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B.C. Reg. 245/2007
O.C. 508/2007
Deposited June 26, 2007
This consolidation is current to June 9, 2020.
See the Cumulative B.C. Regulations Bulletin 2017
for amendments effective after June 9, 2020.
Link to Point in Time

Utilities Commission Act

Special Direction No. 10 to the
British Columbia Utilities Commission

[includes amendments up to B.C. Reg. 17/2012, February 3, 2012]

Contents
1Definitions and interpretation
2Application
3Self-sufficiency
4Biomass contracts
5Rates
6Interim planning criteria

Definitions and interpretation

1   (1) In this Special Direction:

"Act" means the Utilities Commission Act;

"assets" means the generation and storage assets set out in the Schedule to the BC Hydro Public Power Legacy and Heritage Contract Act;

"average water conditions" means the average stream flows occurring within the authority's historical record;

"biomass contract" means an energy supply contract entered into by the authority and a proponent of a project selected by the authority as a result of the call for power;

"call for power" means the process to acquire electricity solely from wood biomass being conducted by the authority on the date this Special Direction comes into force;

"electricity supply obligations" means

(a) electricity supply obligations for which rates are filed with the commission under section 61 of the Act, and

(b) any other electricity supply obligations that exist at the time this Special Direction comes into force

determined by using the authority's mid-level forecasts of its energy requirements and peak load, taking into account demand-side management initiatives, that are accepted by the commission from time to time;

"firm energy capability" means the maximum amount of annual energy that a hydroelectric system can produce under average water conditions;

"integrated area" means the geographic areas in the Province, other than the non-integrated areas, in which the authority serves customers under its schedules of rates filed with the commission from time to time;

"non-integrated area" means Anahim Lake, Atlin, Bella Bella, Bella Coola, Dease Lake, Eddontenajon, Haida Gwaii and Telegraph Creek District;

"wood biomass" means

(a) wood residue within the meaning of the Forest Act,

(b) wood debris from logging, construction or demolition operations,

(c) organic residues from pulp and paper production processes, and

(d) timber, within the meaning of the Forest Act, infested by the mountain pine beetle.

(2) The definition of "firm energy capability" in subsection (1) must be interpreted for the purposes of this Special Direction so as to be consistent with the fact that, in 2011, the authority's firm energy capability was 48 200 gigawatt hours.

[am. B.C. Regs. 251/2010, Sch. s. 3; 17/2012, s. 1.]

Application

2   This Special Direction is issued to the commission under section 3 of the Act.

Self-sufficiency

3   Subject to section 5 (2) (a), in regulating, and setting rates for, the authority, including, without limitation,

(a) considering an application made by the authority for a certificate of public convenience and necessity under section 46 of the Act, and

(b) Repealed. [B.C. Reg. 17/2012, s. 2 (c).]

(c) considering an energy supply contract under section 71 of the Act,

the commission must use the criterion that the authority is to achieve energy and capacity self-sufficiency by becoming capable of

(d) meeting, by 2016 and each year thereafter, the electricity supply obligations

(e) Repealed. [B.C. Reg. 17/2012, s. 2 (c).]

solely from electricity generating facilities within the Province, assuming no more in each year than the firm energy capability from the assets that are hydroelectric facilities.

[am. B.C. Reg. 17/2012, s. 2.]

Biomass contracts

4   In considering a biomass contract under section 71 (2) of the Act, the commission may not find that a biomass contract is not in the public interest solely by reason of the factor described in section 71 (2) (d) of the Act and must be primarily guided by the following factors, which are of material value to the authority's ratepayers:

(a) the acquisition of energy by the authority under a biomass contract will reduce the risk to the authority of future costs associated with the production of gases that contribute to global climate change;

(b) energy acquired by the authority under a biomass contract will contribute to diversification of the authority's electricity supply portfolio;

(c) a biomass contract will assist the authority to meet its requirements for electrical capacity.

Rates

5   (1) In setting rates for the authority, the commission must ensure that the authority's rates and classes of service available to customers in the non-integrated area, including rates available to customers whose electricity demand is or is likely to be in excess of 45 kV.A, are available to customers who receive electricity service under section 2 of the Remote Communities Regulation.

(2) In setting rates for the authority, the commission must ensure that those rates allow the authority to collect sufficient revenue in each fiscal year to enable the authority to

(a) achieve energy and capacity self-sufficiency as described in section 3 of this Special Direction,

(b) recover costs incurred as a result of the call for power, including costs incurred in purchasing electricity under a biomass contract, and

(c) recover costs related to the provision of electricity service under section 2 of the Remote Communities Regulation.

Interim planning criteria

6   (1) In deciding whether to issue a certificate to the authority under section 46 of the Act for the Ruskin Dam and Powerhouse Upgrade Project, the commission must assume that the authority requires, in order to meet its electricity supply obligations, the 334 gigawatt hours per year of firm energy and 114 megawatts of dependable capacity that the project is capable of delivering by 2018 and continuing to deliver over the expected life of the project.

(2) In deciding whether to issue a certificate to the authority under section 46 of the Act for the John Hart Generating Station Replacement Project, the commission must assume that the authority requires, in order to meet its electricity supply obligations, the 806 gigawatt hours per year of firm energy and 128 megawatts of dependable capacity that the project is capable of delivering by 2018 and continuing to deliver over the expected life of the project.

(3) In determining under section 71 of the Act whether the authority's energy supply contract in respect of the Conifex Mackenzie Power Project is in the public interest, the commission must assume that the authority requires, by 2013, in order to meet its electricity supply obligations, the 200 gigawatt hours per year of firm energy that would be provided under the contract.

(4) In considering under section 44.2 (3) of the Act whether to accept or reject all or part of the authority's expenditure schedule relating to proposed expenditures on demand-side measures for the authority's 2012 and 2013 fiscal years, the commission, despite sections 44.2 (3) (a) and (5.1) of the Act, must accept an expenditure respecting a demand-side measure if

(a) the demand-side measure is cost-effective in accordance with the Demand-Side Measures Regulation, and

(b) the expenditure has not been shown to the satisfaction of the commission to be unreasonable for achieving the reductions in demand attributable to the demand-side measure.

(5) In setting rates for the authority, the commission must ensure that those rates allow the authority to collect sufficient revenue in each fiscal year to enable the authority to recover costs incurred in carrying out demand-side measures accepted under subsection (4).

[en. B.C. Reg. 17/2012, s. 3.]

[Provisions relevant to the enactment of this regulation: Utilities Commission Act, R.S.B.C. 1996, c. 473, section 3]