We respectfully submit this report on the activities of the British. Columbia Energy Commission and its successor the British Columbia

Transcription

1 ANNUAL REPORT 1980

2 Vancouver, B.C. September 30, 1981 To His Honour The Lieutenant-Governor in Council of the Province of British Columbia MAY IT PLEASE YOUR HONOUR: We respectfully submit this report on the activities of the British Columbia Energy Commission and its successor the British Columbia Utilities Commission for the calendar year. BRITISH COLUMBIA UTILITIES COMMISSION M. Taylor, Chairman J)./3.~2~ O.B. Kilpatrick, Commiss oner

3 TABLE OF CONTENTS Page INTRODUCTION. REGULATION OF ENERGY UTILITIES AND PUBLIC UTILITIES. New Act. Other Responsibilities. Natural Gas Prices, Field and Wholesale TABLE OF APPENDICES I. /I. /II. IV. V. VI. V/I. VI/I. IX. X. XI. Regulated Public Utilities Located in British Columbia. Applications Heard and Decisions Issued in Certificates of Public Convenience and Necessity Issued in 1980 Commission Orders Issued in R.E.A. Orders Issued in Common Purchaser Orders Issued in Summary of Complaints Received from Utility Customers in 1980 and their. Analysis of Domestic Electricity Sales in Analysis of Domestic Gas Sales in 1980, Comparative Schedule of Residential Energy Costs per Month for 1979 and Comparative Schedule of Residential Energy Costs per Month for 1974 and

4 INTRODUCTION General This Report covers the calendar year 1980 and relates to the activities of the British Columbiil Energy Commission and the British Columbia Utilities Commission. On May 30, 1980 the Honourable R.H. McClelland, Minister of Energy, Mines and Petroleum Resources announced the creation of the B.C. Utilities Commission replacing the former B.C. Energy Commission, under new legislation entitled the Utilities Commission Act. Mrs. Marie Taylor assumed the office of Chairman, with Mr. Robert Smith as Deputy Chairman, Messrs. D.S. Kilpatrick and J.DV Newlands as full-time Commissioners, and Mr. FE Walden as part-time Commissioner. The British Columbia Utilities Commission Act was proclaimed effective midnight September 11, As at December 31, 1980 the British Columbia Utilities Commission comprised the Chairman, Deputy Chairman, and two full-time Commissioners. Commission staff comprised 24 professional and support staff positions as at year end.

5 REGULATION OF ENERGY UTILITIES AND PUBLIC UTILITIES New Act The proclamation of the Utilities Commission Act provided a dramatic change in the role of the Commission and its staff. The Chairman is the chief executive officer of the Commission and has supervision over and direction of the work and the staff of the Commission. The Commission is subject to any general or special direction of the Lieutenant Governor in Council with respect to the exercise of its powers and functions. British Columbia Hydro and Power Authority, heretofore exempt from the jurisdiction and authority of the Commission except for matters arising out of complaint. is now subject. as a public utility, to the regulatory jurisdiction of the Commission. All matters pertaining to financing in B.C. Hydro, however, remain the responsibility of the Ministry of Finance. Municipal utility systems are exempt from Commission jurisdiction only in respect of utility services furnished within their own boundaries. Provision is included in the Act for recognition, as public utilities, of companies owning or operating in the province, equipment and facilities for "the conveyance or transmission of information, messages or communications by guided or unguided electromagnetic waves, including systems of cable, microwave, optical fibre or radio-communications where that service is offered to the public for compensation". New provisions in the Act relate to procedures for reviewing proposed major energy producing and consuming projects and requiring Energy Project Certificates and Energy Operation Certificates. Such matters are required to be submitted to the Minister who may, in accordance with Section 19 of the Utilities Commission Act: (a) with the concurrence of the Minister of Environment, refer the Application to the Commission for a review, (b) order, in a case where the Application is made by a public utility, that the Application be dealt with by the Commission under Part 3 as an applica tion for a Certificate of Public Convenience and Necessity, or (c) with the concurrence of the Minister of Environment, order that the construction and operation of the regulated project is exempt from the provisions of the Utilities Commission Act. An Application for an Energy Project Certificate which has been referred to the Commission for a review requires the Commission to hear it in a public hearing in accordance with the terms of reference specified jointly by the Minister of Energy, Mines and Petroleum Resources and the Minister of Environment. On conclusion of the hearing the Commission will submit a report and recommendations to the Lieutenant Governor in Council. Other Responsibilities The Commission conducts annual reviews of each of the regulated utilities; reviews and adjudicates complaints received from customers of utilities; administers the Rural Electrification Assistance (REA.) program for investor and municipally-owned electric utilities; issues Orders under the Common Carrier/Purchaser/Processor provisions of the Act and carries out a number of additional ancillary functions. Utility applications for approval of the addition of major new facilities and for changes in the rates to be charged for utility service are usually subject to public hearings, where the utility must justify its proposals and where customers and other interested parties have an opportunity to be heard. The Commission issues a Decision following the completion of a public hearing, and such Decisions are only subject to appeal to the Court of Appeal on questions of law or excess of jurisdiction. Natural Gas Prices, Field and Wholesale Pursuant to Order-in-Council No dated May 22,1980 requiring the Commission to enquire into and make recommendations to Government upon the appropriate pricing of natural gas, the Commission undertook very extensive public hearings in two phases. Phase I (field prices), commenced in Vancouver September 29, 1980, continued in Vernon October 20, 1980, in Prince George on October 22, 1980 and concluded in Vancouver on November 20, Phase" (wholesale prices) was heard in Vancouver from February 3 through March 6, A Report by the British Columbia Utilities Commission was submitted to Cabinet on May 1,

6 APPENDIX I REGULATED PUBLIC UTILITIES LOCATED IN BRITISH COLUMBIA British Columbia Hydro and Power Authority City of Grand Forks City of Kelowna City of Nelson City of New Westminster City of Penticton District of Summerland HEAD OFFICE Crown-Owned Electric Utility 970 Burrard Street Vancouver, B.C. V6Z 1Y3 Municipally-Owned Electric Utilities * 406 S.E. 1st Avenue Grand Forks, B.C. VOH 1HO 1435 Water Street Kelowna, B.C. V1Y 1J4 502 Vernon Street Nelson, B.C. V1L 4E8 511 Royal Avenue. New Westminster, B.C. V3L 1H9 171 Main Street Penticton, B.C. V2A 5A9 Box 159 Summerland, B.C. VOH 1Z0 SERVICE AREA Province of B.C. (except areas served by the following utilities). Grand Forks, B.C. Kelowna area, B.C. Nelson area, B.C. New Westminster, B.C. Penticton area, B.C. Garnet Valley, B.C. Edaltho Enterprises Ltd. Investor-Owned Electric Utilities Eastgate Service Manning Park, B.C. Hemlock Valley Electrical Services Limited Princeton Light and Power Company, Limited West Kootenay Power and Light Company, Limited Yukon Electric Co. Ltd West Broadway Vancouver, B.C. V6H 1H1 Box 700 Princeton, B.C. Waneta Plaza 8100 Rock Island Highway Trail, B.C. V1R 4N7 c/o Canadian Utilities Limited th Street Edmonton, Alberta T5J 2V6 Hemlock Valley, B.C. Princeton area, B.C. West Kootenays, B.C. Lower Post area, B.C. *Service outside Municipal Boundaries is subject to regulation. 3

7 REGULATED PUBLIC UTILITIES LOCATED IN B.C (Cont'd) British Columbia Hydro and Power Authority Columbia Natural Gas Limited Fort Nelson Gas Ltd. ICG Utilities (Plains Western) Ltd. Inland Natural Gas Co. Ud. Northland Utilities (B.C.) Limited Pacific Northern Gas Ltd. Crown-Owned Gas Utility 970 Burrard Street Vancouver, B.C. V6Z 1Y3 Investor-Owned Gas Utilities 23rd Floor 1066 West Hastings Street Vancouver, B.C. V6E 3G Sun Tower Building 100 West Pender Street Vancouver, B.C. V6B 1R8 Box th Street Leduc, Alberta T9E 4N3 P.O. Box West Hastings Street Vancouver, B.C. V6E 3G th Street Edmonton, Alberta T5J 2V West Pender Street Vancouver, B.C. V6G 2S6 Investor-Owned Propane Gas Utilities Province of B.C. (except areas served by the fol/owing utilities). East Kootenays, B.C. Fort Nelson area, B.C. Fort St. John area, B.C. Okanagan, Central and Northern Interior, B.C. Dawson Creek, Rolla and Pouce Coupe, B.C. Summit Lake to Prince Rupert and Kitimat, B.C. Cigas Products Ltd. ICG Utilities (British Columbia) Ltd. Squamish Gas Co. Ltd. Sunshine Valley Utilities Ltd. Vancouver Island Gas Company Ltd th Avenue SW. Calgary, Alberta T2P 2X St. Mary Avenue Winnipeg, Manitoba R3C 3T th Avenue SW. Calgary, Alberta T2P 2X8 # East 11 th A ven ue Vancouver, B.C. V5T 2C4 Investor-Owned Propane/Butane Gas Utility St. Mary Avenue Winnipeg, Manitoba R3C 3T7 Granisle-Topley Landing, B.C. Port Alice, B.C. Squamish area, B.C. Area 14 miles southeast of Hope, B.C. Nanaimo, B.C. 4

8 REGULATED PUBLIC UTILITIES LOCATED IN Be. (Cont'd) Investor-Owned Steam Heat Utility Central Heat Distribution Limited 720 Beatty Street Vancouver, B.C. V6B 2M1 Vancouver, B.C. Municipally-Owned Telephone Utility * City of Prince Rupert 424 West 3rd Avenue Prince Rupert, B.C. V8J 1L7 Prince Rupert area, B.C. *Service outside Municipal Boundaries is subject to regulation. 5

9 APPENDIX II APPLICATIONS HEARD AND DECISIONS ISSUED IN'1980 UTILITIES Central Heat Distribution Limited The Company filed an Application dated September 14, An interim increase of 4% was approved effective October 1, 1979 subject to refund if not supported at a public hearing. The Application was heard in Vancouver on March 11, The Decision dated March 14, 1980 confirmed the previous interim increase plus an additional 4% increase effective April 1, Hemlock Valley Electrical Services Ltd. The Company applied November 20, 1979 for a Certificate of Public Convenience and Necessity and approval of a tariff including rate schedules and terms and conditions of service. An interim Certificate was issued and interim rates approved, both effective January 2,1980. On May 14, 1980 a public hearing was held to consider both matters. A Decision dated June 20, 1980 confirmed the issuance of a permanent Certificate and approved the interim rates and terms and conditions of service, with minor modifications. Annual interest at 10% per annum is applicable to security deposits. A minimum monthly bill charge was confirmed as $ A fuel cost adjustment clause was included in the tariff to reflect any upward or downward movement in the cost of diesel fuel with an automatic 30-day delay to apply, allowing consumption from inventory. Pacific Northern Gas Ltd. The Applicant applied May 9 and October 24, 1980 to amend its filed tariffs and a public hearing was held at Prince Rupert December 2 through 4, Concluding sessions were held in Vancouver December 8 and 9,1980. Interim rate relief was granted July 1,1980 subject to refund with interest at 11% per annum. The Applicant employed the Current Test Year, Year-end Rate Base, using 1980 year-end figures adjusted for known and estimated increases in While accepted by the Commission in this proceeding, in accordance with a Decision dated December 22, 1980 it was stated that the forecast test year, supported by a base year composed of both year-to-date actual and estimated results should be employed in future. The Applicant sought to increase its allowed rate of return on equity from 14% to a range of 16-17%. The Commission determined that a range of 15-17% return on equity is appropriate and adopted 15.5%, with a return on rate base of 10.73%. Certain tariff amendments, an increase in connection and reconnection charges, and an increase in interest applicable to security deposits were accepted by the Commission. The Company was instructed to implement a Budget Billing program for customers by June 30, 1981 and to make necessary computer changes to accommodate the plan. Additionally, the Company was advised that tariff amendments setting forth a fixed-price charge for customers' annual service contract and a schedule of fees for periodic appliance adjustments would be encouraged and accepted. 6

10 APPLICATIONS HEARD AND DECISIONS ISSUED IN 1980 (Cont'd) Vancouver Island Gas Company, Limited The Applicant applied March 12, 1980 to increase its rates but subsequently requested a deferral. On May 5, 1980 the Company applied for approval of a plan to permit modification of its plant permitting the use of either propane or butane, or a blend thereof. The Application requested confirmation of interim rates as authorized effective November 1, 1979 and sought further increases effective June 1, The plant modification plan was approved May 30, A public hearing was held at Nanaimo on July 30, A Decision dated September 10, 1980 confirmed the interim rates and approved increased rates to become effective October 1, The Company was put on notice that gas losses estimated at 9.4% require continuing action to avoid disallowance in future rate cases. West Kootenay Power and Light Company, Limited The rehearing of the 1976 Application was completed on January 8, The Decision dated March 7, 1980 confirmed, as final, interim increases totalling 12.6%. The increases provided the Company with the opportunity to earn a return of 10% on rate base and 15.78% on common equity. COMMON PURCHASER British Columbia Petroleum Corporation A public hearing was held in Vancouver on September 17 and 18, 1980 for the purpose of clarifying certain issues involving Common Purchaser applications. Issues were: 1. The effective date on which a new producer will be entitled to share in the production and revenues from the common pool. 2. The manner in which the portion of the production allocated to the new producer is to be taken from the existing contracts in the pool. 3. The manner of reallocating any volumes which have been allocated to the new producers in the event that they are unable to produce the volumes allocated to them. The Commission Decision dated September 26, 1980 was stated to be viewed only as a guide to the direction in which future decisions are likely to move in the still-evolving B.C. experience. It was noted that the Commission hoped that producers and the common purchaser will make maximum use of the negotiation process to resolve any difficulties. Baay Land Consultants Ltd. The July 15, 1980 Application encompassed three issues as follows: 1. The role of Baay Land's well # W6M in determination of common purchaser status for the Wilder Halfway A pool. 2. Whether common purchaser status is justified on the evidence with respect to Baay Land's well # W6M. 3. The appropriate allocation of future production from the pool as between Baay Land and Wainoco. The Decision dated October 16, 1980 responded to the issues in a positive manner. 7

11 APPENDIX III CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY ISSUED IN 1980 BY THE ENERGY COMMISSION ORDER NO. DATE ISSUED UTILITY C-1-80 through C cancelled. C June 12, 1980 Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated August 30, 1979, between the Company and the Corporation of the City of Castlegar. C C June 12, 1980 June 12,1980 Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated February 14, 1977 between the Company and the Corporation of the City of Kamloops. Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated January 20, 1978 between the Company and the Corporation of the City of Kelowna. C June 12,1980 Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated November 30, 1977 between the Company and the Corporation of the City of Nelson. C June 12, 1980 Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated September 25, 1976 between the Company and the Corporation of the City of Penticton. C June 12, 1980 Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated January 8, 1978 between the Company and the Corporation of the City of Rossland. C June 12, 1980 Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated January 20, 1978 between the Company and the Corporation of the City of Trail. 8

12 CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY ISSUED IN 1980 (Cont'd,) ORDER NO. C C C C C DATE ISSUED June 17, 1980 June 17, 1980 June 17, 1980 June 20, 1980 July 3,1980 UTILITY Inland Natural Gas Co. Ltd. Certificate granted for a period of 21 years from July 1, 1980 between the Company and the Corporation of the Village of Chetwynd. The Company was ordered to pay the Village of Chetwynd a franchise fee equivalent to 3% of the gross annual revenues derived from sales of natural gas within the area encompassed by the terms of the Operating Agreement attached to the Certificate. Inland Natural Gas Co. Ltd. Certificate granted for a period of 21 years from July 1, 1980 between the Company and the Corporation of the District of Hudson's Hope. Company was ordered to pay to the Corporation a franchise fee equivalent to 3% of the gross annual revenues derived from sales of natural gas within the area encompassed by the terms of the Operating Agreement attached to the Certificate. Inland Natural Gas Co. Ltd. Certificate granted for a period of 21 years from July 1, 1980 between the Company and the Village of 100 Mile House. Company was ordered to pay to the Village a franchise fee equivalent to 3% of the gross annual revenues derived from sales of natural gas within the area encompassed by the terms of the Operating Agreement attached to the Certificate. Hemlock Valley Electrical Services Limited Certificate granted to the Company to permit operation of an electrical utility service. Commission confirmed interim Certificate issued by Commission Order No. C dated December 20,1979. Inland Natural Gas Co. Ltd. Certificate granted for renewal of natural gas franchise dated January 17, 1978 between the Company and the Corporation of the District of Salmon Arm. C September 10, 1980 Pacific Northern Gas Ltd. Exemption from Section 30 of the Act was granted with regard to the facilities required to provide service to a methanol plant located near Kitimat, B.C. provided that the following conditions are met: (a) satisfactory financing is arranged; and (b) fully compensatory tariff is negotiated with the British Columbia Petroleum Corporation and accepted for filing by the Commission. 9

13 APPENDIX IV COMMISSION ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION DATE ORDER NO. ISSUED EFFECTIVE UTILITY G-1-80 January 7 January 7 West Kootenay Power and Light Company, Limited Ordered a public hearing to commence April 22, 1980 at Vancouver, B.C. to hear the Company's January 3, 1980 Application for a Certificate of Public Convenience and Necessity pertaining to the establishment of an effective power generation base. G-2-80 January 23 January 23 Pacific Northern Gas Ltd. Approved Tariff Supplement No. 13 to provide natural gas service to Real International Marketing Ltd. located at Prince Rupert, B.C. G-3-80 January 31 February 1 Columbia Natural Gas Limited Approved increased rates to be charged for natural gas service as a result of increased cost of Alberta natural gas. G-4-80 January 31 February 1 Cigas Products Ltd. (Granisle Grid System) Approved increased rates to be charged for propane gas service as a result of increased propane costs purchased from its suppliers plus an increase in transportation costs. G-5-80 January 31 February 1 Squamish Gas Co. Ltd. Approved increased rates for propane gas service as a result of increased cost of propane purchased from the suppliers plus increased transportation costs. G-6-80 January 31 January 31 Central Heat Distribution Limited Ordered public hearing to commence March 11, 1980 in Vancouver, concerning rates to be charged for steam service. Application dated September 21, G-7-80 February 28 February 1 Vancouver Island Gas Company Ltd. Approved increased rates for butane gas service as a result of increased cost of butane purchased from Company's supplier, and associated costs. G-8-80 February 28 March 1 ICG Utilities (British Columbia) Ltd. 10 Approved increased rates for propane gas service as a result of increased costs of propane purchased from its supplier, plus associated costs.

14 DATE ORDER NO. ISSUED EFFECTIVE UTILITY COMMISSION ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd) G-9-80 February 28 February 28 Hemlock Valley Electrical Services Limited Ordered public hearing to commence May 14, 1980 in Vancouver to hear an Application dated February 27, 1980, concerning rates charged for electric service in the Hemlock Valley Lease area. G March 7 March 7 West Kootenay Power and Light Company, Limited Confirmed as firm rates those previously authorized on an interim basis by Order No. G dated February 13, 1976 and G dated December 7, Confirmed continuance of Order No. G dated June 1, G March 6 March 6 Inland Natural Gas Co. Ltd. Approved special contract with Cominco Ltd. for the purpose of Ore Car Heat and Gas Service required at its construction site located near Tadanac, B.C. G March 6 March 6 Vancouver Island Gas Company Ltd. G March 14 March 14 Cominco Ltd. Approved extension of Rate Application filing deadline from February 29, 1980 to March 14, Ordered public hearing to commence April 22, 1980 in Vancouver to hear an Application by Cominco for an order under the Energy Act, Section 105(3), exempting Cominco and its hydro-electric plants, equipment and facilities from the application of the Energy Act. G March 14 April 1 Central Heat Distribution Limited Following public hearing, confirmed as permanent the previous interim increase as well as an additional 4% permanent increase effective April 1, G March 20 March 1 Squamish Gas Co. Ltd. Approved increase in rates to recover an increase in cost of propane purchased from its suppliers effective with consumption on and after March 1, G March 20 April 1 Cigas Products Ltd. (Granisle Grid System) Approved increase in rates for propane gas service rendered by the Company in its service area in order to recover an increase in the cost of propane pu rchased from its suppliers. 11

15 DATE ORDER NO. ISSUED EFFECTIVE UTILITY COMMISSION ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd.) G March 20 January 1 Uniform System of Accounting for Steam/Hot Water Utilities Approved and prescribed for adoption by all energy utilities providing steam and hot water utility service to the public or any corporation for compensation. G March 28 March 28 Pacific Northern Gas Ltd. G March 28 March 28 Fort Nelson Gas Ltd. G April 9 April 9 Cominco Ltd. Approved minor tariff amendments to Tariff Supplement NO.9 which do not affect rates or charges regarding Canadian Cellulose Company Limited. Approved interest rate of 11.25% per annum as an allowance for funds used during construction under Certificate of Public Convenience and Necessity No. C Following pre-hearing conference the Commission determined that a public hearing of the application of West Kootenay Power would be heard first, followed by the application of Cominco. In addition, the sequence of cross-examination and procedural matters were determined. G April 10 April 1 Squamish Gas Co. Ltd. Approved increase in rates for propane gas service resulting from increased costs of propane purchased from its supplier, plus increased transportation costs. G April 10 July 1 Central Heat Distribution Limited Approved amendment to the Company's filed tariff to increase from 1V2% to 2% an additional charge, to be applied to overdue amounts, and billed to customers. G April 16 May 1 Cigas Products Ltd. (Granisle Grid System) Approved increase in rates for propane gas service resulting from an increased cost of propane purchased from its supplier, plus increased transportation costs. G May 8 May 8 Columbia Natural Gas Limited Approved revisions to the Company's filed tariff for the following tariff sheets: First Revision of Sheets No. 16, 17 and

16 DATE COMMISSION ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd.) ORDER NO. ISSUED EFFECTIVE UTILITY G May 22 May 22 Inland Natural Gas Co. Ltd. Ordered public hearing, to commence May 29, 1980, of an application to extend Certificate of Public Convenience and Necessity for the Prince George area for a further period of 21 years, plus public hearing to consider individual Operating Agreements between Inland and the Village of Chetwynd, District of Hudson's Hope and the Village of 100 Mile House. G-2e-80 May 22 July 1 Pacific Northern Gas Ltd. Approved 2.8% increase in rates for natural gas service on an interim basis and ordered the Company to file a complete application for permanent rates on or before December 31, G May 22 May 22 Columbia Natural Gas Limited Approved the following tariff sheet amendments: First Revision of Tariff Sheets No.2, 4, 36 Cominco, 37 Crows Nest Forest Products, 38 Crestwood Pulp and Paper Limited, 39 Kaiser Resources Ltd., 39.1 Special Contract - Kaiser Resources Ltd. and 40 Fording Coal Limited. G May 22 January 1, 1981 Uniform System of Accounting for Electrical Utilities Approved Uniform System of Accounting for Electrical Utilities effective January 1, 1981 by all energy utilities providing electric service to the public or any corporation for compensation. G May 30 May 30 Inland Natural Gas Co. Ltd. Approved revised Gas Tariff B.C.E.C. No.2 as submitted by Inland on May 1, G G G Cancelled Cancelled May 30 June 1 Vancouver Island Gas Company Ltd. Approved Company's request to change calorific value of gas offered for use by its customers and accepted for filing tariff amendment pages: First Revision Page 1, First Revision Page 7, Fourth Revision Page 10 and Fifth Revision Page 11, effective June 1,1980. G June 12 July 1 West Kootenay Power and Light Company, Limited Approved interim increased rates for electric service rendered by the Company in its service area in the amount of 16.5% subject to refund with interest at 11 % per annum. 13

17 DATE ORDER NO. ISSUED EFFECTIVE UTILITY COMMISSION ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd) G June 12 July 1 Inland Natural Gas Co. Ltd. Approved conversion from Imperial measurement to Metric measurement subject to timely filing by Inland of Gas Tariff B.C.E.C. No.2. G June 12 June 12 Vancouver Island Gas Company Ltd. Ordered public hearing to commence July 30, 1980, in Nanaimo to hear Company's application dated May 30, G June 13 June 13 Columbia Natural Gas Limited G G Cancelled Cancelled Approved two special negotiated contracts betweeen the Company and Galloway Lumber Co. Ltd. and Canada Cedar Pole Preservers Co. Ltd. subject to timely filing of Tariff Supplement Schedule A. G June 17 October 31, Inland Natural Gas Co. Ltd Approved the extension for a further period of 21 years from October 31,1979 of Schedules A and B forming part of the Certificate of Public Convenience and Necessity to provide natural gas service in the Prince George service area. G June 20 August 1 Hemlock Valley Electrical Services Limited G Following public hearing confirmed year ending December 31,1980 as an appropriate test year. Rate Base confirmed as $590,626., interim rates and charges confirmed as permanent rates. Order revoked Orders No. G-30-80, G-31-80, G and G-38-80, previously listed as "Cancelled". G June 23 June 23 West Kootenay Power and Light Company, Limited G June 23 June 23 Cominco Ltd. Following a public hearing Commission denied the application for Certificate of Public Convenience and Necessity. Commission awarded out-of-pocket costs and attached Decision dated May 30, 1980 to the Order. Denied the application by Cominco under Section 105(3) of the Energy Act for exemption from the regulation under the Act. The Commission also awarded out-of-pocket costs and attached Decision dated May 30, 1980 to the Order. 14

18 ORDER NO. G ISSUED June 26 DATE COMMISSION ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd.) EFFECTIVE July 1 UTILITY Inland Natural Gas Co. Ltd. Approved interim rate schedule increases, effective on and after July 1, 1980, subject to timely filing, to enable recovery of a $3,100,000 revenue deficiency. Interim increase subject to refund with interest at 11% per annum pending a public hearing. The date and location of the public hearing of the application to be announced at an early future date. G June 26 June 26 West Kootenay Power and Light Company, Limited Accepted for filing amendments to Rate Schedule 38 - Street Lighting. G-46-80' June 26 June 26 Corporation of the City of Nelson Ordered extension of the term during which the interim rate schedules set forth in By-Law No. 1779, 1978, regarding Order No. G-47-78, by substituting December 31, 1980 for June 30,1980 as the terminal date. G July 3 July 3 Inland Natural Gas Co. Ltd. Ordered public hearing of applications of the Company to commence September 8, 1980, in Kelowna. Directed the Applicant to file on or before July 15, 1980, prepared direct testimony and additional supplementary information. G July 3 July 1 Corporation of the City of Nelson Accepted and approved interim increase of 5.6% applicable to all rate schedules set forth in By-Law No. 1878, 1980 for the purpose of recovering a 16.5% interim increase applicable to power purchased by the City from the West Kootenay Power and Light Company, Limited. G July 24 July 1 Princeton Light and Power Company, Limited Approved an interim increase on all rate schedules to enable recovery of a 16.5% increase in cost of electric power purchased from its supplier, subject to refund with interest at 11 % per annum, dependent upon the outcome of West Kootenay Power and Light Company, Limited applications before the Commission. G August 7 August 7 Yukon Electrical Company Limited Approved application for exemption from Section 30 of the Energy Act with respect to a proposed powerline extension to service United Keno Mines Ltd. located approximately four miles south of the British Columbia/ Yukon Border. 15

19 ORDER NO. ISSUED G August 11 DATE COMMISSION ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd.) EFFECTIVE August 11 UTILITY Inland Natural Gas Co. Ltd. Approved Special Contract designated as Tariff Supplement No. 15 to provide natural gas service to Brenda Mines Ltd. G August 26 September 1 West Kootenay Power and Light Company, Limited Approved on an interim basis Rate Schedule 31 - Large Industrial Service - All Districts, primarily provision of electric power by West Kootenay to Canadian Cellulose Company, Limited, pulp mill and sawmill complex at Castlegar, B.C. G August 25 August 25 Inland Natural Gas Co. Ltd. Set down the applications for public hearing to commence November 3, 1980, in Kamloops, B.C. Directed the Applicant to file on or before September 15, 1980, additional supplementary material and direct testimony relating to the applications. G September 10 October 1 Vancouver Island Gas Company Ltd. Confirmed interim rates authorized by Commission Order Nos. G and G Set depreciated Rate Base for the test period at $1,308,706. Rejected the establishment of the rate equalization stablization account. The utility was put on notice that the situation pertaining to unaccounted for gas required action. Authorization to increase permanent rates effective October 1, 1980 was granted subject to timely filing of amended tariff rate schedules. 16

20 COMMISSION ORDERS ISSUED IN 1980 BY THE UTILITIES COMMISSION DATE ORDER NO. U-G-1-80 ISSUED EFFECTIVE September 17 September 17 UTILITY West Kootenay Power and Light Company, Limited Approved amendments to Electric Tariff B.C.E.C. No.1, B.C.E.C. No.2 Part 1, First Revision of Sheet No. 68, pertaining to monthly line facility charges on extentions constructed by way of under-building on existing Company powerlines. U-G-2-80 September 16 September 1 Columbia Natural Gas Limited Approved permanent rate relief to recover increased cost of Alberta natural gas from its suppliers, pius certain related charges. U-G-3-80 October 31 November 1 British Columbia Hydro and Power Authority Approved amendments to rates to recover increased costs in natural gas purchased from its suppliers as a result of the Exise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. U-G-4-80 October 21 October 21 Inland Natural Gas Co. Ltd. Approved a proposed issue of rights to subscribe for 282,212 authorized but unissued common shares on the basis of one right issued for each common share held as of the record date. Copy of the offering to holders of common shares attached as Schedule A. Copy of a specimen Certificate attached as Schedule B. U-G-5-80 October 30 November 1 Cigas Products Ltd. (Granisle Grid System) Approved increased rates for propane gas service to permit the Company to recover an increase in the cost of propane purchased from its supplier, plus increases in transportation costs and allowance for working capital. U-G-6-80 October 30 November1 Squamish Gas Co. Ltd. Approved increased rates charged for propane gas service to permit the Company to recover an increase in the cost of propane purchased from its supplier, plus increased transportation costs and allowance for working capital. 17

21 DATE ORDER NO. ISSUED EFFECTIVE UTILITY COMMISSION ORDERS ISSUED IN 1980 BY THE UTILITIES COMMISSION (Cont'd.) U-G-7-80 November 12 November 1 Inland Natural Gas Co. Ltd. Approved tariff rate schedule changes to permit the Company to recover an increase in the cost of natural gas purchased from its suppliers as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. U-G-8-80 November 12 November 1 Columbia Natural Gas Limited U-G-9-80 November 13 November 1 Fort Nelson Gas Ltd. Approved rate schedule changes to permit the Company to recover an increase in the cost of natural gas purchased from its suppliers as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Act, plus related costs. Approved tariff rate schedule changes to permit Company to recover an increase in the cost of natural gas purchased flom its suppliers as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. U-G November 13 November 1 Pacific Northern Gas Ltd. Approved increased rates for natural gas service to permit the Company to recover an increase in the cost of natural gas purchased from its suppliers as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. U-G November 14 November 1 Northland Utilities (B.C.) Limited Approved tariff rate schedule changes to permit the Company to recover increased cost of natural gas purchased from its suppliers as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. U-G November 25 November 30 Princeton Light and Power Company, Limited Approved interim tariff increases incorporating an increment of 11 % over existing rates subject to refund with interest at 12% per annum. Application set down for public hearing to commence January 21, 1981 in Princeton. U-G October 16 October 16 Inland Natural Gas Co. Ltd. Approved Tariff Supplement No. 16 containing Original Sheets 1-8 accepted for filing to provide natural gas service to Cominco at its construction and operations site located near Tadanac, B.C. 18

22 ORDER NO. U-G ISSUED October 31 DATE COMMISSION ORDERS ISSUED IN 1980 BY THE UTILITIES COMMISSION (Cont'd.) EFFECTIVE October 31 UTILITY Pacific Northern Gas Ltd. Ordered public hearing of Applications of May 9, 1980 and October 24, 1980, to commence December 2, 1980 at Prince Rupert, B.C. Ordered Applicant to file additional supplementary material plus any prepared testimony on or before November 14, U-G November 28 November 1 I.C.G. Utilities (Plains-Western) Ltd. Approved tariff rate schedule to permit the Company to recover increased costs of natural gas purchased from its suppliers as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. U-G November 27 November 27 West Kootenay Power and Light Company, Limited Granted approval under Section 57(1) of the Utilities Commission Act authorizing total borrowings by term loan from the Bank of Montreal by the Company of up to $36,000,000. and the extension of the term to January 2, U-G November 28 December 1 Cigas Products Ltd. (Granisle Grid System) Approved tariff rate schedule changes to recover an increased cost of propane purchased from its supplier as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Tax. U-G-18~80 November 28 December 1 Squamish Gas Co. Ltd. Approved tariff rate schedule changes to recover an increased cost of propane purchased from its supplier as a result of the Excise Tax imposed under the terms of the Government of Canada Excise Tax. U-G November 28 November 1 I.C.G. Utilities (British Columbia) Ltd. (Rockgas Utilities Limited) Approved rate schedule changes to recover an increased cost of propane purchased from its suppliers and the effect of the Excise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. U-G November 28 November 1 Vancouver Island Gas Company Ltd. Approved tariff rate schedule changes to recover an increased cost of propane purchased from its suppliers and the effect of the Excise Tax imposed under the terms of the Government of Canada Excise Tax Act, plus related costs. 19

23 ORDER NO. U-G ISSUED DATE COMMISSION ORDERS ISSUED IN 1980 BY THE UTILITIES COMMISSION (Cont'd.) EFFECTIVE December 2 January 1,1981 UTILITY West Kootenay Power and Light Company, Limited Rejected interim rates as proposed by the Applicant and set forth in Company's letter dated November 28, Approved third interim increase of 18% effective with sales on and after January 1, Interim is subject to refund with interest at 12% per annum. Applications of May 14,1979, May 16,1979 and June 6,1980 set for public hearing to commence on March 9, 1981 in Kelowna, B.C. The Commission directed the Applicant to file on or before January 19,1981 any prepared testimony pius additional supplementary information. U-G December 22 January 1, 1981 Pacific Northern Gas Ltd. Confirmed the Company's rate increase. Approved Rate Base for the test period of $39,500,000. Total cost of service including return on capital $28,400,000. Directed the Applicant to carry out instructions as set forth in the Decision issued concurrently with the Order. U-G December 22 December 22 Inland Natural Gas Co. Ltd. Ordered a Management Audit to be undertaken by an independent consultant on terms of reference established by the Commission with the results thereof to be considered in the Applicant's next rate proceeding. Commission will establish the terms of reference and the appointment of a consultant in a further Order on or before February 8, U-G December 23 January 1, 1981 Corporation of the City of Nelson Approved 6.7% interim rate increase applicable to all rate schedules for the purpose of recovering an 18.0% interim rate increase effective from the Company's supplier of power, West Kootenay Power and Light Company, Limited. Interim increase is subject to refund with interest at 12% per annum dependent upon the outcome of West Kootenay Power and Light Company, Limited application before the Commission. U-G December 23 January 1, 1981 Central Heat Distribution Limited Approved interim increase of approximately 10% over existing rates for steam heat service subject to refund with interest at 12% per annum and subject to public hearing which will be set by a further order of the Commission to be issued at a future date. 20

24 ORDER NO. U-G ISSUED December 23 DATE COMMISSION ORDERS ISSUED IN 1980 BY THE UTILITIES COMMISSION (Cont"d.) EFFECTIVE December 1 UTILITY British Columbia Hydro and Power Authority Approved and acccepted for filing a Letter Agreement dated November 26, 1980, between British Columbia Hydro and West Kootenay Power and Light Company, Limited covering rates to be charged for capacity supply of electricity during the period December 1,1980 through February 28, U-G December 23 December 23 West Kootenay Power and Light Company, Limited Amended Commission Order No. U-G-21-80, and ordered that the Application dated November 26, 1980 for an interim increase of 18% be heard in conjunction with Applications dated May 14 and May 16, 1979 and June 6, 1980 to commence on March 9, 1981 in Kelowna, B.C. Phase I will consider revenue requirements and Phase" will consider the appropriate rate structures. U-G December 23 December 23 The Corporation of the City of Nelson Order extended the term during which the schedules pertaining to electric service for all classifications of customers outside the city limits as set forth in the City of Nelson Electrical Utility Regulatory By-Law No. 1547, as amended, will continue by substituting December 31,1981 for December 31,1980 as the terminal date appearing on Commission Order No. G U-G December 23 December 23 West Kootenay Power and Light Company, Limited Approved the Modification Agreement between the City of Kelowna and West Kootenay Power and Light Company, Limited. Agreement established a rational boundary between the electric utility operations of the City of Kelowna and West Kootenay Power as indicated in the map of the area designated as Appendix" to the "Modification Agreement". 21

25 APPENDIX V R.EA ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION ORDER NO. REA-1-80 REA-2-80 REA-3-80 DATE ISSUED March 6, 1980 March 6, 1980 March 27, 1980 UTILITY West Kootenay Power and Light Company, Limited Recommended payment to the Company of $67,000 to cover portion of capital costs of REA. projects pursuant to Section 107 of the Power Act. West Kootenay Power and Light Company, Limited Recommended payment to the Company of $71, to cover a portion of the capital costs of REA. projects pursuant to Section 107 of the Power Act. West Kootenay Power and Light Company, Limited Recommended payment to the Company of $12, to cover a portion of capital costs of R.E.A. projects pursuant to Section 107 of the Power Act. REA. ORDERS ISSUED IN 1980 BY THE UTILITIES COMMISSION U-REA-1-80 December 23, 1980 West Kootenay Power and Light Company, Limited Recommended payment to the Company of $43, to cover a portion of capital costs of REA. projects pursuant to Section 107 of the Power Act. 22

26 APPENDIX VI COMMON PURCHASER ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION DATE ORDER NO. ISSUED COM-1-80 February 5 EFFECTIVE February 5 APPLICANT Westgrowth Petroleums Ltd. Commission ordered Application regarding the drainage of raw gas in the Rigel Dunlevy F Pool to be heard in public on March 25, 1980 in Vancouver. COM-2-80 February 5 February 5 Orbit Oil and Gas Ltd. Commission ordered Application regarding drainage of raw gas in the Rigel Dunlevy F Pool to be heard in public on March 25, 1980 in Vancouver. COM-3-80 February 5 February 5 Westgrowth Petroleums Ltd. Commission ordered Application regarding drainage of raw gas in the Buick Creek North Dunlevy A Pool to be heard in public on March 26, 1980 in Vancouver. COM-4-80 April 11 April 11 Westgrowth Petroleums Ltd. Commission ordered that the British Columbia Petroleum Corporation is declared a Common Purchaser of natural gas from the Rigel Dunlevy F Pool in respect of the well Westgrowth et al Rigel W6 effective with the date of Order. COM-5-80 April 11 April 11 Westgrowth Petroleums Ltd. Commission ordered that the B.C. Petroleum Corporation is declared a Common Purchaser of natural gas from the Rigel Dunlevy F Pool in respect to the well Westgrowth et al E Buick B-82-L/94-A-10 effective with the date of the Order. COM-6-80 April 11 April 11 Orbit Oil and Gas Ltd. Commission ordered that the B.C. Petroleum Corporation is declared a Common Purchaser of natural gas from the Rigel Dunlevy F Pool in respect to the well Orbit et al Rigel W6 effective with the date of the Order. 23

27 DATE ORDER NO. ISSUED EFFECTIVE UTILITY COM-7-80 April 11 April 11 Westgrowth Petroleums Ltd. COMMON PURCHASER ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd.) Commission ordered that the B.C. Petroleum Corporation is declared a Common Purchaser of natural gas from the Buick Creek North Dunlevy A Pool in respect of the well Westgrowth et al Buick C-52-C/94-A-14 effective with the date of the Order. COM-8-80 June 5 June 5 Suncor Inc. Ordered a public hearing to review the drainage of raw gas in the Rigel Dunlevy F Pool to be heard in public on July 16, 1980 in Vancouver. COM-9-80 June 11 June 11 Sabine Canada Ltd. Ordered a public hearing to examine the alleged drainage of raw gas in the Willow Halfway B Pool to be heard in public on July 16, 1980 in Vancouver. COM July 3 July 3 Wainoco Oil and Gas Ltd. Ordered a public hearing to examine the alleged drainage of raw gas in the Stoddart Belloy A Pool to be heard in public on August 6,1980 in Vancouver. COM July 24 July 24 Wainoco Oil and Gas Ltd. Ordered postponement of hearing established in Commission Order No. COM-10-80, dated July 4, 1980 to be heard on September 3, 1980 in Vancouver. COM July 24 July 24 Baay Land Consultants Ltd. COM August 15 August 15 Suncor Inc. Ordered public hearing to examine the alleged drainage of raw gas in the Wilder Halfway A Pool to be heard in public on September 3, 1980 in Vancouver. Following public hearing Commission ordered British Columbia Petroleum Corporation to purchase gas from the well Sun E Rigel W6 from the Rigel Dunlevy F Pool. COM August 15 August 15 Sabine Canada Ltd. Following public hearing the Commission ordered British Columbia Petroleum Corporation to purchase gas from the IPAC Cox Hamilton Willow D-47-H/94-H-2 well from the Willow Halfway B Pool. 24

28 DATE COMMON PURCHASER ORDERS ISSUED IN 1980 BY THE ENERGY COMMISSION (Cont'd.) ORDER NO. COM ISSUED August 21 EFFECTIVE August 21 UTILITY British Columbia Petroleum Corporation Ordered public hearing to clarify several matters with regard to Order Nos. COM-4-80, COM-5-80, COM-6-80, COM-7-80, COM and COM to be heard in public on September 17, 1980, in Vancouver. COM September 9 September 9 Wainoco Oil and Gas Ltd. Ordered British Columbia Petroleum Corporation to purchase gas from Wainoco et al Stoddart W6M from the Stoddart Belloy A Pool. COMMON PURCHASER ORDERS ISSUED IN 1980 BY THE UTILITIES COMMISSION ORDER NO. U-COM-1-80 DATE ISSUED EFFECTIVE September 26 September 26 UTILITY In the matter of Common Purchaser Order Nos. COM-4-80, COM-5-80, COM-6-80, COM-7-80, COM and COM-14-80, Commission ordered that the effective date on which a new producer's well which had been determined to be in a Common Purchaser pool is entitled to share in the production and revenues from the common pool shall be the date on which the new producer has completed all required of him to effect delivery of specification gas from the new well. The portion of total pool production allocated to the new producer will be taken from the existing contracts in the pool in such proportions as will maintain a relative share of the pool production of each existing producer prior to the effective date applicable to the new producer by such method and timing as may be agreed upon by the interested parties to achieve that result. Where a new producer proves unable to produce the gas volume allocated to him, the volume which the new producer fails to deliver shall be reallocated back to the producers whose contracts were reduced to accomodate him. U-COM-2-80 October 16 October16 Baay Land Consultants Ltd. Following public hearing the Commission ordered the British Columbia Petroleum Corporation to be a Common Purchaser of Baay et al Wilder W6M, which forms a part of the Wilder Halfway A Pool. 25

29 APPENDIX VII SUMMARY OF COMPLAINTS RECEIVED IN 1980 FROM UTILITY CUSTOMERS AND THEIR RESOLUTION BRITISH COLUMBIA HYDRO AND POWER AUTHORITY Complaint NO.1 Mr. C.G. Shearing, Communications Engineer of the Department of Highways complained to the British Columbia Utilities Commission regarding a powerline serving Mount Milburn, West Quesnel, B.C. The line is owned and operated by by British Columbia Railway and it is the intention by British Columbia Railway to transfer the line to B.C. Hydro in order that B.C Hydro can provide electric service to approximately 13 customers. Complaint is still under review at December 31, Complaint NO.2 Northwest Alfalfa Products Ltd. complained to B.C. Hydro about the excessive demand charges levied in its alfalfa farming, pelletizing and agriculture operations. Company requested that B.C. Hydro apply farm rates to its operation and review the $3,000 demand charge per month which the plant pays. B.C. Hydro rejected application for variance since current tariff rate schedule appropriate. Complaint NO.3 Mr. R.O.H. Sloat complained that the cost of obtaining new power service to his non-principal residence on Pender Island was excessive. Complaint is still under review at December 31, Complaint NO.4 Mrs. R. Tasker complained about excessive cost of obtaining a supply of power, and a hydro pole on her property located at Sheridan Lake, Lone Butte, B.C. B.C. Hydro Regional Manager explained the standard private property construction policy to Mrs. Tasker and power was supplied satisfactorily to her. Complaint NO.5 Mr. Lawrence Wainwright of Kerns Road in Whonnock, B.C. complained about being unable to obtain natural gas service to his residence. B.C. Hydro reviewed the complaint and noted that each mains extention requires a full contribution from initial hook-ups without provision for compensation by future users. B.C. Hydro is currrently reviewing and evaluating its extension policies and hopefully a new incentive program will be incorporated. 26