IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Plateau Pipe Line Ltd.
for Approval of the Northeast BC Pipeline and Blueberry Pipeline Toll Revisions
BEFORE: D. Morton, Commissioner June 14, 2012
O R D E R
WHEREAS:
A. On May 18, 2012, Plateau Pipe Line Ltd. (Plateau) applied to the British Columbia Utilities Commission (Commission) for approval of 2012 revised tariff and supplemental toll information for the Northeast BC Pipeline (NEBC Pipeline) and the Blueberry to Taylor Pipeline (Blueberry Pipeline) effective June 1, 2012 (the Application);
B. The Application requests approval for the following tariff and supplemental toll information, effective June 1, 2012:
(i) A reduction in the truck unloading toll at the Taylor Terminal on the NEBC Pipeline from $6.00/m3 to $4.50/m3; and
(ii) A 20 percent toll decrease for all locations on the Blueberry Pipeline;
C. The Application states that the 2011 toll decreases approved by Order G-10-11 were expected to reduce the NEBC Pipeline surplus over 3 to 4 years and keep the Blueberry Pipeline surplus from growing. However, the 2011 accumulated surplus for the NEBC Pipeline increased from a forecast of $5.4 million to $9.7 million due to higher overage sales and volumes combined with lower expenditures than forecast. The 2011 accumulated surplus for the Blueberry Pipeline also increased from a forecast of $0.7 million to $4.5 million due to higher overage oil sales and volumes than forecast;
D. Plateau expects that the toll reductions and expected integrity work on the NEBC Pipeline and Blueberry Pipeline should result in both surplus accounts being drawn down over three years;
E. Plateau provided a copy of the Application to Shippers on the NEBC Pipeline and Blueberry Pipeline and no complaints have been received by the Commission to date;
F. The Commission has reviewed the Application and considers that approval of June 1, 2012, NEBC Pipeline and Blueberry Pipeline tolls are warranted.
NOW THEREFORE the Commission orders as follows:
1. The requested NEBC Pipeline and Blueberry Pipeline toll decreases are approved as permanent effective June 1, 2012, in accordance with section 65(3.1)(a) of the Utilities Commission Act.
2. The approved tolls are permanent and subject to review by the Commission in the event of a complaint by one or more Shippers on the pipelines within 60 days of this Order. If a complaint is received by the Commission after 60 days of this Order, any adjustment in tolls will be on a prospective basis.
3. Plateau is to provide a copy of this Order to all Shippers on the NEBC Pipeline and Blueberry Pipeline.
DATED at the City of Vancouver, in the Province of British Columbia, this 14th day June 2012.
BY ORDER
Original signed by:
D.M. Morton
Commissioner