,s\\ COI.f.J. ~ g. · ~ ~ 1 ~ 4t " (I-~~\ C ~ S:: ~ :-. ~ ~ $ • ~ • ,\ ...-: ~~/ k- ~ -:g-~ "'-IlD ~~ S cot-fl PROVINCE OF BRITISH COLUMBIA BRITISH COLUMBIA UTILITIES COMMISSION IN THE MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and IN THE MATTER OF an Application by West Kootenay Power and Light Company, Limited for an Energy Project Certificate BEFORE: J.D.V. Newlands, Deputy Chairman and Chairman of Di vision; A.C. Michelson, Commissioner; and F .C. Leighton, Com missioner ORDER WHEREAS West Kootenay Power and Ught Company, Limited ("WKPL") pursuant to Section 18 of the Utilities Commission Act ("the Act") and in conformity with the requirements of B.C. Regulation 388/80, applied to the Minister of Energy, Mines and Petroleum Resources for an Energy Project Certificate for an Okanagan Gas Turbine Generation Plant on December 15, 1987 (lithe Application"); and WHEREAS the Minister of Energy, Mines and Petroleum Resources, with the concurrence of the Minister of Environment and Parks, referred the Application to the Commission Section 19(I)(a) of the Act at a public hearing in accordance with specific Terms of Reference attached as Appendix A to this Order. NOW THEREFORE pursuant to Section 20 of the Act the Commission hereby orders as follows: 1. A public hearing is to commence at 9:00 a.m. local time Tuesday, April 26, 1988 at the Park Lake Motor Inn, 1675 Abbot Street, Kelowna, B.C. 2. WKPL is to publish not later than Friday, March 11, 198&, a Notice of Public Hearing, as per attached copy, in one issue each of the Vancouver Province, the Vancouver Sun, the Kelowna Courier and other local news publications as may properly provide adequate notice to the population in the service area of the company. 3. WKPL is to purchase spot radio advertisements or obtain community service announcements on local radio stations, as may properly inform the public concerning the Okanagan Gas Turbine Generation Plant in and around the communities served. FOJ~H ",-00:; s..-x: S",:THE. S-:;EE- 'oA"'::;::X;'oER. s.::: TE~EPHO"'" ,&:>< 6,s0-47OC TE~Ex '''-54:'3\' ""-"1::0'1 12C 16(4) 660-110" -. :-,':~:. r:~ ~,G~.~:":~. ~<S> ."' .. -~ .. ~~- ,~,,.... . ,. ""':'" .. ,. - r ~'. - .. ~ .. :, ,. I ' ~' .. :.-~. _ J ~ - ••• '1 • t..", -...; •. _" ~ J ~t ~ 1 ~ l l "; / ; f :! . . . .. ~ ~ ; ,~ 0<-q .. ",c" ORi):::R \'1' NU:.18ER G-20-88 ) ) ) ) March 4,1988 ) ) ) for review pursuant to proposed •• • /2 'oS: 2,,' CANADA W-1105
2 4. WKPL is to prepare an Executive Summary of the Application which will be filed with the Commission and available to interested parties on or before March 11,1988. 5. WKPL is to file with the Commission not later than Friday, April 8, 1988 any supplemental material upon which it intends to rely. 6. Interested persons intending to be present and participate in the public hearing should give written notice of Intention to do so to the Commission Secretary, and to the Applicant, to be received not later than Friday, March 18, 1988. Such notice should state the nature of the interest in the proceeding. 7. Interested persons intending to file a written submission should provide one copy to the Commission Secretary, and one copy to the Applicant, to be received not later than Friday, April 8,1988. DATED at the City of Vancouver, in the Province of British Columbia, this /j'/h day of March, 1988. Attachment a n,,.,,,oo G"" P"~HII\ it! H': l'~ ~ L.i ~'I WH i UT H jr. ., l -~ q:0 r-~":"'·~'''''('''r!i!r,.~ LL..J I...' _ ..... ,.v~."d ORDER NUMBER G-20-88 additional prepared testimony and ~// ~ W~/;!fI~ J,.o.V~ Newlands Deputy Chairman and Chairman of the Division
~\s~ COI. UA _ ~ ''7~ g ~~ -v ~' 'I f ~ ~ '!b'' ~ ' ~ '''' 1 ~ : ( - C (j " ~~ " . . " .. ~ . ~\! ~ ...... ~,~.\Irr,~C~ 0 1',... d~"~q Jt~ ... ,,\<;, SCO~\"I' NOTICE OF PUBLIC HEARING THE APPLICATION West Kootenay Power and Light Company, Limited ("WKPL") has applied to the Minister of Energy, Mines and Petroleum Resources for an Energy Project Certificate to construct and operate an Okanagan Gas Turbine Generation Plant at Kelowna, B.C. The project was referred to the British Columbia Utilities Commission (tithe Commission") to hear the Application at a public hearing. THE PUBLIC HEARING The Commission has set down the Application for public hearing commencing at 9:00 a.m. local time, Tuesday, April 26, 1988 at the Park Lake Motor Inn, 1675 Abbot Street, Kelowna, B.C. PUBLIC INSPECTION OF THE APPLICATION The Application and supporting material are available for inspection at the Head Office of West Kootenay Power and Light Company, Limited, Waneta Plaza, 8lO0 Rock Island Highway, Box 130, Trail, B.C., VIR 4L4; and at its district offices located at Castlegar, Crawford Bay, Creston, Grand Forks, Greenwood, Kaslo, Kelowna, Keremeos, Oliver, Penticton, Salmo, and South Slocan, B.C. A copy of the Application and supporting material is also available for inspection at the office of the British Columbia Utilities Commission, 4th Floor, 800 Smithe Street, Vancouver, B.C. A copy of an Executive Summary is available for inspection in WKPL offices and can be made available to interested parties, upon request, from the Applicant. INTERVENTIONS Any person intending to be present at the public hearing and to give evidence or cross-examine witnesses should provide written notice, to be received not later than Friday, March 18, 1988, to the Commission Secretary, and to the Applicant. The notice should include a brief statement of the nature of the interest in the proceedings. SUBMISSIONS BY INTERESTED PERSONS Any person intending to file a written submission must do so, to be received not later than Friday, April 8, 1988, one copy of the submission to the Commission Secretary, and to the Applicant. CLARIFICA TION Persons intending to participate in the public hearing, and who are uncertain as to the manner in which to proceed, may contact R.J. Pellatt, Commission Secretary or W.J. Grant, Director of Engineering by telephone (660-4700) collect, or in writing. BY ORDER q~. Commission Secretary FOU'l""H "LX)'i 800 SW'''HE S"'i=~ V"""::::l'JVE'i B:: V6Z 2E' CANA:)A TE_E""';ONE 1604, S60-4iOC TE~O, 04-:.<4536 ""'''',::011 ~20 16041 660-1102 y."~ 105
APPENDIX A TERMS OF REFERENCE IN THE MATTER OF THE UTILITIES COMMISSION ACT (lithe Act tl ) S.B.C. 1980, c. 60 and IN THE MATTER OF AN APPLICATION BY WEST KOOTENAY POWER AND LIGHT COMPANY, LIMITED ("WKPL") FOR AN ENERGY PROJECT CERTIFICATE FOR THE OKANAGAN GAS TURBINE GENERATION PLANT (lithe Project ll ) DISPOSITION OF APPLICATION AND TERMS OF REFERENCE FOR REVIEW BY THE BRITISH COLUMBIA UTILITIES COMMISSION WHEREAS, WKPL, pursuan~ to section 18 of the Act and in conformance wi~h the requirements of B.C. Regulation 388/80, applied for an Energy Project Certificate by way of an Application dated December, 1987 (lithe Application"); AND WHEREAS, applica~ion may be made to the Provincial Agricultural Land Commission to exclude land for the project from the land reserve pursuant to the A~ricultural Land Commission Act; AND WHEREAS, applications may be made to the local government having jurisdiction with respect to land use mattersi NOW THEREFORE, pursuant to sec~ions 19(1) (a) and 20 of the Act, the Minister of Energy, Mines and Petroleum Resources, with the concurrence of the Minister of Environment and Parks, refers the Application to the British Columbia U~ilities Commission (lithe Commission") for review. The Commission shall hear the Application in public hearing in accordance with the following Terms of Reference, and invite comments from interested parties. 1. OBJECTIVE The Commission shall recommend to the Lieutenant Governor in Council whether the Energy Project Cert1fica~e applied for by WKPL should be issued or retused, and, if issued, sUbject to what conditions.
- 2 -2. PROJECT JUSTIFICATION AND RESOURCE OPTIONS 2(1) PROJECT JUSTIFICATION The Commission shall review and assess whether the Project is the preferred new resource to meet forecast load growth given cost, operating conditions, reliability, and safety considerations. 2(2) PRELIMINARY ENVIRONMENTAL REVIEW The Commission shall review and assess any detrimental enviro~~ental impacts associated with a gas turbine generation plant, and identify mitigation proposals that would reduce environmental impacts to an acceptable level. 2(3) RESOURCE OPTIONS The Commission shall, inter alia, review and assess those sections of WKPL's "1987 Resource Study Supply and Demand Options", attached as Appendix 1 of its Application, which the Commission deems appropriate to its review of Project justification, including demand side options, alternate power sources, wheeling, and their effect on rates. 3 • REVIEW OF' OKANAGAN GAS TURBINE GENERATION PLANT 3(1) CAPITAL COSTS The Commission may review and assess w~PL's Project capital cost estimate at its proposed (Kelowna Industrial) site, at two alternative sites (Hir~. Walker North and Hiram Walker South) as identified in the Application, or, with the concurrence of the Commission, at other sites. Cost components to be examined shall include, inter alia: (a) land acquisition; (b) rail spur; (c) access road; (d) gas line; (e) water supply (f) transmission to main electric grid; (g) gas turbines; (h) emission control and noise attenuation equipment; (i) design and engineering; (j) allowance for funds used during construction; (k) contingencies; ana (l) other capitalized costs.
- 3 -3(2) COST OF SERVICE AND RATE IMPACTS For each site examined pursuant to section 3(1) of these Terms of Reference, the Corrmission shall review and assess annual estimates of cost of service and the components thereof, inclu~ing, inter alia: (a) depreciation expense; (b) interest and return on equitYi (c) corporate taxes; (d) costs of fuel (natural gas and #2 fuel oil); (e) operating and maintenance costs; (f) property taxes; and (g) other expenses, taxes, or costs added to the cost of service. The Commission shall also review and assess impacts of the Project on rates charged for service by WKPL. 3{3) DESIGN AND OPERATION For each site examined pursuant to section 3(1), the Commission shall review and assess the adequacy of the Project ~esign and operation with respect to safety and reliability of service. 3(4) ENVIRONMENTAL IMPACT For each site exa~ined pursuant to section 3(1), the Commission shall review and assess predicted air emissions, the environment's capability to disperse the emissions, and proposals to mitigate detrimental impacts on the environment. The Commission shall also consider and reco~~end whether approvals under the Waste Management Act for emissions to the environment should be issue~, The Commission shall review and assess the levels of noise emitted by the Project and the Applicant's proposals for noise attenuation. For each site examined pursuant to section 3(1), the Commission may review and assess other environmental matters deemed by the Commission to be relevant. 3(5) PROJECT SCHEDULING The Commission shall review and assess the reasonableness of WKPL's anticipated project schedule in meeting the proposed commissioni~g date of June 1989.
- 4 -3(6) PROCUREMENT With respect to labour, material and equipment procurement, the Co~mission shall review WKPL's proposed level of British Columbian and Canadian content, ~~d recommend possible ways to maximize British Columbian and Canadian content, while recognizing the desire to minimize Project costs. 4. OTHER MATTERS The Commission shall consider any other matters, jointly specified from time to time by the Minister of Energy, Mines and Petroleum Resources and the Minister of Environment and Parks, prior to the conclusion of the hearing, in its review ot the Application. In its review of the Application, the Commission shall take into consideration the decisions, if any, of the provincial Agricultural Land Commission and local governments with respect to land use matters. 5. REPORT AND RECOMMENDATIONS 5(1) TIMING On conclusion of the public hearing, the Commission shall submit a report and reco~~endations to the Lieutenant Governor in Council by June 30, 1988, or as soon thereafter as may be practical. In the event that there are impediments to the expeditious review of the Application, the Commission shall advise the Minister of Energy, Mines and Petroleum Resources, and indicate how government may assist in expediting the review process. 5(2) OPTIONAL REPORT FOLLOWING REVIEW OF PROJECT JUSTIFICATION Notwithstanding section 5(1), the Commission may conclude the hearing and submit a report and recommendations to the Lieutenant Governor in Council following its review and assessment of matters specified in section 2 of these Terms of Reference. By so doing, the Co~~ssion shall not hear matters specified in section 3 of these Terms of Reference.
- 5 -5(3.) REPORT CONTENTS In its report and recommendations, the Commission shall recommend whether the Energy Project Certificate applieQ for by WKPL should be refused or issued, and if issuance is recommended, the Co~~ssion may also recommend conditions it considers advisable for inclusion in an Energy Project Certificate, an Energy Operation Certificate, or both. 5(4) TRANSMITTAL WK?L's Application for the Project is transmitted to the Commission with this Disposition and Terms of Reference. ~ .. c.t ~, ~ Honourable W. Bruce Strachan Minister of Environment and Parks Dated for this ..!f:.!::. day of March, 1988.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.