Orders

ORDER NUMBER

G-102-20

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

FortisBC Energy Inc.

Application for Approval of Rates and Agreement for Liquefied Natural Gas (LNG) Fueling Service

for Ledcor LNG Group Ltd. from the LNG Fueling Station Located at Vedder Transport Ltd. in Abbotsford, BC

BEFORE:

W. M. Everett, QC, Panel Chair

B. A. Magnan, Commissioner

R. I. Mason, Commissioner

on May 1, 2020

ORDER

WHEREAS:

A.      On April 20, 2020, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 and 89 of the Utilities Commission Act (UCA), for approval of the rates established in the fueling services agreement between FEI and Ledcor LNG Group Ltd. (Ledcor) (Ledcor-Vedder 2020 Agreement), on an interim and permanent basis, effective April 24, 2020 (Application); 

B.      On April 22, 2014, by Order G-57-14, the BCUC approved an agreement between FEI and Ledcor that established rates, effective December 12, 2013, under which Ledcor would receive LNG fueling service from a fueling station at the premises of Vedder Transport Ltd. (Vedder) located in Abbotsford, British Columbia (Vedder Fueling Station) (Ledcor-Vedder Original Agreement). The Ledcor-Vedder Original Agreement was for a one-year term with a one-year renewal option, and expired on December 8, 2015;

C.      On January 19, 2016, by Order G-6-16, the BCUC approved an LNG Fueling Services Agreement, whereby Ledcor would continue to receive LNG fueling service from the Vedder Fueling Station under essentially the same terms as the Ledcor-Vedder Original Agreement (Ledcor-Vedder 2015 Agreement). The Ledcor-Vedder 2015 Agreement was effective from December 9, 2015 to December 31, 2016, with a one-year renewal option, and expired on December 31, 2017;

D.      On April 12, 2018, by Order G-76-18, the BCUC approved an LNG Fueling Services Agreement, whereby Ledcor would continue to receive LNG fueling service from the Vedder Fueling Station under essentially the same terms as the Ledcor-Vedder Original agreement and the Ledcor-Vedder 2015 Agreement (Ledcor-Vedder 2018 Agreement). The Ledcor-Vedder 2018 Agreement was effective from January 11, 2018 to December 31, 2018, with a one-year renewal option, and expired on December 31, 2019;

E.       On April 9, 2020, FEI and Ledcor entered into the Ledcor-Vedder 2020 Agreement which establishes the terms and conditions for Ledcor to continue to receive LNG fueling service from the Vedder Fueling Station under essentially the same terms as the previous Ledcor-Vedder agreements. The Ledcor-Vedder 2020 Agreement is effective April 24, 2020 for an initial term of five-years, with an automatic annual renewal mechanism; and

F.       The BCUC has commenced review of the Application, including the proposed terms of the Ledcor-Vedder 2020 Agreement and the proposed rates set out therein, and determines that approval of the proposed rates on an interim basis and the establishment of a regulatory timetable is warranted.

NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the BCUC orders as follows:

1.       A regulatory timetable is established, as set out in Appendix A to this order.

2.       The rates established in the Ledcor-Vedder 2020 Agreement are approved on an interim basis subject to refund or recovery, effective April 24, 2020, pending the BCUC’s review of the proposed terms of the Ledcor-Vedder 2020 Agreement and the proposed rates set out therein.

3.       Any variance between the interim rates and the permanent rates as determined by the BCUC following final disposition of the Application are subject to refund or recovery, with interest at the average prime rate of FEI’s principal bank for its most recent year.

4.       FEI is to file with the BCUC the Ledcor-Vedder 2020 Agreement in tariff supplement form for endorsement within 15 days of the date of this order.

DATED at the City of Vancouver, in the Province of British Columbia, this               1^st              day of May 2020.

BY ORDER

Original signed by:

W. M. Everett, QC

Commissioner

Attachment

FortisBC Energy Inc.

Application for Approval of Rates and Agreement for Liquefied Natural Gas (LNG) Fueling Service

for Ledcor LNG Group Ltd. from the LNG Fueling Station Located at Vedder Transport Ltd. in Abbotsford, BC