Marija Tresoglavic Acting Commission Secretary Commission.Secretary@bcuc.com bcuc.com

Suite 410, 900 Howe Street Vancouver, BC Canada V6Z 2N3 P: 604.660.4700 TF: 1.800.663.1385 F: 604.660.1102

File 61917 | BCUC Staff Presentation 1 of 1

September 9, 2020 Sent via eFile

BCUC REVIEW OF BC HYDRO PBR REPORT EXHIBIT A2-6

Mr. Fred James Chief Regulatory Officer Regulatory & Rates Group British Columbia Hydro and Power Authority 16th Floor - 333 Dunsmuir Street Vancouver, BC V6B 5R3 bchydroregulatorygroup@bchydro.com Re: British Columbia Utilities Commission – Review of British Columbia Hydro and Power Authority’s

Performance Based Regulation Report – Project No. 1599045 – BCUC Staff Presentation Dear Mr. James: British Columbia Utilities Commission staff submit the following presentation for the record in this proceeding:

British Columbia Utilities Commission Performance Based Regulation:

An Introduction Dated September 8, 2020

Sincerely, Signed by Jessica O’Brien for: Marija Tresoglavic Acting Commission Secretary /aci Enclosure

Jackie AshleySenior Regulatory SpecialistSeptember 8, 2020

Performance Based Regulation- An Introduction -

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PBR Process

Win Win4

Aligning Incentives

• Good things that are not profitable for the utility

• Bad things that are profitable to the utility

• Good things not getting done for lack of interest or motivation

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Regulatory Problem #1:

Good things that are not profitable to the utility

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Regulatory Problem #2:

Bad things that are profitable to the utility

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Regulatory Problem #3:

Good things not getting done because of a lack of motivation

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NARUC PBR Foundations Video

https://www.youtube.com/watch?v=lj-y_NQxNR89

BC Context: Phase 1

The BCUC undertakes its role so that it applies sound utility regulatory principles to its decisions, with a focus on the impact on BC Hydro’s ratepayers. That means that the BCUC is not required to implement policy that does not stand on its own from a regulatory perspective.

…As result of Phase 1 of the Review, if there is a priority policy item for the government to advance, government will introduce legislation or provide direction that supports it. With this approach, the BCUC will be empowered to make decisions with respect to BC Hydro in a mostly unencumbered way, in alignment with the laws and regulatory principles that are applicable to it.

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DeliverablesLawful

Fairness

Economic Efficiency• utility operational and

investment decisions• customer investment

and consumption decisions

• efficient regulation• innovation

Reliability

Safety

Customer Satisfaction

Environment

Social

Economic Development

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Reconciliation

BC Context –Phase 2 (draft)

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Start a Conversation

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Source: Minnesota PUC Staff Briefing Paper on Performance Metrics and Incentives, February 20, 2020 (E-002/CI-17-401)

Thank you!

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