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Volume 54, No. 2

B.C. Reg. 15/2011

The British Columbia Gazette,

Part II

February 8, 2011

B.C. Reg. 15/2011 , deposited February 3, 2011, pursuant to the BC HYDRO PUBLIC POWER LEGACY AND HERITAGE CONTRACT ACT [Section 4]. Order in Council 20/2011, approved and ordered February 2, 2011.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective April 1, 2011, the Heritage Special Direction No. HC2 to the British Columbia Utilities Commission, B.C. Reg. 158/2005, is amended as set out in the attached schedule.

— S. THOMSON, Minister of Energy ; M. POLAK, Presiding Member of the Executive Council .

Schedule

Section 1 of the Heritage Special Direction No. HC2 to the British Columbia Utilities Commission, B.C. Reg. 158/2005, is amended

(

a) by repealing the

definitions of "deemed equity" and "equity" and substituting the following:

"deemed equity" means, for any fiscal year, the product obtained by multiplying the rate base relating to that year by 30%; , and

(

b) by adding the following definition:

"rate base" means, in relation to a fiscal year of the authority, the amount determined in accordance with the following equation and notes:

RB = WCA + (A+B+C)/2 – (D+E+F)/2

where:

RB = rate base;

WCA = working capital amount of $250 million;

A, B, D, E and F = the sum of an amount the authority forecasts will be listed as follows in the authority's audited financial statements at the end of the previous fiscal year and the amount the authority forecasts will be similarly listed at the end of the applicable fiscal year:

A is the amount listed as property, plant and equipment in service, less accumulated amortization;

B is the amount listed as intangible assets in service, less accumulated amortization;

D is the amount listed as contributions in aid of construction;

E is the amount listed as contributions arising from the Columbia River Treaty;

F is the amount listed as leased assets included in A, less accumulated amortization;

C = the sum of the balance the authority forecasts for the deferral account established under commission order G-55-95 at the beginning of the fiscal year and the balance the authority forecasts for the same account at the end of the fiscal year;

notes:

1. In determining rate base for a fiscal year, the amounts A, B and F must have subtracted from them any amount included in them that is

(

a) an expenditure for export, as defined in the Clean Energy Act , or

(

b) an expenditure incurred by the authority on or after April 1, 2011, that the commission determines under the Utilities Commission Act must not be recovered by the authority in rates.

2. In determining rate base for a fiscal year, the amount D must have subtracted from it any amount included in it that is related to the expenditures referred to in paragraphs (

a) and (

b) of note 1. , and

(

c) by repealing the definition of "trade income" and substituting the following:

"trade income" means the net income of Powerex Corp., as included in the authority's audited consolidated financial statements, adjusted by,

(

a) if the net income is less than zero, adding the amount necessary to make it zero, and

(

b) if the net income is greater than $200 million, subtracting any amounts in excess of $200 million.

Section 4 (

b) is amended by striking out " despite the inclusion of debt in deemed equity, ".

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