Orders

ORDER NUMBER

G-315-21

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

FortisBC Energy Inc.

Application for Common Rates and 2022 Revenue Requirements

for the Fort Nelson Service Area

BEFORE:

A. K. Fung, QC, Panel Chair

E. B. Lockhart, Commissioner

A. Pape-Salmon, Commissioner

on November 3, 2021

ORDER

WHEREAS:

A.      On August 12, 2021, FortisBC Energy Inc. (FEI) filed with the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 of the Utilities Commission Act, an application for approval to set the delivery rates and the Revenue Stabilization Adjustment Mechanism (RSAM) rate rider for the Fort Nelson service area (FEFN), effective January 1, 2022 (2022 Delivery Rates), and to implement common delivery and cost of gas rates for FEFN with FEI, effective January 1, 2023 (Common Rates) (together, the Application);

B.      In the Application, FEI requests the following approvals for FEFN, among others:

                  (i)            To increase FEFN delivery rates by 3.41 percent on a permanent basis, effective January 1, 2022;

                (ii)            To change the RSAM rate rider from a credit of $0.333 per gigajoule (GJ) to $0.416 per GJ on a permanent basis, effective January 1, 2022;

               (iii)            To implement common delivery rates with FEI for FEFN Rate Schedule (RS) 1, RS 2 and RS 3, effective January 1, 2023, including the phase-in of common delivery rates for the FEFN residential customer rate class (RS 1) over 10 years through the creation of a Residential Customer Phase-in Rate Rider, effective January 1, 2023, to mitigate the initial delivery rate impact to FEFN residential customers; and

               (iv)            To amalgamate FEFN’s gas supply portfolio costs with FEI’s Midstream Cost Reconciliation Account, effective January 1, 2023, which includes charging FEFN customers the same cost of gas rate as FEI and setting FEFN’s midstream rates based on 5 percent of FEI’s midstream rates;

C.      By Order G-277-21 dated September 21, 2021, the BCUC established a regulatory timetable for the review of the Application which included, among other things, public notice, intervener registration, and one round of BCUC and intervener information requests (IRs) to FEI on 2022 Delivery Rates and Common Rates. The BCUC further approved the increase in delivery rates by 3.41 percent and set the RSAM rate rider at a credit of $0.416 per GJ for FEFN, on an interim and refundable or recoverable basis, effective January 1, 2022;

D.      By letter dated October 29, 2021, Northern Rockies Regional Municipality (NRRM) and the Fort Nelson and District Chamber of Commerce (FNDCC) requested an extension to file intervener IR No. 1 on 2022 Delivery Rates and Common Rates from Wednesday, November 3, 2021 to Wednesday, November 17, 2021, and Wednesday November 10, 2021 to Wednesday, November 24, 2021, respectively. In the letter, NRRM and FNDCC state that it has taken time to identify legal counsel to assist them in the proceeding and requests an extension of time given that it now expects to have legal counsel secured by the week of November 1, 2021;

E.       The BCUC has reviewed NRRM and FNDCC’s extension request and determines that an amended regulatory timetable is warranted.

NOW THEREFORE the BCUC orders that the regulatory timetable established by Order G-277-21 is amended, as set out in Appendix A to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this    3^rd     day of November 2021.

BY ORDER

Original signed by:

A. K. Fung, QC

Commissioner

Attachment

FortisBC Energy Inc.

Application for Common Rates and 2022 Revenue Requirements

for the Fort Nelson Service Area

* Including submissions on issues raised in IRs and any letters of comment.

** Commencing at 9:00 am. Further details on the procedural conference format and location will be circulated in due course.