ORDER NUMBER
G-242-21
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Biomethane Energy Recovery Charge Rate Methodology
Assessment Report
BEFORE:
D. M. Morton, Panel Chair
D. A. Cote, Commissioner
R. I. Mason, Commissioner
on August 12, 2021
ORDER
WHEREAS:
A. On August 12, 2016, the British Columbia Utilities Commission (BCUC) issued its Decision and accompanying Order G-133-16 approving FortisBC Energy Inc.’s (FEI) Biomethane Energy Recovery Charge (BERC) Rate Methodology Application. Directive 16 of the Decision directed FEI to file a comprehensive assessment report for BCUC approval at the earlier of the application by FEI for a transfer of biomethane inventory from the Biomethane Variance account (BVA) to the Mid-Stream Reconciliation account, or four years after the date of issue of the Decision, whichever came first;
B. On August 12, 2020, in accordance with Directive 16 of the Decision, FEI filed the BERC Rate Assessment Report (Assessment Report) with the BCUC;
C. By Order G-292-20, dated November 12, 2020, the BCUC established the regulatory timetable for the review of the Assessment Report, including a list of preliminary scope items attached as Appendix C to that order and requested submissions on scope from all parties;
D. The following parties registered as interveners in the proceeding:
(i) British Columbia Old Age Pensioners’ Organization et al (BCOAPO);
(ii) BC Sustainable Energy Association (BCSEA);
(iii) Commercial Energy Consumers Association of British Columbia (CEC); and
(iv) Movement of United Professionals (MoveUP);
E. On November 17, 2020, FEI requested that the BCUC rescind Order G-292-20, for reasons of regulatory efficiency, and instead establish a regulatory review process with two stages or two separate processes where the second stage or process would follow subsequent to FEI filing an application for changes to its Renewable Natural Gas Program (RNG Program) after completing its planned comprehensive review;
F. By Order G-301-20 and G-35-21, dated November 30, 2020 and January 29, 2021, the BCUC established a further regulatory timetable for the review of the Assessment Report, and determined that the review of the proceeding shall progress with a two-stage process; and
G. The Panel has reviewed the Assessment Report, evidence and submissions filed in this proceeding and determines that the following orders are warranted.
NOW THEREFORE for the reasons stated in the Decision issued concurrently with this order, the BCUC accepts FEI’s BERC Rate Assessment Report and orders as follows:
1. FEI is directed to include, in any long-term biomethane contract it enters into subsequent to the date of this Decision that uses the BERC rate or mechanism for calculating a long-term contract rate, a condition that the BERC rate or mechanism for calculating the long-term contract rate will change to whatever will be determined in the upcoming Stage 2 Comprehensive Review. The proposed wording for inclusion in the contracts is to be filed by FEI within 30 days of this Decision.
2. FEI is directed to confirm, in a compliance filing due 30 days from the date of this Decision, that the correction in billing has occurred and whether any previous unbilled amounts are still yet to be recovered. If so, FEI is further directed to explain how it will recover the remaining unbilled amounts and the implications to the BVA Balance transfer deferral account, if any.
DATED at the City of Vancouver, in the Province of British Columbia, this 12th day of August 2021.
BY ORDER
Original signed by:
D. M. Morton
Commissioner