-279-23 regarding the Corix Multi-Utility Services Inc. (CMUS) Application for Approvals relating to Restructuring and Business Combination Transactions, the BCUC directed, among other things, that CMUS (now Bluestem) file any proposed changes to the cost allocation methodology, approved by Order G-349-20, with the BCUC for approval prior to implementation; and

D.      By Order G-221-25, the BCUC established a regulatory timetable for review of the Application, which included, among other things, one round of BCUC information requests (IR), letters of comment, and Bluestem final argument and reply, if any, to letters of comment;

E.       On October 7, 2025, Bluestem filed its response to BCUC IR No. 1; and

F.       The BCUC has reviewed the evidentiary record and finds that the following determinations are warranted.

NOW THEREFORE the BCUC orders as follows:

1.       An amended regulatory timetable is established, as set out in Appendix A to this order.

2.       Bluestem is directed to file responses to the Panel IRs outlined in Appendix B to this order, by the deadline established in the amended regulatory timetable

DATED at the City of Vancouver, in the Province of British Columbia, this      15^th      day of October 2025.

BY ORDER

Electronically signed by Wendy Royle

W. E. Royle

Commissioner

Attachment

Bluestem Multi-Utility Services ULC

Nexus Cost Allocation Methodology

Bluestem Multi-Utility Services ULC

Nexus Cost Allocation Methodology

1.0               Reference:         Rate Impact
Exhibit B-4, BCUC IRs 2.1, 2.2

In response to British Columbia Utilities Commission (BCUC) IR 2.1, Bluestem Multi-Utility Services ULC (Bluestem) stated:

BMUS [Bluestem Multi-Utility Services ULC] is not able to provide the requested information in the timeframe of this proceeding. The rates of the utilities referred to in the IR are not set based on a cost of service methodology, and accordingly BMUS does not have appropriate cost of service financial models and/or inputs to such models to calculate what cost of service rates would be using the former Corix [Cost Allocation Methodology] CAM versus the Nexus CAM.

In response to BCUC IR 2.2, Bluestem stated it anticipated filing a revenue requirements application (RRA) for Sun Rivers Electric in Q3 2026 and for Sun Rivers Gas in Q3 2027. Bluestem does not have any RRA planned for the Sonoma Pines Utilities.

1.1               Please explain how much time Bluestem requires to prepare the appropriate cost of service financial models to produce the indicative rate impact on each of Sun Rivers’ and Sonoma Pines’ electric and gas utility resulting from the Nexus CAM if those four utilities were to charge cost-of-service rates per BCUC IR 2.1. If the information can be provided under different timeframes for each utility, please specify and explain why.

1.2               Please discuss the pros and cons if the BCUC directs further review of the CAM in the following scenarios:

                                                         i.            initiating a separate proceeding that pertains to all Bluestem utilities when indicative rates are available; and

                                                       ii.            conduct the CAM review as part of a future cost-of-service rate application (e.g. Sun Rivers Electric in Q3 2026).

2.0               Reference:         Rate Impact
Exhibit B-4, BCUC IRs 2.2, 2.5

In response to BCUC IR 2.5, Bluestem stated:

Currently, it is unclear whether the new Nexus CAM will affect Panorama Propane’s basic and delivery charges, as may be proposed in a future RRA. BMUS will carry out a cost-of-service review in preparation for its next Panorama Propane RRA and will communicate the Nexus CAM impact, if any, within the application.

In response to BCUC IR 2.2, Bluestem stated it anticipated filing an RRA for Panorama Propane in Q1 2026 to incorporate carbon tax changes.

2.1               Please clarify whether Bluestem will conduct a cost-of-service review of basic and delivery charges and provide any Nexus CAM impact as part of the Panorama Propane RRA to be filed in Q1 2026.

2.1.1         If no, please explain when Bluestem anticipates conducting a cost-of-service review of Panorama Propane’s basic and delivery charges and providing any Nexus CAM impact to the BCUC.