ORDER NUMBER
G-342-22
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Boralex Ocean Falls Limited Partnership
Application for Approval of Interim Rates for Service
to British Columbia Hydro and Power Authority Effective January 1, 2023
BEFORE:
E. B. Lockhart, Panel Chair
on November 28, 2022
ORDER
WHEREAS:
A. On November 15, 2022, Boralex Ocean Falls Limited Partnership (Boralex) applied to the British Columbia Utilities Commission (BCUC) for approval to make its current 2022 rates interim for service to British Columbia Hydro and Power Authority (BC Hydro), effective January 1, 2023, on the condition that Boralex files its next rate application by no later than March 31, 2023 (Application);
B. By Order G-16-21 dated January 18, 2021, the BCUC approved permanent rates for each year within the test period from January 1, 2019 to December 31, 2022, as specified on page 13 of the compliance filing dated December 20, 2020, filed pursuant to Directives 3 and 4 of Order G-270-20. The approved rates for 2022 are as follows:
i. Tier 1 (up to 11.63 Gigawatt hour (GWh)/year): $262.41 per Megawatt hour (MWh)
ii. Tier 2 (greater than 11.63 GWh/year): $53.06 per MWh
C. In the Application, Boralex states that the permanent rates for the current test period as approved by Order G-16-21 ends by the end of year 2022. However, Order G-270-20 dated October 27, 2020, directed a number of items for inclusion in Boralex’s next rate application, which covers the current year to December 31, 2022. Boralex states that it will be unable to calculate those items until Boralex’s actual financial results are known for 2022. Boralex proposes to file its next rate application once its actual financial results for 2022 can be incorporated into the filing, which would be no later than March 31, 2023. Accordingly, Boralex requires interim rates effective January 1, 2023;
D. Boralex advises that BC Hydro does not oppose to its request for interim rates on the basis that Boralex files its next rate application with the BCUC by no later than March 31, 2023 and any variance between the interim and final rates will be subject to refund or recovery with interest; and
E. The BCUC has reviewed the Application and considers approval of interim rates, effective January 1, 2023, is warranted.
NOW THEREFORE pursuant to sections 59 to 61 and 90 of the Utilities Commission Act, the BCUC orders as follows:
1. The current rates for service to BC Hydro for 2022 are approved on an interim basis, effective January 1, 2023.
2. Boralex is directed to file a rate application for permanent rates by no later than March 31, 2023.
3. Any variance between the interim and final permanent rates are subject to refund or recovery with interest calculated at the average prime rate of Boralex’s principal bank for its most recent year.
DATED at the City of Vancouver, in the Province of British Columbia, this 28th day of November 2022.
BY ORDER
Original signed by:
E. B. Lockhart
Commissioner