Thermal energy systems deliver building heat, cooling and / or hot water by circulating hot or cold air, water or steam through a distribution system. If the owner or operator of a thermal energy system in BC receives compensation, then they are a public utility and regulated by the BCUC.

In its thermal energy systems guidelines, the BCUC describes a thermal energy system thus:

“A Thermal Energy System or TES consists of equipment or facilities for the production, generation, storage, transmission, sale, delivery or provision of heat, hot water and/or cooling from one or more thermal energy sources and through a distribution system. Energy sources may include waste heat, renewable (solar, ground/water source or air source heat pumps, geothermal, biomass etc.) as well as non-renewable energy sources. A TES may include plant, equipment, distribution piping, apparatus, property and facilities employed by or in connection with the provision of thermal energy services.”

Thermal energy systems can reside within just one building, or serve entire communities, when they are sometimes referred to as “district energy systems.”

Some thermal energy systems have been exempt from active BCUC regulation since 2014, when the government approved the BCUC’s recommendation to create three classes of exempt thermal energy systems.

Thermal energy systems that do not qualify for one of these three exemption classes must seek a Certificate of Public Convenience and Necessity (CPCN) from the BCUC prior to starting construction, and approval of rates prior to charging customers for for their thermal energy services.

In December, 2023, the BCUC recommended to the government that the Stream A exemption be expanded to remove the capital cost threshold of $15 million, and allow systems to span multiple sites.