ORDER NUMBER
G-335-23
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Permanent Rates and Revised Tariff Pages – Rate Schedule 46 – Liquefied Natural Gas Sales, Dispensing, Liquefied Natural Gas Transportation Services and Transportation Service, effective January 1, 2024
BEFORE:
B. A. Magnan, Commissioner
on December 7, 2023
ORDER
WHEREAS:
A. On November 29, 2023, pursuant to sections 59 to 61 of the Utilities Commission Act (UCA), FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC) seeking approval for certain charges in Rate Schedule 46 (RS 46) Table of Charges for Liquefied Natural Gas (LNG) Transportation Service, the Table of Charges for LNG Service, and the Table of Charges for Transportation Service (collectively, the Tables of Charges) on a permanent basis effective January 1, 2024 (Application);
B. By Order G-211-13 dated December 12, 2013, the BCUC approved RS 46, in accordance with Order in Council (OIC) 557, British Columbia (B.C.) Regulation 245/2013, which issued Direction No. 5 to the BCUC effective December 12, 2013;
C. By Order G-207-14 dated December 24, 2014, the BCUC approved amendments to RS 46 pursuant to an amendment to Direction No. 5, in accordance with OIC 749, B.C. Regulation 265/2014 effective January 1, 2015;
D. By Order G-65-17 dated May 4, 2017, the BCUC approved further amendments to RS 46 pursuant to a further amendment to Direction No. 5, in accordance with section 5(1.2) of OIC 162, B.C. Regulation 115/2017 effective May 4, 2017;
E. By Order G-355-22 dated December 8, 2022, the BCUC issued approved the revised rates to RS 46, effective January 1, 2023, on a permanent basis;
F. Certain charges contained in the Tables of Charges are to be reviewed on an annual basis and adjusted as required, using the greater of two percent or the British Columbia Consumer Price Index (BC CPI);
G. Based on this BC CPI data, using two 12 month averages inclusive of the indices for the periods of November 2021 through to October 2023, the BC CPI averaged 4.54 percent, which is greater than 2 percent. As a result, FEI is proposing that each of the table of Charges for LNG Transportation Service, the Table of Charges for LNG Service, and the Table of Charges for Transportation Service increase by 4.54 percent effective January 1, 2024;
H. The Electricity Surcharge is adjusted by 2 percent until and including the next annual rate update after the Available LNG Capacity exceeds 20,000 Gigajoules (GJs) per Day.;
I. FEI confirms that the Available LNG Capacity has not yet exceeded 20,000 GJs per day on a consistent basis; therefore, the Electricity Surcharge will be adjusted by 2 percent effective January 1, 2024 and no annual update to the Process Fuel Gas rate is required at this time; and
J. The BCUC has reviewed the Application and considers the following determination is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. The revised rates as applied for by FEI are approved on a permanent basis, effective January 1, 2024.
2. FEI is directed to file revised RS 46 tariff pages with the BCUC concurrently with all other rate changes within 15 days of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 7th day of December 2023.
BY ORDER
Original signed by:
B.A. Magnan
Commissioner