Orders

ORDER NUMBER

G-327-24A

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

FortisBC Energy Inc.

Rate Schedule 46 Liquefied Natural Gas Sales,

Dispensing and Transportation Services Permanent Rates

BEFORE:

B. A. Magnan, Commissioner

on December 6, 2024

ORDER

WHEREAS:

A.      On November 24, 2024, 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, 2025 (Application);

B.      In the Application, FEI also requests approval of certain housekeeping changes to the Table of Charges for LNG Transportation Service that would change the definition of a Standard Tanker as one with a capacity of less than 16,000 US gallons and a Tridem Tanker as one with a capacity of 16,000 US gallons or more;

C.      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;

D.      By Order G-207-14 dated December 24, 2014, the BCUC approved amendments to RS 46 pursuant to an amendment to Directive No. 5, in accordance with OIC 749, B.C. Regulation 265/2014 effective January 1, 2015 and further by Order G-65-17 dated May 4, 2017, the BCUC approved 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-335-23 dated December 7, 2023, the BCUC approved revised rates to RS 46, effective January 1, 2024, on a permanent basis and by Order G-242-24 dated September 11, 2024, the BCUC approved tariff amendments to RS 46 to implement the BCUC’s decision on FEI’s revised Renewable Natural Gas (RNG) program, effective July 1, 2024;

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 Prices Index (BC CPI);

G.      Based on this BC CPI data, using two 12 month averages inclusive of the indices for the periods of November 2022 through to October 2024, the BC CPI averages 2.74 percent, which is greater than 2 percent. As a result, FEI is proposing that the Table of Charges increase by 2.74 percent effective January 1, 2025;

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, 2025 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 and 89 of the UCA, the BCUC orders as follows:

1.       The revised rates, including housekeeping changes, as applied for by FEI are approved on an interim and recoverable or refundable basis, effective January 1, 2025.

2.       FEI is directed to file with the BCUC, on or before December 15, 2024, revised RS 46 tariff pages in accordance with this order and in conjunction with other rate changes approved by the BCUC effective January 1, 2025.

3.       A regulatory timetable is established as set out in Appendix A to this order.

4.       On or before December 13, 2024, FEI is directed to provide notice of the Application and this order to RS 46 customers and other affected parties.

5.       By December 20, 2024, FEI is directed to provide to the BCUC written confirmation of compliance with the notice requirements in Directive 4 of this order.

6.       Persons who wish to file a letter of comment in this proceeding may do so by completing a Letter of Comment Form by January 30, 2025.

DATED at the City of Vancouver, in the Province of British Columbia, this       9^th       day of December 2024.

BY ORDER

Electronically signed by Bernard Magnan

B. A. Magnan

Commissioner

FortisBC Energy Inc.

Rate Schedule 46 Liquefied Natural Gas Sales,

Dispensing and Transportation Services Permanent Rates