ORDER NUMBER
G-198-23
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Permanent Rates and Agreements under the GGRR for
the Annacis Island CNG Fuelling Station in Delta
BEFORE:
W. M. Everett, KC, Panel Chair
B. A. Magnan, Commissioner
R. I. Mason, Commissioner
On July 25, 2023
ORDER
WHEREAS:
A. On March 31, 2023, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 of the Utilities Commission Act (UCA), for approval of the rates established in six separate fuelling service agreements (collectively Agreements) as amended between FEI and the following customers (Anchor Customers) on a permanent basis, effective January 18, 2022, for fuelling services at the compressed natural gas (CNG) station located at Annacis Island in Delta, BC (Annacis Island Fuelling Station) (Application):
(i) Ancor Transport Ltd. (Ancor);
(ii) ColdStar Solutions Inc. (ColdStar);
(iii) Encorp Pacific (Canada) (Encorp);
(iv) Martin-Brower of Canada Co. (Martin-Brower);
(v) United Parcel Services Canada Ltd. (UPS); and
(vi) Western Pacific Transport Ltd. (Western Pacific);
B. FEI requests that the live financial model filed as Appendix C to the Application be held confidential on the basis it is the result of significant development effort by FEI on behalf of its customers and therefore the formulas and configuration of the model are commercially sensitive;
C. Between August 31, 2021 and October 12, 2021, FEI and the Anchor Customers entered into the Agreements which establish the terms, conditions and rates for the Anchor Customers to receive CNG fuelling service from the Annacis Island Fuelling Station effective November 1, 2021;
D. FEI states it has secured a capital contribution under the Government of Canada’s Natural Resources Canada (NRCan) Electric Vehicle and Alternative Fuel Infrastructure Deployment Program towards the development and construction of the Annacis Island Fuelling Station. Under the funding contribution agreement between NRCan and FEI for the Annacis Island Fuelling Station (NRCan Agreement), FEI is required to provide public fuelling access to the station;
E. By Order G-313-21 dated November 1, 2021, the BCUC, among other things, ordered the following:
1. Approved the rate design and rates established in the Agreements on an interim and refundable/recoverable basis, effective November 1, 2021; and
2. Consented to the proposed amendments and rates to Rate Schedule 6P – Public Service – Natural Gas Refuelling Service (RS 6P), for public fuelling at the Annacis Island Fuelling Station on an interim and non-refundable/non-recoverable basis, effective November 30, 2021;
F. Due to permitting delays and a significant weather event in the fall of 2021, the projected in-service date of the Annacis Island Fuelling Station was revised to January 18, 2022 and FEI entered into amending agreements with each of the Anchor Customers to amend, among other things, the commencement date of the Agreements from November 1, 2021 to January 18, 2022 (collectively Amending Agreements No. 1);
G. By Order G-45-22 dated February 22, 2022, the BCUC, among other things, determined that the Annacis Island Fuelling Station met the requirements of a prescribed undertaking under the Greenhouse Gas Reduction (Clean Energy) Regulation (GGRR) and approved FEI to use the rate design and rates established for the Anchor Customers in the Agreements as amended by Amending Agreements No. 1 at the Annacis Island Fuelling Station on an interim and refundable/recoverable basis, effective January 18, 2022. The order also directed FEI to file an application seeking permanent rates, upon the determination of the actual capital expenditures of the Annacis Island Fuelling Station;
H. By Order G-225-22 dated August 12, 2022, the BCUC consented to proposed amendments and rates to RS 6P for public refuelling service at the Annacis Island Fuelling Station to correct an error in the public fuelling station rates;
I. FEI entered into additional amending agreements with each of the Anchor Customers to adjust the capital rate and operations and maintenance rate based on the final actual capital costs and updated total volumes at the Annacis Island Fuelling Station, in addition to specific amendments to the minimum annual quantity for Martin-Brower, ColdStar and Western Pacific (collectively Amending Agreements No. 2 and 3);
J. On June 1, 2023, BCUC staff issued questions to FEI (Staff Questions) and on June 12, 2023, FEI responded; and
K. The BCUC has reviewed the Application and the responses to the Staff Questions and determines that the Annacis Island Fuelling Station continues to meet the requirements for a prescribed undertaking as defined by the GGRR and that permanent approval of the rate design and rates is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. FEI is approved to use the rate design and rates established for the Anchor Customers in the Agreements and as amended by Amending Agreements No. 1, 2 and 3 at the Annacis Island Fuelling Station on a permanent basis, effective January 18, 2022.
2. The live financial model filed as Appendix C to the Application is to be kept confidential due to its commercially sensitive nature until further order of the BCUC.
3. FEI is directed to refund to the Anchor Customers any variance between the interim and permanent rates with interest calculated at the average prime rate of FEI’s principal bank for its most recent year.
4. FEI is to file the Agreements and Amending Agreements No. 1, 2 and 3 in tariff supplement form for endorsement by the BCUC within 15 days from the date of this order.
5. FEI is directed to file an application with the BCUC seeking rates for public fuelling at the Annacis Island Fuelling Station under RS 6P on a permanent basis within 90 days from the date of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 25th day of July 2023.
BY ORDER
Original signed by:
W. M. Everett, KC
Commissioner