Orders

IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

A Filing by FortisBC Inc.

for Acceptance of a Capacity Purchase Agreement

BEFORE:                 L.F. Kelsey, Commissioner

                                D.A. Cote, Commissioner                                                    May 25, 2012

                                L.A. O’Hara, Commissioner

O  R  D  E  R

WHEREAS:

A.       By Order E-29-10 dated September 23, 2010, the British Columbia Utilities Commission (the Commission) accepted a filing by FortisBC Inc. (FortisBC) pursuant to section 71 of the Utilities Commission Act (the Act) of a Capacity Purchase Agreement (Old CAPA) between FortisBC and Waneta Expansion Power Corporation (WEPC) and a Justification Report in relation to the Waneta Expansion Power Project and agreed to hold confidential both documents;

B.       By letter dated November 10, 2011, Zellstoff Celgar Limited Partnership and International Forest Products Limited, later joined by Atco Wood Products Ltd., Kalesnikoff Lumber Co. Ltd., Porcupine Wood Products and Springer Creek Forest Products (the Industrial Customers Group/ICG), applied for reconsideration of Order E‑29‑10;

C.       On November 18, 2011, FortisBC filed an executed copy of the WAX CAPA (WAX CAPA) which appeared to contain certain substantive changes from the Old CAPA accepted for filing by Order E-29-10 with the request that the Commission maintain confidentiality;

D.       The Commission considered the written submissions of FortisBC and the ICG related to the request for reconsideration and on January 23, 2012 issued Order E-1-12 (with Reasons) in which the Commission Panel determined that it is unnecessary to determine whether Order E-29-10 should be cancelled or whether the reconsideration request should proceed to the second phase as requested by the ICG;

E.        Order E-1-12 also directed FortisBC to file an explanation for the basis of its request for confidentiality by February 6, 2012 and provide a copy to the ICG and all parties participating in the review of its current Revenue Requirements Application for a response;

F.        The Commission received and considered submissions from FortisBC, the ICG and Mr. Alan Wait on the need to maintain confidentiality of the WAX CAPA and the Justification Report;

G.       By Order E-13-12 (with Reasons) dated April 13, 2012 the Commission determined that the WAX CAPA and Justification Report will continue to be held confidential and that a decision on what further process might be required to determine if the WAX CAPA is in the public interest would follow;

H.       The Commission has completed its review of the WAX CAPA and determined it is in the public interest and a hearing is not required before accepting the WAX CAPA for filing pursuant to section 71 of the Act;

I.         The Commission notes that although the WAX CAPA is a long-term capacity purchase agreement and is in the public interest, there is the potential for disproportionate rate impacts in the early years of the agreement.

NOW THEREFORE the Commission orders that the Capacity Purchase Agreement, set out in Appendix A to this Order, is accepted for filing as an energy supply contract pursuant to section 71 of the Act.  FortisBC is directed to develop a rate smoothing proposal for the Commission’s approval either through a separate submission or with the next Revenue Requirements Application.  The Commission will hold confidential the Capacity Purchase Agreement and the Justification Report.

DATED at the City of Vancouver, in the Province of British Columbia, this                  30^th               day of May 2012.

                                                                                                                                BY ORDER

                                                                                                                                  Original signed by:

                                                                                                                                L.F. Kelsey

                                                                                                                                Commissioner

Attachment

FortisBC Inc.

Capacity Purchase Agreement