B R IT I S H C O L U M B I A U T I L I T IE S C O M M I S S I O N O R D E R N U M B E R C-7-99 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by BC Gas Utility Ltd. for a Certificate of Public Convenience and Necessity for its Customer Information Systems Project BEFORE: L.R. Barr, Deputy Chair ) K.L. Hall, Commissioner ) April 22, 1999 CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY WHEREAS: A. Commission Order No. G-85-97 dated July 23, 1997 approved the terms of a negotiated settlement for the BC Gas Utility Ltd. (“BC Gas”) 1998-2002 Revenue Requirements application. The settlement terms provided that certain capital projects would require Certificate of Public Convenience and Necessity (“CPCN”) applications and approval by the Commission; and B. To the extent such applications are approved and the capital projects undertaken, the capital project will form part of the rate base of BC Gas in the year following the year in which the capital project is completed. BC Gas will be entitled to accrue AFUDC on the expenditures associated with the capital project until the capital project is part of rate base. BC Gas will then be entitled to include the prudently incurred total capital expenditures and AFUDC in rate base at the commencement of the year following completion of the capital project; and C. BC Gas has successfully run a pilot project in Prince George for the past year to assess the viability of the selected products and partners; and D. On March 22, 1999, pursuant to Section 45 of the Utilities Commission Act (“the Act”), BC Gas applied to the Commission for a CPCN for approval of its Customer Information Systems project (“Program Mercury”). Program Mercury is the proposed new BC Gas integrated customer management solution, consisting of a new customer information system, call handling technologies, . . . /2
2 together with patriation of BC Gas customers from British Columbia Hydro and Power Authority (“B.C. Hydro”) and is expected to cost approximately $33.2 million. The new system is designed to replace aging, inflexible technology and will interface with other key BC Gas service delivery systems; and E. The Commission has reviewed the costs, timing and justification of Program Mercury and has determined that approval is necessary and in the public interest. NOW THEREFORE the Commission orders as follows: 1. Pursuant to Section 45 of the Act, a CPCN is granted to BC Gas for its Program Mercury project in accordance with its March 22, 1999 application which estimated the total project costs to be $33.2 million. 2. BC Gas is to provide the Commission with quarterly updates of the Program Mercury project and a final project cost report in accordance with a format agreed to by Commission staff. The Commission will review the required final report with respect to capital costs, overhead allocation and any cost over-runs in order to determine eligibility for rate base treatment. DATED at the City of Vancouver, in the Province of British Columbia, this 22 ORDERS/BCG-Program MercuryB R IT IS H C O L U M B I A U T I L I T IE S C O M M I S S I ON O R D E R N U M B E R C-7-99 nd day of April 1999. BY ORDER Original signed by: Lorna R. Barr Deputy Chair
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