Orders

IN THE MATTER OF

the Utilities Commission Act, RSBC 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 RS 7 Industrial LNG Firm Transportation Service Tariff

BEFORE:               H. G. Harowitz, Commissioner                                    July 28, 2015

O  R  D  E  R

WHEREAS:

A.      On June 16, 2015, Pacific Northern Gas (N.E.) Ltd. [PNG (N.E.)] applied to the British Columbia Utilities Commission (Commission) for approval of an Industrial Firm Transportation Service Agreement between PNG (N.E.) and AltaGas Ltd., as well as a proposed new RS 7 Industrial Liquefied Natural Gas Firm Transportation Service Tariff (Application), with a target in-service date of October 1, 2015;

B.      On July 13, 2015, the Commission issued Order G-117-15 establishing a regulatory timetable to accommodate PNG (N.E.)’s target in-service date;

C.      To make the Application complete, Order G-117-15 also directed PNG (N.E.) to file certain additional information to supplement the Application, pursuant to which PNG (N.E.) submitted a supplemental filing on July 17, 2015;

D.      The Commission has reviewed the supplemental filing submitted by PNG (N.E.) and finds the information provided in response to Directive 3(iii) of Order G-117-15 regarding the detailed calculation of AltaGas Ltd.’s bypass costs to be insufficient, thereby requiring re-submission as well as amendments to the regulatory timetable.

NOW THEREFORE the British Columbia Utilities Commission orders as follows:

1.       On or before Friday, August 7, 2015, Pacific Northern Gas (N.E.) Ltd. [(PNG (N.E.)] must provide a fulsome response to Directive 3(iii) of Order G-117-15 which directed PNG (N.E.) to file a detailed calculation showing the estimated cost for AltaGas Ltd. to bypass PNG (N.E.)’s service area and connect directly to Spectra Energy. More specifically, PNG (N.E.) must provide the following information as part of its response:

a.       A detailed breakdown of the estimated capital and operating costs which would be incurred by AltaGas Ltd. under a bypass scenario, including a fulsome explanation of the key assumptions used to determine the capital and operating costs.

b.      The resulting per gigajoule rate based on the above estimated capital and operating costs, with supporting calculations.

2.       In order to provide all parties an adequate opportunity to test the supplemental information as described in Directive 1 above (Bypass Cost Information), while recognizing PNG (N.E.)’s target in-service date, the Regulatory Timetable for review of the Application has been amended as set out in Appendix A to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this           28^th             day of July 2015.

                                                                                                                                BY ORDER

Original signed by:

H. G. Harowitz

Commissioner

Attachment

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

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

and Proposed RS 7 Industrial LNG Firm Transportation Service Tariff

REGULATORY TIMETABLE