ORDER NUMBER
G-210-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Request to Discontinue Quarterly Reporting Requirement
for the Regional Gas Supply Diversity Development Account
BEFORE:
B. A. Magnan, Commissioner
W. E. Royle, Commissioner
on August 8, 2024
ORDER
WHEREAS:
A. On April 30, 2024, FortisBC Energy Inc. (FE) filed its sixth quarterly progress report for the period January 1, 2024 to March 31, 2024 for the Regional Gas Supply Diversity (RGSD) Development Account (Report);
B. On September 14, 2022, the British Columbia Utilities Commission (BCUC) issued Order G-253-22 approving the RGSD Development Account, a new, non-rate base deferral account to capture actual development costs incurred with respect to the potential RGSD Project, attracting a Weighted Average Cost of Capital return with the disposition of the balance to be determined in a future proceeding. Directive 2 of Order G-253-22 directed FEI to file quarterly progress reports to the BCUC on the work completed, anticipated work and material developments on the RGSD Project. Directive 4 of Order G-253-22 stated that the recoverability and disposition of any costs recorded in the RGSD Development Account would be subject to BCUC review and determination in a future application;
C. In its Report, FEI seeks approval to discontinue filing quarterly progress reports. FEI states that it considers the current phase of the RGSD Project to have concluded, and proposes to cease recording costs in the RGSD Development Account;
D. In its Report, FEI further states it is not seeking recovery or disposition of any costs incurred in the RGSD Development Account at this time, and proposes to file an application for cost recovery within six months of the filing of its Report. The total project development cost incurred to date is $4.3 million;
E. On July 10, 2024, FEI responded to BCUC Staff Questions and submitted that:
• FEI will not be filing a CPCN application for the RGSD Project,
• any future project undertaken by FEI would be a new project, and
• FEI would seek approval from the BCUC at the time the project is sufficiently progressed;
F. On July 30, 2024, FEI filed its seventh quarterly progress report for the period April 1, 2024 to June 30, 2024 for the RGSD Development Account, stating there are no further updates to provide for that quarter; and
G. The BCUC has reviewed the Report and responses to BCUC Staff Questions and makes the following determinations.
NOW THEREFORE the BCUC orders as follows:
1. Pursuant to section 99 of the Utilities Commission Act, FEI is approved to discontinue filing quarterly progress reports for the RGSD Development Account.
2. FEI is approved to cease recording costs in the RGSD Development Account.
3. The BCUC will consider the recovery, disposition and prudency of any costs incurred in the RGSD Development Account in a future filing, such as an annual review, CPCN or separate application from FEI.
DATED at the City of Vancouver, in the Province of British Columbia, this 8th day of August 2024.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner