March 27, 2007 (BCUC)
BCUC Approves Exemption for FortisBC from Certain BC Hydro Tariffs
Pursuant to both Order in Council No. 125, 2007 and the provisions the Interconnection Facilities Agreement between the British Columbia Hydro and Power Authority (“BC Hydro”), the British Columbia Transmission Corporation (“BCTC”) and FortisBC Inc. (“FortisBC”) dated April 5, 2004 concerning facilities at the Kootenay Canal Substation (“KCL”), the British Columbia Utilities Commission (“BCUC” or “the Commission”) has issued Order No. G-35-07 granting an application from FortisBC dated September 12, 2006 for an exemption from paying BC Hydro Tariffs for the use of certain facilities.
In its Order the Commission says that it received letters of support in respect of FortisBC's application from Columbia Power Corporation, Teck Cominco Metals Ltd. and BC Hydro dated September 29, 13 , and 19, 2006 respectively and a letter of support from BCTC dated September 14, 2006 stating that the latter expected that FortisBC's exemption from successor or replacement tariffs would not negatively impact any existing or potential customers subject to the Open Access Transmission Tariff (“OATT”). The Commission also noted that the application of the tariffs in such instances would otherwise create an inefficient grid configuration.
Specifically the Commission ordered that:
The use of the Interconnection Facilities, KCL and those portions of Line 2L288 and Line 60L227 owned by BC Hydro for power flowing between the BTS and South Slocan:
- (i). along Line 2L288 through KCL and along Line 60L227; or
- (ii). along Line 60L227 through KCL and along Line 2L288,
would be exempted from any administrative or transmission-related rates or tolls to be collected, charged or enforced pursuant to Section 61(3) of the Act under the WTS , WTS Rollover Tariff, OATT and any tariff which is a successor to or replacement tariff thereto, including without limitation any future BCTC tariff, provided that:
- the Interconnection Facilities Agreement or any replacement agreement remains in effect;
- Line 2L288 and Line 60L227 are in service; and
- there is a mechanism in effect pursuant to which:
- (i). BCTC and FortisBC address calculations of and charges for All Power Flows, including power flows through KCL;
(ii). BCTC and FortisBC measure or calculate the power flows between the BTS and South Slocan : (aa) along Line 2L288 through KCL and along Line 60L227; or (bb) along Line 60L227 through KCL and along Line 2L288; and
(iii). FortisBC submits information to BCTC in the format and in accordance with guidelines specified by BCTC that are reasonably required to calculate and charge for All Power Flows.
Where:
“All Power Flows” means any transfer into or out of the FortisBC System from or to the BCTC System on any path interconnecting the BCTC System and the FortisBC System;
“FortisBC System” means the transmission, protection, control and communication facilities owned or operated by FortisBC in British Columbia and includes all additions and modifications thereto and repairs or replacements thereof and includes Line 2L288 and Line 60L227 regardless of the future ownership or operator of either of these latter two lines;
“BCTC System” means the transmission, protection, control and communication facilities (i) owned by BC Hydro or by BCTC and (ii) operated by BCTC in British Columbia, and includes all additions and modifications thereto and repairs or replacements thereof;
“Interconnection Facilities” means the facilities required by BCTC to be installed or modified on BC Hydro premises to connect Line 2L288 and Line 60L227 to the KCL including Transformer T6, and which are set out in greater detail in subsection 1.1.8 of the Interconnection Facilities Agreement.
The Commission also ordered that the exemptions would include any public utility company that was a successor operator of KCL.