BRITISH COLUM BIA UTILITIES COMM ISSION ORDER NUMBER G-11 1-04 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by FortisBC Inc. for Approval of 2005 Revenue Requirements, 2005-2024 System Development Plan and 2005 Resource Plan BEFORE: L. F. Kelsey, Panel Chair and P.G. Bradley, Commissioner December 14, 2004 O R D E R WHEREAS: A. On November 26, 2004, FortisBC Inc. (“FortisBC”) filed its 2005 Revenue Requirements Application (the “Application”) with the British Columbia Utilities Commission (“Commission”). FortisBC applies for an Order, pursuant to the applicable provisions of the Utilities Commission Act (the “Act”) including Sections 23, 45, 57, 60, and 61, approving the Application for the purpose of setting rates and other ancillary matters; and B. The Application includes a request for an interim refundable general rate increase of 4.4 percent, effective January 1, 2005. The increase is based, in part, on a proposal to increase the equity risk premium of FortisBC from 40 to 75 basis points. In response to a Commission request, FortisBC determined that the general rate increase would equal 3.7 percent if derived on the basis of its existing equity risk premium of 40 basis points; and C. As part of its Application, FortisBC filed its 2005-2024 System Development Plan pursuant to Section 45 (6.1)(a) of the Act. FortisBC intends to file its 2005 Resource Plan, pursuant to Section 45 (6.1)(b) of the Act, before December 31, 2004. FortisBC seeks Commission approval that these plans satisfy the requirements of Section 45 of the Act and are in the public interest; and D. The Negotiated Settlement Agreement approving the 2004 Revenue Requirements of FortisBC, issued under Commission Order G-38-04, now requires an Annual Review, primarily to review the incentive sharing regarding 2004 power purchase costs and certain operating and maintenance expenditures; and E. The Commission requires that interim rates be established and that a regulatory process be established to review the Application, the System Development Plan and the Resource Plan. NOW THEREFORE the Commission orders as follows: 1. The Commission approves for FortisBC an interim rate increase of 3.7 percent, effective January 1, 2005, subject to refund with interest calculated for the refund period at the average prime rate of the principal bank with which FortisBC conducts its business.
2 2. FortisBC is to inform all customers of the interim rate increase by way of a customer notice. 3. The Commission will accept, subject to timely filing, amended Electric Tariff Rate Schedules in accordance with the terms of this Order. 4. A regulatory process is established to review the Application, the System Development Plan and the Resource Plan according to the timetable attached as Appendix A to this Order. The timetable accommodates the 2004 Annual Review at the conclusion of the Workshop on January 20, 2005. Subsequent to the conclusion of the Pre-Hearing Conference, the Commission will issue an Order finalizing the schedule for the remainder of the regulatory process. 5. FortisBC is to provide a copy of this Order to all Intervenors and Interested Parties who registered for the 2003 Annual Review and the 2004 Negotiated Settlement Process. 6. FortisBC will arrange for publication of the Notice of Workshops and Pre-Hearing Conference, attached as Appendix B to this Order, as soon as possible in such appropriate local news publications in its service area so as to provide adequate notice to the public. 7. The Application and supporting materials will be available for inspection at the following locations: FortisBC Inc. Head Office 5 th Floor 1628 Dickson Avenue Kelowna, B.C. V1Y 9X1 Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Penticton and Trail, BC 8. Intervenors and Interested Parties should inform the Commission, in writing by January 5, 2005, of their intention to actively intervene in the proceeding, or become Interested Parties. Registered Intervenors will receive from FortisBC copies of the Application and, all correspondence and filed documentation. Interested Parties will receive the Application’s Executive Summary and copies of all Orders issued. DATED at the City of Vancouver, in the Province of British Columbia, this 14 Attachments Orders/FortisBC_2005RR Interim-Ntc Wkshp-AnnRvw-PHC BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-111-04 British Columbia Utilities Commission Sixth Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Telephone: 1-800-663-1385 Internet www.fortisbc.com www.bcuc.com th day of December 2004. BY ORDER Original signed by: L. F. Kelsey Panel Chair and Commissioner
An Application by FortisBC Inc. for Approval of 2005 Revenue Requirements, 2005-2024 System Development Plan and 2005 Resource Plan REGULATORY TIMETABLE Action Registration deadline for Intervenors and Interested Parties Workshop 1 System Development Plan & Resource Plan Workshop 2 System Development Plan & Resource Plan Annual Review 2004 Revenue Requirements Annual Review Workshop 3 2005 Revenue Requirements Application Pre-Hearing Conference 2005 Revenue Requirements Application & Plans Commission Order finalizing regulatory process Preliminary Schedule Filing of Commission and Intervenor Information Requests to FortisBC Filing of FortisBC response to all Information Requests Filing of Intervenor Evidence Filing of Information Requests on Intervenor Evidence to Applicable Intervenors Filing of Intervenor response to all Information Requests Oral Public Hearing (tentative) APPENDIX A to Order No. G-111-04 Page 1 of 1 Date – Time - Location Wednesday, January 5, 2005 Tuesday, January 18, 2005 - 9:00 a.m. J.A. Drennan Bldg., 1290 Esplanade, Trail, BC Thursday, January 20, 2005 - 9:00 a.m. Grand Okanagan Resort, 1310 Water St, Kelowna Thursday, January 20, 2005 - 4:45 p.m. Grand Okanagan Resort, 1310 Water St, Kelowna Friday, January 21, 2005 - 9:00 a.m. Grand Okanagan Resort, 1310 Water St, Kelowna Friday, January 21, 2005 - 1:00 p.m. Grand Okanagan Resort, 1310 Water St, Kelowna Monday, January 24, 2005 Wednesday, January 26, 2005 Friday, February 4, 2005 Friday, February 11, 2005 Wednesday, February 16, 2005 Wednesday, February 23, 2005 Tuesday, March 1, 2005 – Friday, March 4, 2005
APPENDIX B to Order No. G-111-04 Page 1 of 2 TELEPHONE: (604) 660-4700 SIXTH FLOOR, 900 HOWE STREET, BOX 250 BC TOLL FREE: 1-800-663-1385 VANCOUVER, B.C. V6Z 2N3 CANADA FACSIMILE: (604) 660-1102 web site: http://www.bcuc.com FORTISBC INC. (“FORTISBC”) 2005 REVENUE REQUIREMENTS 2005-2024 SYSTEM DEVELOPMENT PLAN AND 2005 RESOURCE PLAN NOTICE OF WORKSHOPS, ANNUAL REVIEW AND PRE-HEARING CONFERENCE Workshop 1 – System Development Plan and Resource Plan Date: Tuesday, January 18, 2005 Time: 9:00 a.m. Location: J.A. Drennan Bldg., 1290 Esplanade, Trail, BC Workshop 2 – System Development Plan and Resource Plan Date: Thursday, January 20, 2005 Time: 9:00 a.m. Location: Grand Okanagan Resort, 1310 Water St, Kelowna, BC Annual Review – 2004 Revenue Requirements Annual Review Date: Thursday, January 20, 2005 Time: 4:45 p.m. Location: Grand Okanagan Resort, 1310 Water St, Kelowna, BC Workshop 3 – 2005 Revenue Requirements Application Date: Friday, January 21, 2005 Time: 9:00 a.m. Location: Grand Okanagan Resort, 1310 Water St, Kelowna, BC Pre-Hearing Conference - 2005 Revenue Requirements Application & Plans Date: Friday, January 21, 2005 Time: 1:00 p.m. Location: Grand Okanagan Resort, 1310 Water St, Kelowna, BC On November 26, 2004, FortisBC filed its 2005 Revenue Requirements Application (the “Application”) with the British Columbia Utilities Commission (“the Commission”). FortisBC believes that much of the Application is amenable to a Negotiated Settlements Process, and recommends this process to the Commission. The Application, if approved, would result in an increase in general rates of 4.4 percent. As it is not possible to make a determination on final rates until sometime in 2005, FortisBC requested a 4.4 percent interim refundable rate increase, effective January 1, 2005. The Commission has approved an interim refundable rate increase of 3.7 percent, effective January 1, 2005. As part of its Application, FortisBC filed its 2005-2024 System Development Plan. FortisBC intends to file its 2005 Resource Plan before December 31, 2004. FortisBC seeks Commission approval that these Plans satisfy the requirements of the Utilities Commission Act and are in the public interest.
FortisBC has scheduled three workshops to explain, and to seek stakeholder input on, its Revenue Requirements Application and its System Development Plan and Resource Plan. FortisBC has also scheduled the 2004 Annual Review to review the incentive sharing regarding 2004 power purchase costs and certain other expenses. The Commission has scheduled a Pre-Hearing Conference to solicit input from all participants as to the proposed regulatory process to deal with the Application and Plans, and any other preliminary matters. FortisBC is to provide copies of the Application to all parties wishing to participate in the Pre-Hearing Conference. Those persons wishing to participate are to advise the Commission Secretary of their intention to do so no later than January 5, 2005. Notification by mail, courier delivery, fax or e-mail is acceptable. Mail: Box 250, Sixth Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Facsimile: (604) 660-1102 The Application and supporting materials will be available for inspection at the following locations: FortisBC Inc. Head Office 5 th Floor 1628 Dickson Avenue Kelowna, B.C. V1Y 9X1 Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Penticton and Trail, B.C. For further information, please contact the Commission Secretary Toll Free at 1-800-663-1385 or (604) 660-4700 or Mr. Werner J. Krampl, Senior Financial Analyst at (604)-660-4755. APPENDIX B to Order No. G-111-04 Page 2 of 2 Email: Commission.Secretary@bcuc.com Web Registration: http://www.bcuc.com British Columbia Utilities Commission Sixth Floor, 900 Howe Street Vancouver, B.C. V6Z 2N3 Telephone: 1-800-663-1385 Internet www.fortisbc.com www.bcuc.com
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.