LETTER No. L-56-97 <b~ CO'-u ~\ .~. . Itt~ Q;) ~..\, •• _.,• . t. IrA -p c, " SIXTH FLOOR. 900 HOWE STREET, BOX 250 ? <"/J-: ~ :!-.= ~ .-! s ' 0: 2 VANCOUVER. B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660-4700 ROBERT J. PELLATT ,,' ", ....' . '" CoO:> BC TOLL FREE: 1-800-663-1385 COMMISSION SECRETARY /~s'·~~~~\ FACSIMILE: (604) 660-1102 VIA FACSIMILE September 12, 1997 Mr, Dana Taylor Executive Vice President and Coalition Coordinator Coalition of Gas Contractors, Manufacturers and Suppliers Association 3210 Lake City Way Burnaby, B.c. V5A3A4 Dear Mr, Taylor: Re: BC Gas Utility Ltd. Homeworks Inc. Advertising Campaign for the New Finance Plan The Commission has reviewed the correspondent received from BC Gas, the Heating Ventilating Cooling Industry Association of BC ("HVCI") and the Coalition of Gas Contractors, Manufacturers, and Suppliers Association ("the Coalition") concerning the Homeworks Inc. Advertising Campaign for the new finance plan. After review, the Commission finds that the changes to the advertising campaign proposed by BC Gas are sufficient to bring the campaign into accord with the Guidelines. Accordingly the Commission will not proceed further with the complaints. In reaching this decision, the Commission has been mindful of the jurisdiction it possesses with respect to the downstream retail market. As stated in the Guidelines, the Commission has the jurisdiction to regulate the relationship between a public utility and affiliated NRB to the extent that the relationship affects ratepayers. With respect to the use of the name, the Guidelines are clear that the Commission has accepted that the name, along with any value associated with the name, belongs to the shareholders of the utility, in this case BC Gas Inc., and not with ratepayers. Accordingly, the Commission can limit the use of the name only to the extent that the use negatively affects rate payers. With the changes proposed to the advertising campaign by BC Gas, it is unlikely that ratepayers will be negatively affected by the proposed campaign. As indicated above, the Commission accepts that the name belongs to the shareholders of the utility, and BC Gas has confirmed this in recent correspondence dated September 4, 1997, attached for your information. As a result, the Commission can not ask that ratepayers be compensated for the use of an asset to which they are not entitled. Nor will the Commission require BC Gas Inc. to allow other parties to use the name on a similar basis to Homeworks Inc. since the name belongs to the parent company . .. .12
2 With respect to other issues raised in the correspondence, the Commission did implicitly grant permission to BC Gas Inc. to use the name "Homeworks" for their new completely arms length NRB when it approved the transfer of the financing plan from BC Gas Utility to Homeworks Inc. With respect to the issue of monitoring the activity of the NRB as it impacts ratepayers, the Commission is requiring that all utilities provide the following information. 1 . Identification of all current non-regulated business activities undertaken by the utility directly or by a related-NRB using some utility facilities or services. 2. Identification of any regulated activities which the utility currently provides but plans to provide on a non-regulated basis, either directly or through a non-regulated company, within the next three years. 3. Based on the items identified in item 2 above, a preliminary strategy for affecting the transfer of any items which the utility currently plans to move to unregulated provision within the next three years. If it is planned to use utility facilities or services in the provision of these services, either through a transition period or on a long term basis, this should be identified. In addition, the utility should provide an initial justification for why the use of utility facilities or services is acceptable. 4. A draft transfer pricing policy to apply to the provision of utility services and facilities to non-regulated activities. If exceptions to the policy are desired for any non-regulated activity, these exceptions should be clearly identified. 5. A draft code of conduct to apply to the provision of utility services and facilities to non-regulated activities. If exceptions to the code are desired for any non-regulated activity, these exceptions should be clearly identified. The utilities are in the process of providing this information and it is being reviewed by Commission staff for acceptability. Further, as indicated in the Guidelines, utilities will be required to file periodic reports which the Commission will review for compliance with the Guidelines. The Commission has the ability to establish specific punitive consequences for contravening the RMDM Guidelines. With regard to this case, the Commission does not find that the imposition of punitive consequences are warranted. The problems which were identified do not appear to have been a deliberate attempt to circumvent the Guidelines but rather were a transitional problem resulting from the move from a regulated utility to a non-regulated NRB environment. In addition, the Commission is satisfied that BC Gas is making every effort to ensure that these problems are corrected and will not occur in the future. The Commission will be monitoring all the utilities for compliance with the Guidelines and will take all necessary action to protect ratepayers from the move to a deregulated environment. Yours truly, CBUcms Enclosure cc: Mr. David M. Masuhara, Vice President, Legal and Regulatory Affairs BC Gas Utility Ltd. BCG/Cor/Homeworks ComplaintfHVCI & Coalition
Be Gas Utility Ltd. David M. Maauhara 1111 West Georgia Street Tel (604) 443-6607 Vice President Vancouver, British Columbia Fax (604) 443-6789 Legal & Regulatory Affairs Canada V6E 4M4 and Secretary B.C. UTILITIES COMMISSION ® September 4, 1997 RECEIVED & ACKNOWLEDGED Be SEP 0 5 199~7' i Gas VIA FAX 660-1102 FOR :;,IArF kt:.Vld;,. <:..:>1"'0 SE AND COURIER . . ... i .. ~F O O R . R ESOURCE ROO TO BE FILED ....... - ........... . BRITISH COLUMBIA UTILITIES COMMISSION 6th Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Attention: Mr. Robert J. Pellatt Dear Mr. Pellatt: Re: HVCI letter dated August 29, 1997 regarding BC Gas and the "Homeworks" Program Advertising Campaign The purpose of this letter is to clarify the use of the name 'Homeworks' by BC Gas Inc. and BC Gas Utility Ltd. Homeworks Inc. is the company name of a stand alone NRB which is wholly owned by BC Gas Inc., not BC Gas Utility Ltd. The shareholders of BC Gas Inc. own the 'Homeworks' name as part of the goodwill of the Company. With the removal of the Horne Energy Retrofit Program from the Utility, BC Gas Utility Ltd. no longer uses the name 'Homeworks' for any Utility sponsored programs. This includes the Utility sponsored magazine which no longer uses 'Homeworks' as the title. Any use of the name 'Homeworks' in the Utility has been limited in the past, resulting in a very small awareness level by customers. We trust this clarifies the use of the 'Homeworks' name by BC Gas Inc. and BC Gas Utility Ltd. If further discussion on this matter is required, please contact Brett Hodson at 443-6484 or the writer at your convenience. Yours truly, f B.: 1'1 ~TILITY LT D(" /4jJjl£tuci~ ~avid M. Masuhara DMMlBTHlbrrn cc: B.T. Hodson
LETTER No. L·S6·97 SIXTH FLOOR. 900 HOWE STREET. BOX 250 VANCOUVER. B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660-4700 ROBERT J. PELLATT BC TOLL FREE: 1-800-663-1385 COMMISSION SECRETARY FACSIMILE: (604) 660-1102 VIA FACSIMILE September 12, 1997 Ms. Nelle Maxey Manager Heating Ventilating Cooling Industry Association of B.C. 1860 Grant Street Vancouver, B.c. V5L2Y8 Dear Ms. Maxey: Re: BC Gas Utility Ltd. Homeworks Inc. Advertisin& Campai&n for the New Finance Plan The Commission has reviewed the correspondent received from BC Gas, the Heating Ventilating Cooling Industry Association of BC ("HVCI") and the Coalition of Gas Contractors, Manufacturers, and Suppliers Association ("the Coalition") concerning the Homeworks Inc. Advertising Campaign for the new finance plan. After review, the Commission finds that the changes to the advertising campaign proposed by BC Gas are sufficient to bring the campaign into accord with the Guidelines. Accordingly the Commission will not proceed further with the complaints. In reaching this decision, the Commission has been mindful of the jurisdiction it possesses with respect to the downstream retail market. As stated in the Guidelines, the Commission has the jurisdiction to regulate the relationship between a public utility and affiliated NRB to the extent that the relationship affects ratepayers. With respect to the use of the name, the Guidelines are clear that the Commission has accepted that the name, along with any value associated with the name, belongs to the shareholders of the utility, in this case BC Gas Inc., and not with ratepayers. Accordingly, the Commission can limit the use of the name only to the extent that the use negatively affects rate payers. With the changes proposed to the advertising campaign by BC Gas, it is unlikely that ratepayers will be negatively affected by the proposed campaign. As indicated above, the Commission accepts that the name belongs to the shareholders of the utility, and BC Gas has confirmed this in recent correspondence dated September 4, 1997, attached for your information. As a result, the Commission can not ask that ratepayers be compensated for the use of an asset to which they are not entitled. Nor will the Commission require BC Gas Inc. to allow other parties to use the name on a similar basis to Homeworks Inc. since the name belongs to the parent company. With respect to other issues raised in the correspondence, the Commission did implicitly grant permission to BC Gas Inc. to use the name "Homeworks" for their new completely arms length NRB when it approved the transfer of the financing plan from BC Gas Utility to Homeworks Inc. . . .12
2 With respect to the issue of monitoring the activity of the NRB as it impacts ratepayers, the Commission is requiring that all utilities provide the following information. 1 . Identification of all current non-regulated business activities undertaken by the utility directly or by a related-NRB using some utility facilities or services. 2. Identification of any regulated activities which the utility currently provides but plans to provide on a non-regulated basis, either directly or through a non-regulated company, within the next three years. 3. Based on the items identified in item 2 above, a preliminary strategy for affecting the transfer of any items which the utility currently plans to move to unregulated provision within the next three years. If it is planned to use utility facilities or services in the provision of these services, either through a transition period or on a long term basis, this should be identified. In addition, the utility should provide an initial justification for why the use of utility facilities or services is acceptable. 4. A draft transfer pricing policy to apply to the provision of utility services and facilities to non-regulated activities. If exceptions to the policy are desired for any non-regulated activity, these exceptions should be clearly identified. 5. A draft code of conduct to apply to the provision of utility services and facilities to non-regulated activities. If exceptions to the code are desired for any non-regulated activity, these exceptions should be clearly identified. The utilities are in the process of providing this information and it is being reviewed by Commission staff for acceptability. Further, as indicated in the Guidelines, utilities will be required to file periodic reports which the Commission will review for compliance with the Guidelines. The Commission has the ability to establish specific punitive consequences for contravening the RMDM Guidelines. With regard to this case, the Commission does not find that the imposition of punitive consequences are warranted. The problems which were identified do not appear to have been a deliberate attempt to circumvent the Guidelines but rather were a transitional problem resulting from the move from a regulated utility to a non-regulated NRB environment. In addition, the Commission is satisfied that BC Gas is making every effort to ensure that these problems are corrected and will not occur in the future. The Commission will be monitoring all the utilities for compliance with the Guidelines and will take all necessary action to protect ratepayers from the move to a deregulated environment. Yours truly, Robert J. Pellatt CBUcms Enclosure cc: Mr. David M. Masuhara, Vice President, Legal and Regulatory Affairs BC Gas Utility Ltd. BCG/Cor/Homeworks ComplaintlHVCI & Coalition
Be Gas Utility Ltd. David M. Maauhara 1111 West Georgia Street Tel (604) 443-6607 Vice President Vancouver. British Columbia Fax (604) 443-6789 Legal & Regulatory Affairs Canada V6E 4M4 and Secretary B.C. UTILITIES COMMISSION ® September 4, 1997 RECEIVED & ACKNOWLEDGED SEP 051997 Be Gas VIA FAX 660-1102 ...... FOR ::.IAfF 1-:l:.vtc. ... /oic..:>r'O.NSE AND COURIER .... ..fOR RESOURCE ROO ..v .: INFO. TO BE FILED ..... ~. .•.•••.•... / BRITISH COLUMBIA UTILITIES COMMISSION 6th Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Attention: Mr. Robert J. Pellatt Dear Mr. Pellatt: Re: HVCI letter dated August 29, 1997 regarding BC Gas and the "Homeworks" Program Advertising Campaign The purpose of this letter is to clarify the use of the name' Homeworks' by BC Gas Inc. and BC Gas Utility Ltd. Homeworks Inc. is the company name of a stand alone NRB which is wholly owned by BC Gas Inc., not BC Gas Utility Ltd. The shareholders of BC Gas Inc. own the 'Homeworks' name as part of the goodwill of the Company. With the removal of the Home Energy Retrofit Program from the Utility, BC Gas Utility Ltd. no longer uses the name 'Homeworks' for any Utility sponsored programs. This includes the Utility sponsored magazine which no longer uses 'Homeworks' as the title. Any use of the name 'Homeworks' in the Utility has been limited in the past, resulting in a very small awareness level by customers. We trust this clarifies the use of the 'Homeworks' name by BC Gas Inc. and BC Gas Utility Ltd. If further discussion on this matter is required, please contact Brett Hodson at 443-6484 or the writer at your convenience. Yours truly, I B7t; "l ~TILITY LT D~ /lj/JJ,ttucj;~ ;DaVid M. Masuhara DMMlBTHlbrm cc: B.T. Hodson
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.