281/2022

O.C. 692/2022

December 21, 2022

Utilities Commission Act

Direction to the British Columbia Utilities Commission Respecting Cryptocurrency Mining Projects

Definitions

In this direction:

Act means the Utilities Commission Act ;

design deposit , in relation to a project, means a payment to the authority to cover all or a portion of the estimated costs of designing upgrades to the authority's electric distribution system that would be necessary to connect the project to the authority's electric distribution system;

facilities study agreement , in relation to a project, means an agreement between the authority and the project proponent that

is in the form of agreement commonly referred to by the authority as a "facilities study agreement", and

provides for an evaluation by the authority of the work that would be necessary to connect the project to the authority's transmission system, including engagement with First Nations, engineering, procurement and construction;

new high-voltage cryptocurrency project means a project to mine cryptocurrency

that would receive from the authority an electricity supply of 60 kV or higher, and

in relation to which the authority has not entered into a facilities study agreement before the date this direction comes into force;

new low-voltage cryptocurrency project means a project to mine cryptocurrency

for which

the project proponent requests at least 2.5 megawatts of power, and power would be supplied through a 12.5 kV connection to the authority's electric distribution system, or

the project proponent requests at least 5 megawatts of power, and power would be supplied through a 25 kV connection to the authority's electric distribution system, and

in relation to which a design deposit has not been received by the authority before the date this direction comes into force;

paused project means a new high-voltage cryptocurrency project that is the subject of one of the following agreements:

the system impact study agreement dated December 1, 2021;

the system impact study agreement dated January 28, 2022;

the system impact study agreement dated June 15, 2022;

the system impact study agreement dated June 20, 2022;

suspension period means the period beginning on the date the commission issues final orders under

section 3 and ending 18 months after that date;

system impact study agreement , in relation to a project, means an agreement between the authority and the project proponent that

is in the form of agreement commonly referred to by the authority as a "system impact study agreement", and

provides for an evaluation by the authority of

the effects on the authority's transmission system of connecting the project to the authority's transmission system, and

the modifications to the authority's transmission system that would be necessary to connect the project to the authority's transmission system, including modifications to maintain the reliability of the authority's transmission system.

Application

This direction is issued to the commission under

section 3 of the Act.

Suspension of obligation to serve

Within 10 days of the date of an application by the authority for the purposes of this section, the commission must issue final orders so that, during the suspension period, the authority is relieved of the following obligations:

the obligation to supply service respecting a new low-voltage cryptocurrency project, including, without limitation, the obligation to accept a design deposit in relation to a new low-voltage cryptocurrency project;

the obligation to supply service respecting a new high-voltage cryptocurrency project, including, without limitation,

the obligation to enter into a system impact study agreement in relation to a new high-voltage cryptocurrency project, and

the obligation to enter into a facilities study agreement in relation to a paused project.

Except on application by the authority, the commission must not

add terms to the orders referred to in subsection (1), or

amend, cancel or suspend those orders.

Load interconnection practice

During the suspension period, the commission must not exercise its powers under sections 58 to 61 of the Act to require the authority to amend, cancel or suspend a rule or practice by which the authority processes requests for electricity service made in relation to the paused projects.

[Provisions relevant to the enactment of this regulation: Utilities Commission Act , R.S.B.C. 1996, c. 473, s. 3.]