ORDER NUMBER
G-205-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Permanent Rates and Agreement for DanFoss Industries Ltd. for
Fuelling Service from the Mid Island CNG Station in Nanaimo
BEFORE:
B. A. Magnan, Commissioner
W. E. Royle, Commissioner
on July 31, 2024
ORDER
WHEREAS:
A. On July 18, 2024, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC) pursuant to sections 59 to 61 of the Utilities Commission Act, for approval of the rates established in a fuelling services agreement between FEI and DanFoss Industries Ltd. (DanFoss) for compressed natural gas (CNG) fuelling services from the fuelling station located at Mid Island Consumer Services Co-operative in Nanaimo, BC (Mid Island Fuelling Station) (DanFoss-Mid Island Agreement), on a permanent basis, effective August 1, 2024 (Application);
B. By Order G-56-13, the BCUC accepted that the Greenhouse Gas Reduction (Clean Energy) Regulation (GGRR) established the need for CNG and Liquefied Natural Gas (LNG) fuelling stations that are undertaken by FEI as prescribed undertakings as defined by the GGRR, and that these prescribed undertakings are exempt from the Certificate of Public Convenience and Necessity requirements for the term of the GGRR;
C. By Orders G-62-17 and G-63-17, the BCUC found that the Mid Island Fuelling Station met the requirements for a prescribed undertaking as defined by the GGRR and approved the rates and rate design established in two separate fuelling services agreements between FEI and the City of Nanaimo and between FEI and Nanaimo Cold Storage and Trucking Ltd. (Nanaimo Cold), on a permanent basis, effective August 1, 2016. This approval allows the City of Nanaimo and Nanaimo Cold to receive CNG fuelling services from the Mid Island Fuelling Station;
D. On July 15, 2024, FEI and DanFoss entered into the DanFoss-Mid Island Agreement, which establishes the terms, conditions and rates for DanFoss to receive CNG fuelling services from the Mid Island Fuelling Station, effective August 1, 2024. The rates established in the DanFoss-Mid Island Agreement are consistent with the rates and rate design approved by Orders G-62-17 and G-63-17; and
E. The BCUC has reviewed the Application and determines that approval of the proposed rates is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, the BCUC orders as follows:
1. The rates established for DanFoss in the DanFoss-Mid Island Agreement are approved on a permanent basis, effective August 1, 2024.
2. FEI is to file the DanFoss-Mid Island Agreement in tariff supplement form for endorsement by the BCUC within 15 days of the date of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 31st day of July 2024.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner