Letter dated August 1, 2019 from P. Wruck, British Columbia Utilities Commission - An Inquiry into the Regulation of Municipal Energy Utilities

Re: British Columbia Utilities Commission – An Inquiry into the Regulation of Municipal Energy Utilities – Regulatory Timetable Establishment

By Order G-177-19, dated August 1, 2019, the British Columbia Utilities Commission (BCUC) has established an inquiry to examine the regulation of energy utilities affiliated with municipalities and regional districts (Inquiry). The Inquiry will explore issues related to ownership structures and operational arrangements of utilities affiliated with municipalities and regional districts, including the appropriate regulatory status of such organizations under the Utilities Commission Act (UCA) in order to provide clarity to the BCUC, utilities and municipalities.

Section 1 of the UCA states that a “public utility” does not include “a municipality or regional district in respect of services provided by the municipality or regional district within its own boundaries”, thus offering an exclusion from regulation to these entities under certain circumstances. However, energy services offered in affiliation with municipalities and regional districts are ever changing as local governments strive to achieve environmental and economic benefits for their communities. Ownership and operating structures to achieve these community benefits have become complex. Further, the BCUC has received questions and complaints from individual stakeholders regarding such entities and their need for regulation. Thus, the BCUC seeks to achieve clarity regarding the appropriate level of regulation required to meet the needs of stakeholders while respecting existing oversight tools and objectives at the local government level.

Upon the completion of this Inquiry, the BCUC will consider if it is appropriate or necessary to:

i) seek advance approval from the Government of BC to offer a class of cases exemption to municipalities and regional district energy systems in certain circumstances; and/or ii) make a recommendation to the Government of BC to review the definition of a “public utility” within the UCA as it relates to such entities.

How to Participate

The BCUC encourages stakeholders to participate as interveners in this Inquiry and provide valuable insight and perspective to this proceeding. The BCUC understands that energy systems operated in affiliation with municipalities and regional districts may be reviewed and overseen by various other parties. Therefore, the BCUC encourages stakeholders to intervene to ensure the impact and effectiveness of such oversight is represented within this Inquiry. Interveners are able to file evidence, ask questions and make submissions on process. The BCUC Panel will carefully consider all submissions and filings as it prepares its final report for this Inquiry. A Request to Intervene can be submitted on the BCUC website. The deadline to request intervener status is Thursday, September 12, 2019.

Stakeholders who do not wish to intervene, may participate by submitting a Letter of Comment on the BCUC Website. Letters of Comment will be posted on the Inquiry’s proceeding webpage and considered by the Panel in the Inquiry’s report. The deadline to submit Letters of Comment is Thursday, October 24, 2019.

Interested parties may register with the BCUC to receive automated email notifications of all documents posted by the BCUC to the Inquiry’s webpage.

About the BCUC

The BCUC is an independent regulatory agency of the Government of British Columbia that is responsible for regulating BC’s energy utilities, the Insurance Corporation of BC’s compulsory automobile insurance rates, intra-provincial pipelines and the reliability of the electrical transmission grid. We work hard to ensure British Columbians get value from their utilities with safe, reliable energy services and fair energy and basic auto insurance rates, while ensuring the entities we regulate have the opportunity to earn a fair return on their capital investments.

Sincerely,

Patrick Wruck Commission Secretary