IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
an Application by FortisBC Energy (Whistler) Inc.
for Approval of Deferral Account Treatment for 2014 and changes to the
Revenue Stabilization Adjustment Mechanism Rate Rider
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner
N.E. MacMurchy, Commissioner
B.A. Magnan, Commissioner December 19, 2013
D.M. Morton, Commissioner
R.D. Revel, Commissioner
C. van Wermeskerken, Commissioner
O R D E R
WHEREAS:
A. On October 11, 2013, FortisBC Energy (Whistler) Inc. (FEW) filed the Application for Deferral Account Treatment for 2014 and Changes to the Revenue Stabilization Adjustment Mechanism (RSAM) Rider (Deferral/RSAM Application) pursuant to sections 59 to 61 and 89 of the Utilities Commission Act (Act);
B. In the Deferral/RSAM Application, FEW seeks approval to maintain the current 2013 delivery rates approved by Order G-44-12 and reset the RSAM rider, effective January 1, 2014. FEW also seeks approval to reduce the amortization period for the RSAM from three years to two years;
C. In the Deferral/RSAM Application, FEW seeks approval to adopt accounting policy changes and shared and corporate services allocations that are approved in the review of the FortisBC Energy Inc.’s Application for Approval of a Multi-Year Performance Based Ratemaking Plan for 2014 through 2018;
D. By Order G-202-13 the Commission approved the requested change to the RSAM rider effective January 1, 2014 and the reduction to the RSAM amortization period. The remainder of the Deferral/RSAM Application is to be the subject of a future order;
E. FEW seeks approval for the discontinuation, continuation, and creation of deferral accounts and the amortization and disposition of balances in deferral accounts;
F. On December 17, 2013, the British Columbia Pensioners and Seniors Organization filed a letter that supports a simplified review process for the Application, requesting that if the Commission approves the deferral account treatment that it explicitly state that it is not granting final approval of the estimates and these amounts will be subject to a future process; and
G. The Commission reviewed and considered the remainder of the Deferral/RSAM Application and determines that maintaining the current 2013 delivery rates and the requested changes should be approved.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the Utilities Commission Act the Commission approves for FortisBC Energy (Whistler) Inc.:
1. The continuation of current delivery rates effective January 1, 2014 at the same level as 2013 rates.
2. The discontinuance, modification, and creation of deferral accounts, and the amortization and disposition of balances of deferral accounts, all as set out in Section 1 of the Deferral/RSAM Application. This approval is subject to an examination of the 2014 actual results that are added to the deferral accounts, and the cost recovery in the next revenue requirements proceeding.
3. The adoption of the accounting changes and shared and corporate services allocations that are approved for FortisBC Energy Inc. in its Application for Approval of a Multi-Year Performance Based Ratemaking Plan for 2014-2018 as set out in the Deferral/RSAM Application.
DATED at the City of Vancouver, In the Province of British Columbia, this 19th day of December, 2013.
BY ORDER
Original signed by:
D.M. Morton
Commissioner