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"Point in Time" Regulation Content

Utilities Commission Act

Demand-Side Measures Regulation

B.C. Reg. 326/2008

NOTE: Links below go to regulation content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to "current to" date of the regulation.)
SECTIONEFFECTIVE DATE
Section 1 December 8, 2011
July 10, 2014
March 24, 2017
June 30, 2023
Section 1.1 June 30, 2023
Section 1.2 June 30, 2023
Section 3 July 10, 2014
March 24, 2017
June 30, 2023
Section 4 December 8, 2011
July 10, 2014
March 24, 2017
June 30, 2023
Section 5 June 30, 2023

 Section 1 definitions of "clean or renewable resource" and "specified proposal" were added by 228/2011, effective December 8, 2011.

 Section 1 definition of "energy device" BEFORE repealed by 228/2011, effective December 8, 2011.

"energy device" has the same meaning as in the Energy Efficiency Act;

 Section 1 definition of "energy efficiency training" BEFORE amended by 228/2011, effective December 8, 2011.

"energy efficiency training" means training for persons who

(a) manufacture, sell or install energy-efficient products,

(b) design, construct or act as a real estate broker with respect to energy-efficient buildings,

(c) manage energy systems in buildings, or

(d) conduct energy efficiency audits;

 Section 1 definition of "regulated item" BEFORE amended by 228/2011, effective December 8, 2011.

"regulated item" means

(a) an energy device,

(b) an energy-using product,

(c) a building design, or

(d) thermal insulation;

 Section 1 definition of "specified demand-side measure" paragraph (e) was added by 228/2011, effective December 8, 2011.

 Section 1 definition of "specified standard" paragraphs (d) and (e) were added by 228/2011, effective December 8, 2011.

 Section 1 definition of "technology innovation program" paragraph (a) BEFORE amended by 228/2011, effective December 8, 2011.

(a) to develop a technology, a system of technologies, a building design or an industrial facility design that is

 Section 1 definition of "low income household" BEFORE amended by BC Reg 141/2014, effective July 10, 2014.

"low-income household" means a household whose residents receive service from the public utility and who have, in a taxation year, a before-tax annual household income equal to or less than the low-income cut off established by Statistics Canada for that year for households of that type;

 Section 1 definitions of "charity program" and "energy management program" were added by BC Reg 117/2017, effective March 24, 2017.

 Section 1 definition of "public entity" BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

"public entity" means a local government, first nation, non-profit society incorporated under the Society Act or trade union;

 Section 1 definition of "specified demand-side measure" paragraph (c.1) was added by BC Reg 117/2017, effective March 24, 2017.

 Section 1 definition of "specified proposal" paragraphs (a) and (c) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(a) a proposal respecting an amendment to the regulation referred to in paragraph (a) of the definition of "specified standard", if the proposal is published by the minister responsible for the Energy Efficiency Act and specifically refers to this regulation;

(c) a proposal respecting an amendment to a standard referred to in paragraph (c) of the definition of "specified standard", if the proposal is published by the government and specifically refers to this regulation;

 Section 1 definition of "step code" was added by BC Reg 117/2017, effective March 24, 2017.

 Section 1 definitions of "annual percentage change", "building code", "class A demand-side measure", "class B demand-side measure", "climate zone", "fiscal year", "gas-fired", "Indigenous entity", "Indigenous governing body", "integrated dual-energy space heating system", "integrated hybrid gas-fired heat pump system", "new building", "public building" and "step" were added by BC Reg 167/2023, effective June 30, 2023.

 Section 1 definition of "low-income household", paragraph (a) BEFORE amended by BC Reg 167/2023, effective June 30, 2023.

(a) the residents have, in a taxation year, a before-tax annual household income equal to or less than the low-income cut-off established by Statistics Canada for that year for households of that size, multiplied by 1.3, or

 Section 1 definitions of "specified demand-side measure" and "step code" BEFORE repealed by BC Reg 167/2023, effective June 30, 2023.

"specified demand-side measure" means

(a) a demand-side measure referred to in section 3 (c) or (d),

(b) the funding of energy efficiency training,

(c) a community engagement program,

(c.1) an energy management program,

(d) a technology innovation program, or

(e) financial or other resources provided

(i) to a standards-making body to support the development of standards respecting energy conservation or the efficient use of energy, or

(ii) to a government or regulatory body to support the development of or compliance with a specified standard or a measure respecting energy conservation or the efficient use of energy in the Province;

"step code", in relation to a building to which Part 3 or 9 of the British Columbia Building Code (the Code) applies, means energy efficiency requirements in a regulation made under section 3 of the Building Act that are more stringent than the requirements in

(a) Sentence 10.2.1.1. (1) of the Code, for buildings to which Part 3 of the Code applies, or

(b) Subsections 9.36.2. to 9.36.4. of the Code, for buildings to which Part 9 of the Code applies;

 Section 1 definition of "specified standard", paragraph (c) BEFORE amended by BC Reg 167/2023, effective June 30, 2023.

(c) the British Columbia Building Code, if the standard promotes energy conservation or the efficient use of energy;

 Section 1.1 was enacted by BC Reg 167/2023, effective June 30, 2023.

 Section 1.2 was enacted by BC Reg 167/2023, effective June 30, 2023.

 Section 3 (a) BEFORE amended by BC Reg 141/2014, effective July 10, 2014.

(a) a demand-side measure intended specifically to assist residents of low-income households to reduce their energy consumption;

 Section 3 BEFORE renumbered as 3 (1) by BC Reg 117/2017, effective March 24, 2017.

3   A public utility's plan portfolio is adequate for the purposes of section 44.1 (8) (c) of the Act only if the plan portfolio includes all of the following:

 Section 3 (1) (a) (ii) (A) and (B) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(A) a housing provider incorporated under the Society Act or the Cooperative Association Act, or

(B) a band within the meaning of the Indian Act (Canada),

 Section 3 (1) (a) (ii) (E) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(E) a band referred to in clause (B) if the households in the band's housing are primarily low-income households;

 Section 3 (e) and (f) were added by BC Reg 117/2017, effective March 24, 2017.

 Section 3 (2) was added by BC Reg 117/2017, effective March 24, 2017.

 Section 3 (1) (a) (ii) (B) and (E) BEFORE repealed by BC Reg 167/2023, effective June 30, 2023.

(B) the governing body of a first nation,

(E) a governing body referred to in clause (B) if the households in the governing body's housing are primarily low-income households;

 Section 3 (1) (e) (part) and (f) BEFORE amended by BC Reg 167/2023, effective June 30, 2023.

(e) one or more demand-side measures to provide resources as set out in paragraph (e) of the definition of "specified demand-side measure", representing no less than

(f) one or more demand-side measures intended to result in the adoption by local governments and first nations of a step code or more stringent requirements within a step code.

 Section 3 (1) (g) was added by BC Reg 167/2023, effective June 30, 2023.

 Section 4 (1) BEFORE amended by BC Reg 228/2011, effective December 8, 2011.

(1)  Subject to subsections (4) and (5), the commission, in determining for the purposes of section 44.1 (8) (c) or 44.2 (5) (d) of the Act the cost-effectiveness of a demand-side measure proposed in an expenditure portfolio or a plan portfolio, may compare the costs and benefits of

 Section 4 (1.1) to (1.8) were added by 228/2011, effective December 8, 2011.

 Section 4 (2) (b) BEFORE amended by 228/2011, effective December 8, 2011.

(b) in using the total resource cost test, consider the benefit of the demand-side measure to be 130% of its value when determined without reference to this subsection but after applying subsection (1.1).

 Section 4 (3) (7) BEFORE repealed by 228/2011, effective December 8, 2011.

(3)  In determining whether a demand-side measure of a bulk electricity purchaser is cost-effective, the commission must consider the benefit of the avoided supply cost to be the authority's long-term marginal cost of acquiring new electricity to replace the electricity sold to the bulk electricity purchaser and not the bulk electricity purchaser's cost of purchasing electricity from the authority.

(7)  In considering the benefit of a demand-side measure that, in the commission's opinion, will increase the market share of a regulated item with respect to which there is a specified standard that has not yet commenced, the commission may include in the benefit a proportion of the benefit that, in the commission's opinion, will result from the commencement and application of the specified standard with respect to the regulated item.

 Section 4 (1.1) (a) BEFORE amended by BC Reg 141/2014, effective July 10, 2014.

(a) subject to subsections (1.2) and (1.3), the avoided natural gas cost, if any, respecting a demand-side measure, in addition to the avoided capacity cost, is the amount that the commission is satisfied represents the authority's long-run marginal cost of acquiring electricity generated from clean or renewable resources in British Columbia, multiplied by 0.5;

 Section 4 (1.5) (part) BEFORE amended by BC Reg 141/2014, effective July 10, 2014.

(1.5) Despite subsection (1.1) and subject to subsections (4) and (5), the commission must determine that a demand-side measure that is part of an expenditure portfolio and that is cost effective when applying subsection (1.1) is not cost effective if

 Section 4 (1.9) was added by BC Reg 141/2014, effective July 10, 2014.

 Section 4 (2) (b) BEFORE amended by BC Reg 141/2014, effective July 10, 2014.

(b) in using the total resource cost test, consider the benefit of the demand-side measure to be 130% of its value when determined without reference to this subsection.

 Section 4 (1.1) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(1.1) The commission must make determinations of cost effectiveness by applying the total resource cost test as follows and in the order set out:

 Section 4 (1.1) (c) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(c) with respect to a demand-side measure not referred to in section 3 (a), do the following:

 Section 4 (1.1) (d) was added by BC Reg 117/2017, effective March 24, 2017.

 Section 4 (1.5) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(1.5) Despite subsection (1.1) and subject to subsections (1.9), (4) and (5), the commission must determine that a demand-side measure that is part of an expenditure portfolio and that is cost effective when applying subsection (1.1) is not cost effective if

 Section 4 (1.5) (b) (iii) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(iii) 33% of the total expenditures for the expenditure portfolio, in the case of a utility that recovers the expenditures in gas rates, or

 Section 4 (1.8) (a.1) was added by BC Reg 117/2017, effective March 24, 2017.

 Section 4 (1.8) (c) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(c) a demand-side measure referred to in section 3 (a), or

 Section 4 (2) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(2) In determining whether a demand-side measure referred to in section 3 (a) is cost effective, the commission must,

 Section 4 (2) (b) BEFORE amended by BC Reg 117/2017, effective March 24, 2017.

(b) in using the total resource cost test, consider the benefit of the demand-side measure to be 140% of its value when determined without reference to this subsection but after applying subsection (1.1).

 Section 4 (1) (part), (1.1) (part) and (4) BEFORE amended by BC Reg 167/2023, effective June 30, 2023.

(1) Subject to subsections (1.5), (4) and (5), the commission, in determining for the purposes of section 44.1 (8) (c) or 44.2 (5) (d) of the Act the cost-effectiveness of a demand-side measure proposed in an expenditure portfolio or a plan portfolio, may compare the costs and benefits of

(1.1) Subject to subsection (2), the commission must make determinations of cost effectiveness by applying the total resource cost test as follows and in the order set out:

(4) The commission must determine the cost-effectiveness of a specified demand-side measure proposed in a plan portfolio or an expenditure portfolio by determining whether the portfolio is cost effective as a whole.

 Section 4 (1.1) (a) and (d) BEFORE amended by BC Reg 167/2023, effective June 30, 2023.

(a) subject to subsections (1.2) and (1.3), the avoided natural gas cost, if any, respecting a demand-side measure, in addition to the avoided capacity cost, is the amount that the commission is satisfied represents the authority's long-run marginal cost of acquiring electricity generated from clean or renewable resources in British Columbia;

(d) the benefit of the demand-side measure is what it would have been had no step code been adopted in the Province.

 Section 4 (1.1) (c) BEFORE repealed by BC Reg 167/2023, effective June 30, 2023.

(c) with respect to a demand-side measure that is not referred to in section 3 (1) (a) and that is not a charity program, do the following:

(i) increase the benefits of the demand-side measure by an amount that does not exceed an amount proposed by the public utility for this purpose, if the commission is satisfied that the amount represents the participant or utility non-energy benefits of the demand-side measure;

(ii) if the benefits of a demand-side measure have not been increased under subparagraph (i) or if the benefits of the expenditure portfolio of which the demand-side measure is a part has not been increased by 15% or more as a result of an increase under subparagraph (i), increase the benefit of the demand-side measure by an amount that

(A) increases by 15% the benefits of the expenditure portfolio of which the demand-side measure is a part, and

(B) is equal to the increase made under this subparagraph for all the other demand-side measures that are part of the expenditure portfolio;

 Section 4 (1.5) to (2) BEFORE repealed by BC Reg 167/2023, effective June 30, 2023.

(1.5) Despite subsection (1.1) and subject to subsections (1.9), (4) and (5), the commission must determine that a demand-side measure, other than a demand-side measure referred to in section 3 (1) (a) or a charity program, that is part of an expenditure portfolio and that is cost effective when applying subsection (1.1) is not cost effective if

(a) the demand-side measure is not cost-effective without applying subsection (1.1), and

(b) the total expenditures respecting

(i) the demand-side measure, and

(ii) all other demand-side measures that are part of the expenditure portfolio, that are not cost effective without applying subsection (1.1) and that are cost effective when applying subsection (1.1),

are more than

(iii) 40% of the total expenditures for the expenditure portfolio, in the case of a utility that recovers the expenditures in gas rates, or

(iv) 10% of the total expenditures for the expenditure portfolio, in the case of a utility that recovers the expenditures in electricity rates.

(1.6) For greater certainty, if the commission determines under subsection (1.5) that a demand-side measure that is part of an expenditure portfolio is not cost effective, the commission must exclude that demand-side measure from consideration when determining under that subsection whether another demand-side measure that is part of the expenditure portfolio is cost effective.

(1.7) For the purposes of subsections (1.1) (c) and (1.5), the commission, when considering the benefits or expenditures respecting a public utility's expenditure portfolio, may consider a demand-side measure of the public utility that is not included in the expenditure portfolio to be a part of the expenditure portfolio.

(1.8) Despite subsection (1.1), the commission may determine that a demand-side measure, other than

(a) a specified demand-side measure,

(a.1) a charity program,

(b) a public awareness program,

(c) a demand-side measure referred to in section 3 (1) (a), or

(d) a demand-side measure that is cost effective without applying subsection (1.1) but after applying subsection (1.4)

is not cost effective if the demand-side measure would not be considered cost-effective under the utility cost test.

(1.9) The references in subsections (1.5) and (1.8) to subsection (1.1) must be read as references

(a) to subsection (1.1) (a), (b) and (c) for the purposes of a demand-side measure that is part of an expenditure portfolio for any period before January 1, 2015, and

(b) to subsection (1.1) (a) and (c) for the purposes of a demand-side measure that is part of an expenditure portfolio for any period after December 31, 2014.

(2) In determining whether a demand-side measure referred to in section 3 (1) (a) or a charity program is cost effective, the commission must,

(a) in addition to conducting any other analysis the commission considers appropriate, use the total resource cost test, and

(b) in using the total resource cost test, make the adjustments referred to in subsection (1.1) (a) and (b) and then increase the value of the benefit of the demand-side measure by 40%.

 Section 4 (2.1) was added by BC Reg 167/2023, effective June 30, 2023.

 Section 4 (6) BEFORE repealed by BC Reg 167/2023, effective June 30, 2023.

(6) The commission may not determine that a proposed demand-side measure is not cost effective on the basis of the result obtained by using a ratepayer impact measure test to assess the demand-side measure.

 Section 5 was enacted by BC Reg 167/2023, effective June 30, 2023.