ORDER NUMBER
G-20-25
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 February 4, 2025
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 to mean one with a capacity of less than 16,000 US gallons and a Tridem Tanker to mean 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 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;
J. By Order G-327-24A dated December 9, 2024, BCUC approved revised rates, including housekeeping changes, as applied for by FEI on an interim and recoverable or refundable basis, effective January 1, 2025 and established a regulatory timetable that included notice, BCUC information requests, letters of comment and final argument. No letters of comment were received by the BCUC by the deadline set out in the regulatory timetable;
K. By letter dated February 3, 2025, FEI indicated that since no letters of comment had been filed in the proceeding, FEI would not be submitting final argument; and
L. The BCUC has reviewed the Application and considers the following determinations to be warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the UCA, the BCUC orders as follows:
1. The revised rates for RS 46, including housekeeping changes, as applied for by FEI are approved on a permanent basis, effective January 1, 2025.
2. FEI is directed to file with the BCUC, within 30 days of the date of this order, updated RS 46 tariff pages reflecting the revised rates approved by the BCUC effective January 1, 2025.
DATED at the City of Vancouver, in the Province of British Columbia, this 4th day of February 2025.
BY ORDER
Electronically signed by Bernard Magnan
B. A. Magnan
Commissioner