Orders

IN THE MATTER OF

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

and

Application by FortisBC Inc.

for Stepped and Stand-By Rates for Transmission Customers

BEFORE:               A.A. Rhodes, Commissioner

                                L.A. O’hara, Commissioner                                             April 19, 2013

                                R.D. Revel, Commissioner                                              

O  R  D  E  R

WHEREAS:

A.      On October 30, 2009, FortisBC Inc. (FortisBC) filed its 2009 Cost of Service Analysis and Rate Design Application (2009 COSA and RDA) for approval by the British Columbia Utilities Commission (Commission), pursuant to sections 58 to 61 of the Utilities Commission Act (Act);

B.      On October 19, 2010, by, Order G-156-10, the Commission issued its decision on the 2009 COSA and RDA.  Order G-156-10 directed FortisBC to, among other things, initiate consultation with its industrial customers with the goal of introducing a stepped rate for transmission service;

C.      On March 25, 2011, Zellstoff Celgar Limited Partnership (Celgar) filed a complaint with the Commission against FortisBC relating to the failure of FortisBC and Celgar to complete a general service agreement, and FortisBC’s application of Rate Schedule 31 demand charges (Celgar Complaint);

D.      On November 14, 2011, by Order G-188-11 the Commission issued its decision on the Celgar Complaint.  Order G‑118‑11 directed FortisBC to:

•         develop a rate for Celgar and other self-generators;

•         establish a notional matching methodology;

•         determine guidelines for the level of entitlement of self-generating customers to non-BC Hydro Power Purchase Agreement embedded cost power; and

•         submit an application for a two-tier, stepped transmission rate and a standby rate;

E.       On April 13, 2012, in compliance with Order G-188-11, FortisBC submitted its Guidelines for Establishing Entitlement to Non‐PPA Embedded Cost Power and Matching Methodology (Compliance Filing);

F.       On December 27, 2012, by Order G-202-12, the Commission accepted the Compliance Filing;

G.      On March 28, 2013, FortisBC filed an Application with the Commission for Stepped and Stand-By Rates for Transmission Customers (the Application);

H.      On April 10, 2013, the Commission issued Order G-55-13, establishing a Preliminary Regulatory Timetable for the Application;

I.        On April 18, 2013, Celgar filed a letter with the Commission, stating that a reconciliation of the Matching Methodology with the Entitlement Principles must be within the scope of the proceeding and requested that the Commission Panel make a determination and direct FortisBC to file a replacement “average unit price” stepped rate.

NOW THEREFORE the Commission orders as follows:

1.       The Preliminary Regulatory Timetable for the Application as set out in Appendix A to Order G-55-13 is suspended until further Order.

2.       The timetable for participants who wish to comment on Celgar’s request is attached as Appendix A to this Order.

DATED at the City of Vancouver, in the Province of British Columbia, this                    19^th                    day of April 2013.

                                                                                                                                BY ORDER

                                                                                                                            Original signed by:

                                                                                                                                A.A. Rhodes

                                                                                                                                Commissioner

Attachment

Application by FortisBC Inc.

for Stepped and Stand-By Rates for Transmission Customers

TIMETABLE FOR COMMENTS