ORDER NUMBER

G-106-23

 

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

 

and

 

FortisBC Energy Inc.

Application for a Certificate of Public Convenience and Necessity

for the Okanagan Capacity Upgrade Project

 

BEFORE:

R. I. Mason, Panel Chair

D. A. Cote, Commissioner

A. K. Fung, KC, Commissioner

 

on May 5, 2023

 

ORDER

WHEREAS:

 

A.      On November 16, 2020, FortisBC Energy Inc. (FEI) submitted an application to the British Columbia Utilities Commission (BCUC) for, among other things, a Certificate of Public Convenience and Necessity pursuant to sections 45 and 46 of the Utilities Commission Act (UCA) for the Okanagan Capacity Upgrade Project (Application); 

B.      By Order G-48-22 dated February 23, 2022, the BCUC adjourned the proceeding;

C.      By letter dated March 3, 2023, the BCUC requested submissions from parties on the appropriate next steps for the proceeding;

D.      On March 31, 2023, FEI filed its submission. FEI is preparing to file supplementary information to provide updates to key evidence in this proceeding, based on more recently available information (Supplementary Filing), by May 16, 2023;

E.       On April 18, 2023, BC Sustainable Energy Association, BC Old Age Pensioners Organization et al., Commercial Energy Consumers of BC and Residential Consumer Intervenor Association file submissions on next steps for the proceeding. On April 25, 2023, Penticton Indian Band filed its submission. On May 2, 2023, FEI filed its reply to intervener submissions; and

F.       The BCUC determines establishing a further regulatory timetable is warranted.

 

 

NOW THEREFORE for the reasons outlined in Appendix B of this order, the BCUC orders a further regulatory timetable is established, as outlined in Appendix A of this order.

 

 

DATED at the City of Vancouver, in the Province of British Columbia, this   5^th   day of May 2023.

 

BY ORDER

 

Original signed by:

 

R. I. Mason

Commissioner

 

 

Attachment

 

 

FortisBC Energy Inc.

Application for a Certificate of Public Convenience and Necessity

for the Okanagan Capacity Upgrade Project

 

 

 

* If no further regulatory process is ordered by the BCUC.

 

 

FortisBC Energy Inc.

Application for a Certificate of Public Convenience and Necessity

for the Okanagan Capacity Upgrade Project

 

1.0              Introduction

On November 16, 2020, FortisBC Energy Inc. (FEI) submitted an application to the British Columbia Utilities Commission (BCUC) for, among other things, a Certificate of Public Convenience and Necessity pursuant to sections 45 and 46 of the Utilities Commission Act (UCA) for the Okanagan Capacity Upgrade Project (Application). By Order G-48-22 dated February 23, 2022, the BCUC adjourned the proceeding until FEI has filed an evidentiary update.

 

By letter dated March 3, 2023, the BCUC requested submissions from parties on the appropriate next steps for the proceeding on the following matters:

•         FEI to provide an update on whether and when it intends to file an evidentiary update, and a high-level description of the evidentiary update if applicable;

•         The appropriate next steps for the proceeding, including:

o   Whether the proceeding should remain adjourned indefinitely pending an evidentiary update, or until a certain date;

o   Whether the BCUC should render a decision on the Application at this time, or by a certain date if an evidentiary update is not filed; and

o   If FEI is planning to file an evidentiary update by a certain date, the appropriate next steps for the regulatory timetable;

o   Whether FEI wishes to withdraw the Application.

 

On March 31, 2023, FEI filed its submission. On April 18, 2023, BC Sustainable Energy Association (BCSEA), Commercial Energy Consumers of BC (the CEC), and Residential Consumer Intervenor Association (RCIA) file submissions on next steps for the proceeding. On April 25, 2023, Penticton Indian Band (PIB) filed its submission. On May 2, 2023, FEI filed its reply to intervener submissions.

 

In these reasons for decision, the Panel summarizes parties’ submissions, and outlines its determination on the next steps for this proceeding.

1.1              Summary of Submissions

FEI submits that its discussions with PIB regarding the OCU Project are progressing well, and FEI anticipates advising the BCUC whether FEI and the PIB can reach an agreement with respect to the OCU Project by the end of April 2023. FEI is seeking PIB’s consent for the OCU Project in that agreement. FEI is preparing to file supplementary information to provide updates to key evidence in this proceeding, based on more recently available information (Supplementary Filing), by May 16, 2023. The Supplementary Filing will include updates to FEI’s demand forecast for the region, the project’s cost estimate, rate impact and schedule, and consultation and engagement activities.[1]

 

FEI submits the Supplementary Filing and any related process would be in addition to the ample evidence already on the record in this proceeding, and accordingly FEI proposes that the appropriate further process for this proceeding includes one round of Information Requests (IRs) on the Supplementary Filing followed by written arguments.[2]

 

RCIA submits it is comfortable with FEI’s proposed regulatory timetable but requests the IR deadline be extended to June 16, 2023 due to scheduling constraints.[3] In reply, FEI proposes a revised timetable incorporating RCIA’s request.[4]

 

BCSEA does not object to the timetable proposed by FEI or RCIA’s request. BCSEA requests an opportunity to file IRs on the agreement between FEI and PIB, if such an agreement is filed by FEI.[5] In reply to BCSEA, FEI states it will consider, in consultation with PIB, whether to include a copy of any agreement with PIB as part of the Supplementary Filing.[6]

 

The CEC agrees that both an evidentiary update and at least one additional round of IRs are required, but there may be a need for further IRs. The CEC recommends the BCUC canvas interveners after responses to IRs on the Supplemental Filing to determine if further process is required.[7]

 

In reply to the CEC, FEI submits it is not efficient to build in an additional delay to the timetable to accommodate a further round of submissions on process absent evidence that further process will be required. Rather, FEI submits that after responses to IRs on the Supplementary Filing are filed, should an intervener not be satisfied with an FEI response and believes it is an issue material to the decision to be made that must be resolved, that intervener is free to make a submission to the BCUC, in accordance with Rule 13.05 of the BCUC’s Rules of Practice and Procedure, as adopted by Order G-72-23, and request the Panel consider further process and an amended timetable if warranted.[8]

 

PIB has no comments on FEI’s proposed schedule.[9]

 

 

Panel Determination

The Panel agrees with FEI that a Supplementary Filing is warranted. This proceeding has been adjourned for over a year, and as a result much of the evidence, such as the project’s cost estimate and proposed schedule, may no longer be accurate. Further, the Panel wishes to inquire into the continued discussions and the possibility of an agreement between FEI and PIB regarding the Application, as well as any material impacts that any such agreement may have on the project costs.

 

The Panel is satisfied that written information requests (IR) are an appropriate method to test the Supplementary Filing, and notes that no intervener objects to this proposal by FEI.

 

FEI submits that a round of submissions on further process following the written IRs would not be “efficient”. While the Panel appreciates FEI’s concern for efficiency, the proceeding has been adjourned for over a year pending FEI’s submission of a Supplementary Filing after further discussions have occurred between FEI and the PIB. In the Panel’s view, it is reasonable to allow for an additional two weeks in the regulatory timetable for parties to make submissions on further process based on FEI’s responses to written IRs, as suggested by the CEC.

 

FEI’s remedy to the CEC’s suggestion, to allow interveners to make a submission in accordance with BCUC Rule 13.05, addresses the possibility that an intervener considers FEI’s responses to written IRs to be unsatisfactory. The Panel wishes to provide interveners the opportunity to propose any additional process they feel may be required to complete the proceeding, not merely to identify possibly unsatisfactory IR responses. Further, the Panel may have IRs it wishes to pose to FEI, based on FEI’s responses to written IRs.

 

The Panel agrees with FEI that it is more efficient to schedule arguments now, rather than wait until parties have made their submissions on further process. This allows the parties to plan their time on the assumption that the Panel determines no additional process is required.  

 

For the foregoing reasons, the Panel orders that the further regulatory timetable set out in Appendix A of this order is established.

 

The Panel notes that FEI will “consider, in consultation with PIB, whether to include a copy of any agreement with PIB as part of the Supplementary Filing.” The Panel expects FEI to include in the Supplemental Filing any agreement between FEI and PIB related to the Application. Failure to file any such agreement may lead to further process and further delays in this proceeding.