Definitions

1   In this regulation:

"Act" means the Utilities Commission Act;

"designated agreement" means an agreement designated by the Lieutenant Governor in Council under section 12.1 (2) [North Coast transmission line ownership agreements] of the Hydro and Power Authority Act;

"North Coast limited partnership" means a limited partnership that, under a designated agreement, owns a part of one of the following, as specified in the agreement:

(a) the phase 1 project;

(b) the phase 2 project;

(c) the phase 3 project;

"phase 1 project" means the part of the North Coast transmission line project consisting of new 500 kilovolt electric transmission lines, and related facilities, from around Prince George to around Fraser Lake;

"phase 2 project" means the part of the North Coast transmission line project consisting of new 500 kilovolt electric transmission lines, and related facilities, from around Fraser Lake to around Terrace;

"phase 3 project" means the part of the North Coast transmission line project consisting of new 500 kilovolt electric transmission lines, and related facilities, from around Terrace to around Bob Quinn Lake;

"specified rate schedules" means the rate schedules in the Electric Tariff of the authority, other than rate schedules that are not subject to adjustment based on changes in the revenue requirements of the authority.

Application

2   This direction is issued to the commission under section 3 of the Act.

North Coast industrial tariff

3   (1) Within 10 days after the date the authority files an application for the purposes of this section, the commission must issue final orders so that the Electric Tariff of the authority is amended by adding the following rates:

(a) Electric Tariff Supplement No. 109 as set out in Schedule 1;

(b) Electric Tariff Supplement No. 114 as set out in Schedule 2;

(c) Electric Tariff Supplement No. 115 as set out in Schedule 3.

(2) The commission must not cancel, suspend or amend a rate referred to in subsection (1) (a), (b) or (c).

Recovery of North Coast transmission line project costs

4   (1) In setting rates for the authority, the commission must not disallow for any reason the recovery in rates, from persons who receive or may receive service under the specified rate schedules, of the following amounts:

(a) the costs of the authority in relation to the phase 1 project, the phase 2 project and the phase 3 project, including payments by the authority to the North Coast limited partnerships in accordance with the designated agreements;

(b) the costs of the authority in relation to upgrades to increase the thermal rating of the 500 kilovolt electric transmission lines, from around Prince George to around Terrace, existing on the date this section comes into force;

(c) the costs of the authority in relation to upgrades, necessary because of the phase 1 project, the phase 2 project or the increase referred to in paragraph (b), to related facilities existing on the date this section comes into force;

(d) the costs of the authority in relation to electricity generation or transmission that, but for section 3 (1) (c), would be payable by persons to whom Electric Tariff Supplement No. 115 applies.

(2) For the purposes of subsection (1), the commission must set the rates of the authority so that the apportionment of the amounts to be recovered occurs in either of the following ways:

(a) the charges under the specified rate schedules are all increased by the same percentage;

(b) for each specified rate schedule, the increase in charges under the schedule will generate substantially the same revenue under the schedule as the apportionment described in paragraph (a).