IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
FortisBC Energy Inc.
Application for Approval of Rates for Constructing and Operating a Liquefied Natural Gas Fueling Station
under the Province’s Greenhouse Gas Reduction Regulation for Vedder Resources Ltd. at
Cool Creek Energy Ltd.
BEFORE: K. A. Keilty, Panel Chair/Commissioner November 9, 2015
O R D E R
WHEREAS:
A. On September 14, 2015, FortisBC Energy Inc. (FEI) and Cool Creek Energy Ltd. (Cool Creek) entered into a Fueling Equipment License Agreement (Cool Creek Host Agreement) that granted a license to FEI for access over the lands and premises of Cool Creek (Lands) and use of a portion of the Lands for the installation and maintenance Fueling Equipment for the sale of Liquefied Natural Gas (LNG) to the customers of FEI. The Cool Creek Host Agreement also establishes the terms and conditions for FEI’s provision of the LNG fueling service from a fueling station on Cool Creek’s premises (Cool Creek Fueling Station);
B. On October 5, 2015, FEI and Vedder Resources Ltd. (Vedder Resources), executed an LNG Fueling Services Agreement whereby Vedder Resources would be permitted to receive LNG from the Cool Creek Fueling Station (Vedder Resources from Cool Creek Agreement);
C. On October 19, 2015, FEI filed a redacted application with limited confidentiality (Application) with the British Columbia Utilities Commission (Commission). The Application requests interim and permanent approval of the rates established in the Vedder Resources from Cool Creek Agreement, pursuant to sections 59 to 61 of the Utilities Commission Act (UCA). FEI also requests that the Commission hold the redacted portions of the Application and appendices confidential, pursuant to sections 41 and 42 of the Administrative Tribunals Act;
D. On October 30, 2015, FEI filed amendments to the approvals sought in the Application. Pursuant to sections 59 to 61 of the UCA, FEI requests interim and permanent approval of the Host Fee established in section 7.1 of the Cool Creek Host Agreement, effective November 1, 2015;
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 rate design and rates for service established in Vedder Resources from Cool Creek Agreement are approved on an interim basis, effective November 1, 2015.
2. The Host Fee established in section 7.1 of the Cool Creek Host Agreement is approved on an interim basis, effective November 1, 2015.
3. 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.
4. FEI is to file the redacted Vedder Resources from Cool Creek Agreement and the Cool Creek Host Agreement in tariff supplement form on a timely basis for endorsement by the Commission.
DATED at the City of Vancouver, in the Province of British Columbia, this 9th day of November 2015.
BY ORDER
Original signed by:
K. A. Keilty
Panel Chair/Commissioner