Orders

ORDER NUMBER

F-5-20

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

Participant Assistance/Cost Award Application

BEFORE:

T. A. Loski, Panel Chair

R. I. Mason, Commissioner

on February 18, 2020

ORDER

WHEREAS:

A.      On August 23, 2019, Pacific Northern Gas Ltd. (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). LDS #2 would provide natural gas service to JGC Fluor BC LNG Joint Venture (JFJV), the engineering, procurement and construction contractor for the development of the LNG Canada liquefied natural gas export facility in Kitimat, British Columbia (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.      By Order C-3-19, the BCUC approved the CPCN and the GSA, and established a written hearing process and regulatory timetable for the review of the appropriate depreciation rates for the LDS #2 assets. This regulatory timetable was amended by Order G-263-19, and included one round of BCUC information requests, letters of comment, and written Final Argument by PNG;

D.      The British Columbia Old Age Pensioners’ Organization et al. (BCOAPO) is the only party who filed a letter of comment in the hearing regarding the appropriate depreciation rates for the LDS #2 assets;

E.       By Order G-342-19 dated December 23, 2019, the BCUC issued its final determinations on the appropriate depreciation rates for the LDS #2 assets;

F.       BCOAPO filed the following Participant Assistance/Cost Award (PACA) application with the BCUC with respect to its participation in the proceeding:

G.     By email dated February 3, 2020, PNG provided its comments on the BCOAPO’s PACA Application, stating that it finds the PACA application to be reasonable; and

H.      The BCUC has reviewed the PACA application in accordance with the criteria and rates set out in the PACA Guidelines, attached to BCUC Order G-97-17, and considers that approval of the cost award is warranted.

NOW THEREFORE pursuant to section 118(1) of the Utilities Commission Act, the BCUC orders as follows:

1.       Funding is awarded to the BCOAPO in the following listed amount for its participation in the PNG Application for a CPCN for the Construction of Kitimat Regulating Station LDS #2 proceeding:

2.       PNG is directed to reimburse the BCOAPO for the awarded amount in a timely manner.

DATED at the City of Vancouver, in the Province of British Columbia, this            18            day of February 2020.

BY ORDER

Original signed by:

T. A. Loski

Commissioner