Orders

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 Rate Treatment of Expenditures

under the Greenhouse Gas Reductions (Clean Energy) Regulation and

Prudency Review of Incentives under the 2010 – 2011 Commercial NGV Demonstration Program

BEFORE:               L.F. Kelsey, Commissioner                                           October 18, 2012

O  R  D  E  R

WHEREAS:

A.      On May 14, 2012, the Lieutenant Governor In Council approved the Greenhouse Gas Reduction (Clean Energy) Regulation, B.C. Reg. 102/2012 (the GGRR);

B.      On August 21, 2012, FortisBC Energy Inc. (FEI) applied (the Application) to the British Columbia Utilities Commission (the Commission), pursuant to sections 59 to 61, and 90 of the Utilities Commission Act (the Act), for approval of deferral accounts and the accounting and rate treatment methodology for the three prescribed undertakings established by the GGRR;

C.      FEI also seeks an order from the Commission that past natural gas vehicle (NGV) incentive expenditures totaling $5.6 million (the 2010‐2011 Incentives), as described in Section 7 of the Application were prudently incurred and can be recovered through rates from FEI’s non‐bypass natural gas customers;

D.      In the Application, FEI proposes that the 2010‐2011 Incentives be considered within the $62 million expenditure cap that is established in section 2(1)(c) of the GGRR;

E.       The Commission has determined that the Application should be reviewed in three phases:

Phase 1 – “Prescribed undertaking 1: Vehicle Incentives or Zero Interest Loans”;

Phase 2 – “Prescribed Undertaking 2: CNG Stations & Prescribed Undertaking 3: LNG Stations”;

Phase 3 – “Prudence of Past Incentives” and associated cost recovery.

F.       Commission Orders G‐125‐12 and G-127-12 established a Streamlined Review Process to hear Phase 1 and Phase 2 matters.  A Regulatory Timetable is necessary to review Phase 3 of the Application.

NOW THEREFORE the Commission orders Phase 3 of the Application review will proceed by way of a written hearing following the Regulatory Timetable attached as Appendix A to this Order.

DATED at the City of Vancouver, in the Province of British Columbia, this                18^th                     day of October.

                                                                                                                                BY ORDER

                                                                                                                                Original signed by:

                                                                                                                                L.F. Kelsey

                                                                                                                                Commissioner

Attachment

FortisBC Energy Inc.

Application for Approval of Rate Treatment of Expenditures

under the Greenhouse Gas Reductions (Clean Energy) Regulation and

Prudency Review of Incentives under the 2010 – 2011 Commercial NGV Demonstration Program

PRELIMINARY

REGULATORY TIMETABLE