IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
Application by FortisBC Energy Inc.
for Approval of Rates and Contract for Liquefied Natural Gas Supply from the
Vedder Transport Ltd. LNG Fueling Station for Wheeler Transport Inc.
BEFORE: L.A. O’Hara, Commissioner June 3, 2014
O R D E R
WHEREAS:
A. On July 13, 2012, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (Commission), pursuant to sections 45 and 46 of the Utilities Commission Act (UCA), for a Certificate of Public Convenience and Necessity (CPCN) for constructing and operating a Liquefied Natural Gas (LNG) refueling station at the premises of Vedder Transport Ltd. (Vedder) located in Abbotsford, British Columbia (Vedder Fueling Station). The Vedder Fueling Station was constructed under FEI’s General Terms and Conditions Section 12B (GT&Cs 12B);
B. On August 2, 2013, pursuant to sections 59-61 of the UCA, FEI requested for interim approval for a rate design and rates established in the LNG Fueling Station Installation and Operation Agreement with Vedder for LNG Service (Permanent Refueling Agreement);
C. On October 5, 2012, pursuant to Order C-11-12, the Commission granted FEI a CPCN for the construction and operation of the Vedder Fueling Station;
D. On November 5, 2013, FEI and Vedder amended the Permanent Refueling Agreement (Vedder Amending Agreement) in order to permit Other Users access to receive LNG supply from the Vedder Fueling Station;
E. On December 20, 2013, pursuant to Order G-228-13, the Commission approved an Amending Agreement to the Permanent Refueling Agreement, including a $1.50/GJ Host Fee payable to Vedder on a permanent basis effective December 12, 2013;
F. On February 7, 2014, FEI applied to the Commission for approval of FEI Tariff Supplement J-3, including the rate design and the rates established in the Permanent Refueling Agreement and subsequent Amending Agreements between Vedder and FEI on a permanent basis, effective January 1, 2013. On February 27, 2014, pursuant to Order G-22-14, the Commission approved the Vedder rates on a permanent basis;
G. On April 1, 2014, FEI and Wheeler Transport Ltd. (Wheeler) executed a LNG Fueling Services Agreement whereby Wheeler would be permitted to receive LNG fueling service from the Vedder Fueling Station (Wheeler Agreement);
H. On May 16, 2014, FEI applied, pursuant to sections 59 to 61 of the UCA, for interim approval of the rates and contract for service established in the Wheeler Agreement, effective April 1, 2014, and for permanent approval of the rates and contract for service established in the Denwill Agreement, effective April 1, 2014 (Application);
I. The Commission has commenced review of the Application and determines interim rates should be approved.
NOW THEREFORE pursuant to sections 59-61 and 89 of the Utilities Commission Act, the Commission orders as follows:
1. The rates established in the Wheeler Agreement are approved on an interim basis effective April 1, 2014.
2. Any variance between the interim rates and the permanent rates as determined by the Commission following final disposition of the Application are subject to refund/recovery, with interest at the average prime rate of FEI’s principal bank for its most recent year.
DATED at the City of Vancouver, In the Province of British Columbia, this 3rd day of June, 2014.
BY ORDER
Original Signed By:
L.A. O’Hara
Commissioner