Via Email
gas.regulatory.affairs@fortisbc.com September 19, 2011
Ms. Diane Roy
Director, Regulatory Affairs - Gas
FortisBC Energy Inc.
16705 Fraser Highway
Surrey, BC V4N 0E8
Dear Ms. Roy:
Re: FortisBC Energy (Vancouver Island) Inc.
2011/12 Annual Gas Contracting Plan (November 2011 – October 2012)
On May 25, 2011, FortisBC Energy (Vancouver Island) Inc. (FEVI) filed, on a confidential basis, its 2011/12 Annual Contracting Plan (2011/12 ACP). The British Columbia Utilities Commission (Commission) generally accepts the FEVI 2011/12 ACP and items as set out on page 52. The major portfolio changes affecting the 2011/12 ACP are as follows:
1. FEVI recommends a decrease of 5 TJ/day in the peak day demand, or a decrease of 4.3% to 109.3 TJ/day from 114.2 TJ/day, due to declining use per firm sales customer and lower forecasted customer growth rate.
2. FEVI recommends a significant decrease of 24 TJ/day in Huntingdon peaking gas purchases due to Mt. Hayes LNG in the portfolio in 2011/12.
3. Storage and transportation contracts remain unchanged from 2010/11.
The Commission directs FEVI to file the 2012/2013 ACP by April 1, 2012. In addition to the items specified in section 2.3.2 of the 2011/2012 ACP “Actions for FEVI prior to Submitting the FEU 2012/13 ACP,” the Commission directs FEVI to include with the FEVI 2012/2013 ACP each of the supplemental analyses the Commission has directed FEI to provide for its 2012/2013 ACP as set out in Commission Letter L-69-11.
In addition, going forward, FEVI is directed to seek Commission acceptance of the level of the Supplemental LNG Service FEVI intends to provide to FEI under the terms of the Storage and Delivery Agreement between FEVI and FEI for each contract year prior to providing notice of such to FEI. The filing should include an analysis to determine the amount of LNG capacity and deliverability that is surplus to the requirements of FEVI’s customers. This analysis should include an optimization of the overall portfolio resource using the SENDOUT modeling tool similar to the analysis conducted for the Mt. Hayes resource included as Appendix H in the 2011/2012 ACP.
The Commission accepts FEVI’s request that the 2011/12 ACP be kept confidential, with the exception of the Executive Summary, for the reasons of commercial sensitivity set out in the filing.
A copy of FEVI’s non-confidential Executive Summary for the 2011/12 ACP is attached which is available for public dissemination.
Yours truly,
Alanna Gillis
CM/dg
Attachment