ORDER NUMBER
G-105-16
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Application to Extend the Maturity Date of the Term Credit Agreement
BEFORE:
D. M. Morton, Commissioner
D. J. Enns, Commissioner
W. M. Everett, Commissioner
H. G. Harowitz, Commissioner
R. I. Mason, Commissioner
on July 7, 2016
ORDER
WHEREAS:
A. On June 21, 2016, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (Commission) pursuant to sections 50(2) and 50(3) of the Utilities Commission Act for approval of a three-year extension to the current maturity date of FEI’s term credit agreement to August 24, 2021, on substantially the same terms and on market prices available at the time of extension (Application);
B. Pursuant to Order G-96-07 dated August 14, 2007, the Commission approved the incurrence of indebtedness by FEI (then Terasen Gas Inc.) under a credit agreement between FEI, the Canadian Imperial Bank of Commerce (CIBC) and other lenders, and CIBC as administrative agent for the lenders, providing for an unsecured revolving term credit facility for the principal amount of up to $500 million with an initial term not to exceed five years (Term Credit Agreement);
C. By Orders G-90-08, G-78-12, G-92-13, and G-77-14, the Commission approved 365-day extensions of the maturity date under the Term Credit Agreement to August 24, 2013, August 24, 2014, August 24, 2015, and August 24, 2016, respectively;
D. By Order G-109-15 dated June 25, 2015, the Commission approved an application to terminate the $200 million FortisBC Energy (Vancouver Island) Inc. (FEVI) credit agreement, as a result of the amalgamation of FEI, FEVI, FortisBC Energy (Whistler) Inc. and Terasen Gas Holdings Inc., and to amend the FEI Term Credit Agreement to include the $200 million increase to the principal amount for a total of $700 million. The Commission also approved an extension of the Term Credit Agreement to August 24, 2018; and
E. The Commission reviewed the Application and finds that approval is warranted.
NOW THEREFORE pursuant to section 50(3) of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. FortisBC Energy Inc.’s application to extend the maturity date of its term credit agreement to August 24, 2021 is approved.
2. FortisBC Energy Inc. must file with the Commission by no later than thirty days from the date of this order the updated term sheet that discloses the upfront amendment fee for the extended term as granted by the lenders.
DATED at the City of Vancouver, in the Province of British Columbia, this 8th day of July 2016.
BY ORDER
Original signed by:
D. M. Morton
Commissioner