IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
Application by the FortisBC Inc.
Variance of Order G-196-10 in the 2009 Rate Design and Cost of Service Analysis
BEFORE: L.A. O’Hara, Commissioner March 21, 2011
M.R. Harle, Commissioner
O R D E R
WHEREAS:
A. On October 30, 2009, FortisBC Inc. (FortisBC) filed its 2009 Rate Design and Cost of Service Analysis Application (Application) pursuant to sections 58 and 61 of the Utilities Commission Act (the Act);
B. On October 19, 2010, the British Columbia Utilities Commission (Commission) issued its Decision on the Application by Order G-156-10. Directive 3 of Order G-156-10 directed FortisBC to re-run and submit the Cost of Service Analysis (COSA) with all the adjustments described in the Decision within 30 days of the Order;
C. On November 19, 2010, FortisBC filed its revised COSA and a summary of the resulting revenue-to-cost ratios (R/C ratios) to comply with Directive 3 of Order G-156-10;
D. On December 23, 2010, the Commission issued Order G-196-10 approving the revised COSA subject to certain directions contained in the Order;
E. On March 10, 2011, FortisBC applied pursuant to section 99 of the Act for a variance of Order G-196-10 to amend the April 1, 2011 rebalancing implementation date to May 1, 2011 in order to allow the rate rebalancing adjustments to be made concurrently with FortisBC interim rate adjustments related to BC Hydro’s F2012-F2014 Revenue Requirements Application;
F. The Commission has reviewed the Variance Application and supporting evidence and finds that variance to Order G-196-10 is warranted.
NOW THEREFORE, the Commission orders as follows:
1. Pursuant to section 99 of the Utilities Commission Act, the Commission directs FortisBC to implement the initial year rate rebalancing adjustments effective on May 1, 2011.
2. The Commission directs FortisBC to implement future rate rebalancing adjustments for the period
2012-2015 effective on January 1 for each respective year during the period.
DATED at the City of Vancouver, in the Province of British Columbia, this 21st day of March 2011.
BY ORDER
Original signed by:
L.A. O’Hara
Commissioner