ORDER NUMBER
G-79-25
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Oakridge Energy Limited Partnership
Heating Energy Charge and the Cooling Energy Charge
BEFORE:
B. A. Magnan, Commissioner
E. B. Lockhart, Commissioner
on March 27, 2025
ORDER
WHEREAS:
A. On February 28, 2025, pursuant to section 61(4) of the Utilities Commission Act (UCA), Oakridge Energy Limited Partnership (Oakridge Energy) filed its Energy Cost Reconciliation Account 2024 Annual Report and on March 20, 2025, Oakridge Energy submitted Energy Cost Reconciliation Account 2024 Annual Report Amendment No. 1 (together Annual Report). The Annual Report included a request for British Columbia Utilities Commission (BCUC) approval to amend the Heating Energy Charge and the Cooling Energy Charge in accordance with the rate-setting mechanism approved by Order G-342-24;
B. By Order G-342-24 dated December 17, 2024, the BCUC approved a rate setting mechanism to flow-through actual energy supply costs and approved Oakridge Energy to establish a non-rate base Energy Cost Reconciliation Account (ECRA) for each of the heating and cooling services to record the difference between the actual energy supply costs and the revenues collected through the Energy Charges and to amortize the balances in the ECRA over a 12-month period;
C. The approved rate-setting mechanism for each of the heating and cooling services utilizes an ECRA ratio and established ECRA ratio thresholds of 0.95 and 1.05 (Trigger Ratios). The ECRA ratio is the ratio of the 12-month forecast Energy Charge revenue to the sum of the 12-month forecast energy supply costs, plus the ECRA balance at the beginning of the 12-month forecast period. A rate change is warranted if the ECRA ratio falls outside the range established by the Trigger Ratios;
D. The current Heating Energy Charge of $0.061 per kilowatt-hour (kWh) was approved by Order G-342-24, effective July 1, 2024;
E. Oakridge Energy forecasts a balance of $0 in its Heating ECRA by March 31, 2025. Based on forecast energy costs and the Heating Energy Charge revenue at the current rate, Oakridge Energy forecasts a surplus balance of $277,565 in its Heating ECRA by March 31, 2026;
F. Based on the current Heating Energy Charge, Oakridge Energy calculates the ECRA ratio to be 1.34 for the 12-month period April 2025 to March 2026, and the tested rate required to produce a 1.00 ECRA ratio is calculated to be $0.0456 per kWh. Therefore, as the ECRA ratio falls outside the range established by the Trigger Ratios in G-342-24, Oakridge proposes a change to the Cooling Energy Charge effective April 1, 2025;
G. The current Cooling Energy Charge of $0.135 per kWh was approved by Order G-342-24, effective July 1, 2024;
H. Oakridge Energy forecasts a balance of $0 in its Cooling ECRA by March 31, 2025. Based on forecast energy costs and the Cooling Energy Charge revenue at the current rate, Oakridge Energy forecasts a surplus balance of $822,176 in its Cooling ECRA by March 31, 2026;
I. Based on the current Cooling Energy Charge, Oakridge Energy calculates the ECRA ratio to be 2.28 for the 12-month period April 2025 to March 2026, and the tested rate required to produce a 1.00 ECRA ratio is calculated to be $0.0591 per kWh. Therefore, as the ECRA ratio falls outside the range established by the Trigger Ratios in G-342-24, Oakridge proposes a change to the Cooling Energy Charge effective April 1, 2025;
J. The BCUC has reviewed the Annual Report and determines that decreases to the Heating Energy Charge and the Cooling Energy Charge are warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. Oakridge Energy is approved:
a. to decrease the Heating Energy Charge from $0.061 per kWh to $0.0456 per kWh effective April 1, 2025; and
b. to decrease the Cooling Energy Charge from $0.135 per kWh to $0.0591 per kWh effective April 1, 2025.
2. The revised tariff page filed on March 20, 2025 is accepted as filed.
3. Oakridge Energy is directed to notify customers of the approvals in Directive 1 of this order with a bill insert or bill message to be included with the next monthly billing.
DATED at the City of Vancouver, in the Province of British Columbia, this 27th day of March 2025.
BY ORDER
Electronically signed by Bernard Magnan
B. A. Magnan
Commissioner