B.C. Reg. 313/2004, deposited July 7, 2004, pursuant to the INSURANCE CORPORATION ACT [Section 47] and the UTILITIES COMMISSION ACT [Section 3]. Order in Council 678/2004, approved and ordered July 6, 2004.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that Special Direction IC2 to the British Columbia Utilities Commission, B.C. Reg. 307/2004, is amended as set out in the Schedule.

— P. G. PLANT, Attorney General and Minister Responsible for Treaty Negotiations; R. THORPE, Presiding Member of the Executive Council.

Schedule

1 Section 3 of Special Direction IC2 to the British Columbia Utilities Commission, B.C. Reg. 307/2004, is amended

(a) by repealing subsection (1) (b) and substituting the following:

(b) require the corporation to achieve, by December 31, 2014, and to maintain, after that date, capital available equal to at least 110% of MCT, and, for that purpose,

(i) the commission must, in determining capital available in relation to the corporation generally, treat the corporation's optional automobile insurance business capital available as being equal to 170% of MCT, and

(ii) the commission must set rates for the corporation's universal compulsory automobile insurance business in a way that will allow the corporation to achieve, by December 31, 2014, and to maintain after that date, capital available in relation to its universal compulsory insurance business equal to at least 100% of MCT;, and

(b) in subsection (1) (c) (iii), by striking out "2004" and substituting "2005".

2 Section 4 (1) is repealed and the following substituted:

(1) With respect to the exercise of its powers and functions under the Act in relation to the corporation's optional automobile insurance business, the commission

(a) must, for 2004, set a net income target of $0 for the corporation's optional automobile insurance business,

(b) must require the corporation to achieve by December  31, 2010 and to maintain, after that date, capital available in relation to the corporation's optional automobile insurance business equal to at least 200% of MCT,

(c) must require the corporation to do the following:

(i) as at the beginning of the corporation's 2004 fiscal year, allocate to the corporation's optional automobile insurance business that portion of the corporation's retained earnings for its 2003 fiscal year that is necessary to allow the corporation to achieve, in its 2004 fiscal year, capital available in relation to the corporation's optional automobile insurance business equal to 170% of MCT;

(ii) as at the beginning of the corporation's 2004 fiscal year, allocate the balance of the corporation's retained earnings for its 2003 fiscal year to the corporation's universal compulsory insurance business;

(iii) advise the commission of those allocations, and

(d) must not fix rates applicable to optional insurance.

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