BRIT I SH COLU MBIA
UTIL I T I ES COMM I S S ION
ORDER
NUMBER
G
‐139‐09
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 a
2009 Rate Design and Cost of Service Analysis
BEFORE:
A. J. Pullman, Panel Chair
and Commissioner
L. A. O’Hara, Commissioner
November 26, 2009
M. R. Harle, Commissioner
O R D E R
WHEREAS:
A. On October 30, 2009, FortisBC filed its 2009 Rate Design and Cost of Service Analysis model (the
“Application”) with the British Columbia Utilities Commission (the “Commission”), pursuant to sections 58
and 61 of the Utilities Commission Act. The Application features a Rate Design, and an accompanying Cost
of Service Analysis, for which FortisBC seeks Commission approval; and
B. Commission Order G‐58‐06, issued on April 25, 2006, approved a Performance‐Based Regulation (“PBR”)
Settlement for FortisBC, for the years 2007, 2008 and, potentially, 2009. The PBR Settlement required
FortisBC to hold an Annual Review, Workshop and Negotiated Settlement Process each November with a
goal of achieving firm rates by December 1
st
for the following year; and
C. On February 27, 2009, the Commission issued a Decision on the FortisBC Application for Approval of a
2009‐2010 Capital Expenditure Plan. In that Decision the Commission approved a 4.6 percent general rate
increase and directed that the approved general rate increase not be exceeded. The Decision noted that
FortisBC had not specifically addressed the development of time of use or similar rate structures, and other
peak shaving initiatives, necessary to support future advanced metering infrastructure or similar programs;
and
D. The last comprehensive Rate Design review took place in 1997, when what is now FortisBC was West
Kootenay Power. As described by FortisBC, the Application proposes the most significant set of changes and
updates to the Company’s rate structures and customer service guidelines since 1997. Major rate design
changes in the Application are rate re‐balancing, and new rate structures to promote energy‐conservation;
and
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BRIT I SH COLUMBIA
UTIL IT I ES COMMISS ION
ORDER
NUMBER
G‐139‐09
2
E. On September 21, 2007, Commission Order G‐115‐07, directed FortisBC to file a Cost of Service Study on, or
before, June 30, 2008, and to file a Rate Design application on or before September 1, 2008; and
F. By letter dated April 7, 2008, FortisBC requested Commission approval of extending the due dates for a Cost
of Service Study to December 31, 2008, and a Rate Design application to March 31, 2009; and
G. On May 22, 2008, Commission Order G‐83‐08 directed FortisBC to file a Cost of Service study by September
30, 2008, and file a Rate Design by December 31, 2008; and
H. By letter dated September 16, 2008, FortisBC requested Commission approval of extending the due dates
for a Cost of Service Analysis to December 31, 2008, and a Rate Design Application to February 20, 2009; and
I. On September 26, 2008, Commission Order G‐147‐08 directed FortisBC to file a Cost of Service study by
December 31, 2008, and to file a Rate Design application by February 20, 2009; and
J. By letter dated October 24, 2008, FortisBC requested Commission approval of extending the due dates for a
Cost of Service Analysis to June 30, 2009, and a Rate Design Application to September 30, 2009; and
K. On November 10, 2008, Commission Order G‐164‐08 directed FortisBC to file a Cost of Service Analysis no
later than June 30, 2009 and a Rate Design application no later than September 30, 2009; and
L. FortisBC filed a draft Cost of Service Analysis with the Commission on June 30, 2009. The Commission
accepted the draft Cost of Service Analysis as satisfying, in the interim, the relevant requirement of Order
G‐164‐08; and
M. By letter dated September 28, 2009, FortisBC advised the Commission that it was in the midst of
consultation with the BC Municipal Electric Utilities (“BCMEU”), who represent wholesale customers of
FortisBC. FortisBC proposed that a further extension of the filing deadlines might allow some matters of
consequence to the Cost of Service Analysis and Rate Design applications to be resolved prior to a hearing,
and requested extension to the end of October; and
N. By letter dated November 6, 2009, BCMEU advised the Commission that it opposes the Cost of Service
Analysis and Rate Design proposed by FortisBC, and does not anticipate that a Negotiated Settlement
Process will be successful. BCMEU proposes a hearing as the appropriate forum for the review; and
O. The Commission Panel has considered the procedural proposals in the Application and the history of
FortisBC Rate Design and Cost of Service Analysis.
…/3
BRIT I SH COLUMBIA
UTIL IT I ES COMMISS ION
ORDER
NUMBER
G‐139‐09
3
NOW THEREFORE the Commission Panel orders as follows:
1. Intervenor and Interested Party registration, Information Requests from the Commission and registered
Intervenors, and responses to Information Requests by FortisBC, will occur according to the Preliminary
Regulatory Timetable, attached as Appendix “A” to this Order.
2. A Procedural Conference will be held on December 15, 2009, at the Manteo Resort, in Kelowna, BC,
commencing at 1:00 p.m.
3. FortisBC will publish the Notice of Procedural Conference, attached as Appendix “B” to this Order, in
appropriate local news publications, in the FortisBC service area, by Thursday, December 10, 2009.
Publication will be in display‐ad format.
4. Persons wishing to participate in the hearing as Intervenors or Interested Parties should register with the
Commission, via written or electronic submission, by Monday, December 14, 2009. Intervenors should
provide the following information: the nature of their interest in the Application; the nature of the issues
they intend to pursue during the proceeding; the nature and extent of their anticipated involvement in the
review, including whether they expect to file written evidence as part of the hearing.
5. Intervenors intending to apply for Participant Assistance must submit a budget estimate by Friday,
December 18, 2009. Participant Assistance applications should be consistent with the Commission’s
Participant Assistance/Cost Award Guidelines and Order G‐15‐04. Copies of the Guidelines are available
upon request or can be downloaded from the Commission’s web site at
http://www.bcuc.com/Documents/Guidelines/2007/DOC_5014_G‐72‐07_PACA_2007_Guidelines.pdf
DATED at the City of Vancouver, in the Province of British Columbia, this day of November 2009.
BY ORDER
Anthony J. Pullman
Panel Chair and Commissioner
Attachment
Orders/G‐139‐09‐FBC‐2009 Rate Design‐Regulatory Timetable
SIXTH FLOOR, 900 HOWE STREET, BOX 250
VANCOUVER, B.C. V6Z 2N3 CANADA
web site: http://www.bcuc.com
An Application by FortisBC Inc. for Approval of a
2009 Rate Design and Cost of Service Analysis
PRELIMINARY REGULATORY TIMETABLE
ACTION
Intervenor Registration
Procedural Conference
Commission Information Request No.1 to FortisBC;
Intervenor Information Request No. 1 to FortisBC;
Participant Assistance Budget Submissions
FortisBC Response to Commission Information Request No. 1;
FortisBC Response to Intervenor Information Request No. 1
Commission Information Request No. 2 to FortisBC;
Intervenor Information Request No. 2 to FortisBC
FortisBC Response to Commission Information Request No. 2;
FortisBC Response to Intervenor Information Request No. 2
APPENDIX A
to Order G‐139‐09
Page 1 of 1
TELEPHONE: (604) 660‐4700
BC TOLL FREE: 1‐800‐663‐1385
FACSIMILE: (604) 660‐1102
DATE (2009/2010)
Monday, December 14
Tuesday, December 15
Friday, December 18
Monday, January 18
Monday, February 1
Thursday, March 4
SIXTH FLOOR, 900 HOWE STREET, BOX 250
VANCOUVER, B.C. V6Z 2N3 CANADA
web site: http://www.bcuc.com
An Application by FortisBC Inc. for Approval of a
2009 Rate Design and Cost of Service Analysis
NOTICE OF APPLICATION AND PROCEDURAL CONFERENCE
Date:
Time:
Location:
THE APPLICATION
The Application presents FortisBC’s 2009 Rate Design and Cost of Service Analysis. FortisBC seeks Commission
approval of the Application, pursuant to subsections 58 and 61 of the Utilities Commission Act (“UCA”, the
“Act”).
On December 11, 2008, the Commission issued Order G‐193‐08, which approved the terms of a Negotiated
Settlement Agreement concerning FortisBC’s 2009 Revenue Requirements Application. The Application is
intended to recover the established revenue requirement, while conforming to established regulatory practices
for cost allocation and Provincial policy for providing correct incentives to reduce energy consumption.
THE REGULATORY PROCESS
A Procedural Conference will be held at the Manteo Resort, in the City of Kelowna, on the afternoon of Tuesday,
December 15, 2009, to discuss procedural matters related to the Application.
PUBLIC INSPECTION OF THE APPLICATION
The Application is available for inspection at the following locations:
FortisBC
Suite 100 ‐ 1975 Springfield Road
Kelowna, BC V1Y 7V7
Telephone: 1‐866‐436‐7847
APPENDIX B
to Order G‐139‐09
Page 1 of 2
TELEPHONE: (604) 660‐4700
BC TOLL FREE: 1‐800‐663‐1385
FACSIMILE: (604) 660‐1102
Tuesday, December 15, 2009
1:00 p.m.
Manteo Resort, Kelowna, BC
BC Utilities Commission
Sixth Floor, 900 Howe Street
Vancouver, BC V6Z 2N3
Telephone: 604‐660‐4700
APPENDIX B
to Order G‐139‐09
Page 2 of 2
The Application is also available for viewing on the following web sites:
http://www.fortisbc.com
http://www.bcuc.com
REGISTERING TO PARTICIPATE
Persons who expect to actively participate in the review process or processes should register as Intervenors with
the Commission. Intervenors will receive copies of the Application, all correspondence and filed documents.
Persons not expecting to actively participate should register with the Commission as Interested Parties and will
receive a copy of the Application’s summary, all Orders issued, and the Commission’s Decision.
Intervenors and Interested Parties should inform the Commission Secretary, in writing, by Monday, December
14, 2009 of their intention to become Intervenors or Interested Parties, and their intention to attend the
Procedural Conference.
All submissions and/or correspondence received from active participants or the public relating to the
Application will be placed on the public record and posted to the Commission’s web site.
PARTICIPANT ASSISTANCE/COST AWARDS
Any party intending to apply for a Participant Assistance/Cost Award is advised to review the Commission’s
Guidelines with respect to the requirements for eligibility. The Participant Assistance/Cost Award Guidelines
may be obtained by writing to the Commission Secretary, or on line at
http://www.bcuc.com/Documents/Guidelines/2007/DOC_5014_G‐72‐07_PACA_2007_Guidelines.pdf
FURTHER INFORMATION
For further information, please contact Ms. Erica Hamilton, Commission Secretary as follows:
Telephone: (604) 660‐4700
Facsimile: (604) 660‐1102
Email: Commission.Secretary@bcuc.com
BC Toll Free: 1‐800‐663‐1385
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.