Orders

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

FortisBC Energy Inc.

Application for its Common Equity Component

and Return on Equity for 2016

BEFORE:               K. A. Keilty, Panel Chair/Commissioner

                                D. A. Cote, Commissioner                                            November 9, 2015

                                N. E. MacMurchy, Commissioner

O  R  D  E  R

WHEREAS:

A.      On October 2, 2015, FortisBC Energy Inc. (FEI) filed an application for Common Equity Component and Return on Equity for 2016 (Application) pursuant to the British Columbia Utilities Commission (Commission) decision in the Generic Cost of Capital Stage 1 proceeding;

B.      FEI believes that the amalgamated FEI continues to be the logical choice to serve as the benchmark utility;

C.      The Commission commenced its review of the Application and has determined that a Regulatory Timetable should be established for further review of the Application.

NOW THEREFORE the Commission orders as follows:

1.       Persons who wish to participate in the regulatory proceeding are to register with the Commission, in writing or by electronic submission, by Monday, November 23, 2015. Those requesting intervener status are to state the nature of their interest in the proceeding and identify the nature of the issues they may intend to pursue during the proceeding and the extent of their anticipated involvement in the review process.

2.       FortisBC Energy Inc. is required to provide a notice to participants of the British Columbia Utilities Commission 2012 Generic Cost of Capital (Stage 1 and Stage 2) proceeding and provide a copy of this order upon issuance.

3.       A regulatory proceeding for review of the Application, in accordance with the Regulatory Timetable as set out in Appendix A to this order, is established.

4.       FortisBC Energy Inc. must publish, as soon as practicable but no later than Friday, November 13, 2015, in display-ad format, a public notice of the Application for Common Equity Component and Return on Equity for 2016 attached as Appendix B to this order, in the Vancouver Sun, the Province, the Victoria Times Colonist and such other appropriate local news publications so as to properly provide adequate notice to customers served in the affected service area.

5.       Registered Interveners intending to apply for participant assistance must submit a budget estimate by Friday, December 4, 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 www.bcuc.com.

6.       The Application will be made available to the public for inspection at the Head Office of FortisBC Energy Inc. at 16705 Fraser Highway, Surrey, BC  V4N 0E8 and on FortisBC Energy Inc.’s website and at the British Columbia Utilities Commission at 900 Howe Street, Vancouver BC  V6Z 2N3 and on the Commission’s website.

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

Attachments

FortisBC Energy Inc.

Application for its Common Equity Component

and Return on Equity for 2016

REGULATORY TIMETABLE

 

 

 

 

FortisBC Energy Inc.

Application for its Common Equity Component

and Return on Equity for 2016

On October 2, 2015, FortisBC Energy Inc. (FEI) filed its Application for its Common Equity Component and Return on Equity for 2016 (2016 ROE) with the British Columbia Utilities Commission (Commission).

The 2016 ROE is a request to the Commission to allow FEI a common equity component of 40 percent in its capital structure and a request that the Commission set a return on equity of 9.5 percent for FEI. FEI requests that the common equity component and the return on equity to take effect as of January 1, 2016.

FEI believes that the Amalgamated FEI continues to be the logical choice to serve as the benchmark utility. The benchmark utility is used in setting the return on equity for other utilities in their own cost of capital determinations.

How to Get Involved

Persons wishing to actively participate in the proceeding must register as an intervener through the Commission’s website at www.bcuc.com or in writing by November 23, 2015. Registrants must identify the issues they intend to pursue and indicate the extent of their anticipated involvement in the review process. Interveners will each receive a copy of all non-confidential correspondence and filed documentation, and must provide an email address if available. 

Persons not expecting to actively participate, but who have an interest in the proceeding, should register as an interested party through the Commission’s website or in writing, by November 23, 2015, identifying their interest in the proceeding. Interested parties receive electronic notice of submissions and a copy of the decision when it is released.

Letters of comment may also be submitted. All submissions and/or correspondence received relating to the application are provided to the panel and all participants in the proceeding. Submissions are placed on the public record and posted to the Commission’s website. By participating and/or providing comment on the application, you agree that all submissions will be placed on the public record and posted on the Commission’s website. 

If you wish to attend the Procedural Conference please register with the Commission Secretary using the contact information provided at the end of this notice.

View the Application

The application and all supporting documentation are available on the Commission’s website on the “Current Applications” page. If you would like to review the material in hard copy, it is available to be viewed at the locations below:

For More Information or to Register

For more information or to register please visit www.bcuc.com or contact the Commission Secretary at Commission.Secretary@bcuc.com.