BILL 40 – 2003
UTILITIES COMMISSION AMENDMENT ACT, 2003

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 2 (9) and (10) of the Utilities Commission Act, R.S.B.C 1996, c. 473, is repealed and the following substituted:

(9) The chair may appoint a deputy chair or commissioner to act as chair for any purpose specified in the appointment.

2 Section 4 is amended

(a) by repealing subsection (2) and substituting the following:

(2) The chair may organize the commission into divisions. ,

(b) by repealing subsection (5) and substituting the following:

(5) At a sitting of the commission or of a division of the commission, one commissioner is a quorum. ,

(c) by repealing subsection (6) and substituting the following:

(6) The chair may designate a commissioner to serve as chair at any sitting of the commission or a division of it. , and

(d) by repealing subsections (8) and (9).

3 Section 11 (1) (a) is amended by striking out "2 or".

4 Section 13 (1) is amended by striking out "for the preceding calendar year," and substituting "for the preceding fiscal year,".

5 Part 2 is repealed.

6 Section 45 is amended

(a) in subsection (3) by striking out "a regulated project under this Act or", and

(b) by adding the following subsections:

(6.1) A public utility must file the following plans with the commission in the form and at the times required by the commission:

(a) a plan of the capital expenditures the public utility anticipates making over the period specified by the commission;

(b) a plan of how the public utility intends to meet the demand for energy by acquiring energy from other persons, and the expenditures required for that purpose;

(c) a plan of how the public utility intends to reduce the demand for energy, and the expenditures required for that purpose.

(6.2) After receipt of a plan filed under subsection (6.1), the commission may

(a) establish a process to review all or part of the plan and to consider the proposed expenditures referred to in that plan,

(b) determine that any expenditure referred to in the plan is, or is not at that time, in the interests of persons within British Columbia who receive, or who may receive, service from the public utility, and

(c) determine the manner in which any expenditures referred to in the plan can be recovered in rates.

7 Section 60 (1) (b) is repealed and the following substituted:

(b) the commission must have due regard to the setting of a rate that

(i) is not unjust or unreasonable within the meaning of section 59,

(ii) provides to the public utility for which the rate is set a fair and reasonable return on any expenditure made by it to reduce energy demands, and

(iii) encourages public utilities to increase efficiency, reduce costs and enhance performance,

(b.1) the commission may use any mechanism, formula or other method of setting the rate that it considers advisable, and may order that the rate derived from such a mechanism, formula or other method is to remain in effect for a specified period, and .

8 Part 4 is repealed and the following substituted:

Part 4 -- Carriers, Purchasers and Processors

Definition

64.1 In this Part, "sufficient notice" means notice in the manner and form, within the period, with the content and by the person required by the commission.

Common carrier

65 (1) In this section, "common carrier" means a person declared to be a common carrier by the commission under subsection (2) (a).

(2) On application by an interested person and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, the commission may

(a) issue an order, to be effective on a date determined by it, declaring a person who owns or operates a pipeline for the transportation of

(i) one or more of crude oil, natural gas and natural gas liquids, or

(ii) any other type of energy resource prescribed by the Lieutenant Governor in Council,

to be a common carrier with respect to the operation of the pipeline, and

(b) in the order establish the conditions under which the common carrier must accept and carry energy resources.

(3) On application by a person that uses or seeks to use facilities operated by a common carrier, the commission, by order and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, may establish the conditions under which the common carrier must accept and carry crude oil, natural gas, natural gas liquids or prescribed energy resources referred to in subsection (2) (a).

(4) A common carrier must not unreasonably discriminate

(a) between itself and persons who apply to the common carrier to transport, in its pipeline, crude oil, natural gas, natural gas liquids or prescribed energy resources referred to in subsection (2) (a) (ii), or

(b) among the persons who so apply.

(5) A common carrier must comply with the conditions in any order applicable to the common carrier that is made under this section.

(6) The commission may, by order and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, vary an order made under this section.

(7) If an agreement between a common carrier and another person

(a) is made before an order is made under this section, and

(b) is inconsistent with the conditions established by the commission in an order made under this section,

the commission may, in the order or in a subsequent order, after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, vary the agreement between the parties to eliminate the inconsistency.

(8) Subject to subsection (9), if an agreement is varied under subsection (7), the common carrier and the commission are not liable for damages suffered as a result of that variation by the other party to the agreement.

(9) Subsection (8) does not apply to a common carrier referred to in that subsection in relation to anything done or omitted by that person in bad faith.

Common purchaser

66 (1) In this section, "common purchaser" means a person declared to be a common purchaser by the commission under subsection (2).

(2) On application by an interested person and after a hearing, sufficient notice of which has been given to persons the commission believes may be affected, the commission may issue an order, to be effective on a date determined by it, declaring a person who purchases or otherwise acquires, from a pool designated by the commission, crude oil, natural gas or natural gas liquids to be a common purchaser of the crude oil, natural gas or natural gas liquids.

(3) On application by a person whose crude oil, natural gas or natural gas liquids is or will be purchased by a common purchaser, the commission, by order and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, may establish the conditions under which the common purchaser must purchase crude oil, natural gas or natural gas liquid.

(4) A common purchaser must not unreasonably discriminate

(a) between itself and persons who apply for the services offered by the common purchaser, or

(b) among the persons who so apply.

(5) A common purchaser must comply with the conditions in any order applicable to the common purchaser that is made under this section.

(6) The commission may, by order and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, vary an order made under this section.

(7) If an agreement between a common purchaser and another person

(a) is made before an order is made under this section, and

(b) is inconsistent with the conditions established by the commission in an order made under this section,

the commission may, in the order or in a subsequent order, after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, vary the agreement between the parties to eliminate the inconsistency.

(8) Subject to subsection (9), if an agreement is varied under subsection (7), the common purchaser and the commission are not liable for damages suffered as a result of that variation by the other party to the agreement.

(9) Subsection (8) does not apply to a common purchaser referred to in that subsection in relation to anything done or omitted by that person in bad faith.

Common processor

67 (1) In this section, "common processor" means a person declared to be a common processor by the commission under subsection (2).

(2) On application by an interested person and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, the commission may issue an order, to be effective on a date determined by it, declaring the person that owns or operates a plant for processing natural gas to be a common processor of natural gas.

(3) On application by a person that uses or seeks to use facilities operated by a common processor, the commission, by order and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, may establish the conditions under which the common processor must accept and process natural gas.

(4) A common processor must not unreasonably discriminate

(a) between itself and persons who apply for the services offered by the common processor, or

(b) among the persons who so apply.

(5) A common processor must comply with the conditions in any order applicable to the common processor made under this section.

(6) The commission may, by order and after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, vary an order made under this section.

(7) If an agreement between a common processor and another person

(a) is made before an order is made under this section, and

(b) is inconsistent with the conditions established by the commission in an order made under this section,

the commission may, in the order or a subsequent order, after a hearing, sufficient notice of which has been given to all persons the commission believes may be affected, vary the agreement between the parties to eliminate the inconsistency.

(8) Subject to subsection (9), if an agreement is varied under subsection (7), the common processor and the commission are not liable for damages suffered as a result of that variation by the other party to the agreement.

(9) Subsection (8) does not apply to a common processor referred to in that subsection in relation to anything done or omitted by that person in bad faith.

9 Section 68 is amended

(a) by repealing the definition of "electricity transmission contract",

(b) by repealing the definition of "energy supply contract" and substituting the following:

"energy supply contract" means a contract under which energy is sold by a seller to a public utility or another buyer, and includes an amendment of that contract, but does not include a contract in respect of which a schedule is approved under section 61 of this Act; , and

(c) by adding the following definitions:

"gas marketer" means a person who holds a gas marketer licence issued under section 71.1 (6) (a);

"low-volume consumer" has the meaning ascribed to it under rules made by the commission under section 71.1 (10); .

10 Section 69 is repealed.

11 Section 71 is amended

(a) in subsection (1) by striking out "A person" and substituting "Subject to subsection (1.1), a person", and

(b) by adding the following subsection:

(1.1) Subsection (1) does not apply to an energy supply contract for the sale of natural gas unless the sale is to a public utility.

12 The following section is added to Part 5:

Gas marketers

71.1 (1) A person must not perform a gas marketing activity within the meaning of subsection (2) unless

(a) the person is a public utility and the public utility performs the gas marketing activity within any area in which it is authorized to provide service, or

(b) the person holds a gas marketer licence issued to the person under subsection (6) (a).

(2) For the purposes of subsection (1), a person performs a gas marketing activity if the person

(a) sells or offers to sell natural gas to a low-volume consumer,

(b) acts as the agent or broker for a seller in a sale of natural gas to a low-volume consumer, or

(c) acts or offers to act as the agent or broker of a low-volume consumer in a purchase of natural gas.

(3) A gas marketer must comply with the commission rules issued under subsection (10) and the terms and conditions, if any, attached to the gas marketer licence held by the gas marketer.

(4) A gas marketer must not carry on or offer to carry on business as a gas marketer in a name other than the name in which it is licensed unless authorized to do so in the licence.

(5) If a person is not in compliance with subsection (1), (3) or (4), the commission may do one or more of

(a) declare an energy supply contract between the person and a low-volume consumer unenforceable, either wholly or to the extent the commission considers proper, in which event the contract is enforceable to the extent specified, and

(b) if the person is a gas marketer,

(i) amend the terms and conditions of, or impose new terms and conditions on, the gas marketer licence, and

(ii) suspend or cancel the gas marketer licence.

(6) The commission may

(a) on application, issue a gas marketer licence to any person who is not a public utility,

(b) impose, in respect of any gas marketer licence issued by the commission, terms and conditions that the commission considers appropriate,

(c) amend any of the terms and conditions imposed in respect of a gas marketer licence, and

(d) suspend or cancel a gas marketer licence.

(7) The commission may require, as a condition of granting a gas marketer licence, that the gas marketer post security in a form, and in accordance with such terms and conditions, as the commission considers appropriate,

(8) The commission may order that some or all of the security posted by a gas marketer in accordance with a requirement imposed under subsection (7) be paid out to those persons who the commission considers have been or may be affected by an act or omission of the gas marketer.

(9) Section 43 applies to each gas marketer as if that gas marketer were a public utility.

(10) The commission may make the following rules:

(a) defining "low-volume consumer";

(b) respecting the process by which application may be made for a gas marketer licence and specifying the form and content of applications for that licence;

(c) respecting the imposition of terms and conditions on gas marketer licences;

(d) requiring an applicant for a gas marketer licence to obtain a bond, letter of credit or other specified security and requiring the filing with the commission of proof, satisfactory to the commission, of that security;

(e) respecting the form and content of security that may be required under paragraph (d) and the person by whom and the terms on which it is to be held;

(f) respecting the circumstances in which and the persons to whom disbursement of some or all of the security required under paragraph (d) is to be made.

13 The following sections are added:

Alternative dispute resolution

86.1 The commission may encourage the use of alternative dispute resolution methods for the purpose of resolving disputes relating to the commission's discretion, functions and duties under this or any other enactment.

When oral hearings not required

86.2 (1) Despite any other provision of this Act, in any circumstance in which, under this Act, a hearing may or must be held, the commission may conduct a written hearing.

(2) The commission may make rules respecting the circumstances in which and the process by which written hearings may be conducted and specifying the form and content of materials to be provided for written hearings.

14 Section 88 is amended

(a) in subsection (2) by striking out ", other than under Part 2,", and

(b) in subsection (3) by striking out ", other than Part 2, or may limit or vary the application of this Act, other than Part 2." and substituting "or may limit or vary the application of this Act."

15 Section 106 (1) (g) is repealed.

16 Section 107 (1) (a) and (2) is repealed.

17 Section 108 is amended

(a) by striking out "section 15 or", and

(b) in paragraph (a) (i) by striking out "energy project certificate, energy operation certificate or energy removal certificate" and substituting "energy project certificate or energy operation certificate".

18 Section 109 (a) is repealed.

19 Section 110 is amended by striking out "Subject to the Economic Development Electricity Rate Act, the" and substituting "The".

20 Section 124 (4) is repealed.

 
Consequential Amendments

 
Economic Development Electricity Rate Act

21 The Economic Development Electricity Rate Act, R.S.B.C. 1996, c. 104, is repealed.

 
Hydro and Power Authority Act

22 Section 32 (7) (f) of the Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is repealed.

 
Oil and Gas Commission Act

23 Sections 19 to 21 of the Oil and Gas Commission Act, S.B.C. 1998, c. 39, are repealed.