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Volume 64, No. 6
88/2021
The British Columbia Gazette, Part II
March 23, 2021

B.C. Reg. 88/2021, deposited March 22, 2021, under the UTILITIES COMMISSION ACT [section 3]. Order in Council 172/2021, approved and ordered March 22, 2021.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that Direction No. 8 to the British Columbia Utilities Commission, B.C. Reg. 24/2019, is amended as set out in the attached Schedule.

— B. RALSTON, Minister of Energy, Mines and Low Carbon Innovation; M. MARK, Presiding Member of the Executive Council.

Schedule

1 Section 1 of Direction No. 8 to the British Columbia Utilities Commission, B.C. Reg. 24/2019, is amended by adding the following definitions:

"F2022" means the authority's fiscal year commencing April 1, 2021 and ending March 31, 2022;

"F2023" means the authority's fiscal year commencing April 1, 2022 and ending March 31, 2023;

"trade income" has the meaning given to it in section 1.1;

"trade income deferral account" means the regulatory account established under commission order G-96-04 and the approval in section 4.6 of the reasons that accompany that order;

"transfer pricing agreement" means the energy supply contract effective April 1, 2020 between the authority and Powerex Corp., as amended from time to time.

2 The following section is added:

Meaning of "trade income"

1.1 (1) Trade income for a fiscal year is the greater of the following:

(a) the amount equal to the authority's consolidated net income for the fiscal year after adjusting that income in accordance with subsection (2);

(b) zero.

(2) For the purposes of subsection (1) (a), the authority's consolidated net income must be adjusted as follows:

(a) by subtracting the authority's net income for the fiscal year;

(b) by subtracting the net income for the fiscal year of every subsidiary of the authority other than Powerex Corp.;

(c) by subtracting any foreign currency translation gains in the fiscal year on intercompany balances between the authority and Powerex Corp.;

(d) by adding any foreign currency translation losses in the fiscal year on intercompany balances between the authority and Powerex Corp.

3 Section 3 is amended by striking out "for F2020 and F2021," and substituting "for F2020, F2021, F2022 and F2023,".

4 Section 4 is amended by adding the following subsections:

(3) In setting rates for the authority for a fiscal year, the commission must subtract from the costs to be recovered in rates an amount equal to the net incomes, for the fiscal year, of Powerex Corp. and Powertech Labs Inc.

(4) For the purposes of subsection (3),

(a) the net income of Powerex Corp. for the fiscal year is the amount equal to the trade income forecast by the authority for that fiscal year, and

(b) the net income of Powertech Labs Inc. for the fiscal year is the amount forecast by the authority.

5 The following sections are added:

Regulatory account

9 In regulating and setting rates for the authority, the commission must allow the authority to continue to defer to the trade income deferral account the variances between actual and forecast trade income.

Transfer pricing agreement

10 The commission may not exercise its powers under section 71 (1) (b) and (3) of the Act in respect of the transfer pricing agreement.


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