IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by FortisBC Energy Inc.
for Approval to Issue Common Shares
BEFORE: C.A. Brown, Commissioner
N.E. MacMurchy, Commissioner April 26, 2012
D.M. Morton, Commissioner
R.D. Revel, Commissioner
O R D E R
WHEREAS:
A. On March 30, 2012, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (Commission), pursuant to section 50(2) of the Utilities Commission Act (the Act), for approval to issue common shares for $65 million in order to maintain FEI’s Commission-approved equity percentage (the Application);
B. FEI states that the equity injection is necessary as a result of various capital projects, including the Customer Care Enhancement (CCE) Project and the in-sourcing of a new customer information system approved by Commission Order C-1-10, which went into service January 1, 2012, with an estimated cost of $110 million including allowance for funds used during construction. FEI further states that this issuance is necessary in order to remain in compliance with Commission Order G-49-07, which approved the Fortis Inc. acquisition of the issued and outstanding shares of FortisBC Holdings Inc. (then Terasen Inc.) and related ring-fencing conditions in Commission Orders G-116-05, G-75-06 and Letter L-30-06 issued in the prior acquisition of the issued and outstanding shares of FortisBC Holdings Inc. by Kinder Morgan, Inc.;
C. The Commission has reviewed the Application and finds that approval is warranted.
NOW THEREFORE pursuant to section 50(2) of the Act, the Commission orders the approval of the Application by FEI to issue common shares in the amount of $65 million.
DATED at the City of Vancouver, in the Province of British Columbia, this 26th day of April 2012.
BY ORDER
Original signed by:
D.M. Morton
Commissioner