LETTER NO. L‐4‐09 SIXTH FLOOR, 900 HOWE STREET, BOX 250 ERICA M. HAMILTON 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 Log No. 25832 VIA E‐MAIL dennis.swanson@fortisbc.com January 14, 2009 Mr. Dennis Swanson Director Regulatory Affairs FortisBC Inc. Suite 100 – 195 Springfield Road Kelowna, BC V1Y 7V7 Dear Mr. Swanson: Re: FortisBC Inc. filing of an Umbrella Agreement for Short‐Term Firm or Non‐Firm Point to Point Transmission Service Agreement and a Power Coordination Agreement On June 24, 2008, FortisBC Inc. (“FortisBC”) filed an Umbrella Agreement for Short‐Term Firm or Non‐Firm Point to Point Transmission Service Agreement dated April 18, 2008 between FortisBC Inc. and the Corporation of the City of Nelson; and a Power Coordination Agreement dated May 14, 2008 between FortisBC Inc. and the Corporation of the City of Nelson. FortisBC, in responding to the Commission’s letter dated July 18, 2008, with regard to the above referenced Agreements, stated “FortisBC believes that the Agreements do not adversely affect the ratepayers of FortisBC or BC Hydro.” and that “The Commission will need to determine whether the Agreements are in the public interest at a policy level.”. On September 16, 2008, British Columbia Hydro and Power Authority (“BC Hydro”) filed an application under subsections 58 (1) and (2) of the Utilities Commission Act (“the Act”) for approval to amend section 2.1 of Rate Schedule 3808 (“RS 3808”) Power Purchase Agreement (“PPA”) to clarify that electricity purchased by FortisBC under the PPA cannot be sold to FortisBC customers to replace electricity to be sold by those customers. On October 3, 2008, by Order G‐148‐08, the Commission established a written hearing process on the BC Hydro application. On January 13, 2009, the Commission received a letter (attached) from FortisBC stating that it does not have any issues with holding these agreements in abeyance pending the decision on the above noted BC Hydro Application. …/2
LETTER NO. L‐4‐09 2 Accordingly, the Commission suspends review of the FortisBC filings of the Umbrella Agreement and Power Coordination Agreement until such time as a Commission Decision has been made in the on‐going hearing on the British Columbia Hydro and Power Authority application to Amend Section 2.1 of the PPA. The Commission will enter this Commission letter and the attached FortisBC letter dated January 13, 2009 as an exhibit in written hearing process on the BC Hydro Application to Amend Section 2.1 of RS 3808 PPA. Yours truly, Original signed by: Erica M. Hamilton DJF/cms Attachment cc: Ms. Joanna Sofield, Chief Regulatory Officer British Columbia Hydro and Power Authority 17th Floor, 333 Dunsmuir Street Vancouver, B.C. V6B 5R3 bchydroregulatorygroup@bchydro.com Registered Intervenors, BC Hydro Power Purchase Agreement to Amend Section 2.1 of RS 3808 PPA FortisBC/Cor/L‐4‐09_Suspend Review CityNelson Umbrella Agremnt
Dennis Swanson FortisBC Inc. Director, Regulatory Affairs Suite 100, 1975 Springfield Road Kelowna BC V1Y 7V7 Ph: (250) 717-0890 Fax: 1-866-335-6295 dennis.swanson@fortisbc.com www.fortisbc.com January 13, 2009 Ms. Erica M. Hamilton Commission Secretary BC Utilities Commission Sixth Floor, 900 Howe Street, Box 250 Vancouver, BC V6Z 2N3 Dear Ms. Hamilton: Re: FortisBC Inc. filing of an Umbrella Agreement for Short-Term Firm or Non-Firm Point-to-Point Transmission Service and the Power Coordination Agreement On June 24, 2008, FortisBC Inc. (“FortisBC”) filed the Umbrella Agreement for Short-Term Firm or Non-Firm Point-to-Point Transmission Service Agreement dated April 18, 2008 between FortisBC and the Corporation of the City of Nelson; and the Power Coordination Agreement dated May 14, 2008 between FortisBC and the Corporation of the City of Nelson. FortisBC understands that the BCUC does not intend to accept the agreements for filing pending the decision on the British Columbia Hydro and Power Authority (“BC Hydro”) Application to Amend Section 2.1of Rate Schedule 3808. FortisBC does not have any issues with holding these agreements in abeyance pending the decision on the above noted BC Hydro Application. If further information is required, please contact the undersigned at (250) 717 0890. Sincerely, Dennis Swanson Director, Regulatory Affairs
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