ORDER NUMBER
G-356-23
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.
Filing Deadline for Consolidated Resource Plan – Variance to Order G-265-20
BEFORE:
B. A. Magnan, Commissioner
on December 19, 2023
ORDER
WHEREAS:
A. By letter dated December 6, 2023, Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd. (PNG) request under section 44.1 of the Utilities Commission Act (UCA) that the British Columbia Utilities Commission (BCUC) amend the filing deadline for the Consolidated Resource Plan, required under Order G-265-20, from December 31, 2023 to March 31, 2024 (Application);
B. On June 10, 2020, the BCUC issued Order G-265-20, accepting PNG’s 2019 Consolidated Resource Plan and PNG’s 2020-2022 Energy Conservation and Innovation Expenditure Schedule. Among other directives, PNG is directed to file its next long-term resource plan no later than December 31, 2023;
C. On October 27, 2023, PNG applied to the BCUC for approval of a Transportation Reservation Agreement between PNG and Cedar LNG Partners LP (Cedar LNG). On December 8, 2023, the BCUC issued Order G-337-23, approving the Transportation Reservation Agreement;
D. In its Application, PNG submits that a positive Financial Investment Decision (FID) on Cedar LNG’s liquified natural gas export project planned to be constructed in Kitimat, British Columbia (Proposed Project) would have a material impact on PNG. PNG further submits that the timing of the anticipated FID presents significant uncertainty around the determination of the more likely demand forecast to underpin the Consolidated Resource Plan, particularly given the previously established submission date of December 31, 2023;
E. On December 7, 2023, the BCUC issued Staff Questions to PNG to clarify the timing of an FID for Cedar LNG and to better understand any additional time PNG may require to finalize and file its Consolidated Resource Plan following a FID for the Project;
F. PNG filed its responses to Staff Questions on December 13, 2023. PNG modified its Application and proposes that if Cedar LNG achieves a positive FID and executes the Transportation Service Agreement during Q1, 2024, PNG will finalize and submit its Consolidated Resource Plan with Cedar LNG as part of base load within 3 months of the date of Transportation Service Agreement execution; or, if Cedar LNG has not made a positive FID and executed the Transportation Service Agreement by March 31, 2024, PNG will finalize and submit its Consolidated Resource Plan with Cedar LNG as a load sensitivity by June 30, 2024; and
G. The BCUC has reviewed the Application and considers that an amendment to the filing deadline of the Consolidated Resource Plan, is warranted.
NOW THEREFORE pursuant to sections 44 and 99 of the UCA, the BCUC orders as follows:
The Directive contained on page 40 of the Decision accompanying Order G-265-20 is varied as follows:
1. The Panel therefore directs PNG to file its next long-term resource plan upon the earlier of: within 3 months of the execution of the Cedar LNG Transportation Service Agreement, or by June 30, 2024.
2. PNG must file an update on the Cedar LNG Financial Investment Decision and Transportation Service Agreement and Consolidated Resource Plan timing to the BCUC by March 31, 2024, if the Consolidated Resource Plan has not been filed by then.
DATED at the City of Vancouver, in the Province of British Columbia, this 19th day of December 2023.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner