Posted Oct 4, 2024, 3:30 AM
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Registered User
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Join Date: Dec 2015
Posts: 14,659
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From Sept 25 filing
Quote:
Creative Energy Vancouver Platforms Inc. (Creative Energy) writes to the British Columbia Utilities Commission (BCUC) to file the enclosed application for the BCUC’s acceptance of an expenditure schedule pursuant to section 44.2(3) of the Utilities Commission Act, RSBC 1996, c 473. Creative Energy’s Decarbonization Project, as approved by BCUC Order C-5-22, contemplates the construction and operation of electric boilers to supply low carbon energy to the customers of Creative Energy’s Core Steam System. Importantly, the Decarbonization Project will enable Creative Energy’s Core Steam System to qualify as a Low Carbon Energy System with the City of Vancouver. This qualification and the ability to provide a low carbon energy service will have material benefits for Creative Energy’s customers.
To ensure the Decarbonization Project can enter service as soon as possible, Creative Energy’s expenditure schedule sets out the capital expenditures that Creative Energy anticipates making beginning in December 2024 to complete the construction of the structure that Creative Energy’s Decarbonization Project will be installed within. In addition, the expenditures contemplate the construction of infrastructure that is necessary to interconnect the Decarbonization Project with the Core Steam System.
Creative Energy requests the BCUC issue two final orders, one by November 20, 2024 and a second by January 15, 2025, to give Creative Energy the opportunity to ensure the construction of the structure can be completed without interruption and to ensure the Decarbonization Project can enter service as soon as possible
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Quote:
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While Creative Energy has submitted this Application seeking approval to incur expenditures necessary to complete the New Plant Premises, Creative Energy believes that a significant portion of these expenses are the responsibility of the Developer under the TDA, as described more fully under Part III.C and Part V.D below, and intends to address these amounts as part of future negotiations with the Developer regarding the TDA, or to otherwise seek to recover these costs from the Developer as appropriate. However, given the urgency of the situation described herein, Creative Energy considers that filing this Application cannot be delayed to allow that process to conclude.
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Quote:
The Developer informed Creative Energy in January 2024 that it was experiencing significant challenges with respect to its office tower project on the Surplus Land and requested Creative Energy to pause the New Beatty Plant Project. The Developer has been unable to secure the necessary funding for construction of its proposed office development due to the changes in the downtown Vancouver real estate market. This has adversely affected the Developer’s ability to meet certain of its obligations under the TDA. Nevertheless, the Developer informed Creative Energy that it remained committed to completing the construction of the New Plant Premises and had funding in place to complete these scopes of work. The Developer indicated it would not be able to complete the fit-out of the New Beatty Plant without securing construction financing, which hinged on a different (non-office) approach to developing the Surplus Land and securing tenant(s).
The Developer requested Creative Energy to pause the New Beatty Plant Project and to refrain from making any further financial commitments related to the construction of the New Beatty Plant because the Developer’s proposed office development project would no longer be proceeding. The Developer also requested that Creative Energy work with it to consider other development opportunities with the Surplus Land.
19. Creative Energy agreed to temporarily pause its progress on the New Beatty Plant to accommodate the Developer’s need to explore other development opportunities with the Surplus Land. However, Creative Energy understood that the Developer would continue to construct the New Plant Premises based on the Developer’s assurances.
20. Since January 2024, the Developer has been unable to secure the necessary funding to proceed with development opportunities with the Surplus Land. Creative Energy has engaged in discussions with the Developer to facilitate the completion of the New Plant Premises notwithstanding the issues the Developer is experiencing with its redevelopment of the Surplus Land.
21. The Developer informed Creative Energy in July 2024 of a funding shortfall, the result of which was that the Developer did not expect to be able to complete certain critical items required for an occupancy permit to be obtained in respect of the New Plant Premises. Since January 2024, Creative Energy’s understanding had been that the Developer was committed to completing the work to the point where an occupancy permit could be obtained; however, this is no longer the case.
22. The Developer and Creative Energy have held many discussions about ways to facilitate the completion of the New Plant Premises because this is a priority for Creative Energy. However, the Developer and Creative Energy have not yet been able to reach agreement on the best way to move forward for the Developer to fulfill its obligations as set out in the TDA.
23. On August 30, 2024, the Developer informed Creative Energy that it expects to exhaust its existing funding for its work at the Beatty property by the end of November 2024 and is not expecting to receive any additional funds thereafter. The Developer confirmed that it intends to continue with the work until its existing credit facility is exhausted—approximately $14 million remains available in the Developer’s existing credit facility as of the date of this application. In addition to the remaining funds in the Developer’s existing credit facility, the Developer estimates that a further $31.0 million (the Shortfall Amount) will be required to complete the New Plant Premises to the point where an occupancy permit could be obtained. This does not include the amounts necessary to fit-out the New Beatty Plant, which work remains on hold indefinitely.
24. The Developer stated that it is very unlikely it will be able to secure additional financing for its work at the Beatty property until the Surplus Land is fully re-entitled for an alternative (non-office) use. The Developer estimates that re-entitlement of the Surplus Land could take 12-18 months from the time its rezoning application is submitted to the City of Vancouver. 6 In addition, the Developer does not expect to submit its rezoning application until December 2024 at the earliest.
25. Due to these developments, Creative Energy believes that it has reached a critical juncture with respect to the Decarbonization Project in particular. The Developer’s inability to complete the New Plant Premises to the point where an occupancy permit could be obtained in a timely manner materializes significant risk to the benefits of the Decarbonization Project. Access to the grant funding for the Decarbonization Project is time-constrained, and the need to provide low-carbon service supported by the Decarbonization Project is becoming urgent.
26. Unless Creative Energy is able to provide the Shortfall Amount, progress on the New Plant Premises and therefore progress on installing the Decarbonization Project will need to be paused potentially for two years or more, due to the additional time required for the Developer to obtain the funding to complete the New Plant Premises, and/or the time required to negotiate amendments to the TDA, as described in Part V.B below.
27. Creative Energy is considering its options to complete the New Plant Premises in order to advance its Decarbonization Project in a timely manner.
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https://docs.bcuc.com/documents/proc...pplication.pdf
The proceedings link
https://www.bcuc.com/OurWork/ViewPro...icationid=1284
Last edited by jollyburger; Oct 4, 2024 at 3:45 AM.
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