Orders

IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

FortisBC Inc.

2010 Annual Review, 2011 Revenue Requirements and

Negotiated Settlement Process

BEFORE:                         D.A. Cote, Commissioner                                        September 16, 2010

                                        A.A. Rhodes, Commissioner

O  R  D  E  R

WHEREAS:

A.       British Columbia Utilities Commission (Commission) Order G-58-06 approved for FortisBC Inc. (FortisBC or Company) a Settlement Agreement for its 2006 Revenue Requirements (the 2006 Settlement Agreement) and a Performance Based Regulation Settlement for the years 2007, 2008 and potentially 2009 (the PBR Settlement).  The PBR Settlement requires FortisBC to hold an Annual Review, Workshop and Negotiated Settlement Process (NSP) each November with a goal of achieving firm rates by December 1^st for the following year;

B.       The Annual Review compares the Company’s actual performance for the recently completed year to the approved targets for the Performance Standards to determine whether the Company is entitled to an incentive payment.  The Revenue Requirements Workshop is to focus on future test periods and the NSP is conducted to establish rates for the following year;

C.       Pursuant to Commission Order G-193-08, the terms of the PBR Settlement was extended to 2011 along with the approval of the 2009 Revenue Requirement and Negotiated Settlement Agreement;

D.       On September 9, 2010, FortisBC issued a letter to the Commission with a proposed regulatory timetable for the 2010 Annual Review and 2011 Revenue Requirements;

E.        The Commission has reviewed FortisBC’s proposed timetable and considers that an approval is warranted.

NOW THEREFORE the Commission orders as follows:

1.       The Commission approves the FortisBC timetable and directs FortisBC to hold a 2010 Annual Review on November 16, 2010 in Kelowna, BC to review its 2010 performance results and to determine the Company’s eligibility for an incentive payment.  The 2011 Revenue Requirements Workshop and NSP will also be held in Kelowna, BC.  The Regulatory Timetable is attached as Appendix A to this Order.

2.       FortisBC is to provide the Commission, along with all parties who participated in the previous PBR Settlements, copies of the Preliminary 2011 Revenue Requirements material no later than Friday, October 1, 2010.

3.       FortisBC is to provide a copy of this Commission Order and Regulatory Timetable to all parties who participated in other FortisBC regulatory proceedings during the past year no later than Friday, October 1, 2010.

4.       FortisBC is to provide the Commission and all Registered Interveners advance information regarding all material variances pertaining to cost of service, sales volume and revenue for the historical period to be presented at the Annual Review no later than Monday, November 1, 2010.

5.       Those persons wishing to participate in FortisBC’s 2010 Annual Review, the 2011 Revenue Requirements Workshop and NSP are to advise the Commission Secretary in writing of their intention to do so, no later than Friday, October 8, 2010.

DATED at the City of Vancouver, in the Province of British Columbia, this              16^th                  day of September 2010.

BY ORDER

Original signed by:

D.A. Cote

Commissioner

Attachment

Appendix A

to Order G-142-10

Page 1 of 1

                                                                                                    FortisBC Inc.

2010 Annual Review, 2011 Revenue Requirements and

Negotiated Settlement Process

REGULATORY TIMETABLE

Location of Annual Review and Negotiated Settlement Process

Holiday Inn Express

2429 Highway 97 North

Kelowna, BC