British Columbia Order in Council — Amendment to British Columbia Utilities Commission (O.C. 172/2021)

O.C. 172/2021

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. , Approved and Ordered Lieutenant Governor Executive Council Chambers, Victoria On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that Directi on No. 8 to the British Columbia Utili ties Commission, B.C. Reg. 24/2019, is amended as set out in the attached Schedule. Minister of Energy, Mines and Low Carbon Innovation Presiding Member of the Executive Council (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section: Utilities Commission Act, R.S.B.C. 1996, c. 473, s. 3 Other: OIC 51/2019 R10467937 March 22, 2021

SCHEDULE

Section of Direction No. 8 to the British Columbia Utilities Commission, B.C. Reg. 24/2019, is amended by adding the following

definitions: “F2022” means the authority’s fiscal year commencing April 1, 2021 and ending March 31, 2022; “F2023” means the authority’s fiscal year commencing April 1, 2022 and ending March 31, 2023; “trade income” has the meaning given to it in

section 1.1; “trade income deferral account” means the regulatory a ccount established under commission order G-96-04 and the approval in

section 4.6 of the reasons that accompany that order; “transfer pricing agreement” means the energy supply contract effective April 1, 2020 between the authority and Powerex Corp., as amended from time to time. 2 The following

section is added: Meaning of “trade income” 1.1

(1) Trade income for a fiscal year is the greater of the following: (

a) the amount equal to the authority’s consolidated net income for the fiscal year after adjusting that income in accordance with subsection (2); (

b) zero.

(2) For the purposes of subsection (1) (a), the authority’s consolidated net income must be adjusted as follows: (

a) by subtracting the authority’s net income for the fiscal year; (

b) by subtracting the net income for the fi scal year of every subsidiary of the authority other than Powerex Corp.; (

c) by subtracting any foreign currency tr anslation gains in the fiscal year on intercompany balances between the authority and Powerex Corp.; (

d) by adding any foreign currency transla tion losses in the fiscal year on inter- company balances between the authority and Powerex Corp. 3

Section is amended by striking out “ for F2020 and F2021, ” and substituting “ for F2020, F2021, F2022 and F2023,”. 4

Section is amended by adding the following subsections:

(3) In setting rates for the authority for a fiscal year, the commission must subtract from the costs to be recovered in rates an amount equal to the net incomes, for the fiscal year, of Powerex Corp. and Powertech Labs Inc.

(4) For the purposes of subsection (3), (

a) the net income of Powerex Corp. for the fiscal year is the amount equal to the trade income forecast by the authority for that fiscal year, and (

b) the net income of Powertech Labs Inc. for the fiscal year is the amount forecast by the authority. 5 The following sections are added: Regulatory account In regulating and setting rates for the au thority, the commission must allow the authority to continue to defer to the tr ade income deferral account the variances between actual and forecast trade income. Transfer pricing agreement The commission may not exercise its powers under section 71 (1) (

b) and (3) of the Act in respect of the transfer pricing agreement.

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 172/2021
Type	order_in_council
Volume / chapter	arc oic 0172 2021
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	8a9ac27b9100ebc7e1e4e0f8a4644007642dafd6

Source file is stored in the law ingest library (pdf).