IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by FortisBC Energy Inc.
for Approval of an Operating Agreement
with the District of Mackenzie
BEFORE: L.F. Kelsey, Commissioner
D.M. Morton, Commissioner May 24, 2012
N.E. McMurchy, Commissioner
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
WHEREAS:
A. On October 28, 1991, Fortis Energy Inc. (FEI) (formerly BC Gas Inc. and Terasen Gas Inc.) entered into a Franchise Agreement with the District of Mackenzie (Municipality) that is set to expire on June 15, 2012;
B. Effective April 2, 2012, FEI and the Municipality entered into an Operating Agreement (Agreement) with a term of 20 years;
C. The Agreement sets out the terms and conditions under which FEI shall exercise its rights to use the public places of the Municipality in conducting its business of distributing Gas within the Municipality, including a three percent operating fee to be paid by FEI to the Municipality. The terms and conditions of the Agreement are largely consistent with the Union of British Columbia Municipalities Agreement previously approved by the British Columbia Utilities Commission (Commission);
D. On May 17, 2012, FEI applied to the Commission for approval of the Agreement (Application);
E. The Commission has reviewed the Application and considers that approval is warranted.
NOW THEREFORE pursuant to section 45 of the Utilities Commission Act, the Commission approves the Agreement as filed.
DATED at the City of Vancouver, in the Province of British Columbia, this 28th day of May 2012.
BY ORDER