April 14, 2025

By Bill Andrews and Tom Hackney

On April 10, 2025, the BC Utilities Commission rejected Creative Energy’s request to spend some $38.5-million on New Plant Premises and Interconnection Infrastructure. BCSEA had supported the proposed expenditure schedule on the ground that completing Creative Energy’s Decarbonization project as soon as possible would be in the public interest. BCSEA argued that delaying completion of the Decarbonization Plant would be contrary to the policy priorities of the federal government, the BC government and the City of Vancouver to reduce GHG emissions from heating buildings.

Creative Energy is a public utility that runs the piped steam and hot water distribution heating systems for downtown Vancouver and Northeast False Creek, respectively. The current energy source is a natural gas plant on Beatty Street. Back in 2022, the BCUC approved Creative Energy’s Decarbonization Project to install zero-carbon electric boilers (with BCSEA support).

However, the electric boilers project has been held up by — of all things – the COVID pandemic. In particular (and to simplify!), the pandemic eliminated the market for new office space in Vancouver, which eliminated the business case for a large office development project at the Beatty Street location by developer Westbank, which put Westbank in violation of a contract with Creative Energy to rebuild Creative Energy’s energy plant in exchange for surplus property rights to be used by Westbank for the office development, which prompted Creative Energy to propose the subject expenditures in order to keep the Decarbonization project on track pending either (a) Westbank implementing a new, non-office property development or (b) the outcome of potential lawsuit by Creative Energy against Westbank.

The BCUC Panel rejected Creative Energy’s application, as noted above. The Panel said it “does not accept that it is necessary for Creative Energy to take on the responsibility of costs which are the responsibility of (Westbank) under the (contract), to avoid … a potential two-year delay in the Decarbonization Plant in-service date …” The Panel acknowledged that the delays “appear to be caused by (Westbank’s) inability to meet its obligations under the (contract with Creative Energy).” However, the Panel encouraged Creative Energy “to engage with the Developer to find a suitable resolution to the delays…” and “reminded” Creative Energy to “prudently manage the execution of the Decarbonization Plant Project…”

The Panel said that Creative Energy had “identified interim measures to support its customers’ compliance with the City of Vancouver’s GHG emissions limits (until completion of the Decarbonization project).” However, the Panel found that Creative Energy “has not demonstrated that the urgency to supply low carbon steam to its customers is so great that it should bypass pursuing (its) rights and remedies (under the contract with Westbank).

For more background, see: Downtown Vancouver steam heat system aims to decarbonize.