=
SUBMISSION
TO BCUC REGARDING PROPOSED FORTIS RATE INCREASE TO PAY FOR THE BIG WHITE RA=
TE
DESIGN
As a small business owner (Medical
Clinic) and year-round resident of Big White, I am both surprised and disma=
yed that
the Commission is considering discriminatory rate charges against the resid=
ents
and owners of property at Big White, BC. As a largely non-resident owner tax=
base,
the community already pays a disproportionate amount in taxes. With a community school and growing
population base, we should be treated like any other consumer base in the
Fortis grid. The letter below
summarizes well my position, as well as the position of many fellow residen=
ts
of this struggling community (located in the
We do not object to the buildi=
ng of
a new substation in the Big White area.&nb=
sp;
We DO STRONGLY OBJECT to any surcharge, or rate increase, or any cost
that Big White customers would have to pay for the capital costs associated=
with
the new substation. The Big W=
hite
customers should only have to pay for the cost of the power and a reasonable
price for the delivery and operations. Our matters for your consideration a=
re
as follows:
1) The approximate $20 million
capital cost of the proposed substation should be an investment by Fortis BC
and its privately held shareholders.
Fortis BC like any other for-profit company should pay for capital
improvements from which it will derive future revenue and profits. The new
substation=
will service a new customer g=
rid
which will expand the revenues to Fortis BC and its shareholders.
2) In the alternative, public
utilities and public infrastructure is a cost that should be born by the
government and the public-at-large.
Any rate increase or surcharge should be a cost to all customers of =
the
BC area. The development of B=
ig
White or other areas of BC is a benefit
to<=
/span> the local BC economy. Big White property owners pay
significant property taxes based on our high real estate values, many are
international owners that do not use the government services on a regular
basis, and as international owners are not allowed to vote or have a say in=
how
the real property tax dollars are spent.
3) In the alternative, the cap=
ital
cost of the proposed substation should be partially born by the developers =
who
will profit from the future development and building at Big White. If the need for the proposed subst=
ation
is due to the increase in the development of commercial and residential uni=
ts,
and the current utility structure is adequate to meet the existing needs of=
the
present buildings, then perhaps there should be an assessment on new develo=
pments
at the time of construction to cover, or partially cover, the cost of the n=
eed
for the expanded utility service.
4) In the alternative, perhaps, a por=
tion
of the cost could be allocated to new customer hook-up since these new
customers will directly benefit from the expanded utility service and the
needed infrastructure was only necessary to provide these new customers with
utility service. To allow a utility company to surcharge its existing custo=
mers
for capital assets that will benefit its future customers is wrong.
5) In the alternative, if Big =
White
customers are to be charged directly or indirectly for the capital cost of =
the
proposed substation, then Big White customers should be given stock shares =
in
Fortis BC for their contribution to Fortis BC owned capital assets. With such stock ownership, Big Whi=
te
customers would also share in the profits and be entitled to dividends from
Fortis BC.
6) To approve a rate increase =
or
surcharge against the Big White customers for the cost of capital assets of=
the
proposed utility substation, would set a bad precedent and open a Pandora's=
box to
other types of utilities (water,
telephone, sewer, cable) surcharging its customers for their capital asset
expansion.
Thank you for your time and
consideration. We stron=
gly
urge the British Columbia Utilities Commission to NOT ALLOW any rate increa=
ses
or surcharge or any other cost of capital improvements to be passed on to B=
ig White
customers.
Mike Figurski, MD
Whitefoot Medical Clinic
Big White, BC
includes information drafted by the Le=
gacy
Strata Council