Utilities Commission Act

 

The Utilities Commission Act creates the B.C. Utilities Commission, an independent regulatory agency of the B.C. government. The Utilities Commission consists of up to seven “Commissioners” appointed by the provincial cabinet, and its purpose is to provide regulation of companies that provide the public with energy or communications services (which are known as “public utilities”).  The Minister of Energy and Mines is responsible for the Act.

 

Similar powers are delegated to the Comptroller of Water Rights, an official of the Ministry of Sustainable Resource Management, in respect of water utilities (public utilities that deliver water to the public), under the Water Utility Act. 

 

The Commission is generally charged to make decisions that aim for the provision of reasonable, safe, adequate, fair and non-discriminatory public utility services. 

 

The Commission’s responsibilities include:

 

·          regulating the construction, maintenance, operation and control of public utilities, including the setting of rates

·          regulating the construction and operation of electrical transmission facilities (power lines) and transmission contracts

·          inquiring into complaints and applications by members of the public in relation to public utility matters, and holding public hearings where necessary

·          helping to mediate disputes which arise amongst regulatory participants

 

A major focus of the Commission is protecting the rights of the consumer of energy or communications.  The environment has not, to date, been viewed as a major focus of the Commission’s decisions. 

 

The Commission’s decisions are legally binding; however, appeals may be made to the B.C. Court of Appeal with the permission of the Court.

 

Certificates of Public Convenience and Necessity

 

Probably the most significant provision for watershed protection advocates is the requirement that a person who intends to build a public utility must first obtain from the Commission a Certificate Public Convenience and Necessity (CPCN). 

 

The Act states that the Commission must not grant a CPCN unless it determines that “the privilege, concession or franchise proposed is necessary for the public convenience and properly conserves the public interest.”  The Commission may, at its discretion, hold public hearings to inquire into and determine the issue. 

 

The CPCN hearings do not constitute an environmental assessment of the project; however, matters of environmental concern and safety fall well within the Commission’s jurisdiction.  CPCN hearings can provide an important opportunity for the public to raise environmental concerns about a project, such as:

 

·          construction of service roads

·          construction of electrical transmission corridors

·          population displacement

·          impacts upon habitat and wildlife

·          electromagnetic radiation or other safety concerns

·          visual impacts

·          the effect of increased emissions on air quality, health and safety

·          impacts on recreational use

The Utilities Commission has not, to date, interpreted its role as having a strong environmental mandate.  However, a Commission public hearing may be an important opportunity to raise such issues. 

 

Energy Removal Certificate Hearings

 

Before removing larger amounts of energy from the province, a company must obtain an Energy Removal Certificate from the Commission.  Again, the Commission may elect to hold a hearing in relation to that decision.  A controversial debate which will undoubtedly be raised more frequently now, with the anticipated increased participation by independent power producers in the energy market and the increased reliance on thermal sources, is whether it makes sense for British Columbia to allow thermal power plants to run locally (and pollute the local environment and air quality) simply to meet foreign demand for energy exports.  There is a strong argument that full environmental costs need to be factored into any proper consideration of “public convenience and necessity.”

 

General Regulation Powers

 

The Utilities Commission has general powers related to the operations and rates of public utilities.  However, such powers will generally not relate to the protection of watersheds. 

 

Related Guide Pages:

·          Water Utility Act.

For more information on the Utilities Commission Act:

·          Electronic version of Utilities Commission Act.

·          Link to electronic version of the Regulations.

·          B.C. Utilities Commission website.