ORDER NUMBER
G-113-20
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 13, 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. On May 1, 2020, by Order G-102-20, the BCUC established the regulatory timetable for the review of the Application and approved the proposed rates on an interim and refundable or recoverable basis, effective April 24, 2020;
G. On May 1, 2020, the BCUC issued an Information Request to FEI and FEI responded on May 8, 2020; and
H. The BCUC has completed its review of the Application and the responses to the Information Request and determines that approval of the proposed rates on a permanent basis is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. FEI is to amend the Ledcor-Vedder 2020 Agreement to reflect a commencement date of April 20, 2020.
2. The rates established in the Ledcor-Vedder 2020 Agreement, as amended in accordance with this order, are approved on a permanent basis, effective April 20, 2020.
3. The charges for the LNG fueling service received by Ledcor at the Vedder Fueling Station during the period of January 1, 2020 to April 19, 2020 are not recoverable from Ledcor or FEI’s non-bypass ratepayers.
4. FEI is to file with the BCUC the Ledcor-Vedder 2020 Agreement, as amended in accordance with this Order, in tariff supplement form for endorsement within 30 days of the date of this Order.
DATED at the City of Vancouver, in the Province of British Columbia, this 13th day of May 2020.
BY ORDER
Original signed by:
W. M. Everett, QC
Commissioner