Generic Cost of Capital

BC Utilities Commission

Generic Cost of Capital

In Progress

The BCUC has initiated a proceeding to determine a benchmark utility (or utilities) and a benchmark rate of return that regulated utilities can earn on their investments. This is in response to changes in financial markets since the BCUC’s past reviews in 2013 and 2016.

Timetable

Subject Date
FortisBC and Dr. Lesser responses to IR No. 2 Tuesday, June 14, 2022
FortisBC Rebuttal Evidence, if any, on Dr. Lesser’s IR No. 2 responses Tuesday, June 28, 2022
Procedural Conference No. 2* Friday, July 8, 2022
Oral Hearing* November 7 to November 18 Monday, November 7, 2022
Undertakings Thursday, November 24, 2022

Hearing and Other Documents

Title Document Description
EXHIBIT LIST Updated: May 17, 2022 @ 8:47 am

Exhibits

A Exhibits — BCUC Documents

Date Title Document Description
January 18, 2021 A-1 Letter dated January 18, 2021 – British Columbia Utilities Commission (BCUC) issuing Notice of Initiating a Generic Cost of Capital proceeding
March 03, 2021 A-2 Letter dated March 3, 2021 – BCUC appointing the panel for review of the BCUC’s Generic Cost of Capital proceeding
March 08, 2021 A-3 Letter dated March 8, 2021 – BCUC Order G-66-21 establishing a regulatory timetable and public notice
May 21, 2021 A-4 Letter dated May 21, 2021 – BCUC Order G-156-21 with Reasons for Decision and establishing the proceeding’s scope and a further regulatory timetable
June 11, 2021 A-5 Letter dated June 11, 2021 – BCUC Order G-183-21 with reasons for decision and a further regulatory timetable
July 07, 2021 A-6 Letter dated July 7, 2021 – BCUC Order G-205-21 with reasons for decision and amended scope.
July 30, 2021 A-7 Letter dated July 30, 2021 – BCUC Order G-231-21 with amended regulatory timetable
September 24, 2021 A-8 Letter dated September 24, 2021 – BCUC Order G-281-21 with Reasons for Decision amending the scope and regulatory timetable
October 06, 2021 A-9 Letter dated October 6, 2021 – BCUC Order G-288-21 amending regulatory timetable
October 27, 2021 A-10 Letter dated October 27, 2021 – BCUC response to Dr. Lesser extension request
February 28, 2022 A-11 Letter dated February 28, 2022 – BCUC Information Request No. 1 to FEI and FBC
March 31, 2022 A-12 Letter dated March 31, 2022 – BCUC submitting procedural conference information
April 21, 2022 A-13 Letter dated April 21, 2022 – BCUC Order G-106-22 with Reasons for Decision amending the scope and regulatory timetable
May 16, 2022 A-14 Letter dated May 16, 2022 – BCUC Information Request No. 2 to FEI and FBC
May 16, 2022 A-15 Letter dated May 16, 2022 – BCUC Information Request No. 2 to Dr. Lesser regarding Mr. Coyne’s evidence
March 23, 2021 A2-1 Letter dated March 23, 2021 – BCUC Staff submission on scope
June 18, 2021 A2-2 Letter dated June 18, 2021 - BCUC Staff submit Consultant Report by Continental Economics, Inc., Dr. Jonathan A Lesser, Report on Using a Benchmark Utility to Set the Cost of Capital - June 2021
August 04, 2021 A2-3 Letter dated August 4, 2021 – BCUC Staff submit Consultant Report by the Continental Economics, Inc., Dr. Jonathan A. Lesser: Regulated Utility Cost of Capital: Theory and Canadian Practice – August 2021
October 20, 2021 A2-4 Letter dated October 20, 2021 – BCUC Staff submit Consultant Report by the Continental Economics, Inc., Dr. Jonathan A. Lesser: Extension Request dated October 19, 2021
November 30, 2021 A2-5 Letter dated November 30, 2021 – BCUC Staff submit Consultant response by the Continental Economics, Inc., Dr. Jonathan A. Lesser to the BCOAPO Information Request No. 1 on Exhibit A2-3
November 30, 2021 A2-6 Letter dated November 30, 2021 – BCUC Staff submit Consultant response by the Continental Economics, Inc., Dr. Jonathan A. Lesser to the CEC Information Request No. 1 on Exhibit A2-3
November 30, 2021 A2-7 Letter dated November 30, 2021 – BCUC Staff submit Consultant response by the Continental Economics, Inc., Dr. Jonathan A. Lesser to Creative Energy Information Request No. 1 on Exhibit A2-3
November 30, 2021 A2-8 Letter dated November 30, 2021 – BCUC Staff submit Consultant response by the Continental Economics, Inc., Dr. Jonathan A. Lesser to FortisBC Inc. Information Request No. 1 on Exhibit A2-3
November 30, 2021 A2-9 Letter dated November 30, 2021 – BCUC Staff submit Consultant response by the Continental Economics, Inc., Dr. Jonathan A. Lesser to the ICG Information Request No. 1 on Exhibit A2-3
November 30, 2021 A2-10 Letter dated November 30, 2021 – BCUC Staff submit Consultant response by the Continental Economics, Inc., Dr. Jonathan A. Lesser to MoveUP Information Request No. 1 on Exhibit A2-3
November 30, 2021 A2-11 Letter dated November 30, 2021 – BCUC Staff submit Consultant response by the Continental Economics, Inc., Dr. Jonathan A. Lesser to the RCIA Information Request No. 1 on Exhibit A2-3
February 28, 2022 A2-12 Letter dated February 28, 2022 – BCUC Staff submit excerpts from Government of Canada Department of Finance Federal Budget 2021, Annex 6: Tax Measures - Supplementary Information, International Tax Measures - Interest Deductibility Limits
February 28, 2022 A2-13 Letter dated February 28, 2022 – BCUC Staff submitting: A Review of International Approaches to Regulated Rates of Return Prepared for the Australian Energy Regulator by The Brattle Group – June 2020
February 28, 2022 A2-14 Letter dated February 28, 2022 – BCUC Staff submission: Electric ROE Authorizations Drift Lower In H1'20 As Virus Worries Continue by S&P Global Market Intelligence – August 4, 2020
February 28, 2022 A2-15 Letter dated February 28, 2022 – BCUC Staff submission: RIIO-ED2 Sector Specific Methodology Decision: Annex 3 Finance by Ofgem– March 11, 2021
February 28, 2022 A2-16 Letter dated February 28, 2022 – BCUC Staff submission: Public Utility Beta Adjustment and Biased Costs of Capital in Public Utility Rate Proceedings by Richard A. Michelfelder and Panayiotis Theodossiou, The Electricity Journal, Volume 26, Issue 9 – November 2013
April 12, 2022 A2-17 Letter dated April 12, 2022 – BCUC Staff submission: BCUC Staff Draft Regulatory Timetable and Options
May 16, 2022 A2-18 Letter dated May 16, 2022 – BCUC Staff submission: Betas and Their Regression Tendencies by Marshall E. Blume, The Journal of Finance, Volume 30, Number 3 – June 1975

B Exhibits — Applicant Documents

Date Title Document Description
March 16, 2021 B1-1 FORTISBC ENERGY INC. (FEI) – Letter dated March 16, 2021 submitting registration by Diane Roy
March 29, 2021 B1-2 Letter dated March 29, 2021 – FEI submission on Preliminary Scope Document
June 04, 2021 B1-3 Letter dated June 4, 2021 – FEI submission on proceeding Scope and Deferral Account
July 21, 2021 B1-4 Letter dated July 21, 2021 – FEI submission on Use of a Benchmark Utility
August 13, 2021 B1-5 Letter dated August 13, 2021 – FEI submission on cost eligibility of PACA
September 30, 2021 B1-6 Letter dated September 30, 2021 – FEI submitting request for amendment to Regulatory Timetable
November 15, 2021 B1-7 Letter dated October 15, 2021 – FEI submitting Information Request No. 1 on Exhibit A2-3
January 31, 2022 B1-8 Letter dated January 31, 2022 – FEI and FBC submitting evidence for Stage 1 of proceeding
January 31, 2022 B1-8-1 Letter dated January 31, 2022 – FEI and FBC submitting evidence for Stage 1 of proceeding - Appendices
April 06, 2022 B1-9 Letter dated April 6, 2022 – FEI and FBC submitting responses to BCUC Information Request No. 1 on FortisBC Evidence
April 06, 2022 B1-9-1 CONFIDENTIAL - Letter dated April 6, 2022 – FEI and FBC submitting responses to BCUC Information Request No. 1 on FortisBC Evidence Confidential Attachments
April 06, 2022 B1-10 Letter dated April 6, 2022 – FEI and FBC submitting responses to BCOAPO Information Request No. 1 on FortisBC Evidence
April 06, 2022 B1-10-1 CONFIDENTIAL - Letter dated April 6, 2022 – FEI and FBC submitting responses to BCOAPO Information Request No. 1 on FortisBC Evidence Confidential Attachments
April 06, 2022 B1-11 Letter dated April 6, 2022 – FEI and FBC submitting responses to CEC Information Request No. 1 on FortisBC Evidence
April 06, 2022 B1-11-1 CONFIDENTIAL - Letter dated April 6, 2022 – FEI and FBC submitting confidential response to CEC Information Request No. 1 on FortisBC Evidence and Confidential Attachments
April 06, 2022 B1-12 Letter dated April 6, 2022 – FEI and FBC submitting responses to ICG Information Request No. 1 on FortisBC Evidence
April 06, 2022 B1-12-1 CONFIDENTIAL - Letter dated April 6, 2022 – FEI and FBC submitting confidential response to ICG Information Request No. 1 Question 5.1 on FortisBC Evidence
April 06, 2022 B1-13 Letter dated April 6, 2022 – FEI and FBC submitting responses to RCIA Information Request No. 1 on FortisBC Evidence
March 16, 2021 B2-1 FORTISBC INC. (FBC) – Letter dated March 16, 2021 submitting registration by Diane Roy
March 29, 2021 B2-2 Letter dated March 29, 2021 – FBC submission on Preliminary Scope Document
June 04, 2021 B2-3 Letter dated June 4, 2021 – FBC submission on proceeding Scope and Deferral Account
July 21, 2021 B2-4 Letter dated July 21, 2021 – FBC submission on Use of a Benchmark Utility
August 13, 2021 B2-5 Letter dated August 13, 2021 – FBC submission on cost eligibility of PACA
September 30, 2021 B2-6 Letter dated September 30, 2021 – FBC submitting request for amendment to Regulatory Timetable
October 15, 2021 B2-7 Letter dated October 15, 2021 – FBC submitting Information Request No. 1 on Exhibit A2-3
March 16, 2021 B3-1 FORTISBC ALTERNATIVE ENERGY SERVICE INC. (FAES) – Letter dated March 16, 2021 submitting registration by Grant Bierlmeier
March 31, 2021 B3-2 Letter dated March 31, 2021 – FAES submission on Preliminary Scope Document
June 04, 2021 B3-3 Letter dated June 4, 2021 – FAES submission on proceeding Scope and Deferral Account
July 21, 2021 B3-4 Letter dated July 21, 2021 – FAES submission on Use of a Benchmark Utility
March 19, 2021 B4-1 NELSON HYDRO – Letter dated March 19, 2021 submitting registration by Gabriel Bouvet-Boisclair
March 30, 2021 B4-2 Letter dated March 30, 2021 – Nelson Hydro submission on Preliminary Scope Document
July 21, 2021 B4-3 Letter dated July 21, 2021 – Nelson Hydro submission on Use of a Benchmark Utility
August 13, 2021 B4-4 Letter dated August 13, 2021 – Nelson Hydro submission on cost eligibility of PACA
March 22, 2021 B5-1 KYUQUOT POWER LTD. (KPL) – Letter dated March 22, 2021 submitting registration by Taya DeAngelis
March 31, 2021 B5-2 Letter dated March 31, 2021 – KPL submission on Preliminary Scope Document
March 22, 2021 B6-1 CORX MULTI-UTILITY SERVICES INC. (CORIX) – Letter dated March 22, 2021 submitting registration by Errol South
March 31, 2021 B6-2 Letter dated March 31, 2021 – Corix submission on Preliminary Scope Document
June 04, 2021 B6-3 Letter dated June 4, 2021 – Corix submission on proceeding Scope and Deferral Account
July 21, 2021 B6-4 Letter dated July 21, 2021 – Corix Brattle Report submission on Use of a Benchmark Utility
July 21, 2021 B6-5 Letter dated July 21, 2021 – Corix submission on Use of a Benchmark Utility
August 12, 2021 B6-6 Letter dated August 12, 2021 – Corix submission on cost eligibility of PACA
March 22, 2021 B7-1 CREATIVE ENERGY VANCOUVER PLATFORMS INC. (CREATIVE ENERGY) – Letter dated March 22, 2021 submitting registration by Rob Gorter
March 31, 2021 B7-2 Letter dated March 31, 2021 – Creative Energy submission on Preliminary Scope Document
June 04, 2021 B7-3 Letter dated June 4, 2021 – Creative Energy submission on proceeding Scope and Deferral Account
July 21, 2021 B7-4 Letter dated July 21, 2021 – Creative Energy submission on Use of a Benchmark Utility
August 13, 2021 B7-5 Letter dated August 13, 2021 – Creative Energy submission on cost eligibility of PACA
October 15, 2021 B7-6 Letter dated October 15, 2021 – Creative Energy submitting Information Request No. 1 on Exhibit A2-3
March 18, 2021 B8-1 RIVER DISTRICT ENERGY (RDE) – Letter dated March 18, 2021 submitting registration by Ross Hanson
March 31, 2021 B8-2 Letter dated March 31, 2021 – RDE submission on Preliminary Scope Document
March 24, 2021 B9-1 PACIFIC NORTHERN GAS LTD. (PNG) AND PACIFIC NORTHERN GAS (N.E.) LTD. (PNGNE) (COLLECTIVELY PNG) – Letter dated March 24, 2021 submitting registration by Gordon Doyle
March 31, 2021 B9-2 Letter dated March 31, 2021 – PNG submission on Preliminary Scope Document
June 04, 2021 B9-3 Letter dated June 4, 2021 – PNG submission on proceeding Scope and Deferral Account
July 21, 2021 B9-4 Letter dated July 21, 2021 – PNG submitting notice of Additional Contact
July 21, 2021 B9-5 Letter dated July 21, 2021 – PNG Brattle Report submission on Use of a Benchmark Utility
July 21, 2021 B9-6 Letter dated July 21, 2021 – PNG submission on Use of a Benchmark Utility
August 13, 2021 B9-7 Letter dated August 13, 2021 – PNG submission on cost eligibility of PACA

C Exhibits — Intervener Documents

Date Title Document Description
March 12, 2021 C1-1 RESIDENTIAL CONSUMER INTERVENER ASSOCIATION (RCIA) – Letter dated March 12, 2021 submitting request to intervene by Fredrik Ambrosson
March 31, 2021 C1-2 Letter dated March 31, 2021 – RCIA submission on Preliminary Scope Document
June 04, 2021 C1-3 Letter dated June 4, 2021 – RCIA submission on proceeding Scope and Deferral Account
July 21, 2021 C1-4 Letter dated July 21, 2021 – RCIA submission on Use of a Benchmark Utility
August 13, 2021 C1-5 Letter dated August 13, 2021 – RCIA submission on cost eligibility of PACA
October 12, 2021 C1-6 Letter dated October 12, 2021 – RCIA submitting Information Request No. 1 on Exhibit A2-3
March 07, 2022 C1-7 Letter dated March 7, 2022 – RCIA submitting Information Request No. 1 on FortisBC Evidence
May 16, 2022 C1-8 Letter dated May 16, 2022 – RCIA submitting Information Requests No. 2 to FortisBC and Dr. Lesser regarding Mr. Coyne’s evidence
March 14, 2021 C2-1 MOVEMENT OF UNITED PROFESSIONALS (MOVEUP) – Letter dated March 14, 2021 submitting request to intervene by Jim Quail
March 31, 2021 C2-2 Letter dated March 31, 2021 – MoveUP submission on Preliminary Scope Document
July 16, 2021 C2-3 Letter dated July 16, 2021 – MoveUP submission on Order G-183-21 Appendix A
August 13, 2021 C2-4 Letter dated August 13, 2021 – MoveUP submission on cost eligibility of PACA
October 12, 2021 C2-5 Letter dated October 12, 2021 – MoveUP submitting Information Request No. 1 on Exhibit A2-3
March 22, 2021 C3-1 BORALEX OCEAN FALLS LIMITED PARTNERSHIP (BORALEX LP) – Letter dated March 22, 2021 submitting request to intervene by Maxime Tremblay
March 22, 2021 C4-1 ASSOCIATION OF MAJOR POWER CUSTOMERS OF BC (AMPC) – Letter dated March 22, 2021 submitting request to intervene by Matthew Keen
April 01, 2021 C4-2 Letter dated April 1, 2021 – AMPC submission on Preliminary Scope Document
March 22, 2021 C5-1 INDUSTRIAL CUSTOMERS GROUP (ICG) – Letter dated March 22, 2021 submitting request to intervene by Robert Hobbs
March 31, 2021 C5-2 Letter dated March 31, 2021 – ICG submission on Preliminary Scope Document
June 04, 2021 C5-3 Letter dated June 4, 2021 – ICG submission on proceeding Scope and Deferral Account
July 21, 2021 C5-4 Letter dated July 21, 2021 – ICG submission on Use of a Benchmark Utility
August 13, 2021 C5-5 Letter dated August 13, 2021 – ICG submission on cost eligibility of PACA
October 15, 2021 C5-6 Letter dated October 15, 2021 – ICG submitting Information Request No. 1 on Exhibit A2-3
March 07, 2022 C5-7 Letter dated March 7, 2022 – ICG submitting Information Request No. 1 on FortisBC Evidence
May 16, 2022 C5-8 Letter dated May 16, 2022 – ICG submitting Information Request No. 2 to Dr. Lesser regarding Mr. Coyne’s evidence
March 22, 2021 C6-1 COMMERCIAL ENERGY CONSUMERS ASSOCIATION OF BRITISH COLUMBIA (CEC) – Letter dated March 22, 2021 submitting request to intervene by Christopher Weafer
March 31, 2021 C6-2 Letter dated March 31, 2021 – CEC submission on Preliminary Scope Document
June 04, 2021 C6-3 Letter dated June 4, 2021 – CEC submission on proceeding Scope and Deferral Account
July 21, 2021 C6-4 Letter dated July 21, 2021 – CEC submission on Use of a Benchmark Utility
August 13, 2021 C6-5 Letter dated August 13, 2021 – CEC submission on cost eligibility of PACA
October 08, 2021 C6-6 Letter dated October 8, 2021, CEC submitting extension request to file Information Requests on Exhibit A2-3
October 15, 2021 C6-7 Letter dated October 15, 2021 – CEC submitting Information Request No. 1 on Exhibit A2-3
March 07, 2022 C6-8 Letter dated March 7, 2022 – CEC submitting Information Request No. 1 on FortisBC Evidence
May 16, 2022 C6-9 Letter dated May 16, 2022 – CEC submitting Information Request No. 2 on FortisBC Evidence
May 16, 2022 C6-10 Letter dated May 16, 2022 – CEC submitting Information Request No. 2 to Dr. Lesser regarding Mr. Coyne’s evidence
March 22, 2021 C7-1 BRITISH COLUMBIA OLD AGE PENSIONERS’ ORGANIZATION, ACTIVE SUPPORT AGAINST POVERTY, DISABILITY ALLIANCE BC, COUNCIL OF SENIOR CITIZENS’ ORGANIZATIONS OF BC, TENANTS RESOURCE AND ADVISORY CENTRE, AND TOGETHER AGAINST POVERTY SOCIETY (BCOAPO et al.) – Letter dated March 22, 2021 submitting request to intervene by Leigha Worth and Irina Mis
March 31, 2021 C7-2 Letter dated March 31, 2021 – BCOAPO submission on Preliminary Scope Document
July 21, 2021 C7-3 Letter dated July 21, 2021 – BCOAPO submission on Use of a Benchmark Utility
August 13, 2021 C7-4 Letter dated August 13, 2021 – BCOAPO submission on cost eligibility of PACA
October 15, 2021 C7-5 Letter dated October 15, 2021 – BCOAPO submitting Information Request No. 1 on Exhibit A2-3
March 07, 2022 C7-6 Letter dated March 7, 2022 – BCOAPO submitting Information Request No. 1 on FortisBC Evidence
May 16, 2022 C7-7 Letter dated May 16, 2022 – BCOAPO submitting Information Request No. 2 to FortisBC
May 16, 2022 C7-8 Letter dated May 16, 2022 – BCOAPO submitting Information Request No. 2 to Dr. Lesser regarding Mr. Coyne’s evidence
March 22, 2021 C8-1 BRITISH COLUMBIA HYDRO AND POWER AUTHORITY (BC HYDRO) – Letter dated March 22, 2021 submitting request to intervene by Fred James
June 04, 2021 C8-2 Letter dated June 4, 2021 – BC Hydro submission on proceeding Scope and Deferral Account
March 22, 2021 C9-1 CLEAN ENERGY ASSOCIATION OF BC (CEABC) – Letter dated March 22, 2021 submitting request to intervene by Laureen Whyte
June 01, 2021 C9-2 Letter dated June 1, 2021 – CEABC submission on proceeding Scope and Deferral Account
April 12, 2022 C9-3 Letter dated April 12, 2021 – CEABC withdrawing intervener status

D Exhibits — Interested Party Documents

Date Title Document Description
March 23, 2021 D-1 Letter dated March 23, 2021 - Onni Group request for Interested Party Status by Michelle McLarty
July 13, 2021 D-2 CHOY, MAURICE (CHOY) - Submission dated July 13, 2021 request for Interested Party Status
July 28, 2021 D-3 JARVI, MARK (JARVI) – Submission dated July 28, 2021 request for Interested Party Status

E Exhibits — Letters of Comment

Date Title Document Description
February 15, 2022 E-1 DE LA GARZA, S. (DELAGARZA) – Letter of Comment dated February 15, 2022

Transcripts

Date Title Document Description
April 14, 2022 Transcript Volume 1 Procedural Conference April 14, 2022

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