ORDER NUMBER
G-164-16
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Application
for Approval of Rates and Contract for
Compressed Natural Gas (CNG) Fueling Service from the CNG Fueling Station
Located at FEI’s Burnaby Operations Facility for Pemberton Transport Co. Ltd.
BEFORE:
K. A. Keilty, Commissioner
on November 10, 2016
ORDER
WHEREAS:
A. On October 31, 2016, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (Commission) pursuant to sections 59 to 61 and 89 of the Utilities Commission Act (UCA), for approval of interim rates established in the fueling services agreement, as amended by the amending agreement between FEI and Pemberton Transport Co. Ltd. (Pemberton), effective November 1, 2016 (Application);
B. On June 21 and 22, 2016, Commission Orders G-91-16 and G-96-16 approved, on an interim basis, the rate design and rates for SF Disposal Queen Ltd. and Canadian Linen and Uniform Services Co. to receive compressed natural gas (CNG) fueling service from the CNG station located at FEI’s Burnaby Operations Centre in Burnaby, British Columbia (Burnaby Operations Fueling Station) effective on July 1, 2016;
C. On October 5, 2016, FEI and Pemberton entered into a fueling services agreement which establishes the terms, conditions and rates for Pemberton to receive CNG fueling service from the Burnaby Operations Fueling Station (Pemberton Agreement). FEI and Pemberton also executed an amending agreement to the Pemberton Agreement which included revisions to the terms and conditions (Amending Agreement);
D. FEI will apply for permanent rate approval once the final capital costs for the construction of the Burnaby Operations Fueling Station have been recorded; and
E. The Commission has commenced review of the Application and determines interim rates should be approved.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The rates established in the proposed fueling services agreement and amending agreement between FortisBC Energy Inc. and Pemberton Transport Co. Ltd. are approved on an interim basis, effective on November 1, 2016.
2. FortisBC Energy Inc. is directed to file an application seeking permanent rates, effective on November 1, 2016, upon the determination of the actual capital expenditures for the compressed natural gas station located at FortisBC Energy Inc.’s Burnaby Operations Centre in Burnaby, British Columbia.
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 FortisBC Energy Inc.’s principal bank for its most recent year.
4. FortisBC Energy Inc. is to file the fueling services agreement and amending agreement between FortisBC Energy Inc. and Pemberton Transport Co. Ltd. in tariff supplement form for endorsement by the Commission within 30 days of the date of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 10th day of November 2016.
BY ORDER
Original Signed By:
K. A. Keilty
Commissioner