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 2015 Common Delivery Rates and Delivery Rate Riders
BEFORE: L. A.
O’Hara, Panel Chair/Commissioner
C. A. Brown, Commissioner November 13,
2014
B. A. Magnan, Commissioner
O R D E R
WHEREAS:
A. On September 11, 2014, the British Columbia Utilities Commission (Commission) issued Order G-131-14 approving the FortisBC Energy Utilities application for Common Delivery Rates Methodology;
B. On October 24, 2014, the Commission issued Order G-164-14 approving the compliance filing for 2014 rates for FortisBC Energy Inc. (FEI) with respect to the Multi-Year Performance Based Ratemaking Plan approved for 2014 through 2019;
C. On October 31, 2014, FEI submitted an application for approval of 2015 Common Delivery Rates and Delivery Rate Riders (Application);
D. The Application requested approval of the:
1. 2015 Revenue Stabilization Deferral Account (RSDA) Riders, on a permanent basis, as set out in Table 9;
2. 2015 Phase-In Rate Riders, on a permanent basis, as set out in Tables 11 and 12;
3. 2015 Revenue Stabilization Adjustment Mechanism (RSAM) Rate Riders, on a permanent basis, as set out in Table 13;
4. 2015 Variable and Demand Delivery Rates as set out in Table 6 on an interim and refundable basis, pending the outcome of the Annual Review of 2015 delivery rates;
5. 2015 basic charges maintained at the existing FEI approved rates;
6. Establishment of an Annual Review Deferral Account with amortization to occur in the following year; and
E. The Commission has reviewed the Application and concludes that approval is warranted subject to certain amendments.
NOW THEREFORE pursuant to section 59 to 61 of the Utilities Commission Act, the Commission orders as follows:
1. FortisBC Energy Inc.’s (FEI) 2015 Revenue Stabilization Deferral Account (RSDA) Riders are approved, on a permanent basis, as set out in Table 9.
2. FEI’s 2015 Phase-In Rate Riders are approved, on a permanent basis, as set out in Table 11 and Table 12.
3. FEI’s 2015 Phase-In Rate Rider for Rate Schedules not included in Table 12 for the Whistler region are approved, on a permanent basis, as $4.204 per GJ.
4. FEI’s 2015 Phase-In Rate Rider for Rate Schedules not included in Table 12 for the Vancouver Island region are approved, on a permanent basis, as $1.617 per GJ.
5. FEI’s 2015 Revenue Stabilization Adjustment Mechanism (RSAM) Rate Riders are approved, on a permanent basis, as set out in Table 13.
6. FEI’s 2015 Variable and Demand Delivery Rates as set out in Table 6, are approved, on an interim and refundable basis, pending the outcome of the Annual Review of 2015 delivery rates.
7. FEI’s 2015 basic charges are to be maintained at the existing FEI approved rates.
8. The establishment of the 2015-2019 Annual Review Deferral Account for FEI is approved, to earn a return based on FEI’s Weighted Average Cost of Capital, with amortization to occur in the following year.
DATED at the City of Vancouver, in the Province of British Columbia, this 13th day of November 2014.
BY ORDER
Original signed by:
L. A. O’Hara
Commissioner