Orders

IN THE MATTER OF

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

and

FortisBC Energy Inc. and FortisBC Energy (Vancouver Island) Inc.

Application to Extend the Gas Supply Mitigation Incentive Program

for the Period November 1, 2013 – October 31, 2016 (2013-2016 GSMIP), and

for Approval to Include the Mitigation FortisBC Energy Inc. Performs

on Behalf of FortisBC Energy (Vancouver Island) Inc. in the 2013-2016 GSMIP

BEFORE:               L.F. Kelsey, Commissioner

                                N.E. MacMurchy, Commissioner                               August 1, 2013

                                B.A. Magnan, Commissioner

                                D.M. Morton, Commissioner

O  R  D  E  R

WHEREAS:

A.      By Order G-26-11, the British Columbia Utilities Commission (Commission):

•         Denied FortisBC Energy Inc. (FEI)’s application for a revised Gas Supply Mitigation Incentive Program (GSMIP) for the November 1, 2010 to October 31,2013 three-year period;

•         Continued the GSMIP that was in place for the period from November 1, 2009 to October 31, 2010 for the November 1, 2010 to October 31, 2011 period;

•         Directed FEI to establish a working group (Working Group) to discuss the objectives, Guiding Principles, structure and parameters of a GSMIP to commence November 1, 2011 and to explore ways to demonstrate, quantify and measure the extent to which the GSMIP objectives are achieved in order to determine the amount of future GSMIP incentive payments;

B.      FEI established a Working Group that included representatives from FEI, Commission staff, Commercial Energy Consumers Association of British Columbia (CEC), and British Columbia Public Interest Advocacy Centre on behalf of the British Columbia Old Age Pensioners Organization et al, now the British Columbia Pensioners’ and Seniors’ Organization et al (BCPSO);

C.      On September 14, 2011, FEI filed an application for approval of a GSMIP (2011-2013 GSMIP) for the November 1, 2011 to October 31, 2013 period which included written acknowledgements of support of the 2011-2013 GSMIP from each of the Working Group participants;

D.      By Order G-163-11 dated September 22, 2011, the Commission approved the 2011-2013 GSMIP;

E.       By Letter L-22-13 dated April 5, 2013, the Commission accepted the incentive payment for the first year of the 2011-2013 GSMIP and included a copy of the Commission Staff Overview Report dated April 4, 2013;

F.       On July 16, 2013, FEI and FortisBC Energy (Vancouver Island) Inc. (FEVI) jointly filed an application (Application) seeking two separate approvals:

•         FEI requests approval to extend the GSMIP for a three year term the period from November 1, 2013 to October 31, 2016  based on the Term Sheet included as Appendix A to the Application, and

•         FEI and FEVI jointly request approval for the mitigation activities performed by FEI on behalf of FEVI to be included in the GSMIP model effective November 1, 2013;

G.     FEI and FEVI provided copies of the Application to the registered Interveners in the FortisBC Energy Utilities 2012-2013 Revenue Requirements and Natural Gas Rates Application (FEU 2012-2013 RRA);

H.      FEI and FEVI proposed a condensed regulatory review process in the Application;

I.        The Commission has considered the proposed regulatory review process and determined that a regulatory review process providing for one round of Commission Information Requests and for the opportunity for registered Interveners in the FEU 2012-2013 RRA to provide comments is warranted.

NOW THEREFORE the Commission orders as follows:

1.       A Regulatory Timetable, as set out in Appendix A to this Order, is established for the review of the Application.

2.       FEI must provide copies of this Order to the registered Interveners in the FEU 2012-2013 RRA (Stakeholders).

3.       FEI must provide Stakeholders copies of the FEI and FEVI responses to the Commission Information Requests when FEI and FEVI file the responses.

4.       Stakeholders may submit written letters of comment and questions, if any, to the Commission Secretary by Thursday, August 22, 2013, on the Application including comments on each of the two approvals sought.

5.       FEI and FEVI must file written reply comments and responses, if any, by Thursday, August 29, 2013.

6.       Any further review process, if required, will be determined after the review of the responses to Commission Information Requests and any comments and responses received from the parties.

DATED at the City of Vancouver, In the Province of British Columbia, this              1st             day of August 2013.

                                                                                                                                BY ORDER

                                                                                                                                Original Signed By:

                                                                                                                                D.M. Morton

                                                                                                                                Commissioner

Attachment

FortisBC Energy Inc. and FortisBC Energy (Vancouver Island) Inc.

Application to Extend the Gas Supply Mitigation Incentive Program

for the Period November 1, 2013 – October 31, 2016 (2013-2016 GSMIP), and

for Approval to Include the Mitigation FortisBC Energy Inc. Performs

on Behalf of FortisBC Energy (Vancouver Island) Inc. in the 2013-2016 GSMIP

REGULATORY TIMETABLE