IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Terasen Gas Inc.
for Approval of a Firm Transportation Service Agreement
between Terasen Gas Inc. and Westcoast Energy Inc.
and for Accounting Treatment of Stage 1 Costs for a Pipeline System Expansion Study
BEFORE: L.F. Kelsey, Commissioner
D.A. Cote, Commissioner March 25, 2010
O R D E R
WHEREAS:
A. On March 17, 2010, Terasen Gas Inc. (Terasen Gas) applied, pursuant to sections 60 and 61 of the Utilities Commission Act (the Act), for approval of a Firm Transportation Service Agreement between Terasen Gas and Westcoast Energy Inc. (Spectra Energy) effective May 1, 2010 (the Agreement), as Tariff Supplement No. I-9, and for approval of the proposed accounting treatment for the revenue under the Agreement (the Application); and
B. The Agreement provides Spectra Energy up to 87 million cubic feet per day of firm west to east capacity across the Terasen Gas transmission system, including the Southern Crossing Pipeline (SCP), effective May 1, 2010 to April 30, 2012; and
C. Terasen Gas proposes the incremental revenue resulting from the Agreement be accounted for in a manner consistent with current practices, and allocated between the SCP Mitigation Revenues Variance deferral account and the Midstream Cost Reconciliation Account; and
D. In the Application, Terasen Gas also requests that the Stage 1 preliminary feasibility assessment costs related to expansion of the existing capacity of the Terasen Gas transmission system in the BC Interior, to a maximum amount of $2.0 million, be charged to the SCP Mitigation Revenues Variance deferral account and thereby offset against the mitigation revenues resulting from the Agreement; and
E. Terasen Gas states that, if it decides at the end of the Stage 1 assessment of the transmission system expansion project to continue the development of the project, it anticipates requesting British Columbia Utilities Commission (Commission) approval of a new deferral account for the $6 million cost of Stage 2 to continue the development of expansion project; and
F. A condition precedent of the Agreement requires approval from the Commission by April 15, 2010 for Terasen Gas to provide firm service to Spectra Energy under the Agreement; and
G. The Commission has reviewed the Application and, notwithstanding the constricted timeframe that Terasen Gas has provided for the review of the Application, has concluded that a brief public written hearing is required.
NOW THEREFORE pursuant to sections 60 and 61 of the Act the Commission orders as follows:
1. The Commission establishes a written public hearing for the review of the Application.
2. Participants who wish to make submissions to the Commission on the Application will do so in writing by Thursday, April 1, 2010, and will provide a copy of the submission to Terasen Gas.
3. Terasen Gas will submit any Reply Submission to the Commission, in writing, by Thursday, April 8, 2010.
DATED at the City of Vancouver, in the Province of British Columbia, this 26th day of March 2010.
BY ORDER
Original signed by:
L.F. Kelsey
Commissioner