ORDER NUMBER
G-298-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Inc.
Annual Review for 2020 and 2021 Rates
BEFORE:
T. A. Loski, Panel Chair
C. Brewer, Commissioner
E. B. Lockhart, Commissioner
On November 24, 2020
ORDER
WHEREAS:
A. On June 22, 2020, the British Columbia Utilities Commission (BCUC) issued its Decision and Orders G-165-20 for FortisBC Energy Inc. and G-166-20 for FortisBC Inc. (FBC) approving a Multi-Year Rate Plan for 2020 through 2024 (MRP Decision). In accordance with the MRP Decision, FBC is to conduct an annual review process to set rates for each year;
B. By Order G-303-19 dated November 28, 2019, the BCUC approved a 1.0 percent general rate increase for 2020, on an interim and refundable basis, effective January 1, 2020, pending the MRP Decision and FBC filing its annual review materials to set permanent rates for 2020;
C. By letter dated July 20, 2020, FBC proposed a regulatory timetable for its annual review for 2020 and 2021 rates;
D. By Order G-211-20 dated August 11, 2020, the BCUC established a regulatory timetable for the annual review of FBC’s 2020 and 2021 rates;
E. On August 19, 2020, FBC submitted its Annual Review for 2020 and 2021 Rates Application (Application). In the Application, FBC requests approval to make existing 2020 interim rates permanent, effective January 1, 2020, and for a general rate increase of 6.37 percent, effective January 1, 2021, among other things;
F. On October 9, 2020, FBC submitted an evidentiary update to the Application (First Evidentiary Update) which FBC states does not have an impact on proposed 2020 or 2021 rates;
G. On October 28, 2020, FBC filed responses to undertakings requested at the workshop held on October 21, 2020 (Workshop Undertakings) and submitted a further evidentiary update to the Application (Second Evidentiary Update). In the Second Evidentiary Update, FBC revises, among other things, the 2021 revenue requirement, resulting in a 2021 general rate increase of 4.36 percent, effective January 1, 2021;
H. By Order G-274-20 dated October 29, 2020, later amended by Order G-287-20, the BCUC amended the regulatory timetable to include information requests on FBC’s Workshop Undertakings and Second Evidentiary Update, followed by written final and reply arguments;
I. By letter dated November 9, 2020, FBC applied to the BCUC, pursuant to sections 59 to 61 and 89 of the Utilities Commission Act for approval to make existing 2020 interim rates permanent, effective January 1, 2020, and for a general rate increase of 4.36 percent, on an interim and refundable basis, effective January 1, 2021 (Interim Rates Application) pending a final decision on the Application; and
J. The BCUC has reviewed the Interim Rates Application and has decided that approval for 2021 interim rates is warranted. However, the BCUC is not prepared to make a determination on 2020 permanent rates until this annual review proceeding has been completed. Accordingly, FBC’s existing 2020 interim rates will remain in effect until the BCUC approves permanent 2020 rates.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the Utilities Commission Act, the BCUC orders as follows:
1. FBC’s application to make existing 2020 interim rates permanent, effective January 1, 2020, is denied.
2. FBC’s application for a 4.36 percent general rate increase, on an interim and refundable basis, effective January 1, 2021, is approved.
3. FBC is directed to refund/recover the difference between the interim rates and permanent rates, as determined by the BCUC following its final determinations on the Application, with interest calculated on any refundable amounts at the average prime rate of FBC’s principal bank for its most recent year.
4. FBC is directed to file with the BCUC, within 30 days of the issuance of this order, amended tariff pages in accordance with the terms of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 24th day of November 2020.
BY ORDER
Original signed by:
T. A. Loski
Commissioner