IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by FortisBC Inc.
for Approval of 2011 Capital Expenditure Plan
BEFORE: L.A. O’Hara, Panel Chair/Commissioner
A.A. Rhodes, Commissioner December 17, 2010
D.A. Cote, Commissioner
O R D E R
WHEREAS:
A. On June 18, 2010 FortisBC Inc. (FortisBC) filed its 2011 Capital Expenditure Plan (the Application) with the British Columbia Utilities Commission (the Commission) pursuant to sections 44.2 (1)(a) and (b) and 45(2) of the Utilities Commission Act (the Act);
B. FortisBC requests an order that its 2011 Capital Expenditures Plan (2011 CEP) is accepted by the Commission, satisfies the requirements of section 45(6) of the Act and that the expenditures for the capital projects contained therein are in the public interest pursuant to Section 44.2(3)(a) of the Act;
C. The FortisBC 2011 CEP seeks acceptance of expenditures of $66.151 million in 2011 and $1.475 million in 2012. FortisBC states these expenditures are necessary to continue to provide reliable service, ensure public and employee safety, and to deliver Demand Side Management (DSM) programs to the Company’s growing customer base;
D. By Order G-112-10 dated June 25, 2010 the Commission established a Written Hearing Process and Regulatory Timetable for its review of the Application and also ordered that a Workshop be held in Kelowna, BC on August 4, 2010;
E. By Order G-147-10 dated September 24, 2010 the Commission established a Regulatory Timetable for Final Submissions;
F. The filing of Final Submissions was completed with the Reply Argument of FortisBC dated and filed on October 21, 2010;
G. The Commission has reviewed the evidence and submissions of FortisBC and Registered Interveners.
NOW THEREFORE the Commission, for the reasons stated in the Decision issued concurrently with this Order, orders that:
1. Capital expenditures in the total sum of $53.385 million for 2011 and 2012 as described in Appendix A to this Order are in the public interest and are accepted.
2. Capital expenditures in the total sum of $14.241 million for 2011 and 2012 as described in Appendix A to this Order are not in the public interest and are rejected. Of this total, expenditures in the sum of $3.767 million are more appropriately classified as operating expenses.
3. Subsection 45(2) of the Act does not apply to the Kelowna 138 kV Loop project, the Grand Forks to Warfield Fibre Installation project and the SCADA project included under “General Plant” in the Application (the “Projects”). If FortisBC intends to proceed with the Projects, it must apply for a separate Certificate of Public Convenience and Necessity which includes all three Projects.
4. The 2011 CEP satisfies the filing requirements of section 45(6) of the Act.
5. Fortis BC is directed to comply with all the determinations and directives set out in the Decision.
DATED at the City of Vancouver, in the Province of British Columbia, this 17th day of December 2010.
BY ORDER
Original signed by:
L.A. O’Hara
Panel Chair and Commissioner
Attachment