Whereas the British Columbia Utilities Commission BCUC - grounded in 20th-Century needs and priorities, with its core function as a traditional economic regulator enforcing the regulatory compact balancing services, rates and investor returns -established an inquiry, by Order G-177-19, dated August 1, 2019, to examine the regulation of energy utilities affiliated with municipalities and regional districts including exploring the regulatory status of different ownership structures and operational arrangements and the current municipal exclusion under the Utilities Commission Act; And whereas in the event an outcome of the inquiry is BCUC oversight of municipal and regional energy utilities, this may have adverse impacts that do not serve the public interest including 1 duplication of current responsibilities that elected officials already have over municipal or regional district energy utilities; 2 adding unnecessary financial and regulatory burden, and regulatory risk; and 3 limiting the ability of municipal or regional district energy utilities to be flexible in how they respond to local needs or support the achievement of public policy goals such as municipal strategies to mitigate the climate crisis, or a just transition of our carbon-based economy into one that is sustainable: Therefore be it resolved that UBCM ask the provincial government to: a re-design the regulatory regime for British Columbias energy sector, to provide a comprehensive, 21st-Century framework that is grounded in todays urgent priorities and harmonizes fully with the priorities of our communities and their municipal representatives, and b maintain or expand the current municipal utility exemption and autonomy to pursue local solutions to local and societal needs, and to enhance the benefits they bring to our communities.
Ministry of Energy, Mines and Low Carbon Innovation The role of the British Columbia Utilities Commission BCUC as an economic regulator is to ensure that customers have access to a safe, reliable energy service at a fair price, while allowing the utilities it regulates the opportunity to earn a fair return on their investments. The existing legislative and regulatory framework allows the Province to provide direction to the BCUC on government policy objectives that fall outside the BCUCs mandate as an economic regulator. A 2015 Independent Review of the BCUC confirmed that it is the provincial governments prerogative to set provincial energy policy, to define the BCUCs mandate, and to direct the BCUC on specific matters. Local governments will play a critical role in the achievement of the Provinces CleanBC plan in areas such as developing new clean energy sources, supporting active and cleaner transportation options and helping BC transition to zero waste. Municipalities and regional districts that directly deliver energy services to their residents through local government-owned electricity, district heating or other public utilities are not subject to BCUC oversight and the Province has no intention of eliminating this current exclusion under the Utilities Commission Act. The Province recognizes that local governments are exploring opportunities to partner or otherwise affiliate with third parties in the delivery of energy services to their residents. Depending upon the nature of the arrangement and any ratepayer protections that exist under the arrangement, an exemption from some or all aspects of BCUC oversight may be appropriate. Under s. 22 and 88 of the Utilities Commission Act, the minister responsible for BC Hydro can approve exemptions from some or all aspects of BCUC oversight. The Province supports the BCUCs examination of these issues through its Municipal Inquiry and will be pleased to consider any requests or recommendations to government resulting from that inquiry.