B R IT IS H C O LU M B I A U T IL I T IE S C O M M I S S I ON O R D E R N U M B E R G-71-98 SIXTH FLOOR, 900 HOWE STREET, BOX 250 a TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by MB Paper Limited for an Exemption from the Utilities Commission Act Regulation under Section 88(3) BEFORE: P. Ostergaard, Chair ) L.R. Barr, Deputy Chair ) August 13, 1998 K.L. Hall, Commissioner ) O R D E R WHEREAS: A. On May 27, 1998, MB Paper Limited (ÒMBÊPaperÓ) applied to the British Columbia Utilities Commission (theÊÒCommissionÓ), pursuant to Section 88(3) of the Utilities Commission Act (the ÒActÓ), for an exemption to sell steam and to re-sell electricity to MacMillan Bloedel Limited (ÒMBÓ); and B. MBÊPaper is currently a wholly-owned subsidiary of MB and owns a paper mill (the ÒPaper MillÓ) at Port Alberni, British Columbia; and C. On April 22, 1998, MB entered into a purchase agreement with Paper Acquisition Company Ltd. whereby Paper Acquisition Company Ltd. will acquire from MB all of the issued and outstanding shares of MBÊPaper; and D. MB will continue to own a sawmill (the ÒSomass MillÓ) adjacent to the Paper Mill and another sawmill (the ÒAPD MillÓ) near the Paper Mill (the Somass Mill and the APD Mill are collectively referred to herein as [the ÒMillsÓ]); and E. The Paper Mill and the Mills have shared, and will continue to share, a number of utilities and services including, inter alia, steam and electricity; and F. On May 27, 1998, British Columbia Hydro and Power Authority (ÒB.C. HydroÓ) advised MB and MBÊPaper that it would not object to the re-sale of electricity by MBÊPaper to MB at rates equivalent to those charged by B.C.ÊHydro; and G. MBÊPaper and MB propose to enter into a Port Alberni utility services agreement which will set out the terms upon which steam and electricity will be supplied to MB for use by the Mills through equipment and facilities owned by MBÊPaper; and H. The Commission has considered MBÊPaper's application pursuant to Section 88(3) of the Act and is satisfied that an Order exempting MBÊPaper from certain sections of the Act properly conserves the public convenience and interest; and I. On July 30, 1998, the approval of the Lieutenant Governor in Council was given to the said exemption by Order in Council No. 1062, 1998 attached as AppendixÊA. . . ./2
B R IT I S H C O L U M B I A U T I L I T I E S C O M M I S S I ON O R D E R N U M B E R G-71-98 2 NOW THEREFORE the Commission, pursuant to Section 88(3) of the Act, approves the application by MBÊPaper for an exemption from the provisions of the Act, other than Part 2 and SectionÊ99, in respect of the supply of steam and electricity to MB for sole use by the Mills, subject to the following terms and conditions, namely: 1. This Order shall be effective upon the execution and delivery of a utility services agreement acceptable to the Commission (the ÒUtility Services AgreementÓ) or the date of this Order, whichever is later. 2. This Order shall terminate on the date on which MBÊPaper ceases to be obliged by the Utility Services Agreement to supply steam and electricity to MB for use by the Mills. 3. This Order shall terminate in the event MBÊPaper and MB materially alter the terms of the Utility Services Agreement by which MB Paper is obligated to supply steam or electricity to MB for use by the Mills, and the Commission will decide what constitutes a material alteration. 4. This Order encompasses the supply of steam and electricity to MB from MBÊPaper using the existing facilities at the time of this Order, and may be modified or rescinded at the discretion of the Commission if material alterations to the facilities used to produce and deliver steam or to deliver electricity are made, and the Commission will decide what constitutes a material alteration. 5. This Order is transferable to any future owner of the Paper Mill and will continue to be effective in respect of the supply of steam or electricity to any future owner of one or both of the Mills. 6. The Commission may, pursuant to Section 99 of the Act, reconsider, vary or rescind an Order made by it. DATED at the City of Vancouver, in the Province of British Columbia, this ÊÊÊÊÊÊ18thÊÊÊÊÊÊday of August, 1998. BY ORDER Original signed by: Lorna R. Barr Deputy Chair Attachment ORDER/MB-Exempt-Sec 88(3)
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.