Orders

IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

Pacific Northern Gas (N.E.) Ltd. – Dawson Creek Division

Application for Approval of AltaGas Ltd. Industrial Firm Transportation Service Agreement

and Proposed RS7 Industrial LNG Firm Transportation Service Tariff

BEFORE:               H. G. Harowitz, Commissioner                                    July 13, 2015

O  R  D  E  R

WHEREAS:

A.      On June 16, 2015, Pacific Northern Gas (N.E.) Ltd. [PNG (NE)] applied to the British Columbia Utilities Commission (Commission) pursuant to sections 59 to 61 of the Utilities Commission Act (UCA) for approval of an Industrial Firm Transportation Service Agreement (TSA) between PNG (NE) and AltaGas Ltd., as well as a proposed new RS7 Industrial Liquefied Natural Gas (LNG) Firm Transportation Service Tariff (Application);

B.      PNG (NE)’s Application includes proposed capital expenditures of $360 thousand related to the installation of distribution piping and metering facilities;

C.      The proposed TSA between PNG (NE) and AltaGas Ltd., as outlined in the Application, includes, among other things, a ten-year term with a take-or-pay arrangement for 100 percent of the annual volume at a tariff rate of $0.205 per gigajoule;

D.      The Commission considers a written hearing process for the review of the Application is warranted and considers that a regulatory timetable should be established.

NOW THEREFORE the British Columbia Utilities Commission orders as follows:

1.       A written hearing process is established for the review of the Application in accordance with the Regulatory Timetable attached as Appendix A to this order.

2.       Pacific Northern Gas (N.E.) Ltd. [PNG (NE)] must post the Application and this order to its website. PNG (NE) shall provide a copy of the Application and this order by no later than Wednesday, July 15, 2015 to each of the registered interveners and interested parties for the following proceedings:

•         PNG (NE) 2015 Resource Plan;

•         PNG 2014 Resource Plan and DSM;

•         PNG (NE) 2014 Revenue Requirements; and

•         PNG (NE) 2014 Application for a Certificate of Public Convenience and Necessity to Acquire, Construct, Own and Operate a Compressed Natural Gas Virtual Pipeline between the Communities of Dawson Creek and Tumbler Ridge.

3.       PNG (NE) must file with the Commission the following additional information to supplement its Application by Friday, July 17, 2015:

(i)                  Supporting calculations for the Mains Extension Test discussed on page 6 of the Application;

(ii)                Supporting calculations and explanation for how PNG (NE) determined the RS7 tariff rate of $0.205 per gigajoule; and

(iii)               A detailed calculation showing the estimated cost for AltaGas Ltd. to bypass PNG (NE)’s service area and connect directly to Spectra Energy’s pipeline, as discussed on page 4 of the Application.

4.       Interveners or interested parties who wish to participate in the PNG (NE) Application proceeding should register with the Commission, in writing or electronic submission, by Wednesday, July 22, 2015. Interveners should specifically state the nature of their interest in the Application, and identify generally the nature of the issues that they intend to pursue during the proceeding and the nature and extent of their anticipated involvement in the review process.

5.       Interveners intending to apply for participant assistance must submit a budget estimate by Monday, July 27, 2015, consistent with the Commission’s Participant Assistance/Cost Award Guidelines and Order G-72-07. Copies of the Guidelines are available upon request or can be downloaded from the Commission’s website at: http://www.bcuc.com/Documents/Guidelines/2010/DOC_5014_G-72-07_PACA_2007_Guidelines.pdf.

DATED at the City of Vancouver, in the Province of British Columbia, this                 13^th                  day of July 2015.

                                                                                                                                BY ORDER

Original signed by:

H. G. Harowitz

Commissioner

Attachments

Pacific Northern Gas (NE) Ltd. – Dawson Creek Division

Application for Approval of AltaGas Ltd. Industrial Firm Transportation Service Agreement

and Proposed RS7 Industrial LNG Firm Transportation Service Tariff

REGULATORY TIMETABLE