B.C. Reg. 157/2005
O.C. 1107/2003
Deposited March 22, 2005
effective November 27, 20031
This archived regulation consolidation is current to April 21, 2006 and includes changes enacted and in force by that date. For the most current information, click here.

Utilities Commission Act

SPECIAL DIRECTION NO. 9 TO THE
BRITISH COLUMBIA UTILITIES COMMISSION

[includes amendments up to B.C. Reg. 313/2005, October 20, 2005]

Contents

  1  Definitions
  2  Applications
  3  Basis for establishing transmission corporation revenue requirements
  4  New transmission system capital investment
  5  Intervention by the transmission corporation or the authority in applications
  6  Deferral accounts
  7  Storage services must not be required

Definitions

1 In this Special Directive:

"Act" means the Utilities Commission Act;

"debt" means the amount obtained by adding revolving borrowings, bonds, notes and debentures, and deducting from that sum the total of related sinking funds, temporary investments and repurchased debt;

"deemed equity" means, for any period, the product obtained by multiplying the deemed equity component by the sum of the forecast debt and the forecast equity relating to that period;

"deemed equity component" means, for the transmission corporation—s financial year commencing April 1, 2005, and for all subsequent financial years, 40.7%;

"designated agreements" means the agreements designated by the Lieutenant Governor in Council under section 3 (1) of the Transmission Corporation Act;

"equity" means the sum of share capital, contributed surplus and retained earnings;

"forecast debt", in relation to the transmission corporation, means, for a period made up of one or more years, the average of the amounts that are forecast to represent the average of the transmission corporation's debt in each of the months of that period;

"forecast equity", in relation to the transmission corporation, means, for a period made up of one or more years, the average of the amounts that are forecast to represent the average of the transmission corporation's equity in each of the months of that period;

"Master Agreement" means the Master Agreement between the authority and the transmission corporation dated as of November 12, 2003;

"transmission corporation" means British Columbia Transmission Corporation;

"transmission service" means service provided in relation to the transmission system as that term is defined in the Transmission Corporation Act.

[am B.C. Reg. 313/2005.]

Applications

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

Basis for establishing transmission corporation revenue requirements

3 In regulating and fixing rates for the transmission corporation, the commission must ensure that those rates allow the transmission corporation to collect sufficient revenue in each financial year to

(a) enable the transmission corporation to provide reliable transmission service,

(b) enable the transmission corporation to meet all of the transmission corporation's debt service, tax and other financial obligations, and

(c) generate for the transmission corporation an annual rate of return on deemed equity that is equal to the annual rate of return that is allowed by the commission on the authority's equity as that term is defined in Special Direction HC2.

New transmission system capital investment

4 In the exercise of its jurisdiction under section 45 (1) and (6.2) of the Act as that jurisdiction relates to applications brought, or capital plans filed, by the transmission corporation, including any applications or capital plans for which the transmission corporation is responsible for obtaining commission approval under paragraph 4.12 (a) of the Master Agreement, the commission may

(a) consider and take into account

(i) the anticipated demand for electricity and electricity service, including transmission service, over a period considered by the commission to be reasonable, including the increase in that demand that may be created by, or attributable to, the construction and operation of proposed transmission equipment or a proposed transmission facility, and

(ii) the benefits, including the benefits related to enhanced access to, and expansion of, electricity markets, that the commission considers are reasonably likely to result from any proposed expenditures for any one or more of

(A) studies in respect of,

(B) design of,

(C) planning the acquisition or construction of,

(D) construction of, and

(E) operation of

the proposed transmission equipment or facilities, and

(b) determine that expenditures referred to in paragraph (a) (ii) that are justified on the basis of the future benefits to be derived from the proposed equipment or facilities may be recovered in current rates.

Intervention by the transmission corporation or the authority in applications

5 Without limiting the Act, when regulating the transmission corporation and the authority, the commission must allow the transmission corporation and the authority to participate in proceedings of the commission in the manner and to the extent provided in the designated agreements including, without limitation, to participate in hearings respecting any or all of the following:

(a) an application for a certificate of public convenience and necessity filed under section 45 (1) of the Act;

(b) a plan filed under section 45 (6.1) of the Act;

(c) a rate schedule, or amended rate schedule, filed under section 61 of the Act.

Deferral accounts

6 When regulating the transmission corporation, the commission

(a) must allow the transmission corporation to establish the deferral account or accounts contemplated by paragraph 4.13 (f) of the Master Agreement,

(b) may allow the transmission corporation to establish one or more other deferral accounts for other purposes, and

(c) must fix or regulate the transmission corporation's rates in such a way as to allow the deferral account or accounts to be cleared from time to time and within a reasonable period of time.

Storage services must not be required

7 The commission must not, by tariff or otherwise, compel the authority to provide storage services.

 

 Note: this regulation replaces B.C. Reg. 71/98.

 


1. See B.C. Reg. 180/2005, British Columbia Gazette Part 2, Volume 48, Number 7, page XXX.

 

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


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