IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Plateau Pipe Line Ltd.
for Approval of the Western System Toll Changes
BEFORE: L.F. Kelsey, Commissioner
N.E. MacMurchy, Commissioner January 13, 2011
O R D E R
WHEREAS:
A. On December 16, 2010 Plateau Pipe Line Ltd. (Plateau, the Company) applied to the British Columbia Utilities Commission (Commission) for approval of a single page tariff revision that increased tolls for crude oil deliveries from Taylor to Prince George and decreased tolls for crude oil deliveries from Taylor to Kamloops on the Western System in accordance with toll setting approved by Commission Orders P-8-08
and P-4-09 (the Application);
B. Commission Order P-8-08 approved the Full Path Long-Term Service Toll Settlement (Full Path) that was filed as Exhibit B-17 in Plateau’s 2007 toll application which increased the toll for crude oil deliveries from Taylor to Prince George from $9.73/m3 to $10.12/m3 effective March 1, 2011 to February 29, 2012;
C. The Application also requested to decrease the toll for crude oil deliveries from Taylor to Kamloops from $26.00/m3 to $20.00/m3 effective January 1, 2011 to recover the 2011 forecast cost of service and to reduce the accumulated surplus to the $1 million threshold in accordance with a toll setting mechanism approved by Commission Order P-4-09;
D. By B.C. Regulation 274/2010, effective October 4, 2010 section 200 of the Oil and Gas Activities Act (OGAA) repealed the Pipeline Act and section 203 of the OGAA amended section 65 of the Utilities Commission Act (the Act). The amendment to section 65 of the Act added subsections (3.1) and (3.2) to that section. Section 65(3.1)(a) of the Act allows the Commission to establish conditions for the tolls that may be charged by a common carrier. Section 65(3.1)(b) of the Act allows the Commission to establish conditions on the extensions, improvements or abandonment of service. Section 65(3.2) of the Act allows the Commission to order that section 43 [Duty to provide information] applies with respect to a common carrier;
E. By Order in Council (OIC) 593/2010 (the Energy Resources Regulation) effective October 4, 2010, the Lieutenant Governor in Council prescribed petroleum, as defined in section 1 of the Petroleum and Natural Gas Act, liquid hydrocarbons and petroleum products as types of energy resources for the purposes of section 65(2)(a)(ii) of the Act;
F. The Commission has reviewed the Application and considers that approval of January 1, 2011 Taylor to Kamloops permanent tolls is warranted.
NOW THEREFORE the Commission orders as follows:
1. The requested Taylor to Kamloops toll of $20/m3 is approved as permanent effective January 1, 2011 in accordance with section 65(3.1)(a) of the Act.
2. Plateau is to provide a copy of this Order to all Shippers on the Western System.
DATED at the City of Vancouver, in the Province of British Columbia, this 14th day January 2011.
BY ORDER
Original signed by:
L.F. Kelsey
Commissioner