ORDER NUMBER
G-135-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Application for Approval of Rates and Agreement for Compressed Natural Gas Fueling Service for ColdStar Solutions Inc. from the Fueling Station Located at Mid Island Consumer Services Co-operative
BEFORE:
W. M. Everett, QC, Panel Chair
B. A. Magnan, Commissioner
R. I. Mason, Commissioner
on June 3, 2020
ORDER
WHEREAS:
A. On May 8, 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 ColdStar Solutions Inc. (ColdStar) (ColdStar Mid Island 2020 Agreement), on an interim and permanent basis, effective May 8, 2020 (Application);
B. On April 11, 2013, the Commission issued Order G-56-13 accepting that the Greenhouse Gas Reduction (Clean Energy) Regulation (GGRR) established the need for Compressed Natural Gas (CNG) and Liquefied Natural Gas fueling stations that are undertaken by FEI as prescribed undertakings as defined by the GGRR, and that these prescribed undertaking projects are exempt from the Certificate of Public Convenience and Necessity requirements for the term of the GGRR;
C. On May 1, 2017, by Orders G-62-17 and G-63-17, the BCUC determined that the Mid Island Fueling Station met the requirements for a prescribed undertaking as defined by the GGRR;
D. On May 1, 2017, by Order G-61-17, the BCUC approved the rates established in the fueling services agreement and amending agreement between FEI and ColdStar under which ColdStar would receive CNG fueling service from the FEI CNG fueling station at Mid Island Consumer Services Co-operative (Mid Island Fueling Station) located in Nanaimo, BC (ColdStar-Mid Island Original Agreement). The ColdStar-Mid Island Original Agreement expired on October 20, 2019;
E. On April 28, 2020, FEI and ColdStar entered into the ColdStar-Mid Island 2020 Agreement, which establishes the terms and conditions for ColdStar to continue to receive CNG fueling service from the Mid Island Fueling Station under essentially the same terms as the ColdStar-Mid Island Original Agreement. The ColdStar-Mid Island 2020 Agreement has an initial term of five years with an automatic annual renewal mechanism, commencing May 1, 2020;
F. On May 21, 2020, BCUC staff sent FEI clarification questions regarding the requested Capital Rate and O&M Rate established in the ColdStar-Mid Island 2020 Agreement, and on May 27, 2020 FEI responded; and
G. The BCUC has completed its review of the Application and considered FEI’s response to BCUC staff’s questions and finds that approval of an amended ColdStar-Mid Island 2020 Agreement is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. The ColdStar-Mid Island 2020 Agreement is to be amended to reflect a Capital Rate of $7.455/GJ and an O&M Rate of $3.066/GJ.
2. The rates established in the ColdStar-Mid Island 2020 Agreement as amended by this Order are approved, effective May 8, 2020, on a permanent basis.
3. The charges for the CNG fueling service received by ColdStar at the Mid Island Fueling Station during the period of October 21, 2019 to May 7, 2020 are not recoverable from ColdStar or FEI’s non-bypass ratepayers.
4. FEI is to file with the BCUC the ColdStar-Mid Island 2020 Agreement, as amended by 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 3rd day of June, 2020.
BY ORDER
Original signed by:
W. M. Everett, QC
Commissioner