BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -130-05 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 FortisBC Inc. for Approval of 2006 Revenue Requirements and Establishment of a Multi-Year Performance Based Regulation Mechanism BEFORE: L.F. Kelsey, Panel Chair and Commissioner L.A. O’Hara, Commissioner December 2, 2005 O R D E R WHEREAS: A. On November 24, 2005, FortisBC Inc. (“FortisBC”) filed for approval of its 2006 Revenue Requirements and to establish a Multi-Year Performance Based Regulation Mechanism (the “Application”) with the British Columbia Utilities Commission (“Commission”) pursuant to Sections 60 and 61 of the Utilities Commission Act (the “Act”); and B. The Application requests an interim rate increase of 5.9 percent, effective January 1, 2006. The increase is based, in part, on significant capital expenditures, a change in the amortization rates for various assets and an increase in the amount of overheads charged to capital; and C. Commission Order No. G-52-05 dated May 31, 2005 approving FortisBC’s 2005 Revenue Requirements Application, directs an Annual Review of the 2005 incentive sharing mechanism along with a Review of the Performance Based Regulation Mechanism; and D. The Commission requires that interim rates for 2006 be established and that a regulatory process be established to review the Application NOW THEREFORE the Commission orders as follows: 1. The Commission approves for FortisBC an interim rate increase of 5.9 percent, effective January 1, 2006, subject to refund with interest calculated for the refund period at the average prime rate of the principal bank with which FortisBC conducts its business. 2. FortisBC is to inform all customers of the interim rate increase by way of a customer notice to be reviewed by the Commission in advance of its release. . . ./2
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-130-05 2 3. The Commission will accept, subject to timely filing, amended Electric Tariff Rate Schedules in accordance with the terms of this Order. 4. A regulatory timetable is established to review the Application and attached as Appendix A to this Order. The timetable accommodates an Annual Review and Workshop on February 9, 2006 followed by a Pre-hearing Conference to be held before the Commission Panel on February 10, 2006 to address procedural matters which will include, but not be limited to, the following: • identification of principal issues arising from or related to the Application, • process options for review of the Application, including, - oral public hearing - negotiated settlement process - written hearing - or, as appropriate, some combination of the above • timetable (information requests, responses, intervenor evidence, etc.), • location(s) of the proceeding, and • other matters that will assist the Commission Panel to efficiently review all aspects of the Application. After the Pre-hearing Conference, the Commission Panel will issue a further procedural order and regulatory agenda for the review of the Application. 5. FortisBC is to provide a copy of this Order to all Intervenors and Interested Parties who registered for the 2005 Revenue Requirements Application. 6. FortisBC is to arrange for publication of the Notice of Annual Review, Workshop and Pre-Hearing Conference, attached as Appendix B to this Order, as soon as possible in such appropriate local news publications in its service area so as to provide adequate notice to the public. 7. The Application and supporting materials will be available for inspection at the following locations: FortisBC Inc. British Columbia Utilities Commission Head Office Sixth Floor, 900 Howe Street th 5 Floor 1628 Dickson Avenue Vancouver, BC V6Z 2N3 Kelowna, B.C. V1Y 9X1 Telephone: 1-800-663-1385 FortisBC Inc. Internet Trail Office www.fortisbc.com 1290 Esplanade www.bcuc.com Trail, B.C. V1R 4L4 Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Penticton and Trail, BC Order/
3 8. Intervenors and Interested Parties should inform the Commission, in writing or register on-line at www.bcuc.com by Thursday, January 5, 2006, of their intention to actively intervene in the proceeding, or become Interested Parties. Registered Intervenors will receive from FortisBC copies of the Application and, all correspondence and filed documentation. Interested Parties will receive the Application’s Executive Summary and copies of all Orders issued. DATED at the City of Vancouver, in the Province of British Columbia, this 7 day of December 2005. Attachments Orders/G-130-05_Fortis-06RR-MultiYear Interim Rates-RegTmtble BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-130-05 th BY ORDER Original signed by: L.F. Kelsey Panel Chair and Commissioner
APPENDIX A to Order No. G-130-05 Page 1 of 1 An Application by FortisBC Inc. for Approval of 2006 Revenue Requirements and Establishment of a Multi-Year Performance Based Regulation Mechanism REGULATORY TIMETABLE Action Date – Time Registration deadline for Intervenors Thursday, January 5, 2006 and Interested Parties Annual Review 2005 Incentive Sharing Mechanism Thursday, February 9, 2006 – 9:00 a.m. Workshop 2006 Revenue Requirements Application Thursday, February 9, 2006 – following Annual Review Multi-Year PBR Mechanism Friday, February 10, 2006 – 8:00 a.m. (if required) Pre-Hearing Conference 2006 Revenue Requirements Application Friday, February 10, 2006 – 10:00 a.m. Location: Grand Okanagan Resort 1310 Water St. Kelowna, B.C.
APPENDIX A to Order No. G-130-05 Page 1 of 2 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 web site: http://www.bcuc.com FORTISBC INC. (“FORTISBC”) 2006 REVENUE REQUIREMENTS AND MULTI-YEAR PERFORMANCE BASED REGULATION MECHANISM NOTICE OF ANNUAL REVIEW, WORKSHOP AND PRE-HEARING CONFERENCE Annual Review Date / Time: Thursday, February 9, 2006- 9:00 a.m. Location: Grand Okanagan Resort, 1310 Water St, Kelowna, BC Workshop Date / Time: Thursday, February 9, 2006 – following Annual Review Friday, February 10, 2006 - 8:00 a.m. (if required) Location: Grand Okanagan Resort, 1310 Water St, Kelowna, BC Pre-Hearing Conference Date / Time: Friday, February 10, 2006 – 10:00 a.m. Location: Grand Okanagan Resort, 1310 Water St, Kelowna, BC On November 24, 2005, FortisBC filed its 2006 Revenue Requirements Application and proposed the Establishment of a Multi-Year Performance Based Regulation Mechanism (the “Application”) with the British Columbia Utilities Commission (“the Commission”). FortisBC recommended a two stage negotiated settlement process to the Commission to review this Application. The first stage would set the 2006 Revenue Requirements and the second stage would determine the parameters of Performance Based Regulation (“PBR”). FortisBC requested a 5.9 percent interim refundable rate increase, effective January 1, 2006. The Commission has approved an interim refundable rate increase of 5.9 percent, effective January 1, 2006 by Order No. G-130-05. FortisBC will hold an Annual Review to provide updates on the 2005 Incentive Sharing Mechanism and a Workshop for the Application. The Commission has scheduled a Pre-hearing Conference to solicit input from all participants on the proposed regulatory process and agenda to deal with the Application, and any other preliminary matters. FortisBC is to provide copies of the Application to all parties wishing to participate in the Pre-hearing Conference. Those persons wishing to participate are to advise the Commission Secretary of their intention to do so no later than Thursday, January 5, 2005. Notification by mail, courier delivery, fax or e-mail is acceptable. Mail: Email: Box 250, Sixth Floor, 900 Howe Street Commission.Secretary@bcuc.com Vancouver, BC V6Z 2N3
The Application and supporting materials will be available for inspection at the following locations: FortisBC Inc. Head Office th 5 Floor 1628 Dickson Avenue Kelowna, B.C. V1Y 9X1 FortisBC Inc. Trail Office 1290 Esplanade Trail, B.C. V1R 4L4 Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Penticton and Trail, B.C. For further information, please contact the Commission Secretary or Ms. Fong Kwok, Financial Analyst as follows: Commission Secretary Telephone: (604) 660-4700 Facsimile: (604) 660-1102 E-Mail: Commission.Secretary@bcuc.com Telephone: (B.C. Toll Free) 1-800-663-1385 APPENDIX B to Order No. G-130-05 Page 2 of 2 British Columbia Utilities Commission Sixth Floor, 900 Howe Street Vancouver, B.C. V6Z 2N3 Telephone: 1-800-663-1385 Internet www.fortisbc.com www.bcuc.com Ms. Fong Kwok Telephone: (604) 660-0718
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