SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA web site: http://www.bcuc.com IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by Terasen Gas Inc. for a Certificate of Public Convenience and Necessity for the Lions Gate Waste Water Treatment Plant Biogas Upgrading Demonstration Project and for Approval of an Energy Supply Contract for Biogas from the Lions Gate Waste Water Treatment Plant BEFORE: D.A. Cote, Commissioner and Panel Chair A.W.K. Anderson, Commissioner M.R. Harle, Commissioner O R D E R WHEREAS: A. On April 14, 2009, Terasen Gas Inc. (“TGI”) applied (the “Application”) to the British Columbia Utilities Commission (the “Commission”) pursuant to sections 45 and 46 of the Utilities Commission Act (the “Act”), for a Certificate of Public Convenience and Necessity (“CPCN”) to construct and operate the biogas upgrading facilities at the Lions Gate Waste Water Treatment Plant (“Lions Gate WWTP”) as a demonstration Project (the “Project”); and B. The Project as proposed by TGI involves the installation of a small, skid‐ mounted plant within the Lions Gate WWTP which will recover pipeline‐grade bio‐methane from the raw gas produced by the Lions Gate WWTP and inject the pipeline‐grade bio‐methane into TGI’s local distribution pressure gas line serving the installation; and BRIT ISH COLU MBIA UTIL IT IES COM MISSION ORDER NUMBER G ‐45‐09 TELEPHONE: (604) 660‐4700 BC TOLL FREE: 1‐800‐663‐1385 FACSIMILE: (604) 660‐1102 May 1, 2009 . . ./2
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G‐45‐09 2 C. TGI estimates the direct capital cost of the project will be approximately $1.7 million. This will be offset somewhat by a $0.366 million award from the Innovative Clean Energy (“ICE”) Fund; and D. TGI has also applied pursuant to section 71 of the Act for approval of an energy supply contract with the Greater Vancouver Sewage and Drainage District (“Metro Vancouver”) for raw biogas from the Lions Gate WWPT in the form included as Appendix 1 to the Application; and E. TGI seeks approval pursuant to sections 59‐61 of the Act to charge the cost of service for the Project (including the return on rate base, depreciation expense, operating and maintenance expenses, property taxes and income taxes) to the Midstream Cost Reconciliation Account and recover these costs from customers through the Midstream Cost Recover Charge; and F. TGI states that the Project is a significant first step in the development of a new source of renewable energy and that while the cost of the bio‐methane yielded on the project is greater on a per GJ basis than the current cost of gas acquired by TGI for its customers, the impact on rates will be negligible and outweighed by the learning benefits of having a practical application of biogas upgrading in service; and G. The Commission has reviewed the Application and considers that a written public hearing and regulatory timetable for the registration of Interveners and the review of the Application, is necessary and in the public interest.
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G‐45‐09 3 NOW THEREFORE the Commission orders as follows: 1. The Application will be examined by a Written Public Hearing process in accordance with the Regulatory Timetable for the hearing that is established and attached as Appendix A to this Order. 2. The Application, together with any supporting materials, will be made available for inspection at the TGI Office, 16705 Fraser Highway, Surrey, BC, V4N 0E8 and at the British Columbia Utilities Commission, Sixth Floor, 900 Howe Street, Vancouver, BC, V6Z 2N3 and will also be available on the TGI and Commission websites at www.terasengas.com and www.bcuc.com. 3. Interveners or Interested Parties should register with the Commission, in writing or electronic submission, by Friday, May 15, 2009. 4. TGI will publish the Notice of Application and Written Public Hearing in the local North Shore papers as soon as it is possible to do so. DATED at the City of Vancouver, in the Province of British Columbia, this First day of May 2009. BY ORDER Original signed by: D.A. Cote Commissioner Attachments Orders/G‐45‐09_TGI Lions Gate Biogas ‐ Timetable
APPENDIX A to Order G‐45‐09 Page 1 of 1 An Application by Terasen Gas Inc. for a Certificate of Public Convenience and Necessity for the Lions Gate Waste Water Treatment Plant Biogas Upgrading Demonstration Project and for an approval of an Energy Supply Contract for Biogas from the Lions Gate Waste Water Treatment Plant REGULATORY TIMETABLE ACTION DATE (2009) Intervenor and Interested Party Registrations Friday, May 15 Application Workshop Tuesday, May 19 Commission Information Request No. 1 Thursday, May 21 Intervenor Information Requests No. 1 Wednesday, May 27 Terasen Gas Responses to Commission and Intervenor Wednesday, June 10 Information Requests No. 1 Terasen Gas Written Final Argument Friday, June 19 Intervenor Written Final Argument Friday, June 26 Terasen Gas Reply Argument Friday, July 3 Orders/G‐45‐09_TGI Lions Gate Biogas ‐ Timetable
APPENDIX B to Order G‐45‐09 Page 1 of 2 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660‐4700 BC TOLL FREE: 1‐800‐663‐1385 VANCOUVER, B.C. V6Z 2N3 CANADA FACSIMILE: (604) 660‐1102 web site: http://www.bcuc.com An Application by Terasen Gas Inc. for a Certificate of Public Convenience and Necessity for the Lions Gate Waste Water Treatment Plant Biogas Upgrading Demonstration Project and for an approval of an Energy Supply Contract for Biogas from the Lions Gate Waste Water Treatment Plant NOTICE OF APPLICATION AND WRITTEN PUBLIC HEARING THE APPLICATION On April 14, 2009, Terasen Gas Inc. (“TGI”) applied (the “Application”) to the British Columbia Utilities Commission (the “Commission”) pursuant to sections 45 and 46 of the Utilities Commission Act (the “Act”), for a Certificate of Public Convenience and Necessity (“CPCN”) to construct and operate the biogas upgrading facilities at the Lions Gate Waste Water Treatment Plant (“Lions Gate WWTP”) as a demonstration Project (the “Project”). The Lions Gate WWTP is located in West Vancouver, west of the Lions Gate Bridge at 101 Bridge Road. TGI has also applied pursuant to section 71 of the Act for approval of an energy supply contract with the Greater Vancouver Sewage and Drainage District (“Metro Vancouver”) for raw biogas from the Lions Gate WWPT in the form included as Appendix 1 to the Application. TGI seeks approval pursuant to sections 59‐61 of the Act to charge the cost of service for the Project (including the return on rate base, depreciation expense, operating and maintenance expenses, property taxes and income taxes) to the Midstream Cost Reconciliation Account and recover these costs from customers through the Midstream Cost Recover Charge. TGI states that the Project is a significant first step in the development of a new source of renewable energy and that while the cost of the bio‐methane yielded on the project is greater on a per GJ basis than the current cost of gas acquired by TGI for its customers, the impact on rates will be negligible and outweighed by the learning benefits of having a practical application of biogas upgrading in service.
APPENDIX B to Order G‐45‐09 Page 2 of 2 THE REGULATORY PROCESS The Commission has established a written public hearing process and Regulatory Timetable for the regulatory review of the Application. A Workshop on the Application will be held in the Commission’s Hearing Room on the 12 th Floor, 1125 Howe Street, Vancouver on Tuesday, May 19, 2009 commencing at 1:00 p.m. PUBLIC INSPECTION OF THE APPLICATION The Application and supporting materials will be available for inspection at the following locations: British Columbia Utilities Commission Internet Sixth Floor, 900 Howe Street www.bcuc.com Vancouver, B.C. V6Z 2N3 Telephone: 1‐800‐663‐1385 Terasen Gas Inc. Internet 16705 Fraser Highway www.terasengas.com Surrey, BC, V4N 0E8 REGISTERING TO PARTICIPATE Persons who expect to actively participate in this Written Public Hearing process should register as Intervenors with the Commission, in writing, no later than Friday, May 15, 2009. Intervenors are requested to identify their interest in the Application. Intervenors will each receive a copy of the Application and all correspondence and filed documentation in accordance with the Commission’s Document Filing Protocols. Persons not expecting to actively participate, but who have an interest in the proceeding, should register as Interested Parties with the Commission, in writing, by the same date. Interested Parties will receive a copy of the cover letter for the Application and the Commission’s Decision when issued. All submissions and/or correspondence received from active participants or the general public relating to the Application will be placed on the pubic record and posted to the Commission’s web site at www.bcuc.com . FURTHER INFORMATION For further information, please contact Ms. Erica M. Hamilton, Commission Secretary, as follows: Telephone: (604) 660‐4700 B.C. Toll Free: 1‐800‐663‐1385 Facsimile: (604) 660‐1102 E‐mail: commission.secretary@bcuc.com
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