July 19, 2018
Sent via email Letter L-20-18
Ms. Diane Roy
Vice President, Regulatory Affairs
FortisBC Energy Inc.
16705 Fraser Highway
Surrey, BC V4N 0E8
gas.regulatory.affairs@fortisbc.com
Re: FortisBC Energy Inc. - Revelstoke - November 2018 – October 2019 Annual Contracting Plan
Dear Ms. Roy:
On June 6, 2018, FortisBC Energy Inc. (FEI) submitted to the British Columbia Utilities Commission (BCUC), on a confidential basis, its Annual Contracting Plan for the Revelstoke area for the period of November 1, 2018 to October 31, 2019 (2018/19 ACP). In its submission FEI requests BCUC acceptance of the Revelstoke 2018/19 ACP. The objectives for the Revelstoke 2018/19 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 2018/19 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 July 12, 2018, FEI submitted confidential responses to staff questions on the 2018/19 ACP.
The BCUC has reviewed the FEI filing and partially accepts the Revelstoke 2018/19 ACP. The FEI 2017 Price Risk Management Plan (PRMP) application proceeding is ongoing, and the decision on that application is pending. The BCUC views that any financial hedging for propane as an alternative to fixed price purchases is more appropriately considered after the 2017 PRMP decision is issued. Therefore, the BCUC makes no determination on the FEI Revelstoke financial hedging proposal at this time.
FEI is requested to file a report by the earlier of June 30, 2019 or the date of submission of FEI’s Revelstoke 2019/20 ACP that identifies the financial outcome of the 2018/19 ACP and provides an analysis to demonstrate the degree to which the objectives of the 2018/19 ACP have been met.
A copy of FEI’s non-confidential Executive Summary for the 2018/19 ACP is attached and is available for public review. Exclusive of the non-confidential Executive Summary, the BCUC will hold the contents of the Revelstoke 2018/19 ACP confidential as requested by FEI as it contains commercially sensitive information.
Sincerely,
Original signed by:
Patrick Wruck
Commission Secretary
JO/dg
Enclosure