IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by British Columbia Transmission Corporation and FortisBC Inc.
for Approval of the Duck Lake Wheeling Agreement
BEFORE: L.F. Kelsey, Commissioner
D.A. Cote, Commissioner February 11, 2010
O R D E R
WHEREAS:
A. On December 21, 2007, British Columbia Transmission Corporation (BCTC) filed its F2009-F2018 Transmission System Capital Plan, in which it identified the need for transmission reinforcements in the near future to meet the forecast load growth in the Woods Lake service area and requested approval of definition phase expenditures for the Woods Lake Area Reinforcement Project; and
B. On June 26, 2008, the British Columbia Utilities Commission (the Commission) issued Order G-107-08 and, on July 10, 2008, its accompanying decision, which approved BCTC’s definition phase expenditures for the Woods Lake Area Reinforcement Project and encouraged BCTC to find a solution that would benefit it and FortisBC Inc. (FortisBC); and
C. On October 6, 2009, BCTC and FortisBC (the Companies) entered into the Duck Lake Wheeling Agreement (the Wheeling Agreement) in which FortisBC agreed to provide a wheeling service to BCTC at a negotiated wheeling rate for the purpose of serving the load forecast of British Columbia Hydro and Power Authority (BC Hydro) in the Woods Lake service area; and
D. On December 23, 2009, the Companies filed an Application for Approval of the Wheeling Agreement and related matters (the Application); and
E. In the Application, FortisBC sought, pursuant to sections 59 – 61 of the Utilities Commission Act (the Act) approval of the Wheeling Agreement as FortisBC Tariff Supplement No. 9 and approval of Rate Schedule 110 to be finalized when all construction costs under the Wheeling Agreement are known; and
F. In the Application, BCTC sought, pursuant to sections 59 – 61 of the Act, approval of amendments to its Open Access Transmission Tariff (OATT) to permit it to service BC Hydro’s load in the Woods Lake service area through the use of the Wheeling Agreement; and
G. In the Application BCTC sought acceptance, pursuant to section 44.2 of the Act, that the capital expenditure to be paid under the Wheeling Agreement for upgrading the FortisBC Duck Lake substation is in the public interest; and
H. On January 29, 2010, BCTC responded to a Commission information request; and
I. The Commission has considered the Application and has determined that it should be approved.
NOW THEREFORE the Commission orders as follows:
1. The Wheeling Agreement as set out in Appendix A of the Application is approved as FortisBC Tariff Supplement No. 9.
2. FortisBC Rate Schedule 110, as set out in Appendix C of the Application, is approved subject to finalization of the wheeling rate pursuant to the Wheeling Agreement. FortisBC shall file the final rate schedule with the Commission in a timely fashion, as soon as the final rate is known.
3. The amendments to BCTC’s OATT, as set out in Appendix D of the Application, are approved.
4. The capital expenditures paid by BCTC pursuant to section 6.1 of the Wheeling Agreement for upgrades to the FortisBC Duck Lake Substation, which are estimated at 12 million dollars as set out in Table 5-2 of the Application, are accepted as being in the public interest.
DATED at the City of Vancouver, in the Province of British Columbia, this 12th day of February 2010.
BY ORDER
Original signed by:
D.A. Cote
Commissioner