June 28, 2017
Sent via email Letter L-16-17
Ms. Diane Roy
Vice President, Regulatory Affairs
FortisBC Inc.
16705 Fraser Highway
Surrey, BC V4N 0E8
diane.roy@fortisbc.com;
electricity.regulatory.affairs@fortisbc.com
Re: FortisBC Inc. – Revelstoke November 2017 – October 2018 Annual Contracting Plan (2017/18 ACP)
Dear Ms. Roy:
On May 31, 2017, FortisBC Energy Inc. (FEI) submitted to the British Columbia Utilities Commission (Commission), on a confidential basis, its Annual Contracting Plan for the Revelstoke area for the period of November 2017 to October 2018 (2017/18 ACP). In its submission FEI requests Commission acceptance of the Revelstoke 2017/18 ACP. The objectives for the Revelstoke 2017/18 ACP are identified as follows:
1. To provide secure, reliable, and cost effective supply in order to meet customer requirements; and
2. To reduce the impact of propane price volatility on customers’ propane rates in a cost effective manner.
FEI also included in the 2017/18 ACP the results of the previous year’s contracting plan in terms of financial results of its contracting strategies and the degree to which the objectives were met using these strategies. On June 16, 2017, FEI filed supplementary information on a confidential basis regarding the Revelstoke propane suppy and delivery agreement.
The Commission has reviewed the FEI filing and accepts the Revelstoke 2017/18 ACP.
FEI is requested to file a report by the earlier of June 30, 2018 or the date of submission of FEI’s Revelstoke 2018/19 ACP that identifies the financial outcome of the 2017/18 ACP and provides an analysis to demonstrate the degree to which the objectives of the 2017/18 ACP have been met.
On February 13, 2017, Superior made a public announcement that it has entered into an agreement with Gibson Energy to acquire the industrial propane business of Canwest Propane. The transaction is expected to be complete in the second half of 2017. The acquisition would at this time further consolidate the propane supply options in Western Canada. Due to the changing conditions in the supplier market which may lead to uncertainties for FEI to obtain competitive propane supply for customers, FEI is requested to file with the Commission an update on the range of supply options available and its optimal strategy for contracting supply. FEI is requested to include this information in the next ACP.
A copy of FEI’s non-confidential Executive Summary for the 2017/18 ACP is attached and is available for public review. Exclusive of the non-confidential Executive Summary, the Commission will hold the contents of the Revelstoke 2017/18 ACP confidential as requested by FEI as it contains commercially sensitive information.
Sincerely,
Original signed by:
Patrick Wruck
LU/kn
Enclosure