ORDER NUMBER
G-54-18
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 Denwill Enterprises Inc. from the LNG Fueling Station
Located at Vedder Transport Ltd.
BEFORE:
B. A. Magnan, Commissioner
W. M. Everett, QC, Commissioner
on March 2, 2018
ORDER
WHEREAS:
A. On February 27, 2018, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (the Commission), pursuant to sections 59 to 61 and section 89 of the Utilities Commission Act (UCA), for approval of the rates established in the fueling service agreement between FEI and Denwill Enterprises Inc. (Denwill) (the Denwill 2018 Agreement) on an interim and permanent basis, effective March 1, 2018 (Application);
B. On July 2, 2014, by Order G-82-14, the Commission approved on an interim basis an agreement between FEI and Denwill that established rates (effective July 1, 2014) under which Denwill was to receive Liquefied Natural Gas (LNG) fueling service from a fueling station at the premises of Vedder Transport Ltd. (Vedder) located in Abbotsford, British Columbia (Vedder Fueling Station) (Denwill 2014 Agreement);
C.
On April 6, 2015, FEI and Denwill entered into
an Amending Agreement to align the rate escalation date in the Denwill 2014
Agreement to the rate escalation date applicable to the Vedder Fueling Station
on
January 1st each year;
D.
On May 14, 2015, by Order G-80-15, the
Commission approved the rates in the Denwill 2014 Agreement on a permanent
basis effective July 1, 2014. The Denwill
2014 Agreement was for a two year term with a
one year renewal option, and expired on June 30, 2017;
E. On February 23, 2018, FEI and Denwill entered into the Denwill 2018 Agreement which established the terms, conditions, and rates for Denwill to recommence LNG fueling from the LNG Station located at the Vedder Fueling Station;
F. The Commission has commenced review of the Application and determines that interim rates should be approved.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the Commission orders as follows:
1. The rates for service established in the Denwill 2018 Agreement are approved on an interim basis, effective March 1, 2018.
2. FEI is directed to refund/recover the variance between the interim rates and the permanent rates, as determined by the Commission following the final determination of the Application, with interest calculated at the average prime rate of FEI’s principal bank for its most recent year.
3. FEI is to file the Denwill 2018 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 7th day of March 2018.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner