Letter of Comment. British Columbia Utilities Commission. I Province...ls_c. City

British Columbia

Utilities Commission

Letter of Comment

Sixth Floof. 900 Howe S~ lox 2SO Vtneouver. IC. Un.dt Y6Z 2NJ Phone~100 8( Toa flW' 1-800-{)6).t)SS

F Ix: 604-660-1102 WWWbc1KCom

In accordance with the Commission's Rules of Practice and Procedure, to submit a letter of comment concerning an application currently before the Commission, please provide a completed form to comm1ss1on.secretary@bcuc.com. If email is unavailable, please mail the form to the address above. By doing so, you acknowledge that all letters of comment are published with the author's name as part of the public evidentiary record, both in print copy and on the Commission's website. All personal contact information provided on this page is removed before posting to the website. Forms must be received by the Commission by the last filing date included in the proceeding's regulatory timetable before final arguments.

Proceeding name Shannon Estates Thermal Energy System Rate Application Are you currently registered as an intervener or interested party?

Name (first and last) !Michael Sakamoto

City l

I

Province ...

ls_c _____________ __.

Email m - - - , , Phone number

1 • rson•I information when they p•rt1C1pate In• m.tter The BC Utlllt~ Commission Is authorized to collect •nd publish• pefrsonfo~<Jin z::1~n ~lion and Protection of Prlwcy Act (fOIPPAJ. SubJect to before the Commission under sections 26(c) •nd ll.1 (r)(1I) •nd (Iii) o the r · om o n o

fOIPPA. all documents filed in ~spect to an application will be placed on the publK record.

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D-24-1 SHANNON ESTATES THERMAL ENERGY SYSTEM RATE APPLICATION EXHIBIT

Letter of Comment

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SETES failed to

prOVtde

fuU

dJsd0$tle

of

the followvlg

inf

ormatJOn

whlcil may le9d

to

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of tenanll cnroughOOt the rate app&abon ptOCeH

1) Darcee WiM'I (VP

of

WaH FinandaJ) memo dated

June

17. 2015

to

Lori ~ {the then propeffy

m•noer

untJI

lhortly

poor

lo the rate app(icatJon) that outlines tenants' required utJlrty

paymet'C

an

addruon

to rent

Thia Memo. handed

out

to Barbara French along With the lease, was attached at the end

of tMw

lettw

of comment dated November

25

.

2016

.

According to the memo,

(~th hot 1nd cold) for

fr

ee

and will only need to pay for hot water consumption for 1

g

a

ce

tle

lt!Qg

There waa no tenants' agreement to pay any other charges nor there ex1st1 such a requqment according to the memo's wordings. Even though it was sent to the then property manager, Lon Oup1u1. ind waa meant to be d1stnbuted to all tenants. the arrangement waa not effedlvely communicated 10 that most tenants were unaware of its eXJstence. Due to thla predetemuned

1rrangement, 111 tenants should be exempted trom the proposed metering charge .. capacity charge,

allJ,ato ddeCI and domestic hot water charge. SETES, related to Wall Finanoal which 11 the 10le

developer of the proJect. should be fully aware of th11 arrangement and is obligated to d1&close it 111

CPCN application. However. it was never disclosed in the initJal application and was not addressed

in the updated one. Tenants should be put under a segregated rate class because most proposed ratea do not apply to them as per this legally binding memo.

It is unclear why the memo was not disclosed and SETES had never provided any explanabon.

However. exclusion of the memo might had already misled BCUC In its CPCN approval of SETES'1 collection of fees from all customers under one single class. Furthermore, BCUC might

not

even grve SETES permission to collect interim utility charges based on proposed rates from tenants If ttus memo were disclosed in the first place. I understand that tenancy related issues are out of BCUC'a junsdiction. but the approval

of

CPCN based on this omitted memo und

r

appl!cablo to tenants.

Most tenants. without the knowledge of this memo, were misled by

the

current property manager that they must enroll with QMC in order to stay in their unrts. It is not true according to the tanff. In fact, as revealed by Zachary Dolman's letter of comments, he was evicted as he opposed to sign up. Many senior tenants depend on fixed pension income. so the proposed rate would impose tremendous

financial pressure upon their monthJ,y budget Facing with skyrocketmg rent in the Vancouver city and fear of eviction, many tenants chose lo remain silent reluctantJy because there are really nowhere else for them to go. Both SETES and SWCRA are essenbally dosefy related to WaJI Fin~ but remain separate for operational and legal reasons. The dual identrty of utility owner and landlord has

Tlw IC Utiliuft (Gmmi$51on IS~ to collea ~publish A penon«~'s penoNli tnfonNbon .,._ dwy ~ ift AW

before I~ Comnussion under 5eCtlOn$ 26(cJ ~ 33. l(rXa) Mid (Iii) ol IN Ffftdom ol Womwoon Mid PrOleCtJOn ol ~ AQ lfQPPAa. ~ •

FOIPPA. ill docwnenis filed in respeo to Ml applotJQft wt1 ~ pWced on IN pubk ~

empowere

fair and safe manner. earing process 1 a

Z) Space cooling is not provided inside rental units

Without this. piece of information, ~CUC ~ould assume that all customers are provided with the aame

kind of service ~nd therefore cons1d.er a single rate class to be legitimate. It is impossible for Sterling

Cooper Consulting Inc, the mecham.cal consultant who filed the application on behalf of SWCRA, to

have no kn~wledge of ~uch a matenal fact. Deliberately misleading BCUC by holding back key

information 1s unconscionable and should be regarded as a serious offence.

The initial rate applipation documents consistently describe that all buildings/customers recettu~ beating. space cooling and domestic hot water. Such assertion contradicts with the fact that tenants receive no space cooling service. The related documents and exact descriptions are as follows:

-SHANNON ESTATES THERMAL ENERGY SYSTEMS CERTIFICATE OF PUBLIC

CONVENIENCE AND NECESSITY APPLICATION p. 26 section 9.3

#The buildings are denoted as: Mansion, Gatehouse, Coach House. Block A. Block B, Block C, Block D, Block E, Block F, and Block G. All of the previously noted buildings are to be provided with space heating, space cooling, and domestic hot water."

-Order G77-16 dated May 26, 2016

"B. The SE TES is to provide space heating, space cooling and domestic hot water to approximately 281 residential customers (75 percent rental) and to up to two commercial customers in the

development called Shannon Mews

&

Apartments"

-Order G-77-16A dated May 26, 2016

"B. The SE TES is to provide space heating, space cooling and domestic hot water to approximately 600 residential customers (36 percent rental) and to up to two commercial customers in the two phased development called Shannon Mews & Apartments"

-Order G-161-16A dated November 7, 2016

MA On May 24, 2016, Shannon Wall Centre Rental Apartments Limited Partnership (SWCRA) filed an application for rates under sections 59-61, 89 and 90 of the Utilities Commission Act (UCA) for the Shannon Estates Thermal Energy System (SETES) located at 7199 Granville Street, Vancouver, BC,

which provides space heating, space cooling and domestic hot water service to the development called Shannon Mews & Apartments (Application)"

Please note that Block C consists of 2 commercial units and more than 200 residential rental units.

Space cooling is provided to commercial tenants but is not provided inside residential rental units.

This fact was disclosed by a tenant named Sor Li in his letter of comment dated June 30, 2016.

Then. for the first time, SETES finally admitted to the fact in its reply submission:

REPLY SUBMISSION TO INTERVENOR FINAL ARGUMENTS & COMMENTARY TO LETTERS

OF COMMENT EXHIBIT E-1 & E-2 SHANNON ESTATES THERMAL ENERGY SYSTEMS RATES

APPLICATION p. 12 response to comment 1.1

"The description is consistent with the provision of space heating, space cooling, and domestic hot water heating to the strata properties and the provision of space heating and domestic hot water heating to the rental property (space cooling is provided to amenity I commercial spaces).·

SETES revised its 2nd rate application related to this fact as follows:

The BC Utilities Commission is authorized to collect and publish a person or organization's personal Information when they participate In a matter before the Commission under sectJons 26(c) and 33. l(r)(n) and (li1) of the frtedom of lnformauon and Protection of Pnvacy Act (FOIPPAJ. Subjeet to FOIPPA. all documen!l flied in respect to an application will be placed on the pubhc record.

l

_

empowere o epnve enan s o ree y engage rn

fair and safe manner.

2) Space cooling is not provided inside rental units

Without this piece of information, ~CUC ~ould assume that all customers are provided with the same kind of service and therefore cons1d_er a single rate class to be legitimate. It is impossible for Stert1ng Cooper Consulting Inc, the mechan1.cal consulta.nt who file~ the application on behalf of SWCRA, to have no knowledge of such a matenal fact. Deliberately misleading BCUC by holding back key information is unconscionable and should be regarded as a serious offence.

The initial rate application docume~ts consistently describe that all buildings/customers receive space beat!Og, space cooling and domestic hot water. Such assertion contradicts with the fact that tenants receive no space cooling service. The related documents and exact descriptions are as follows:

-SHANNON ESTATES THERMAL ENERGY SYSTEMS CERTIFICATE OF PUBLIC

CONVENIENCE AND NECESSITY APPLICATION p. 26 section 9.3

"The buildings are denoted as: Mansion, Gatehouse, Coach House, Block A, Block B, Block C, Block

o

,

Block E, Block F, and Block G. All of the previously noted buildings are to be provided with space heating, space cooling, and domestic hot water:

-Order G77-16 dated May 26, 2016

·B. The SE TES is to provide space heating, space cooling and domestic hot water to approximately 281 residential customers (75 percent rental) and to up to two commercial customers in the

development called Shannon Mews & Apartments"

-Order G-77-16A dated May 26, 2016

·B. The SE TES is to provide space heating. space cooling and domestic hot water to approximately 600 residential customers (36 percent rental) and to up to two commercial customers in the two phased development called Shannon Mews

&

Apartments"

-Order G-161-16A dated November 7, 2016

"A On May 24. 2016, Shannon Wall Centre Rental Apartments Limited Partnership (SWCRA) filed an application for rates under sections 59-61, 89 and 90 of the Utilities Commission Act (UCA) for the

Shannon Estates Thermal Energy System (SETES) located at 7199 Granville Street, Vancouver, BC,

which provides space heating, space cooling and domestic hot water service to the development

called Shannon Mews & Apartments (Application)"

Please note that Block C consists of 2 commercial units and more than 200 residential rental units. Space cooling is provided to commercial tenants but is not provided inside residential rental units.

This fact was disclosed by a tenant named Bor Li in his letter of comment dated June 30, 2016.

Then. for the first time, SETES finally admitted to the fact in its reply submission:

REPLY SUBMISSION TO INTERVENOR FINAL ARGUMENTS & COMMENTARY TO LETTERS

OF COMMENT EXHIBIT E-1 & E-2 SHANNON ESTATES THERMAL ENERGY SYSTEMS RATES APPLICATION p. 12 response to comment 1.1

YThe description is consistent with the provision of space heating, space cooling. and domestic hot water heating to the strata properties and the provision of space heating and domestic hot water heating to the rental property (space cooling is provided to amenity I commercial spaces):

SETES revised its 2nd rate application related to this fact as follows:

The BC Utilities Commission Is authorized to collect and publish a person or organization's personal information when they part1c1pate in a matter

~1

1

~~~h~I ~ommisslon under sections 26(c) iind 33. l(r)(u) and (111) of the Freedom of Information and Protection of Pnvacy Act (FOIPPA). Subject to a ocuments filed in resl)Kt to an application will be placed on the public. record.

SHANNON ESTATE~ THERllf'.'AL ENERGY SYSTEMS RATES APPLICATION FILED 2017..02..06

p.

₁₄

section

6.4

Services Ava1labl~ . . .

·An customers of Phase 1 can receive service for space heating, space cooling, and domestic hot

water heating except th~ Block C B~ilding (Shann~n Mews

&

Apartments, 1515 West 57th,

Vancouver) dwelling unrts only receive space heating and domestic hot water heatmg:

Thank you reading my letter and considering my suggestions. Micahel Sakamoto

The BC Utilit~ Commission Is authorized to collKt and publish a person or organizat10n's personal information when they :a~~~~~n :u=~o

before the Commission under sections 26(c) and 33.1 (r)(n) and (111) or the Freedom of Information and Protection of Pnvacy ct .