BC Hydro Strawman Regulatory Timetable for Rate Design Application (RDA) Module 1

Proposed Review Process/Dates/Rationale

1. Large General Service (LGS} and Medium General Service (MGS} 100% Part 1 Pricing

British Columbia Utilities On or before 10 February BCUC Order G-175-15 Commission (BCUC, Commission) 2016 (Exhibit A-4) Order Compliance Filing If new account pricing is

approved, BC Hydrowill file interim LGS and MGS rate sheets with the F2017 Revenue Requirement Application (RRA) at end February 2016 that incorporate the new account pricing effective April 1, 2016 as part of RRA filing requirements.

2. Transmission Service Rates (TSR): BC Hydro Proposed Freshet Rate Pilot (Rate Schedule (RS} 1892}

Streamlined Review Process 25 January 2016 Exhibit A-8 (SRP) Oral argument made at SRP II ,, II II ... . .. BCUC Order On or before 8 February 2016 To ensure BC Hydro has

time to implement the Commission Freshet Rate Pilot decision by 1 March 2016.

3. TSR: RS 1827 (Exempt Customer}, RS 1852 Amendments (Modified Demand}, RS 1853 (Independent Power Producer (IPP} Service Station}

4. General Service: RS 1253 (IPP Service Station}

5. BC Hydro Residential E-Plus (RS 1105} Proposal

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Intervener Written Argument 5 February 2016 for items #3 BC Hydro proposed no and #4. changes to the RS listed in

Items #3 and #4, with the 25 February 2016 for item #5 exception of the limited (per EPlus Homeowners Group changes to RS 1852. BC (EPHG) verbal request to BC Hydro proposed limited Hydro for four weeks following changes to RS 1105 (Item the procedural conference). #5).

BC Hydro does not believe a second round of information requests (IRs) is required on Items #3, #4 and #5. In addition to the Application, BC Hydro completed extensive stakeholder engagement on all of these RS. No material issues were raised in the first round of I Rs. Together the Application and Round 1 IR responses provide the BCUC with the information it needs to make determinations on these matters, and therefore Item #3, #4 and #5 should proceed to written argument. EPHG verbally communicated to BC Hydro its preference for written argument as opposed to a SRP or other oral review process.

_ The 2015 RDA (Exhibit B-1) serves as BC Hydro's . Argument.

BC Hydro Reply Argument 12 February 2016 for items #3 and #4

11 March 2016 for item #5

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BCUC Order On or before 11 March 2016 To give certainty to RS for items #3 and #4 1827 customers in

particular. On or before 15 April 2016 for item #5. BC Hydro will be filing and

seeking approval for interim rates for these RS as part of the F2017 RRA filing at the end February. These rates will be based on BC Hydro's proposed 2015 RDA rate designs. BC Hydro will amend these rates if needed after the BCUC RDA order has been issued.

6. F2016 Cost of Service (COS)/Rate Classes

Negotiated Settlement Process 17 and 18 February 2016- BC Hydro's F2016 COS- (NSP) timing based on availability of related proposal in Exhibit

BC Hydro's COS consultant. B-2 is limited. BC Hydro proposes that the Commission order a NSP to determine if, as evidenced by the 2015 RDA stakeholder engagement process, there is general consensus on a number of F2016 COS methodology items that could be the subject of Commission endorsement . (by way of Commission approval of any Negotiate . Settlement Agreement (NSA)). BC Hydro notes that many of the F2016 COS methodology items continue with the 2007 RDA Decision, such as

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classifying Transmission as 100 per cent demand and allocating Generation demand-related and Transmission costs using 4 Coincident Peak. As noted in Exhibit B-3, the default will be 2007 RDA Decision for some F2016 COS methodology items for which there is no general consensus.

There were relatively few Round 1 IRs concerning the rate class portion of the Application (Exhibit B- 1, Chapter 4). BC Hydro committed to reviewing a potential extra-large LGS rate class ('XLGS') as part of RDA Module 2, and potentially separating FortisBC Inc. and City of New Westminster from the remainder of the TSR rate class as part of the F2019 COS.

NSA, if any 4 March 2016 BCUC Order approving NSA On or before 21 March 2016 F2016 COS: /[no NSA or BCUC Default to 2007 RDA Decision COS directives and therefore declines NSA no need for written argument; No need for Round 2 IRs as

F2016 COS does not inform rate rebalancing and BC Hydro proposes submitting a F2019 COS after stakeholder engagement.

Rate Classes: /[no NSA or BCUC declines NSA Intervener Argument, 8 April 2016 particularly on Street Lighting rate class proposal BC Hydro Reply Argument, 15 April 2016 particularly on Street Lighting

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[ rate class proposal

7 A. TSR: RS 1823 (Stepped Rate) Pricing Principles

7B. TSR: RS 1825 (Time of Use), RS 1880 (Standby and Maintenance)

8. Small General Service (SGS): BC Hydro Proposal

Load-Resource Balance 18 February 2016 To reflect most recent update/Long-Run Marginal Cost available information. (LRMC) analysis

Energy LRMC determination is required for RS 1823 Step 2, and is used as a referent for SGS flat energy rate.

Round 2 I Rs - BCUC 25 February 2016 Round 2 IRs - Intervener 3 March 2016 BC Hydro Responses 8 April 2016 SRP 21 April 2016 Assumes no intervener

evidence on Items #7 and/or #8.

Items #7and #8 are well suited to SRP as they are limited in scope in that BC Hydro's proposals do not seek to change the fundamental nature of the existing RS 1823, RS 1825, RS 1880 or SGS rates, and do not pose policy issues about which there are no established Commission precedents.1

Oral argument made at SRP I( II If JI ... . .. BCUC Order From the bench at SRP or on or To give certainty to RS

before 6 May 2016 1823 and SGS customers.

Per section Ill of the BCUC's Streamlined Review Process: Policy, Guidelines and Procedures (March 2012); http://www.bcuc.com/Documents/Guidelines/2012/DOC 30215 03-12- Streamlined%20Review%20Process%20Guidelines.pdf.

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BC Hydro will be filing and seeking approval for interim rates for these RS as part of the F2017 RRA. These rates will be based on BC Hydro's proposed 2015 RDA rate designs. BC Hydro will amend these rates if needed after the BCUC RDA order has been issued.

9a. Electric Tariff Amendments/Standard Charges

9b. Potential Low Income Terms and Conditions

10. Residential Default Rate: BC Hydro's Residential Inclining Block (RIB) Proposals

11. Minister RIB Report

12. Residential Rate Intervener Evidence: British Columbia Old Age Pensioner's Organization et al (BCOAPO) Bill Affordability/Low Income Rate Measures

13. LGS and MGS: BC Hydro Proposals

LRB update/LRMC analysis 18 February 2016 Energy LRMC determination is used as a referent for RIB Step 2 rate and the MGS and LGS flat energy rate proposals.

Round 2 IRs - BCUC 25 February 2016 Round 2 I Rs - Intervener 3 March 2016 BC Hydro Responses 8 April 2016 Intervener Evidence (e.g., 21 April 2016 Use 19 January 2016 BCOAPO Low Income Proposal) procedural conference to

determine if there is other RDA intervener evidence.

BCUC, BC Hydro and Intervener 5 May 2016 IRs on Intervener Evidence Intervener Responses 30 May 2016 BC Hydro Written Rebuttal 15 June 2016 During the proceedings to Evidence/Minister RIB Report review BC Hydro's 2006

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Questions 4 and 5 written Integrated Electricity Plan Information _and Long-Term Acquisition

Plan, the BCUC established principles for the filing of rebuttal evidence and the calling of witnesses to speak to such evidence.2 The principles are as follows: (1) a date for filing rebuttal evidence is expected to assist interveners to prepare cross-examination of the rebuttal panel, however, the party filing the rebuttal evidence should always have the right to not call the rebuttal panel; (2) after intervener evidence has been heard by the BCUC panel, the party filing the rebuttal evidence will have the election to call its rebuttal panel or withdraw the rebuttal evidence in which case the evidence would be removed from the record; and (3) ifthe party elects to call its rebuttal panel, then interveners would have the opportunity at that time to make submissions either in support of or against the admissibility of the rebuttal evidence. Thus the filing of rebuttal evidence in advance of the oral hearing is essentially a courtesy to

An Application by British Columbia Hydro and Power Authority for the Review of the F2007 and F2008 Revenue Requirements Application and for the Review of the 2006 Integrated Electricity Plan and the Approval of the 2006 Long­ Term Acquisition Plan, proceedings Transcript 7, pages 612-613; http://www.bcuc.com/Documents/Proceedings/2006/DOC 13319 Transcript Volume 7-Public-Hearini::- November 22 2006.pdf.

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assist interveners to prepare cross-examination, but the election to call the rebuttal panel will not be made until after the intervener witness panels have been cross-examined. Submissions may be made about the admissibility of the rebuttal evidence only if the party elects to call the rebuttal panel.

BC Hydro's approach to the <

RIB Report is set out in Exhibit B-5, response to BCUC IR 1.51.1. BC Hydro will provide information concerning the potential of its existing Residential Demand Side Management (DSM) programs to mitigate RIB rate bill impacts of 10% or greater on BC Hydro's low income customers and customers without access to natural gas once it has been determined that the RIB rate has resulted in such bill impacts. BC Hydro proposes that whether the RIB rate has resulted in such bill impacts be tested through BC Hydro's direct evidence witness panels. BC Hydro would provide Residential DSM program information for Minister RIB Report Questions 4 and 5 as part of its rebuttal evidence/panel if called.

BC Hydro Direct Evidence, Oral 22 June 2016 Consistent with past Hearing Witness practice, BC Hydro will

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Panels/Allocation of Evidence identify the number of to Witness Panels witness panels, together

with the Direct Testimony to identify members of the various witness panels. In addition, to assist those parties intending to cross examine the BC Hydro witnesses, BC Hydro will. also file a document identifying the areas of Exhibit B-1 and the IR responses that each witness panel is responsible for.

Oral Hearing - BC Hydro Direct, 28-30 June, 4-8 July and 11-15 Approximately 2 weeks Intervener Evidence, possibly July 2016 BC Hydro Written Rebuttal Evidence/Minister RIB Report Questions 4 and 5 Information BC Hydro Written Argument, 5 August Including issue of whether including BC Hydro RIB report the Commission has the to Commission jurisdiction to set a low

income rate pursuant to sections 59 and 60 of the Utilities Commission Act. This is a question of law that affects not only BC Hydro and its ratepayers but all public utilities whose rates are regulated by the Commission

Intervener Written Argument 19 August BC Hydro Reply Argument 2 September BCUC decision On or before 2 December 2016 Assumes the Commission

issues a decision a little less than 90 calendar days from the submission of BC Hydro Reply Argument.3

Per section 3.0 of the BCUC's Performance Measures and Targets: Final Report, 14 December 2015.

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