ORDER NUMBER
G-128-25
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Rates and Amending Agreement No. 7 for the 2025 Expansion
of the Waste Connections CNG Fuelling Station in Coquitlam
BEFORE:
W. E. Royle, Commissioner
on May 27, 2025
ORDER
WHEREAS:
A. On April 28, 2025, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 44.2, 59 to 61 and 89 of the Utilities Commission Act (UCA), for approval of an amending agreement dated April 11, 2025 (Amending Agreement No. 7) to the Fueling Station Licence and Use Agreement between FEI and Waste Connections of Canada Inc. (WC) for fuelling services from the Compressed Natural Gas (CNG) fuelling station (FEI-WC Agreement) located at the premises of WC in Coquitlam, BC (WC Coquitlam Fuelling Station);
B. FEI seeks the following approvals related to Amending Agreement No. 7:
1. A three-month extension to the existing term of the FEI-WC Agreement, effective for the period from May 1, 2025 to July 31, 2025, on the existing terms, conditions and rates, on a permanent basis to facilitate an expansion of the WC Coquitlam Fuelling Station (2025 Expansion);
2. Capital expenditures estimated in the amount of $251,646, including allowance for funds used during construction, for FEI to complete the 2025 Expansion; and
3. The rate design and rates for a five-year renewal term, for the period from August 1, 2025 to July 31, 2030, effective August 1, 2025, on an interim and refundable/recoverable basis, pending the final actual capital expenditures for the 2025 Expansion and an application by FEI for permanent rates, to reflect the expenditures for the 2025 Expansion and the forecast operations and maintenance expenses during the renewal term;
C. FEI requests that the live financial model filed as Appendix C to the Application be held confidential on the basis that it is the result of significant development effort by FEI on behalf of its customers and therefore, the formulas and configuration of the model are commercially sensitive;
D. FEI and WC (formerly BFI Canada Inc.) entered into the FEI-WC Agreement dated January 31, 2012, which established the terms, conditions and rates for FEI to construct and operate the WC Coquitlam Fuelling Station to provide CNG fuelling service to WC;
E. By Order C-6-12 dated April 30, 2012, the BCUC granted a Certificate of Public Convenience and Necessity for the WC Coquitlam Fuelling Station and by Order G-78-13 dated May 14, 2013, the BCUC approved the revised rate design and rates for the WC Coquitlam Fuelling Station as amended by an amending agreement dated December 31, 2013 (Amending Agreement No. 1);
F. By Order G-242-19 dated October 8, 2019 and Order G-6-20 dated January 14, 2020, respectively, the BCUC approved further amending agreements to the FEI-WC Agreement extending the expiry date of the FEI-WC Agreement to facilitate negotiation of a renewal term (Amending Agreements No. 2 and 3);
G. By Order G-110-20 dated May 7, 2020, the BCUC accepted, pursuant to section 44.2 of the UCA, the estimated capital expenditures of $182,549 for an expansion of the WC Coquitlam Fuelling Station and by Order G-377-22 dated December 20, 2022, the BCUC approved additional amendments to the FEI-WC Agreement (Amending Agreements No. 4 and 5) on a permanent basis, effective April 1, 2020. The amendments include, among other items, a renewal period to December 31, 2024 and a revised Capital Rate for the renewal period to reflect the final capital expenditures for the expansion conducted in 2020;
H. By Order G-345-24 dated December 18, 2024, the BCUC approved a further amendment, extending the expiry date of the FEI-WC Agreement to April 30, 2025 to facilitate the negotiation of another renewal term and the 2025 Expansion (Amending Agreement No. 6); and
I. The BCUC has reviewed the Application and determines that the following orders are warranted.
NOW THEREFORE pursuant to sections 44.2 and 59 to 61 of the UCA, the BCUC orders as follows:
1. The rates established in the FEI-WC Agreement, as amended by Amending Agreements No. 1 to No. 6, are approved to remain unchanged in accordance with Amending Agreement No. 7 on a permanent basis, effective May 1, 2025 to July 31, 2025.
2. FEI’s expenditures in the amount of $251,646 required to complete the 2025 Expansion to the WC Coquitlam Fuelling Station under Amending Agreement No. 7 are accepted.
3. The rate design and rates established in the FEI-WC Agreement, as amended by Amending Agreements No. 1 to No. 7, are approved on an interim and refundable/recoverable basis, effective August 1, 2025.
4. FEI is directed to file an application seeking permanent rates, upon the determination of the actual capital expenditures of the 2025 Expansion for the WC Coquitlam Fuelling Station.
5. FEI is directed to refund to/recover from WC any variance between the interim rates and the permanent rates as determined by the BCUC following the final determination of the application to be filed by FEI seeking permanent rates for WC to receive CNG fuelling service from the WC Coquitlam Fuelling Station, with interest calculated at the average prime rate of FEI’s principal bank for its most recent year.
6. The live financial model provided in Appendix C of the Application will be held confidential unless the BCUC determines otherwise.
7. FEI is to file Amending Agreement No. 7 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 27th day of May 2025.
BY ORDER
Electronically signed by Wendy Royle
W. E. Royle
Commissioner