ORDER NUMBER
G-283-20
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 (CNG) Fueling Service
for Canadian Linen and Uniform Services Co. from the CNG Fueling Station Located at Waste Management of Canada Corporation in Coquitlam, BC
BEFORE:
W. M. Everett, QC, Panel Chair
B. A. Magnan, Commissioner
R. I. Mason, Commissioner
on November 4, 2020
ORDER
WHEREAS:
A. On October 26, 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 Canadian Linen and Uniform Services Co. (Canadian Linen) (Canadian Linen-Waste Management Agreement), on an interim basis, effective November 1, 2020 (Application);
B. By Order G-128-11 dated July 19, 2011, the BCUC approved, among other things, a Compressed Natural Gas (CNG) Fueling Station Installation and Operating Agreement between FEI and Waste Management of Canada Corporation (Waste Management) and accepted, pursuant to section 44.2 of the UCA, expenditures for the construction, operation and maintenance of the fueling station located on Waste Management’s premises (Waste Management Fueling Station);
C. By Order G-229-13 dated December 23, 2013, pursuant to section 44.2 of the UCA, the BCUC accepted, expenditures to upgrade the Waste Management Fueling Station and approved FEI’s request that the rates charged to Waste Management remain unchanged;
D. By Order G-64-16 dated May 11, 2016, pursuant to section 44.2 of the UCA, the BCUC accepted expenditures to further upgrade the Waste Management Fueling Station and approved the rate design and rates established in the amending agreement dated October 6, 2015, to the CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management;
E. On October 11, 2019, FEI and Waste Management entered into a further amending agreement to the CNG Fueling Station Installation and Operating Agreement (Amending Agreement No. 2), which among other things, increased the monthly take-or-pay commitment, revised the Capital Rate to take into account an expansion to the Waste Management Fueling Station, and revised the O&M Rate to reflect the remaining forecasted O&M to the end of the Initial Term of the CNG Fueling Station Installation and Operating Agreement;
F. By Order G-18-20 dated February 6, 2020, the BCUC approved the rate design and rates established in Amending Agreement No. 2 on an interim and refundable basis, effective February 1, 2020, and directed FEI to file an application seeking permanent rates, upon the determination of the actual capital expenditures for the expansion to the Waste Management Fueling Station. By Order G-77-20 dated April 6, 2020, the BCUC accepted the capital expenditures in the amount of $265,863 required for FEI to complete the expansion to the Waste Management Fueling Station;
G. On October 19, 2020, FEI and Canadian Linen entered into the Canadian Linen-Waste Management Agreement which establishes the terms and conditions for Canadian Linen to receive CNG fueling service from the Waste Management Fueling Station, effective November 1, 2020; and
H. The BCUC has reviewed the Application and determines that approval of the rates on an interim basis is warranted.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the BCUC orders as follows:
1. The rates established in the Canadian Linen-Waste Management Agreement are approved on an interim and refundable or recoverable basis, effective November 1, 2020, pending the finalization of actual capital expenditures and permanent rates for the Waste Management Fueling Station.
2. FEI is to file an application seeking permanent rates upon the BCUC approval of permanent rates between FEI and Waste Management for CNG fueling service from the Waste Management Fueling Station.
3. FEI shall refund to or recover from Canadian Linen any variance between the interim rates and the permanent rates, as determined by the BCUC following the final determination of the application to be filed by FEI seeking permanent rates for Canadian Linen to receive CNG fueling service from the Waste Management Fueling Station, with interest calculated at the average prime rate of FEI’s principal bank for its most recent year.
4. FEI is to file with the BCUC the Canadian Linen-Waste Management 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 4th day of November 2020.
BY ORDER
Original signed by:
W. M. Everett, QC
Commissioner