Orders

ORDER NUMBER

G-274-20

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

FortisBC Inc.

Annual Review for 2020 and 2021 Rates

BEFORE:

T. A. Loski, Panel Chair

C. Brewer, Commissioner

E. B. Lockhart, Commissioner

on October 29, 2020

ORDER

WHEREAS:

A.      On June 22, 2020, the British Columbia Utilities Commission (BCUC) issued its Decision and Orders G-165-20 for FortisBC Energy Inc. (FEI) and G-166-20 for FortisBC Inc. (FBC) approving a Multi-Year Rate Plan for 2020 through 2024 (MRP Decision). In accordance with the MRP Decision, FBC is to conduct an annual review process to set rates for each year;

B.      By letter dated July 20, 2020, FBC proposed a regulatory timetable for its annual review for 2020 and 2021 rates;

C.      By Order G-211-20 dated August 11, 2020, the BCUC established a regulatory timetable for the annual review of FBC’s 2020 and 2021 rates, which included the anticipated date for FBC to file its annual review materials, the deadline for intervener registration, one round of information requests (IRs), a workshop, FBC’s response to undertakings requested at the workshop, and written final and reply arguments;

D.      On August 19, 2020, FBC submitted its Annual Review for 2020 and 2021 Rates Application (Application). In the Application, FBC’s forecast revenue requirements for 2020 result in a general rate increase of 1.93 percent from 2019 rates. FBC requested approval to, among other things, make the existing interim rates permanent, effective January 1, 2020, and to capture the revenue deficiency greater than the 1.0 percent general rate increase already incorporated into the interim rates in the existing 2018-2019 Revenue Surplus deferral account as an offset to prior years’ revenue surpluses;

E.       The Application also requested approval of a general rate increase of 6.37 percent from 2020 rates, effective January 1, 2021, after drawing down the 2018-2019 Revenue Surplus deferral account;

F.       On October 9, 2020, FBC submitted an evidentiary update to the Application (First Evidentiary Update) with respect to an error identified in the financial analysis in Appendix B – Playmor Station Upgrade Business Case attached to the Application. FBC stated that the update does not have an impact on proposed 2020 or 2021 rates;

G.      On October 28, 2020, FBC filed responses to undertakings requested at the workshop held on October 21, 2020 (Workshop Undertakings) and submitted an evidentiary update to the Application (Second Evidentiary Update). In the Second Evidentiary Update, FBC revised its 2020 and 2021 revenue requirements. The revised 2020 revenue requirement results in a general rate increase of 0.81 percent from 2019 rates. However, FBC continues to request that the existing interim rate increase of 1.00 percent be made permanent, effective January 1, 2020, and requests that the resulting revenue surplus be captured in the existing 2018-2019 Revenue Surplus deferral account to be applied against 2021 revenue requirements. The revised 2021 revenue requirement results in a 2021 general rate increase of 4.36 percent, effective January 1, 2021, after drawing down the 2018-2019 Revenue Surplus deferral account; and

H.      The BCUC has considered FBC’s October 28, 2020 filings and finds that an amendment to the regulatory timetable is warranted.

NOW THEREFORE the BCUC amends the regulatory timetable established by Order G-211-20. The amended regulatory timetable is set out as attached as Appendix A to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this                29^th            day of October 2020.

BY ORDER

Original signed by:

T. A. Loski

Commissioner

Attachment

FortisBC Inc.

Annual Review for 2020 and 2021 Rates