Orders

ORDER NUMBER

G-263-19

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Pacific Northern Gas Ltd.

Application for a Certificate of Public Convenience and Necessity

for the Construction of Kitimat Regulating Station LDS #2

BEFORE:

T. A. Loski, Panel Chair

R. I. Mason, Commissioner

on October 30, 2019

ORDER

WHEREAS:

A.      On August 23, 2019, PNG filed an application to seek approval of a Certificate of Public Convenience and Necessity (CPCN), pursuant to sections 45 and 46 of the Utilities Commission Act (UCA), for capital expenditures of approximately $1.77 million to design and construct a new let-down station #2 (LDS #2) dedicated to providing natural gas service to JGC Fluor BC LNG Joint Venture (JFJV) as engineering, procurement and construction contractor for the development of the LNG Canada liquefied natural gas (LNG) export facility in Kitimat, British Columbia (LNGC Project) (Application);

B.      The Application also seeks approval under section 39 of the UCA to enter into a gas sales agreement (GSA) with JFJV dated August 22, 2019, to provide natural gas service to JFJV for an initial period of 4.5 years;

C.      PNG requests British Columbia Utilities Commission (BCUC) approval of its Application by no later than September 13, 2019, and encourages the BCUC to consider exercising its discretion to waive the requirement for a hearing on this submission;

D.      On September 13, 2019, the BCUC issued staff questions to PNG. PNG provided its responses to BCUC staff questions on September 18, 2019;

E.       Section 56(2) of the UCA states that “[t]he commission must determine and, by order after a hearing, set proper and adequate rates of depreciation.”;

F.       By Order C-3-19 dated September 25, 2019, the BCUC granted a CPCN to PNG authorizing the construction and operation of LDS #2, approved the GSA, and established a written public hearing process and regulatory timetable to review the appropriate depreciation rate of the LDS #2 assets; and

G.     The BCUC considers that an amendment to the Regulatory Timetable established by Order C-3-19 is warranted.

NOW THEREFORE the BCUC orders that the Regulatory Timetable is amended as attached as Appendix A to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this             31st             day of October 2019.

BY ORDER

Original signed by:

T. A. Loski

Commissioner

Attachment

Pacific Northern Gas Ltd.

Application for a Certificate of Public Convenience and Necessity

for the Construction of Kitimat Regulating Station LDS #2