ORDER NUMBER
G-313-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc. and FortisBC Inc.
2025 to 2027 Rate Setting Framework
FortisBC Energy Inc. Application for Approval of 2025 Delivery Rates on an
Interim Basis, effective January 1, 2025
BEFORE:
T. A. Loski, Panel Chair
A. K. Fung, KC, Commissioner
W. E. Royle, Commissioner
on November 27, 2024
ORDER
WHEREAS:
A. On April 8, 2024, FortisBC Energy Inc. (FEI) and FortisBC Inc. (FBC) (collectively, FortisBC) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 of the Utilities Commission Act (UCA), seeking approval of a rate setting framework (Rate Framework) for FortisBC for the upcoming three years from 2025 to 2027 (Initial Application);
B. On May 31, 2024, FortisBC filed supplemental information relating to the impacts of the energy transition and climate change on the proposed Rate Framework as requested by the BCUC (Supplemental Information);
C. By Orders G-165-24 and G-255-24, respectively, the BCUC set the scope and regulatory timetable for the review of the Initial Application and Supplemental Information (together, the Application);
D. On November 5, 2024, FEI applied to the BCUC, pursuant to sections 59 to 61 and 89 of the UCA, for approval of a 2025 delivery rate increase of 7.75 percent, on an interim and refundable/recoverable basis (with interest at the average prime rate of FEI’s principal bank applied to any refundable amounts), effective January 1, 2025 (Interim Rates Application). FEI submits that the requested delivery rate increase is based on its proposals in the Application and the best information available at the time of the Interim Rates Application, and that FEI intends to file its annual review materials to set permanent delivery rates for 2025 (2025 Annual Review of Delivery Rates Application) after the BCUC renders its final decision on the Application;
E. As part of the Interim Rates Application, FEI also seeks approval, on an interim and refundable/recoverable basis, of three rate riders, effective January 1, 2025; and
F. The BCUC has reviewed the Interim Rates Application and makes the following determinations.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the BCUC orders as follows:
1. FEI’s application for a 7.75 percent delivery rate increase, on an interim and refundable/recoverable basis, effective January 1, 2025, is approved.
2. FEI is approved to set the Revenue Stabilization Adjustment Mechanism rate rider in the amount of $0.149 per gigajoule, on an interim and refundable/recoverable basis, effective January 1, 2025.
3. FEI is approved to set the Fort Nelson Residential Customer Common Rate Phase-in rate rider in the credit amount of $0.609 per gigajoule, on an interim and refundable/recoverable basis, effective January 1, 2025.
4. FEI is approved to continue the Clean Growth Innovation Fund rate rider in the amount of $0.40 per month, on an interim and refundable/recoverable basis, effective January 1, 2025.
5. FEI is directed to refund/recover the difference between the interim rates approved in Directives 1 to 4 above and the permanent rates, as determined by the BCUC following its final determinations on the Application and the 2025 Annual Review of Delivery Rates Application, with interest calculated on any refundable/recoverable amounts at the average prime rate of FEI’s principal bank for its most recent year.
6. FEI is directed to file with the BCUC, on or before December 15, 2024, amended tariff pages reflecting the interim rates approved in accordance with the terms of this order in conjunction with any other rate changes approved by the BCUC effective January 1, 2025.
DATED at the City of Vancouver, in the Province of British Columbia, this 27th day of November 2024.
BY ORDER
Electronically signed by Tom Loski
Commissioner