ORDER NUMBER
G-3-17
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Application regarding the
2017 Core Market Administration Expense Budget
BEFORE:
D. J. Enns, Commissioner
R. I. Mason, Commissioner
January 12, 2017
ORDER
WHEREAS:
A. On November 9, 2016, FortisBC Energy Inc. (FEI) submitted its 2017 Core Market Administration Expense (CMAE) budget application (Application), requesting British Columbia Utilities Commission (Commission) approval of the 2017 CMAE budget of $4,878,000;
B. On June 18, 2014, pursuant to Commission Order G-79-14, the Commission approved the FEI 2014 CMAE budget;
C. Order G-79-14 determined that until such time as FEI files its next revenue requirements application, FEI is directed to submit future CMAE budgets separately to the Commission at least two weeks prior to the fourth quarter gas cost report to allow the Commission sufficient time to review the CMAE budget and to determine if there are sufficient variances from the previous CMAE budget to warrant a more fulsome review;
D. Order G-23-15, in which the Commission approved FEI’s 2015 CMAE budget, directed FEI to use the revised template format set out in Appendix B to the order for future CMAE budget applications;
E. In the Application, FEI also requests approval of the allocation of the 2017 CMAE between the Commodity Cost Reconciliation Account and Midstream Cost Reconciliation Account, based on the existing allocation percentages of 30 percent and 70 percent, respectively; and
F. The Commission reviewed the FEI Application and finds the applied-for 2017 CMAE budget and requested CMAE allocation should be approved.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The FortisBC Energy Inc. 2017 Core Market Administration Expense (2017 CMAE) budget of $4,878,000 is approved.
2. The allocation of the 2017 CMAE between the Commodity Cost Reconciliation Account and Midstream Cost Reconciliation Account, is approved based on the allocation percentages of 30 percent and 70 percent, respectively.
DATED at the City of Vancouver, in the Province of British Columbia, this 13th day of January 2017.
BY ORDER
Original signed by:
R. I. Mason
Commissioner