ORDER NUMBER
G-151-25
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Shannon Estates Utility Ltd.
Energy Costs Deferral Account Rate Rider
BEFORE:
E. A. Brown, Commissioner
E. B. Lockhart, Commissioner
B. A. Magnan, Commissioner
W. E. Royle, Commissioner
on June 19, 2025
ORDER
WHEREAS:
A. On May 16, 2025, Shannon Estates Utility Ltd. (SEUL) applied to the British Columbia Utilities Commission (BCUC) for approval of a rate rider effective August 1, 2025 to July 31, 2026 to recover cost variances arising from differences between forecast unit energy costs and actual unit energy costs for electricity and natural gas, as well as a shortfall in rate rider revenue from August 1, 2024, to July 31, 2025, which have accumulated in its Energy Costs Deferral Account (ECDA) (Application);
B. By Decision and Order G-36-21 dated February 2, 2021, the BCUC approved a 10-year levelized rate structure, effective January 1, 2021, for the SEUL Thermal Energy System. The BCUC approved an equal rate increase for fixed and variable charges for Year 1 of the approved 10-year levelized rate structure and rate increase on a levelized basis as follows:
• Years 2 to 3 (F2023-F2024) +1.5%/year
• Year 4 (F2025) +2.0%/year
• Years 5 to 6 (F2026-F2027) +2.5%/year
• Years 7 to 10 (F2028-F2031) +3.0%/year
C. By Decision and Order G-36-21, the BCUC also approved SEUL to establish the ECDA to capture forecast variances in electricity and natural gas expenses and to use a rate rider mechanism to recover any variances in SEUL’s energy expenses;
D. The current ECDA rate rider of $0.026/kWh was approved through Order G-186-24 for the period August 1, 2024 to July 31, 2025;
E. Based on forecast energy costs, capacity levy and energy charge revenue and projected kWh usage of 4,671,256, the ECDA is forecasted to have a balance of $26,675 at July 31, 2025;
F. SEUL seeks approval to apply a rate rider of $0.006/kWh to the energy charge (space cooling, space heating and domestic hot water) portion of customers' bills for the period of August 1, 2025 to July 31, 2026; and
G. The BCUC has reviewed the Application and considers that approval of the proposed rate rider effective August 1, 2025 is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, the BCUC orders as follows:
1. SEUL is approved to apply a $0.006/kWh rate rider to the energy charge portion of customers' bills for the period August 1, 2025 to July 31, 2026.
2. SEUL is directed to file amended tariff pages for endorsement with the BCUC within 15 days of this order.
3. SEUL is directed to notify all customers affected by the rate change by way of a bill insert or bill message included with the next monthly billing.
DATED at the City of Vancouver, in the Province of British Columbia, this 19th day of June 2025.
BY ORDER
Electronically signed by Elizabeth A. (Lisa) Brown
E. A. Brown
Commissioner