Orders

ORDER NUMBER

G-11-25

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Creative Energy Vancouver Platforms Inc.

2025 Core Steam Revenue Requirements

BEFORE:

E. A. Brown, Panel Chair

A. C. Dennier, Commissioner

B. A. Magnan, Commissioner

on January 23, 2025

ORDER

WHEREAS:

A.      On December 18, 2024, Creative Energy Vancouver Platforms Inc. (Creative Energy) filed with the British Columbia Utilities Commission (BCUC) its 2025 Revenue Requirements Application (RRA) for the thermal energy system serving downtown Vancouver, Northeast False Creek (NEFC), and the Butterfly Development (together, Core TES) (Application). In the Application Creative Energy seeks interim and permanent approval of rates, effective January 1, 2025;

B.      Creative Energy requests interim approval of the following rates set out in Appendix B to the Application:

                  (i)            thermal energy service rates for the Core TES which are equivalent to an average rate of $14.08 per thousand pounds of steam (M#);

                (ii)            a system contribution charge of $10.99 per megawatt hour of thermal energy (MWh) for customers connected to the NEFC distribution system; and

               (iii)            maintain the system contribution charge of $9,516 per month for the residential tower owned by Nelson Burrard Holdings Inc. and connected to the Butterfly distribution system.

C.      On October 24, 2024, the BCUC issued Decision and Order G-272-24 (2024 RRA Decision) in the matter of the Creative Energy 2024 RRA and approved, effective January 1, 2024, the 2024 thermal energy service rates for the Core TES, updated in accordance with the directives and determinations outlined in the 2024 RRA Decision, and subject to determinations in the Generic Cost of Capital (GCOC) Stage 2 decision (Updated Interim Rate). This decision also directed Creative Energy to continue charging customers the interim thermal energy service rates previously approved by Order G-13-24 (Original Interim Rate) and to establish a Revenue Variance Deferral Account (RVDA) to record the revenue difference between the Original Interim Rate and the Updated Interim Rate;  

D.      On November 29, 2024, the BCUC issued Decision and Order G-321-24 (GCOC Stage 2 Decision) on the GCOC Stage 2 proceeding, which established a deemed equity component of 51.0 percent and an allowed return on equity of 10.40 percent, effective January 1, 2024, for the Core TES. This decision also approved the Original Interim Rate as permanent, effective January 1, 2024, and directed Creative Energy to establish a GCOC Variance Deferral Account to record the revenue difference between the Updated Interim Rate and the rates that reflect the new cost of capital (Final Rate);

E.       In the Application, Creative Energy provided details on the RVDA, where it recorded the difference between the Original Interim Rate and the Final Rate, including a proposed rate rider recovery mechanism. Creative Energy stated it would provide further details on the calculation of the RVDA final balance, including the proposed rate rider amount, in a future submission as part of the 2025 RRA proceeding;  

F.       On October 10, 2024, Creative Energy filed with the BCUC an application for rates related to a system extension to provide building heat and domestic hot water to three premises at the Butterfly Development. By Order G-343-24, the BCUC approved, effective November 1 to December 31, 2024, the following on an interim and refundable/recoverable basis:

                  (i)            Creative Energy to charge customers of the Butterfly Development the applicable rates for the hot water distribution network served by the Core TES and as approved by Order G-321-24; and

                (ii)            the amended terms of service for each of the premises at the Butterfly Development, including the fixed connection charges for the two premises owned by the First Baptist Church of Vancouver and the monthly connection charge for the premises owned by Nelson Burrard Holdings Inc.;

G.      In addition, Order G-343-24 directed Creative Energy to apply for permanent approval of the rates and terms of service for the Butterfly Development as part of the 2025 RRA for the Core TES. It further required Creative Energy to file the supplemental information outlined in the decision accompanying Order G-343-24 as an evidentiary update to its 2025 RRA for the Core TES by January 15, 2025;

H.      On January 14, 2025, Creative Energy filed a notice of intent to file an evidentiary update to the Application by January 24, 2025, addressing specific items including the recovery of the RVDA through a proposed rate rider effective January 1, 2025 (Evidentiary Update). Creative Energy confirmed it will not be revising its interim rate proposal from that outlined in the Application;

I.         On January 15, 2025, Creative Energy filed supplemental information pertaining to the rates and terms of service for the Butterfly Development, as outlined in the decision accompanying Order G-343-24; and

J.        The BCUC has commenced review of the Application and considers that the following determinations are warranted.

NOW THEREFORE, pursuant to sections 59 to 61 and 89 of the Utilities Commission Act, the BCUC orders as follows:

1.       Creative Energy is approved to charge the thermal energy service rates to customers connected to the Core TES, and the applicable system contribution charges to customers connected to the NEFC distribution system and Butterfly distribution system, as set forth in Appendix B to the Application, on an interim and refundable/recoverable basis, effective January 1, 2025.

2.       Any variance between the interim rates approved by this order and permanent rates, as determined by the BCUC following its final determination of the Application, is subject to refund or recovery from ratepayers, with interest at Creative Energy’s weighted average cost of capital.

3.       A regulatory timetable for the review of the Application is established as set out in Appendix A to this order.

4.       Creative Energy is directed to file the supplemental information outlined in Appendix B to this order by the date established in the regulatory timetable, if not otherwise filed as part of the Evidentiary Update.

5.       On or before January 29, 2025 Creative Energy is directed to:

(i)                  Publish the Application and a copy of this order on its website at https://creative.energy/;

(ii)                Provide a copy of the Application and this order, electronically where possible, to all customers of the Core TES and the registered interveners in the Creative Energy 2024 RRA proceeding; and

(iii)               Provide notice of the Application and this order on its existing social media platforms. Reminder posts must be published on each platform every week until the conclusion of the intervener registration period set out in Appendix A of this order.

6.       Creative Energy is directed to provide to the BCUC:

(i)                  Confirmation of compliance with the public notice requirements set out in Directive 5, except for the weekly social media reminder posts, by February 3, 2025.

(ii)                Confirmation of compliance with the public notice requirements set out in Directive 5 regarding weekly social media reminder posts by February 18, 2025.

DATED at the City of Vancouver, in the Province of British Columbia, this          23^rd          day of January 2025.

BY ORDER

Electronically signed by Elizabeth A. (Lisa) Brown

E. A. Brown

Commissioner

Attachment

Creative Energy Vancouver Platforms Inc.

2025 Core Steam Revenue Requirements

Creative Energy Vancouver Platforms Inc.

2025 Core Steam Revenue Requirements

Pursuant to Directive 4 of the accompanying order, Creative Energy is directed to file the following supplemental information, provided that it is not included in the Evidentiary Update, by the date established in the regulatory timetable:

1.       2024 (i) actual and (ii) weather-normalized load for Core TES, broken down by distribution network (i.e. Core steam distribution network, NEFC distribution network and Butterfly distribution network).

2.       Supporting calculations for the 2024 balance recorded in the Load Variance Deferral Account.

3.       An update on the status of the Remote Metering Project, including whether Creative Energy is seeking approval of the Remote Metering Project or any associated costs as part of the 2025 RRA. If so, please provide the necessary supporting information.

4.       Confirmation of whether costs associated with the following capital expenditures have been included in Creative Energy’s 2025 RRA. If included provide the associated costs:

a.       The Decarbonization Project.

b.       The proposed New Plant Premises and Interconnection Capital Expenditure Schedule currently under review by the BCUC.

5.       Order G-343-24 directed Creative Energy to apply for permanent approval of the rates and terms of service, including connection charges, for the Butterfly Development as part of the 2025 RRA for the Core TES. However, the Application does not include a request for approval of permanent rates for the Butterfly Development. The following information is required to evaluate and approve permanent rates for the Butterfly Development:

a.       The application for permanent approval of the rates and terms of service for the Butterfly Development, effective November 1, 2024, as directed by Order G-343-24, and January 1, 2025, including supporting rationale for why the rates for the Butterfly Development should be the same as those for customers directly connected to the Core steam distribution system;

b.       A Microsoft Excel workbook with working formulas detailing the extension test and contribution charge calculations for the Butterfly Development; and

c.       Fully executed amended terms of service agreements with the three customers connected to the Butterfly Development.