ORDER NUMBER
E-2-18
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
ARC Resources Ltd.
BEFORE:
B. A. Magnan, Commissioner
D. J. Enns, Commissioner
R. D. Revel, Commissioner
R. I. Mason, Commissioner
on January 11, 2018
ORDER
WHEREAS:
A. On November 29, 2017, FortisBC Energy Inc. (FEI) filed with the British Columbia Utilities Commission (Commission) a copy of a fully-executed GasEDI Base Contract including (i) the cover sheet, and (ii) amendments called “Standard Provisions to The GasEDI Contract for Short-Term Sale and Purchase of Natural Gas,” negotiated between ARC Resources Ltd. (ARC) and FEI (all together referred to as the Contract);
B. By Order G-130-06 dated October 27, 2006, the Commission approved the Rules for Natural Gas Energy Supply Contracts (Rules). The Rules are intended to facilitate the Commission’ review of Natural Gas Energy Supply Contracts pursuant to section 71 of the Utilities Commission Act;
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 purchase
agreements. The GasEDI Base Contract and FEI’s standard provisions are set out
in Rate
Schedule 30, as approved by Commission Order G-197-11 dated November 24, 2011,
and subsequently updated through Order G-19-16 dated February 11, 2016. The
GasEDI Base Contract and the 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. By Letter L-15-17 dated June 28, 2017, the Commission accepted the FEI Annual Contracting Plan (ACP) for the 2017/18 gas year commencing November 1, 2017;
E. FEI requests that the details of the Contract be kept confidential due to its commercially sensitive nature and to ensure that FEI’s ability to obtain favourable commercial terms for future natural gas contracting is not impaired; and
F. The Commission has reviewed the filing and is satisfied that the Contract is consistent with FEI’s 2017/18 ACP and is in the public interest.
NOW THEREFORE pursuant to section 71 of the Utilities Commission Act and the Commission’s Rules for Natural Gas Energy Supply Contracts, the Commission accepts for filing the GasEDI Base Contract between FEI and ARC. 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 January 2018.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner