B R I T I S H C O L U M B I A U T IL I T IE S C O M M IS S I O N O R D E R N U M B E R G-26-99 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and A Generic Public Hearing into the Rates of Return on Common Equity BEFORE: P. Ostergaard, Chair ) L.R. Barr, Deputy Chair ) March 11, 1999 K.L. Hall, Commissioner ) O R D E R WHEREAS: A. In its Decision dated June 10, 1994, the Commission established rates of return on common equity (“ROE”) for BC Gas Utility Ltd. (“BC Gas”), Pacific Northern Gas Ltd. (“PNG”), West Kootenay Power Ltd. (“WKP”), and Centra Gas Fort St. John Inc. (“Centra FSJ”), collectively referred to as “the Utilities”; and B. In the same Decision the Commission established a mechanism for varying the ROEs on an annual basis; and C. The Commission, by Order No. G-49-97, amended the mechanism to correct for certain problems and to make it more consistent with the practices of other regulatory bodies; and D. In December of each year from 1995 through 1998, the Commission reviewed the financial criteria and issued Letters informing the Utilities about the approved ROE for each subsequent year based on the original and amended mechanism; and E. In 1998 there were requests from various parties to re-examine the mechanism to determine if further amendments were required. The Commission, by Letter No. L-73-98, advised the Utilities and interested parties that the Commission, in 1999, would be establishing a process for a comprehensive review of all issues surrounding the setting of the ROE; and F. The 1994 ROE Decision anticipated a review of the mechanism. . . ./2
2 NOW THEREFORE the Commission orders as follows: 1. A public hearing will be held into the appropriate ROE and the capital structure for the Utilities commencing at 8:30 a.m., Monday, May 31, 1999, in the Commission's Hearing Room, Sixth Floor, 900 Howe Street, Vancouver, B.C. 2. The Commission also wishes to hear evidence on future processes or mechanisms that may be employed to improve the determination of ROE and capital structures for the Utilities in future years. 3. The Utilities will arrange for publication, in display-ad format, not later than Friday, March 26, 1999, of the attached Appendix A, Notice of Public Hearing in The Vancouver Sun, The Province and such other appropriate local news publications in the service areas of each Utility so as to provide adequate notice to the public. 4. The Regulatory Timetable, attached as Appendix B, is to be followed. DATED at the City of Vancouver, in the Province of British Columbia, this 15 Attachments Order/1999 Generic ROEB R IT I S H C O LU M B I A U T IL I T I E S C O M M I S S I O N O R D E R N U M B ER G-26-99 th day of March 1999. BY ORDER Original signed by: Peter Ostergaard Chair
Appendix A to Order No. G-26-99 Page 1 of 3 SIXTH FLOOR, 900 HOWE STREET, BOX 250 ROBERT J. PELLATT VANCOUVER, B.C. CANADA V6Z 2N3 COMMISSION SECRETARY TELEPHONE: (604) 660-4700 Commission.Secretary@bcuc.com BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 NOTICE OF PUBLIC HEARING RATES OF RETURN ON COMMON EQUITY BC Gas Utility Ltd. West Kootenay Power Ltd. Pacific Northern Gas Ltd. Centra Gas Fort St. John Inc. Centra Gas Whistler Inc. Date: Monday, May 31, 1999 Time: 8:30 a.m. Location: B.C. Utilities Commission - Hearing Room 6 th Floor 900 Howe Street Vancouver, B.C. THE REGULATORY PROCESS In 1994 the British Columbia Utilities Commission held a public hearing into the rates of return on common equity (“ROE”) for four investor-owned utilities, namely BC Gas Utility Ltd., Pacific Northern Gas Ltd., Centra Gas Fort St. John Inc., and West Kootenay Power Ltd. For each of the subsequent years from 1995 through 1999, the Commission approved revised ROEs for the Utilities based on forecast market criteria. The Commission, by Order No. G-49-97, amended the mechanism to correct for certain problems and to make the approved ROE more consistent with the practices of other regulatory bodies. The Commission in 1998, by Letter No. L-73-98 advised the Utilities and interested parties that it would establish a comprehensive review in 1999 of all issues surrounding the setting of ROE. PUBLIC INSPECTION OF THE DOCUMENTS Documents and evidence filed with this proceeding will be available at the following locations: BC Gas Utility Ltd. Head Office: 1111 West Georgia Street, Vancouver, B.C. V6E 4M4 District Offices: Kelowna, Penticton, Kamloops, Prince George and Cranbrook . . ./2
APPENDIX A to Order No. G-26-99 Page 2 of 3 Pacific Northern Gas Ltd. Centra Gas Fort St. John Inc. Head Office: Suite 1400, 1185 West Georgia Street, Vancouver, B.C. V6E 4G6 District Offices: Vanderhoof, Burns Lake, Houston, Smithers, Terrace, Kitimat, Prince Rupert, Dawson Creek, Tumbler Ridge and Fort St. John West Kootenay Power Ltd. Head Office: 1290 Esplanade, PO Box 130, Trail, B.C. V1R 4L4 District Offices: Castlegar, Crawford Bay, Creston, Grand Forks, Greenwood, Kaslo, Kelowna, Keremeos, Oliver, Osoyoos, Penticton, Salmo and South Slocan Copies of the filed documents will also be available for inspection at the office of the British Columbia Utilities Commission, Sixth Floor, 900 Howe Street, Vancouver, B.C. Centra Gas Whistler Inc. Head Office: 1675 Douglas Street, Victoria, B.C., V8W 3V3 District Office: 8021 Mons Road, Whistler, B.C. PARTICIPATION IN THE PUBLIC HEARING Persons who expect to actively participate in the public hearing process should register as Intervenors with the Commission. Intervenors will receive copies of all correspondence and filed documentation. Persons not expecting to actively participate should register with the Commission as Interested Parties and will receive a copy of all Orders issued, as well as the Commission’s Decision. Intervenors and Interested Parties should inform the Commission, in writing, by Friday, April 2, 1999 of their intention to become Intervenors or Interested Parties in the ROE hearing and indicate the nature of their interest. INFORMATION REQUESTS Registered Intervenors or Interested Parties requesting additional information as a result of the Utilities’ evidence that is required to be filed by Friday, April 9, 1999, must do so by Friday, April 23, 1999. Utility responses to Information Requests are required to be filed with the Commission by Friday, May 7, 1999. SUBMISSIONS BY INTERVENORS Intervenors must file copies of their written submissions or evidence concerning the ROE hearing with the Commission Secretary and all other Registered Intervenors, no later than Friday, May 21, 1999. . . ./3
PARTICIPANT ASSISTANCE All those intending to apply for Participant Assistance must submit a budget estimate by Friday, April 2, 1999, consistent with the Commission's Participant Assistance/Cost Award Guidelines as outlined in Order No. G-97-98. Copies of these Guidelines are available upon request or on the Commission’s web site: www.bcuc.com/paca.html. FURTHER INFORMATION Persons intending to participate in the ROE public hearing and who are uncertain as to the manner in which to proceed may contact Mr. Robert Pellatt, Commission Secretary or Ms. Deborah Emes, Manager Strategic Services as follows: Telephone (604) 660-4700 B.C. Toll Free 1-800-663-1385 Appendix A to Order No. G-26-99 Page 3 of 3 Facsimile: (604) 660-1102 E-mail: Commission.Secretary@bcuc.com BY ORDER Original signed by: Robert J. Pellatt
REGULATORY AGENDA AND TIMETABLE RATES OF RETURN ON COMMON EQUITY BC Gas Utility Ltd. West Kootenay Power Ltd. Pacific Northern Gas Ltd. Centra Gas Fort St. John Inc. Centra Gas Whistler Inc. ACTION Deadline for Intervenor Registration Deadline for Filing Participant Funding Applications Filing of Utility Evidence Filing of Initial Information Requests to Utilities Utility Responses to Information Requests Filing of Intervenor Evidence Public Hearing commences APPENDIX B to Order No. G-26-99 Page 1 of 1 DATES (1999) Friday, April 2 Friday, April 2 Friday, April 9 Friday, April 23 Friday, May 7 Friday, May 21 Monday, May 31
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