ORDER NUMBER
G-77-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Application for Approval of
Rates and Agreement for the Expansion of the
Compressed Natural Gas Fueling Station for Waste Management of Canada
Corporation
BEFORE:
W. M. Everett, QC, Commissioner
B. A. Magnan, Commissioner
R. I. Mason, Commissioner
on April 6, 2020
ORDER
WHEREAS:
A. On January 28, 2020, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 44.2, 59 to 61 and 89 of the Utilities Commission Act (UCA), for approval of expenditures of approximately $266 thousand for the expansion of the Compressed Natural Gas (CNG) fueling station located on Waste Management of Canada Corporation’s (Waste Management) premises (Waste Management Fueling Station) (2020 Expansion) and for approval of the rates established in the amending agreement dated October 11, 2019, to the CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management (Amending Agreement No. 2), on an interim basis effective February 1, 2020 (Application). FEI also requests the BCUC keep confidential the live financial model provided in Appendix B of the Application due to its commercially sensitive nature;
B. On July 19, 2011, by Order G-128-11, the BCUC approved, among other things, a CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management and accepted, pursuant to section 44.2 of the UCA, expenditures for the construction, operation and maintenance of the Waste Management Fueling Station;
C. On December 23, 2013, by Order G-299-13, the BCUC accepted, pursuant to section 44.2 of the UCA, expenditures to upgrade the Waste Management Fueling Station and approved FEI’s request that the rates charged to Waste Management remain unchanged;
D. On May 11, 2016, by Order G-64-16, the BCUC accepted, pursuant to section 44.2 of the UCA, expenditures to upgrade the Waste Management Fueling Station and approved the rate design and rates established in the amending agreement dated October 6, 2015, to the CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management;
E. Amending Agreement No. 2, among other things, increases the take-or-pay commitment from 2,750 gigajoules (GJs) per month to 5,000 GJs per month, revises the Capital Rate to take into account the 2020 Expansion to the Waste Management Fueling Station, revises the O&M Rate to reflect the remaining forecasted O&M to the end of the initial term of the CNG Fueling Station Installation and Operating Agreement between FEI and Waste Management, and revises the Rate Change Date from February 1st to January 1st of each year;
F. On February 6, 2020, by Order G-18-20, the BCUC approved the rate design and rates established in Amending Agreement No. 2 on an interim and refundable basis, effective February 1, 2020;
G. On February 25, 2020, BCUC staff issued questions to FEI and on March 6, 2020, FEI responded; and
H. The BCUC has completed its review of the Application and FEI’s response to BCUC staff questions and finds that acceptance of the capital expenditures is warranted.
NOW THEREFORE pursuant to section 44.2 of the UCA, the BCUC accepts the expenditures in the amount of $265,863 required for FEI to complete the 2020 Expansion to the Waste Management Fueling Station under Amending Agreement No. 2.
DATED at the City of Vancouver, in the Province of British Columbia, this 6th day of April 2020.
BY ORDER
Original Signed By:
W. M. Everett, QC
Commissioner