ORDER NUMBER
G-44-18
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Application for Approval of Rates and Contract for Liquefied Natural Gas (LNG)
Fueling Service to Ledcor LNG Group Ltd. from the LNG Fueling Station
Located at Vedder Transport Ltd.
BEFORE:
B. A. Magnan, Commissioner
W. M. Everett, QC, Commissioner
on February 27, 2018
ORDER
WHEREAS:
A. On January 11, 2018, 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 the rates established in the fueling services agreement between FEI and Ledcor LNG Group Ltd. (Ledcor) (Ledcor-Vedder 2018 Agreement) on an interim and permanent basis, effective January 25, 2018 (Original Application);
B. On April 22, 2014, by Order G-57-14, the Commission approved an agreement between FEI and Ledcor that established rates (effective December 12, 2013) under which Ledcor was to receive LNG fueling service from a fueling station at the premises of Vedder Transport Ltd. (Vedder) located in Abbotsford, British Columbia (Vedder Fueling Station) (Ledcor-Vedder Agreement). The Ledcor-Vedder Agreement was for a one year term with a one year renewal option, and expired on December 8, 2015;
C. On January 19, 2016, by Order G-6-16, the Commission approved a LNG Fueling Services Agreement (effective December 9, 2015) whereby Ledcor would continue to receive LNG fueling service from the Vedder Fueling Station under essentially the same terms as the Ledcor-Vedder Agreement (Ledcor-Vedder 2015 Agreement). The Ledcor-Vedder 2015 Agreement was for a one year term with a one year renewal option, and expired on December 31, 2017;
D. On December 15, 2017, FEI and Ledcor entered into the Ledcor-Vedder 2018 Agreement for Ledcor to continue to receive LNG fueling service from the Vedder Fueling Station under essentially the same terms as the Ledcor-Vedder Agreement and the Ledcor-Vedder 2015 Agreement;
E. On January 16, 2018, FEI requested the Commission delete the January 11, 2018 application and noted it would file a revised application at a later date;
F. On February 1, 2018, FEI filed with the Commission, pursuant to section 59 to 61 and sections 89 of the UCA, a revised application dated January 11, 2018 that replaced the Original Application. In its revised application, FEI is applying for approval of the rates effective January 11, 2018, on an interim basis for LNG fueling service established in the Ledcor-Vedder 2018 Agreement and the Proforma Amending Agreement (Application); and
G. The Commission has reviewed the Application and determines that approval of the Application is warranted.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the Commission orders as follows:
1. The rates established in the Ledcor-Vedder 2018 Agreement and the Proforma Amending Agreement for LNG Fueling Service are approved on an interim basis, effective January 11, 2018.
2. FEI is to file an application for permanent rates once the Amending Agreement is executed.
3. FEI is to file the Ledcor-Vedder 2018 Agreement and Proforma Amending Agreement 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 27th day of February 2018.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner