The Utilities Commission Act defines a public utility, in part, by the services that it offers. Specifically, these are “the production, generation, storage, transmission, sale, delivery or provision of electricity, natural gas, steam or any other agent for the production of light, heat, cold or power to or for the public or a corporation for compensation” – the regulated services.

Public utilities may, however, also offer services that are not included in the definition of regulated services – these are unregulated services. The BCUC has no jurisdiction over unregulated services, even though those services are provided by a public utility.

However, there is a risk that a public utility will include the cost of unregulated services in the rates it charges ratepayers’ for regulated services. To avoid this, the BCUC prefers that public utilities offer their regulated and non-regulated services from different companies.

The BCUC has the jurisdiction to insist on a transfer pricing agreement between the regulated and non-regulated companies, and to review that agreement for approval or rejection.