Definitions

1   In this direction:

"Act" means the Utilities Commission Act;

"amortization of capital additions" means the portion of the authority's annual amortization expense that is subject to the amortization of capital additions regulatory account;

"amortization of capital additions regulatory account" means the regulatory account established under commission order G-16-09 and the direction in section 5.5.7 of the reasons that accompany that order;

"arrow water divestiture costs regulatory account" means the regulatory account established under paragraph 1 of commission order G-90-11;

"arrow water provision regulatory account" means the regulatory account established under paragraph 2 of commission order G-90-11;

"asbestos remediation costs" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"asbestos remediation regulatory account" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"deemed equity" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"electric tariff rates" means the rates in the schedules to the authority's electric tariff;

"F2014" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"F2015" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"F2016" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"first nations costs regulatory account" means the regulatory account established under commission order G-53-02;

"heritage payment obligation" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"home purchase option plan regulatory account" means the regulatory account established under commission order G-55-09;

"IFRS pension regulatory account" means the regulatory account established under paragraph 1 (xxii) of commission order G-77-12A;

"IFRS PP&E regulatory account" means the regulatory account established under paragraph 1 (xxi) of commission order G-77-12A;

"non-current pension costs" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"non-current pension costs regulatory account" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"non-heritage cost of energy subject to deferral" means the portion of the authority's annual cost of energy that is subject to the non-heritage deferral account;

"non-heritage deferral account" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"OATT rates" means the rates in schedules 00, 01 and 03 to the authority's open access transmission tariff;

"rate smoothing regulatory account" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"real property gain/loss" means the net gain or net loss in a fiscal year incurred by the authority from the sale of its real property;

"related equipment" means the related equipment described in section 3 (b) of the Smart Meters and Smart Grid Regulation;

"Rock Bay costs" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"Rock Bay remediation regulatory account" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"Site C regulatory account" means the regulatory account established under commission order G-143-06 and section 25 of Appendix A attached to that order;

"smart meter" has the same meaning as in section 17 of the Clean Energy Act;

"smart metering and infrastructure program" means the authority's program to install and operate smart meters and related equipment and the program referred to in section 17 (4) of the Clean Energy Act;

"SMI regulatory account" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission;

"storm restoration costs" means the costs that are subject to the storm restoration regulatory account;

"storm restoration regulatory account" means the regulatory account established under commission order G-16-09 and the direction in section 5.5.4 of the reasons that accompany that order;

"total finance charges" means the portion of the authority's annual finance charges that is subject to the total finance charges regulatory account;

"total finance charges regulatory account" means the regulatory account established under commission order G-16-09 and the direction in section 5.5.2 of the reasons that accompany that order;

"total rate revenue" means the portion of the authority's annual revenues that is subject to the non-heritage deferral account;

"trade income" has the same meaning as in Direction No. 7 to the British Columbia Utilities Commission.

Application

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

Orders

3   Within 20 days of the date on which the authority files an application with the commission to request final orders in regard to the authority's F2014, F2015 and F2016 rates, the commission must issue final orders as follows:

(a) the commission must accept the schedule of expenditures in regard to demand-side measures for F2014, F2015 and F2016 as set out in Appendix A to this direction;

(b) the commission must confirm the authority's rates for F2014, set by commission order G-77-12A, as final and no longer subject to refund;

(c) the commission must set the electric tariff rates for F2015 and F2016 as set out in Appendix B to this direction;

(d) the commission must set the OATT rates for F2015 and F2016 as set out in Appendix C to this direction;

(e) the commission must approve the following forecasts and planned expenditures for F2015:

(i) heritage payment obligation: $353.2 million;

(ii) non-heritage cost of energy subject to deferral: $1 074.3 million;

(iii) total rate revenue: $4 168.3 million;

(iv) trade income: $110.0 million;

(v) non-current pension costs: $2.9 million;

(vi) storm restoration costs: $3.9 million;

(vii) total finance charges: $602.6 million;

(viii) amortization of capital additions: $34.7 million;

(ix) real property gain/loss: $10.0 million;

(x) asbestos remediation costs: $1.8 million;

(f) the commission must approve the following forecasts and planned expenditures for F2016:

(i) heritage payment obligation: $399.2 million;

(ii) non-heritage cost of energy subject to deferral: $1 032.2 million;

(iii) total rate revenue: $4 459.7 million;

(iv) trade income: $110.0 million;

(v) non-current pension costs: $0.1 million;

(vi) storm restoration costs: $3.9 million;

(vii) total finance charges: $725.2 million;

(viii) amortization of capital additions: $106.7 million;

(ix) real property gain/loss: $10.0 million;

(x) asbestos remediation costs: $0.9 million;

(g) the commission must order, in regard to the first nations costs regulatory account, that the authority amortize from that account $43.5 million and $43.3 million in F2015 and F2016, respectively;

(h) the commission must order, in regard to the Site C regulatory account, that the authority defer to that account operating costs it incurs in regard to the Site C project in F2015 and F2016;

(i) the commission must order, in regard to the storm restoration regulatory account, that the authority amortize from that account $1.4 million in each of F2015 and F2016;

(j) the commission must order, in regard to the amortization of capital additions regulatory account, that the authority amortize from that account $9.8 million and $9.4 million in F2015 and F2016, respectively;

(k) the commission must order, in regard to the total finance charges regulatory account, that the authority amortize from that account $25.5 million in each of F2015 and F2016;

(l) the commission must order, in regard to the SMI regulatory account, that

(i) the authority amortize from that account $30.5 million and $31.3 million in F2015 and F2016, respectively, and

(ii) the authority defer to that account net operating costs incurred in F2015 and F2016 arising from the smart metering and infrastructure program and net operating costs arising from commission order G-166-13;

(m) the commission must order, in regard to the home purchase option plan regulatory account, that the authority amortize from that account $11.8 million and $11.3 million in F2015 and F2016, respectively;

(n) the commission must order, in regard to the non-current pension costs regulatory account, that the authority amortize from that account $32.6 million and $15.5 million in F2015 and F2016, respectively;

(o) the commission must order, in regard to the Rock Bay remediation regulatory account, that the authority amortize from that account $51.5 million and $50.5 million in F2015 and F2016, respectively;

(p) the commission must order, in regard to the IFRS PP&E regulatory account, that

(i) the authority amortize from that account $15.9 million and $19.8 million in F2015 and F2016, respectively, and

(ii) the authority defer to that account $156.8 million and $134.4 million in F2015 and F2016, respectively;

(q) the commission must order, in regard to the IFRS pension regulatory account, that the authority amortize from that account $38.2 million in each of F2015 and F2016;

(r) the commission must order, in regard to the arrow water divestiture costs regulatory account, that the authority amortize from that account $4.7 million and $4.5 million in F2015 and F2016, respectively;

(s) the commission must order, in regard to the arrow water provision regulatory account, that the authority amortize from that account $0.3 million in each of F2015 and F2016;

(t) the commission must order, in regard to the asbestos remediation regulatory account, that the authority amortize from that account $12.1 million and $10.7 million in F2015 and F2016, respectively;

(u) the commission must order, in regard to the rate smoothing regulatory account, that the authority defer to that account $166.2 million and $121.2 million in F2015 and F2016, respectively;

(v) the commission must, despite section 5 of Direction No. 3 to the British Columbia Utilities Commission, direct the authority to defer to the non-heritage deferral account the amount that is determined by subtracting the amount in subparagraph (ii) from the amount in subparagraph (i)

(i) the forecast return on deemed equity in F2014 calculated on the basis of an annual rate of return on deemed equity in that year of 11.84%, and

(ii) the forecast return on deemed equity in F2014 calculated on the basis of an annual rate of return on deemed equity in that year that is greater than or less than 11.84% as a result of the commission's order arising from the generic cost of capital proceeding initiated by commission order G-20-12.