November 21, 2019
Via email
Letter L-55-19
Mr. Doug Slater
Director, Regulatory Affairs
FortisBC Energy Inc.
16705 Fraser Highway
Surrey, BC V4N 0E8
gas.regulatory.affairs@fortisbc.com
Re: FortisBC Energy Inc. – Application for Approval of Rates and Agreements for Constructing and Operating a Compressed Natural Gas Fueling Station under the Province’s Greenhouse Gas Reduction (Clean Energy) Regulation for ColdStar Solutions Inc. at Annacis Island, BC
Dear Mr. Slater:
On September 20, 2019, pursuant to sections 59 to 61 and section 89 of the Utilities commission Act, FortisBC Energy Inc. (FEI) filed with the British Columbia Commission (BCUC) for approval of the rates established in the Fueling Services Agreement between FEI and ColdStar Solutions Inc. (ColdStar) (ColdStar-Annacis-Langford Agreement),
on an interim basis, effective June 1, 2020 (Application).
In the Application, FEI states that the construction, ownership and operation of a CNG fueling station located on Annacis Island in Delta, BC (Annacis Island Fueling Station) “is undertaken by FEI as a prescribed undertaking under the Greenhouse Gas (Clean Energy) Reduction Regulation (GGRR).”[1] FEI further states that the ColdStar-Annacis-Langford Agreement meets the requirements of section 2(2) of the GGRR. In particular, with respect to section 2(2)(c)(ii) of the GGRR, FEI states that “[t]he proposed rates in the ColdStar-Annacis-Langford Agreement are projected to recover at least 60% of the forecast operating costs of the Annacis Island Fueling Station over the initial term of the first seven years” based on an annual minimum take-or-pay volume commitment of 17,000 GJ.[2] FEI submits that the ColdStar-Annacis-Langford Agreement commits Coldstar to an annual volume of 17,000 GJ to be consumed between the Langford Fueling Station and the proposed Annacis Island Fueling Station.[3]
To assist the Panel in its review of the Application, the Panel invites FEI to provide a final argument to the BCUC by Tuesday, November 26, 2019 that includes a discussion of how the terms and conditions of the ColdStar-Annacis-Langford Agreement meet the requirements of section 2(2)(c)(ii) of the GGRR given that the annual minimum
take-or-pay volume commitment is consumed between two different stations.
Sincerely,
Original signed by:
Patrick Wruck
Commission Secretary
TL/dg