ORDER NUMBER
G-310-21A
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Creative Energy Vancouver Platforms Inc.
2021 Revenue Requirements Application for the Core Steam System
BEFORE:
A. K. Fung, QC, Panel Chair
K. A. Keilty, Commissioner
B. A. Magnan, Commissioner
on October 29, 2021
ORDER
WHEREAS:
A. On December 1, 2020, Creative Energy Vancouver Platforms Inc. (Creative Energy) submitted its 2021 Revenue Requirements Application (RRA) for the core steam system (Core Steam System) to the British Columbia Utilities Commission (BCUC) (Application);
B. By Order G-11-21A dated January 13, 2021, the BCUC approved, on an interim and refundable/recoverable basis effective January 1, 2021, the steam rates set forth in Appendix B of the Application, which are equivalent to a 6.9 percent increase over 2020 final approved rates. The BCUC also established a regulatory timetable for the review of the Application, which included intervener registration, one round of BCUC and intervener information requests (IRs) to Creative Energy, and further process to be determined following Creative Energy’s filing of responses to IR No. 1;
C. On February 26, 2021, Creative Energy filed an evidentiary update and amendment to the Application (Evidentiary Update). In the Evidentiary Update, Creative Energy requests interim and permanent approval of a 17.5 percent increase over existing 2021 interim steam rates, to be effective March 1, 2021, based on a 15 percent reduced load forecast that incorporates the expected impacts of the COVID-19 pandemic on customer demand in 2021;
D. By Order G-84-21 dated March 18, 2021, the BCUC approved, among other things, the cancellation of the Fuel Cost Adjustment Charge Rate Rider;
E. By Order G-88-21 dated March 22, 2021, the BCUC approved a 17.5 percent increase over existing 2021 interim steam rates for the Core Steam System, effective March 1, 2021, on an interim and refundable/recoverable basis. The BCUC also established the remainder of the regulatory timetable, including a second round of BCUC and intervener IRs to Creative Energy, and written final and reply arguments;
F. By Order G-104-21 dated April 6, 2021, the BCUC approved Creative Energy to establish a Refinancing Cost Deferral Account, to record the costs allocated to Northeast False Creek (NEFC) for Creative Energy’s September 17, 2020 debt refinancing, pending a final decision on the Creative Energy 2021 RRA for the Core Steam System which would address the final costs allocated to NEFC in the deferral account; and
G. The BCUC has reviewed the Application, the evidence and submissions by all parties in this proceeding and makes the following determinations.
NOW THEREFORE pursuant to section 58 to 61 of the Utilities Commission Act, and for the reasons provided in the decision issued concurrently with this order (Decision), the BCUC orders as follows:
1. Creative Energy is approved to charge a 2021 average steam rate of $9.78 per thousand pounds of steam for the Core Steam System, equivalent to a 20.3 percent increase above 2020 approved average steam rates, on a permanent basis, effective January 1, 2021.
2. Creative Energy is directed to refund to ratepayers the net difference between the interim steam rates collected and permanent rates with interest at Creative Energy’s cost of debt in the next billing cycle after this Decision, as set out in Section 2.4 of the Decision.
3. Creative Energy is directed to address the appropriate allocation of property taxes to the Core Steam System in its next revenue requirements application.
4. Creative Energy is directed, for the 2021 Test Period, to record any return on equity and interest savings from underspending on capital additions in the COVID-19 deferral account.
5. Creative Energy is directed to address the rate base treatment of the land located at 720 Beatty Street and 701 Expo Boulevard, Vancouver, British Columbia, transferred to the developer in its next revenue requirement application, as set out in Section 2.1.4 of the Decision.
6. Creative Energy is approved, effective January 1, 2021:
a. To continue the Third-Party Regulatory Costs Deferral Account on an ongoing basis to capture third-party regulatory cost forecast variances, with the balance to be amortized over one year and attracting a carrying cost equal to 3.5 percent;
b. To amend the amortization period for the Pension Expense Deferral Account from one year to three years;
c. To continue the Water Cost Deferral Account to capture water cost forecasts variances until Creative Energy files its next RRA for the Core Steam System, with the balance to be amortized over one year and attracting a carrying cost equal to 3.5 percent; and
d. To continue the Property Tax Deferral Account on an ongoing basis to capture property tax forecast variances, with the balance to be amortized over one year and attract a carrying cost equal to Creative Energy’s approved debt rate.
7. Creative Energy is denied the establishment of a Refinancing Cost Deferral Account and to include amortization of $247,957 from the proposed account into the 2021 Revenue Requirement.
8. Creative Energy is approved to add $22,436 (plus applicable interest) to the Fuel Cost Stabilization Account and to address the recovery of this amount by November 30, 2021, as an addendum to its next filing pursuant to BCUC Order G-84-21.
9. Creative Energy is directed to remove the amounts recorded in the Refinancing Deferral Account for the NEFC service area established by Order G-104-21 and to close the account.
10. Creative Energy is denied the use of the proposed Refinancing Cost deferral account to record 2021 credit facility renewal fees.
12. Creative Energy is directed to file with the BCUC, within 10 days of the date of this order, amended tariff pages in accordance with the terms of this order and the Decision issued concurrently.
13. Creative Energy is directed to file with the BCUC, within 30 days of the date of this order, finalized financial schedules in accordance with the terms of this order and the Decision issued concurrently.
DATED at the City of Vancouver, in the Province of British Columbia, this 24th day of November 2021.
BY ORDER
Original signed by:
A. K. Fung, QC
Commissioner