LETTER L-21-16
Via E-Mail
jkennedy@png.ca August 11, 2016
Ms. Janet P. Kennedy
Vice-President, Regulatory Affairs & Gas Supply
Pacific Northern Gas Ltd.
950, 1185 West Georgia Street
Vancouver, BC V6E 4E6
Dear Ms. Kennedy:
Re: Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.
2016 Annual Gas Contracting Plan (November 2016 – October 2017)
On June 8, 2016, Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd. (PNG) filed on a confidential basis its Annual Gas Contracting Plan (ACP) for the period of November 2016 to October 2017 (2016/17). PNG’s 2016/17 ACP outlines plans to meet the natural gas requirements for all of PNG’s service areas, including PNG-West (west of Summit Lake) and Pacific Northern Gas (N.E.) Ltd. [PNG(N.E.)]. PNG(N.E.) includes Fort St. John and Dawson Creek (FSJ/DC) and Tumbler Ridge (TR). PNG also provided a non-confidential executive summary of the 2016/17 ACP.
The British Columbia Utilities Commission (Commission) reviewed the filing and accepts the 2016/17 ACP as in the public interest. The Commission requests PNG include the following in its annual contracting plan for the 2017/18 year:
1. An update on the outcome of efforts to achieve harmonization of the peak day forecast methodology used for annual contracting plan purposes with the methodology used for the 2016 PNG and PNG(N.E.) revenue requirements peak day forecasts including ensuring consistency of the input data and an analysis of operational historical data used to support PNG’s conclusions;
2. A discussion of the methodology used by PNG for developing its load duration curves including any plans to update the methodology to ensure recent data can be accommodated as inputs; and
3. An update on transportation service developments such as Spectra’s proposed Winter Firm service offering and alternative transportation options and the impact of such transportation service developments on PNG’s supply procurement plans.
PNG is requested to meet with Commission staff prior to submitting the 2017/18 ACP to ensure the filing adequately addresses the issues identified above.
The Commission will hold the 2016 ACP and associated documents confidential as requested by PNG as they contain market sensitive information. A copy of the non-confidential executive summary of the ACP is attached to this letter and is available for public review.
Yours truly,
Original signed by
Doug Chong for:
Laurel Ross
CM/cms
Enclosure