Orders

ORDER NUMBER

G-48-20

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

FortisBC Energy Inc.

Application regarding its 2020 First Quarter Gas Cost Report

and Rate Changes effective April 1, 2020

for the Fort Nelson Service Area

BEFORE:

B. A. Magnan, Commissioner

E. B. Lockhart, Commissioner

T. A. Loski, Commissioner

on March 12, 2020

ORDER

WHEREAS:

A.      On March 4, 2020, FortisBC Energy Inc. (FEI) filed its 2020 First Quarter Report on the Gas Cost Reconciliation Account (GCRA) and Commodity Cost Recovery Charge for the Fort Nelson Service Area (Fort Nelson) based on a five-day average February 18, 19, 20, 21, and 24, 2020 forward gas prices (the 2020 First Quarter Report);

B.      The British Columbia Utilities Commission (BCUC) established guidelines for gas cost rate setting in Letter
L-5-01 dated February 5, 2001, and further modified the guidelines in Letter L-40-11 dated May 19, 2011 (together the Guidelines);

C.      By Order G-128-19, the BCUC established the current Commodity Cost Recovery Charge for the Fort Nelson Service Area at $1.048/GJ effective July 1, 2019;

D.      In the 2020 First Quarter Report, using the five-day average forward prices ending February 24, 2020, the GCRA balance is projected to be $20,803 surplus after tax at March 31, 2020. FEI calculates the GCRA recovery-to-cost ratio would be 56.3 percent for the following 12 months. The tested rate increase related to the forecast under recovery of costs would be $0.815 per gigajoule (GJ), which falls outside the minimum rate change threshold set out in the Guidelines, indicating that a rate change for the Commodity Cost Recovery Charge is required effective April 1, 2020;

E.       The proposed Commodity Cost Recovery Charge requested in the 2020 First Quarter Report would increase the total annual bill for a typical Fort Nelson residential customer with an average annual consumption of 125 gigajoules by approximately $102 or 12.6 percent; and

F.       The BCUC reviewed the 2020 First Quarter Report and considers that the requested rate change is warranted, and that Tab 3 of the 2020 First Quarter Report should be held confidential as requested by FEI, as it contains market sensitive information.

NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the BCUC orders as follows:

1.       The BCUC approves the Commodity Cost Recovery Charge applicable to the Sales Rate Classes in the Fort Nelson Service Area to increase by $0.815/GJ, from $1.048/GJ to $1.863/GJ, effective April 1, 2020.

2.       FEI will notify all customers that are affected by the rate changes with a bill insert or bill message to be included with the next monthly gas billing.

3.       The BCUC will hold confidential the information in Tab 3 of the 2020 First Quarter Report, as requested by FEI, as it contains market-sensitive information.

4.       FEI is directed to file with the BCUC revised tariff pages within 15 days of this order.

DATED at the City of Vancouver, in the Province of British Columbia, this              12^th                 day of March 2020.

BY ORDER

Original signed by:

B. A. Magnan

Commissioner