Orders

ORDER NUMBER

G-117-21

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Nelson Hydro

Cost of Service Analysis and Rate Design Application

BEFORE:

R. I. Mason, Panel Chair

A. K. Fung, QC, Commissioner

T. A. Loski, Commissioner

on April 21, 2021

ORDER

WHEREAS:

A.      On November 27, 2020, Nelson Hydro filed a Cost of Service Analysis (COSA) and Rate Design Application (RDA) with the British Columbia Utilities Commission (BCUC) (Application);

B.      Nelson Hydro is owned and operated by the City of Nelson and is exempt from regulation under the Utilities Commission Act (UCA) to the extent it is serving customers within its municipal boundaries. Accordingly, the BCUC’s review of the Application pertains solely to Nelson Hydro’s non-municipal, or rural, ratepayers;

C.      In the Application, Nelson Hydro requests approval of the following:

1.       Proposed return on equity for the Rural service area at 9.25% to be used for future rate applications;

2.       Nelson Hydro’s Policies approved by City Council relating to the non-municipal portion of the utility (i.e. the Allocation Factors Policy, Generation Rates Policy, Debt Policy, and Deferral Account Policy);

3.       The COSA; and

4.       Proposed rate changes to Rural residential rates effective September 1, 2021 (to be phased-in over a three-year period with follow-up adjustments effective September 1, 2022 and September 1, 2023);

D.      By Order G-346-20 dated December 22, 2020, and later amended by Order G-57-21 dated March 1, 2021, the BCUC established a regulatory timetable that included intervener registration and one round of BCUC and intervener information requests (IRs) with further process to be determined; and

E.       The Panel has reviewed Nelson Hydro’s responses to IR No. 1 and considers that a second round of IRs is warranted.

NOW THEREFORE the BCUC establishes an update to the regulatory timetable, attached as Appendix A to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this                 21^st                 day of April 2021.

BY ORDER

Original signed by:

R. I. Mason

Commissioner

Attachment

Nelson Hydro

Cost of Service Analysis and Rate Design Application