ORDER NUMBER
G-8-21
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Boralex
Ocean Falls Limited Partnership
Application for Rates and Terms and Conditions for Service to
the British Columbia Hydro and Power Authority - July 1, 2019 to December 31, 2022
BEFORE:
B. A. Magnan, Panel Chair
W. M. Everett, QC, Commissioner
R. I. Mason, Commissioner
on January 11, 2021
ORDER
WHEREAS:
A. On September 30, 2019, Boralex Ocean Falls Limited Partnership (Boralex) applied to the BCUC for approval of interim and permanent rates for service to British Columbia Hydro and Power Authority (BC Hydro) for the period of July 1, 2019 to December 31, 2022, terms and conditions for service to BC Hydro and the First Nations relationship building deferral account (Application). The Application is made pursuant to Orders G-143-19 and G-202-19;
B. By Order G-270-20 dated October 27, 2020, the BCUC ordered, among other things, that Boralex is approved to recover on a permanent basis the rates for electric service to BC Hydro for the period July 1, 2019 to December 31, 2022, subject to the adjustments resulting from the directives and determinations contained in Order G-270-20 and the Decision issued concurrently;
C. By letter dated August 31, 2020, British Columbia Old Age Pensioners’ Organization et al. (BCOAPO) filed an application to the BCUC for Participant Assistance/Cost Award (PACA) in the amount of $33,068 with respect to its participation in this proceeding;
D. By Order F-46-20 dated December 7, 2020, the BCUC ordered PACA funding be awarded to BCOAPO in the amount of $33,068 for its participation in the proceeding;
E. By letter dated December 1, 2020, Boralex requested approval from the BCUC to establish a PACA funding cost deferral account to record any PACA funding costs that it is directed to pay. Boralex would then seek to recover any amount recorded in this deferral account as part of the revenue requirement for the test period covered by Boralex’s next rate application;
F. By letter dated December 7, 2020, the BCUC sought comments from registered interveners in the proceeding on Boralex’s request to establish a deferral account to record the PACA funding awarded to BCOAPO of $33,068, with recovery of this amount to be sought in Boralex’s next rate application filed with the BCUC;
G. By letter dated December 16, 2020, BCOAPO requests that Boralex file certain information regarding the deferral account with the BCUC, and if the BCUC is satisfied with the information, BCOAPO does not oppose the application to establish the deferral account;
H. By letter dated December 21, 2020, Boralex provided its reply to BCOAPO’s comments; and
I. The BCUC considers that establishment of the deferral account requested by Boralex is warranted.
NOW THEREFORE the BCUC orders as follows:
1. Pursuant to sections 59 to 61 of the Utilities Commission Act, Boralex’s request to establish a deferral account to capture PACA awarded to BCOAPO by Order F-46-20 is approved. The deferral account is to attract interest at Boralex’s weighted average cost of debt.
2. Boralex is directed to address the following matters in its next rate application filed with the BCUC:
a. The deferral account balance to be recovered in rates;
b. The proposed amortization period for the recovery of the deferral account balance; and
c. Whether it would be appropriate to establish a permanent PACA funding cost deferral account.
DATED at the City of Vancouver, in the Province of British Columbia, this 11th day of January 2021.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner