ORDER NUMBER
G-18-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Application for Approval of
Rates and Agreement for the Expansion of the
Compressed Natural Gas Fueling Station for Waste Management of Canada
Corporation
BEFORE:
W. M. Everett, QC, Commissioner
B. A. Magnan, Commissioner
R. I. Mason, Commissioner
on February 6, 2020
ORDER
WHEREAS:
A. On January 28, 2020, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 44.2, 59 to 61 and 89 of the Utilities Commission Act (UCA), for approval of expenditures of approximately $266 thousand for the expansion of the Compressed Natural Gas (CNG) fueling station located on Waste Management of Canada Corporation’s (Waste Management) premises (Waste Management Fueling Station) (2020 Expansion) and for approval of the rates established in the amending agreement dated October 11, 2019, to the CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management (Amending Agreement No. 2), on an interim basis effective February 1, 2020 (Application). FEI also requests that the BCUC keep confidential the live financial model provided in Appendix B of the Application due to its commercially sensitive nature;
B. On July 19, 2011, the BCUC issued Order G-128-11 approving, among other things, a CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management and accepted, pursuant to section 44.2 of the UCA, expenditures for the construction, operation and maintenance of the Waste Management Fueling Station;
C. On December 23, 2013, by Order G-299-13, the BCUC accepted, pursuant to section 44.2 of the UCA, expenditures to upgrade the Waste Management Fueling Station and approved FEI’s request that the rates charged to Waste Management remain unchanged;
D. On May 11, 2016, by Order G-64-16, the BCUC accepted, pursuant to section 44.2 of the UCA, expenditures to upgrade the Waste Management Fueling Station and approved the rate design and rates established in the amending agreement dated October 6, 2015, to the CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management;
E. Amending Agreement No. 2 increases the take-or-pay commitment from 2,750 gigajoules (GJs) per month to 5,000 GJs per month, revises the Capital Rate to take into account the 2020 Expansion to the Waste Management Fueling Station, revises the O&M Rate to reflect the remaining forecasted O&M to the end of the initial term of the CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management, and revises the Rate Change Date from February 1st to January 1st of each year; and
F. The BCUC has commenced its review of the Application and finds that approval of interim rates is warranted.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the BCUC orders as follows:
1. The rate design and rates established in Amending Agreement No. 2 are approved on an interim and refundable basis, effective February 1, 2020.
2. The live financial model provided in Appendix B of the Application will be kept confidential due to its commercially sensitive nature.
3. FEI is directed to refund/recover from Waste Management any variance between the interim rates and the permanent rates, as determined by the BCUC following the final determination of the application to be filed by FEI seeking permanent rates for Waste Management to receive CNG fueling service from the Waste Management Fueling Station, with interest calculated at the average prime rate of FEI’s principal bank for its most recent year.
4. FEI is to file Amending Agreement No. 2 in tariff supplement form for endorsement by the BCUC within 15 days of the date of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 6th day of February 2020.
BY ORDER
Original signed by:
W. M. Everett, QC
Commissioner