ORDER NUMBER
E-14-16
IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
FortisBC Energy Inc.
Section 71 Filing of a GasEDI Base Contract with
Absolute Energy Inc.
BEFORE:
D. J. Enns, Commissioner
R. I. Mason, Commissioner
on August 10, 2016
ORDER
WHEREAS:
A. On July 22, 2016, FortisBC Energy Inc. (FEI) filed with the British Columbia Utilities Commission (Commission) a copy of a fully-executed GasEDI Base Contract, including the cover sheet, and amendments called “Standard Provisions to The GasEDI Contract for Short-Term Sale and Purchase of Natural Gas,” negotiated between FEI and Absolute Energy Inc. (all together referred to as the Contract);
B. On August 4, 2016, the Commission accepted the FEI 2016/17 Annual Gas Contracting Plan (Annual Contracting Plan) through Letter L-20-16;
C. FEI uses the GasEDI Base Contract dated October 26, 2000, together with FEI’s standard provisions, as the starting point for negotiations with counterparties with whom FEI wishes to execute off-system sales or purchases agreements. The GasEDI Base Contract and FEI’s standard provisions were set out in Rate Schedule 30 as approved by Commission Order G-197-11 and subsequently updated through Order G-19-16, dated February 11, 2016. The GasEDI Base Contract and the standard provisions executed with the counterparty form the underlying basis of the contract with the counterparty. Each gas purchase or sale transaction is then confirmed via a transaction confirmation deal sheet described in section 9 of the GasEDI Base Contract and presented on page R-30.19 of FEI’s Rate Schedule 30;
D. FEI requested that the details of the subject filing be kept confidential due to the commercially sensitive nature of the Contract and to ensure that FEI’s ability to obtain favourable commercial terms for future natural gas contracting is not impaired; and
E. The Commission reviewed the filing and is satisfied that the Contract is consistent with the Annual Contracting Plan and in the public interest.
NOW THEREFORE pursuant to section 71 of the Utilities Commission Act and the British Columbia Utilities Commission’s Rules for Natural Gas Energy Supply Contracts, the Commission accepts the GasEDI Base Contract between FortisBC Energy Inc. and Absolute Energy Inc. for filing. The Commission will keep the filing confidential as it contains commercially sensitive information.
DATED at the City of Vancouver, in the Province of British Columbia, this 11th day of August 2016.
BY ORDER
Original signed by:
R. I. Mason
Commissioner