ORDER NUMBER
G-172-17
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Inc.
Annual Review of 2018 Rates
BEFORE:
B. A. Magnan, Panel Chair/Commissioner
W. M. Everett, QC, Commissioner
M. Kresivo, QC, Commissioner
On November 30, 2017
ORDER
WHEREAS:
A. On September 15, 2014, the British Columbia Utilities Commission (Commission) issued its Decision and Order G-139-14 for FortisBC Inc. (FBC) approving a Multi-Year Performance Based Ratemaking (PBR) Plan for 2014 through 2019 (PBR Decision). In accordance with the PBR Decision, FBC is to conduct an annual review process to set rates for each year;
B. By Order G-116-17 dated July 27, 2017, the Commission established a regulatory timetable for the annual review of FBC’s 2018 rates;
C. On August 10, 2017 FBC filed its Annual Review of 2018 Rates Application materials (Application) seeking approval of, among other things, permanent rates effective January 1, 2018, resulting in a general increase of 0.11 percent compared to 2017 rates, to be applied to all components of rates for all customer classes. The Application is made pursuant to sections 59 to 61 of the Utilities Commission Act (UCA);
D. On October 3, 2017 FBC submitted an evidentiary update to its Application and amended its applied for permanent rate increase to 0.17 percent;
E. On November 10, 2017 FBC filed an application for approval to make its existing rates for all customer classes interim and refundable (with interest at the average prime rate of FBC’s principal bank applied to any refundable amounts) effective January 1, 2018 (Interim Rate Application), pending the Commission decisions regarding the Application and the anticipated filing of FBC’s 2018 Demand Side Management (DSM) Expenditure Schedule (2018 DSM Expenditure Application);
F. On November 15, 2017, FBC filed its 2018 DSM Expenditure Application, pursuant to section 44.2 of the UCA;
G. Pursuant to section 44.2(2) of the UCA, the Commission may not consent under section 61 of the UCA to an amendment to a schedule filed under section 61 to the extent that the amendment is for the purpose of, among other things, recovering expenditures on demand-side measures the public utility anticipates making during the period addressed by the schedule, unless the amendment is for the purpose of setting an interim rate; and
H. The Commission has reviewed the Interim Rate Application and considers that approval is warranted.
NOW THEREFORE pursuant to section 89 of the Utilities Commission Act the Commission orders as follows:
1. FBC’s application to set the existing rates for all customer classes as interim effective January 1, 2018 is approved.
2. FBC is directed to refund/recover the difference between the interim and permanent rates, as determined by the Commission following the final determination of this Application and FBC’s 2018 DSM Expenditure Application, with interest calculated on any refundable amounts at the average prime rate of FBC’s principle bank for its most recent year.
3. FBC is directed to file with the Commission, within 30 days of the issuance of this order, amended tariff pages in accordance with the terms of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 30th day of November 2017.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner