Orders

ORDER NUMBER

G-17-26

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.

Reconsideration of 2025 to 2027 Revenue Requirements Orders G-270-25 and G-284-25

BEFORE:

M. Jaccard, Panel Chair

T. A. Loski, Commissioner

on February 4, 2026

ORDER

WHEREAS:

A.      On January 23, 2026, Pacific Northern Gas Ltd. (PNG) filed an application with the British Columbia Utilities Commission (BCUC) for reconsideration and variance of the decision and Order G-270-25 (PNG RRA Decision) regarding PNG’s 2025 to 2027 Revenue Requirements Application (RRA), pursuant to section 99 of the Utilities Commission Act (UCA) (PNG Reconsideration Application);

B.      In the PNG Reconsideration Application, PNG submits that the BCUC erred in fact and/or law in its decision to deny recovery in rates of 50 percent of the Test Period forecast integrity management capital expenditures of $45.15 million and that new facts have arisen since the issuance of the PNG RRA Decision. PNG also submits that the BCUC erred in fact, law and jurisdiction in its decision to direct PNG to set its basic and delivery charges for 2025 to 2027 (Test Period) based on a 5-year rate smoothing scenario;

C.      In the PNG Reconsideration Application, PNG requests a variance to the PNG RRA Decision to allow PNG to recover in rates the full amount of the Test Period forecast integrity management capital expenditures and for PNG to set rates on a 3-year rate smoothing scenario that it had proposed in the PNG 2025 to 2027 RRA;

D.      PNG also requests that the BCUC grant a stay of the PNG RRA Decision and approve interim rates set out in Exhibit D of Schedule B to the PNG Reconsideration Application, effective March 1, 2026, pending the outcome of the PNG Reconsideration Application. PNG submits that the interim rates reflect the applicable rates set by the PNG RRA Decision;

E.       On January 27, 2026, Pacific Northern Gas (N.E.) Ltd. (PNG(NE)) filed an application with the BCUC for reconsideration and variance of the decision and Order G-284-25 (PNG(NE) RRA Decision) regarding PNG(NE)’s 2025 to 2027 RRA, pursuant to section 99 of the UCA (PNG(NE) Reconsideration Application);

F.       In the PNG(NE) Reconsideration Application, PNG(NE) submits that the BCUC erred in fact and/or law in its decision to direct PNG(NE) to reduce the forecast capital expenditures for PNG(NE)’s integrity dig campaign in each of 2026 and 2027 by 50 percent for each of its Fort St. John/Dawson Creek and Tumbler Ridge divisions;

G.      In the PNG(NE) Reconsideration Application, PNG(NE) requests a variance to the PNG(NE) RRA Decision to allow PNG(NE) to recover in rates the full amount of the Test Period forecast capital expenditures for PNG(NE)’s integrity dig campaign;

H.      PNG(NE) also requests that the BCUC grant a stay of the PNG(NE) RRA Decision and that the BCUC approve interim rates set out in Exhibit D of Schedule B to the PNG(NE) Reconsideration Application, effective March 1, 2026, pending the outcome of the PNG(NE) Reconsideration Application. PNG(NE) submits that the interim rates reflect the applicable rates set by the PNG(NE) RRA Decision;

I.         By Order G-309-25, the BCUC granted an extension to the deadlines for PNG and PNG(NE) to file the compliance filings, including revised regulatory schedules and updated tariff pages reflecting permanent approvals, directed by the PNG and PNG(NE) RRA decisions, respectively; and

J.        The BCUC has reviewed the PNG and PNG(NE) reconsideration applications and considers that the establishment of a regulatory timetable is warranted.

NOW THEREFORE the BCUC orders as follows:

1.       The PNG and PNG(NE) applications to reconsider Order G-270-25 and Order G-284-25 will be heard at the same time.

2.       A regulatory timetable for the review of the PNG and PNE(NE) reconsideration applications is established as set out in Appendix A to this order.

3.       PNG is directed to make the PNG and PNG(NE) reconsideration applications available on its website.

4.       PNG is directed to provide a copy of this order and a copy of the PNG Reconsideration Application and the PNG(NE) Reconsideration Application to interveners registered in the respective proceedings that reviewed the PNG 2025 to 2027 RRA and the PNG(NE) 2025 to 2027 RRA, by no later than Monday, February 9, 2026.

5.       Order G-270-25, Order G-284-25, and Order G-309-25 are hereby stayed, pending the outcome of the BCUC’s review of the PNG and PNG(NE) reconsideration applications.

6.       The basic and delivery charges set forth in Exhibit D of Schedule B to the PNG Reconsideration Application and the PNG(NE) Reconsideration Application are approved on an interim basis, effective March 1, 2026.

7.       Any differences between the interim rates and the permanent rates that are determined by the BCUC following final disposition of PNG and PNG(NE) reconsideration applications are subject to refund or recovery, with interest at the average prime rate of PNG/PNG(NE)'s principal bank for its most recent year.

8.       PNG and PNG(NE) are directed to file with the BCUC the rate schedules reflecting the interim approvals in Directive 6 of this order for endorsement within 30 business days of the date of this order.

9.       PNG and PNG(NE) are directed to include a notice of the approved interim rates with the next bill for each customer.

DATED at the City of Vancouver, in the Province of British Columbia, this        4^th       day of February 2026.

BY ORDER

Electronically signed by Mark Jaccard

M. Jaccard

Commissioner

Attachment

Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.

Reconsideration of 2025 to 2027 Revenue Requirements Orders G-270-25 and G-284-25