IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
A Filing by Central Heat Distribution Limited
for Acceptance of a Gas Sales and Purchase Agreement with Cascadia Energy Ltd.
BEFORE: D. Morton, Commissioner
C.A. Brown, Commissioner November 10, 2011
O R D E R
WHEREAS:
A. British Columbia Utilities Commission (Commission) Order G-130-06 Appendix A, Rules for Natural Gas Energy Supply Contracts, states that “all energy supply contracts for the sale of natural gas to a public utility, other than those for purchases from another public utility, and all subsequent amendments, must be filed with the Commission”;
B. On September 19, 2011 by Letter L-78-11, the Commission directed Central Heat Distribution Limited (CHDL) to file all energy supply agreements in effect since November 1, 2010 pursuant to section 71 of the Utilities Commission Act and Commission Order G-130-06 Appendix A, Rules for Natural Gas Energy Supply Contracts;
C. On September 26, 2011, CHDL filed an executed Gas Sales and Purchase Agreement (Agreement) dated July 15, 2009 between CHDL and Cascadia Energy Ltd. and a Memorandum of Understanding dated May 25, 2010 between CHDL and Terasen Gas Inc. (now Fortis BC Energy Inc.);
D. Terasen Gas Inc. (now FortisBC Energy Inc.) is and was as of May 25, 2010, a public utility;
E. On October 5, 2011, CHDL responded to a Commission information request;
F. The Commission has reviewed the CHDL filing and is satisfied that the Gas Sales and Purchase Agreement (Agreement) between CHDL and Cascadia Energy Ltd. should be accepted;
G. CHDL has requested the filed Agreement be treated on a confidential basis;
NOW THEREFORE pursuant to section 71 of the Utilities Commission Act and the Commission’s Rules for Natural Gas Energy Supply Contracts the Commission orders as follows:
1. The Commission accepts the Agreement between CHDL and Cascadia Energy Ltd. and directs CHDL to file executed copies of any new term sheets (Schedule A) under the Agreement.
2. CHDL is to file energy supply contract extensions, amendments or new contracts prior to the start of gas deliveries under those agreements pursuant to the Rules for Natural Gas Energy Supply Contracts.
3. The Commission will keep confidential the Agreement and associated documents identified in this Order.
DATED at the City of Vancouver, in the Province of British Columbia, this 10th day of November 2011.
BY ORDER
Original signed by:
D. Morton
Commissioner