The rates
for transmission services purchased from BCTC are regulated on cost of service principles.
BCTC sets forth and seeks approval of its cost of service in the Transmission Revenue Requirement
, which is comprised of the:
- BCTC Revenue Requirement – BCTC’s cost of service associated with the provision of transmission services under the Open Access Transmission Tariff and the operation of the transmission system, off-set by non-tariffed revenues and recoveries;
- Asset Management/Maintenance Revenue Requirement – costs incurred relating to maintenance work performed on the transmission assets by BCTC in accordance with the Asset Management and Maintenance Agreement; and
- BC Hydro Owner’s Revenue Requirement – Transmission costs incurred by BC Hydro related to asset ownership, operating expenses associated with property services and aboriginal relations and an allocation of BC Hydro corporate costs, off-set by non-tariffed revenues and recoveries.
The Commission then determines the just and reasonable rates to be charged by BCTC.