IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
FortisBC Energy Inc.
Application for Approval of 2015 Delivery Rates
pursuant to the Multi-Year Performance Based Ratemaking Plan
approved for 2014 through 2019 by Order G-138-14
BEFORE: D. A. Cote, Commissioner
D. M. Morton, Commissioner May 27, 2015
H. G. Harowitz, Commissioner
O R D E R
WHEREAS:
A. On September 15, 2014, the British Columbia Utilities Commission (Commission) issued its Decision and Order G-138-14 for FortisBC Energy Inc. (FEI) approving a Multi-Year Performance Based Ratemaking (PBR) Plan for 2014 through 2019. In accordance with the PBR decision, FEI is to conduct an annual review process to set delivery rates for each year;
B. On November 13, 2014, the Commission issued Order G-178-14 approving, among other things, FEI’s 2015 variable and demand delivery rates on an interim and refundable basis, pending the outcome of the annual review of 2015 delivery rates;
C. On January 14, 2015, FEI submitted an application for the Annual Review of 2015 Delivery Rates (Application);
D. Pursuant to Order G-6-15 issued on January 22, 2015, the Commission established the Regulatory Timetable for review of the Application which provided for one round of information requests, a workshop to review FEI’s 2014 performance results and the 2015 revenue requirements, a response by FEI to undertakings arising from information requested at the workshop, and written final and reply submissions;
E. FEI filed an evidentiary update to the Application on January 29, 2015;
F. The Annual Review Workshop was held on March 6, 2015;
G. The following interveners filed Final Submissions on March 27, 2015:
• British Columbia Old Age Pensioners’ Organization, et al;
• Commercial Energy Consumers Association of British Columbia; and
• BC Sustainable Energy Association and the Sierra Club of British Columbia;
H. FEI filed its Reply Submission on April 9, 2015;
I. The Commission considered the Application, evidence and submissions of the parties as set forth and discussed in the Decision issued concurrently with this Order.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, for the reasons set out in the Decision, the British Columbia Utilities Commission orders as follows:
1. FortisBC Energy Inc.’s requested permanent delivery rates for all non-bypass customers effective January 1, 2015, representing an increase of 2.03 percent compared to 2014 common delivery rates, are not approved as filed. Permanent delivery rates for all non-bypass customers effective January 1, 2015, as modified by the directives in the Decision, are approved.
2. FortisBC Energy Inc. is directed to re-calculate 2015 delivery rates and file revised financial schedules with the Commission reflecting the changes outlined in the Decision by June 30, 2015.
3. FortisBC Energy Inc. is directed to collect from/refund to customers the difference between the 2015 interim rates and permanent rates, including the Earnings Sharing rider for Mainland customers, with interest at the average prime rate of the Company’s principal bank, by way of a bill adjustment reflecting customers’ consumption from January 1, 2015.
4. FortisBC Energy Inc. must comply with all determinations and directives as set out in the Decision.
DATED at the City of Vancouver, in the Province of British Columbia, this 27th day of May 2015.
BY ORDER
Original signed by:
D. A. Cote
Commissioner
Attachment