IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
Plateau Pipe Line Ltd.
Application for Approval of the Northeast BC Pipeline Tolls
BEFORE: C.A. Brown, Commissioner
N.E. MacMurchy, Commissioner
B.A. Magnan, Commissioner February 27, 2014
D.M. Morton, Commissioner
R.D. Revel, Commissioner
O R D E R
WHEREAS:
A. On February 3, 2014, Plateau Pipe Line Ltd. (Plateau and Company) applied for approval of a revised tariff for the Northeast BC (NEBC) Pipeline, and more specifically, for the BC Light and the Boundary Lake Pipelines (BCL&BL), effective March 1, 2014 (the Application). The Application requests approval to maintain on a go-forward basis, the BCL&BL tolls, which were approved by Order G-72-13, dated May 9, 2013;
B. The BCL&BL had an accumulated surplus of $3.4 million at the end of fiscal 2013 due to a combination of higher than anticipated tariff revenue and a $1.3 million increase in overage oil;
C. Plateau proposes no toll changes for the BCL&BL at this time. The Company is continuing with vigorous integrity programs to maintain the safety and reliability of the BCL&BL. Plateau is projecting to spend $11.5 million over the next three years (i.e., fiscal years 2014 to 2016, inclusive) with the majority of this amount ($8.4 million) planned to be spent in fiscal year 2016, which will result in cumulative under collection of $12.2 million at the end of fiscal year 2016. Plateau is reviewing its spending plan for fiscal year 2016 and considerations are being made to split the fiscal year 2016 projects over two to three years instead of one year in order to avoid an unrealistic toll increase in fiscal year 2016. Plateau will continue to review volumes and estimated spend profiles to ensure tolls are adjusted accordingly from fiscal year 2015 onwards;
D. Plateau requests approval of the current tolls effective March 1, 2014, rather than requiring a toll decrease for fiscal 2014 and a large toll increase for fiscal 2016;
E. The British Columbia Utilities Commission’s (Commission) complaint review process for pipeline tolls recognizes the effective date of approved tolls; and
F. The Commission reviewed the Application and determines that approval is warranted.
NOW THEREFORE pursuant to section 65 of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The current the Northeast BC Pipeline tolls, specifically, tolls for the BC Light and the Boundary Lake Pipelines are approved effective March 1, 2014.
2. Plateau Pipe Line Ltd. must provide a copy of this Order to all shippers on the NEBC Pipeline, and more specifically, on the BCL&BL.
3. The approved tolls are subject to review by the Commission in the event of a complaint by one or more shippers on the Northeast BC Pipeline, and more specifically, on the BC Light and the Boundary Lake 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.
DATED at the City of Vancouver, in the Province of British Columbia, this 28th day of February 2014.
BY ORDER
Original Signed by:
D.M. Morton
Commissioner