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
Arrow Transportation Systems Inc. LNG Fueling Station for Denwill Enterprises Inc.
BEFORE: L.A. O’Hara, Commissioner April 15, 2014
O R D E R
WHEREAS:
A. On December 13, 2013, FortisBC Energy Inc. (FEI) and Arrow Transportation Systems Inc. (Arrow) entered into a Mobile Re-Fueling Equipment Agreement (Arrow Agreement) that established terms and conditions for FEI’s provision of the LNG fueling service (LNG Fueling Service);
B. On January 28, 2014, FEI applied to the British Columbia Utilities Commission (Commission), pursuant to sections 59 to 61 of the Utilities Commission Act (Act), for approval of rate design and rates established in the Arrow Agreement under the Greenhouse Gas Reduction (Clean Energy) Regulation;
C. On March 11, 2014, Commission Order G-33-14 approved the rate design and rates established in the Arrow Agreement with Arrow for LNG Fueling Service, including the Host Fee of $1.50/GJ, effective December 13, 2013;
D. On February 17, 2014, FEI and Denwill Enterprises Inc. (Denwill) executed an LNG Fueling Services Agreement whereby Denwill would be permitted to receive LNG fueling service from the Arrow Fueling Station (Denwill Agreement);
E. On March 26, 2014, FEI applied, pursuant to sections 59 to 61 of the Act, for interim approval of the rates for service established in the Denwill Agreement, effective February 17, 2014 and for permanent approval of the rates for service established in the Denwill Agreement, effective February 17, 2014 (Application);
F. 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 Act, the Commission orders as follows:
1. The rates established in the Denwill Agreement are approved on an interim basis effective February 17, 2014.
2. Any variance between the interim rates and the permanent rates, to be determined by the Commission following final disposition of the Application, is 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 15th day of April, 2014.
BY ORDER
Original signed by:
L.A. O’Hara
Commissioner