IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
FortisBC Energy Inc.
Application for
Approval of Rates and Contract for Liquefied Natural Gas Supply
from the Arrow Transportation Systems Inc. LNG Fueling Station for Vedder
Transport Ltd.
BEFORE: K. A. Keilty, Panel Chair/Commissioner February 12, 2015
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 Liquefied Natural Gas (LNG) fueling service to Arrow from a fueling station on Arrow’s premises (Arrow Fueling Station);
B. On March 11, 2014, the British Columbia Utilities Commission (Commission) issued Order G-33-14, pursuant to sections 59-61 of the Utilities Commission Act, approving the rate design and rates established in the Arrow Agreement, including the Host Fee of $1.50 per GJ, effective December 13, 2013;
C. On January 14, 2015, FEI and Vedder Transport Ltd. (Vedder) executed an LNG Fueling Services Agreement whereby Vedder would be permitted to receive LNG from the Arrow Fueling Station (Vedder from Arrow Agreement);
D. On February 6, 2015, FEI applied for interim and permanent approval of the rates for service established in the Vedder from Arrow Agreement, effective January 14, 2015 (Application); and
E. 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 and contract for LNG Supply from the Arrow Fueling Station for Vedder are approved on an interim basis, effective January 14, 2015.
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 12th day of February 2015.
BY ORDER
Original Signed by:
K. A. Keilty
Panel Chair/Commissioner