IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
a Application by FortisBC Energy (Vancouver Island) Inc.
for Approval to Issue Common Shares
BEFORE: L.F. Kelsey, Commissioner
N.E. MacMurchy, Commissioner May 26, 2011
D. Morton, Commissioner
C.A. Brown, Commissioner
O R D E R
WHEREAS:
A. On May 11, 2011, FortisBC Energy (Vancouver Island) Inc. (FEVI) applied to the British Columbia Utilities Commission (Commission), pursuant to section 50(2) of the Utilities Commission Act (the Act), for approval to issue common shares for $60 million in order to maintain FEVI’s Commission-approved equity percentage (the Application);
B. The equity injection is necessary as a result of the Mt. Hayes Liquefied Natural Gas Facility and interconnecting facilities (the Project) going into service in late May 2011, approved by Order C-9-07, with an estimated cost of $213 million including allowance for funds used during construction. In order to remain in compliance with Commission Order G-49-07 which approved the Fortis Inc. acquisition of the issued and outstanding shares of FortisBC Holdings Inc. (then Terasen Inc.) and related ring-fencing conditions in Commission Orders G-116-05, G-75-06 and G-30-06 issued in the prior acquisition of the issued and outstanding shares of FortisBC Holdings Inc. by Kinder Morgan, Inc.;
C. The Commission has reviewed the Application and finds that approval is warranted.
NOW THEREFORE pursuant to section 50(2) of the Act, the Commission orders the approval of the Application by FEVI to issue common shares in the amount of $60 million.
DATED at the City of Vancouver, in the Province of British Columbia, this 27th day of May, 2011.
BY ORDER
Original signed by:
D. Morton
Commissioner