Orders

ORDER NUMBER

G-316-20

 

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

 

and

 

FortisBC Energy Inc.

Application for Approval of Deferral Account Treatment for 2021 and Changes to the

Revenue Stabilization Adjustment Mechanism Rider for the Fort Nelson Service Area

 

BEFORE:

K. A. Keilty, Panel Chair

A. K. Fung, QC, Commissioner

 

on December 4, 2020

 

ORDER

WHEREAS:

 

A.      On November 6, 2020, FortisBC Energy Inc. (FEI) filed with the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 of the Utilities Commission Act, an application for approval to maintain the existing rates for 2021 and of certain deferral account treatment and changes to the Revenue Stabilization Adjustment Mechanism (RSAM) rate rider for 2021 for the Fort Nelson service area (FEFN) (Application);

B.      In the Application, FEI requests the following approvals for FEFN:

(i)      To maintain delivery rates at existing 2020 rates as approved by Order G-48-19 on a permanent basis, effective January 1, 2021; 

(ii)    To change the RSAM rate rider from a recovery of $0.177 per gigajoule (GJ) to a refund of $0.054 per GJ, effective January 1, 2021; and

(iii)   To establish a non-rate base deferral account to record the forecast 2021 revenue surplus of $195,000 and any BCUC direct costs or Participant Assistance/Cost Award costs related to the review of the Application, attracting a weighted average cost of capital return and with amortization to be determined in the next rate setting proceeding;

C.      By Order G-299-20 dated November 25, 2020, the BCUC established a regulatory timetable to include the filing of supplemental information, one round of BCUC information requests, the deadline for letters of comment and FEI’s written final argument;

D.      By letter dated December 2, 2020, FEI responded to item 1 of the BCUC’s supplemental information request by confirming that it is seeking interim approval of existing delivery rates and an RSAM rate rider refund of $0.054 per GJ for FEFN, effective January 1, 2021 and requested at the same time a one-week extension to the regulatory timetable in order to provide the remaining supplemental information; and

E.       The BCUC has considered FEI’s requests and finds that an amendment to the regulatory timetable and the setting of interim rates and the change in the RSAM rate rider on an interim basis, effective January 1, 2021, for FEFN are warranted.  

 

NOW THEREFORE pursuant to sections 59 to 61 and 89 of the Utilities Commission Act, the BCUC orders as follows:

 

1.       The regulatory timetable established by Order G-299-20 is amended, as set out in Appendix A to this order.

2.       FEI is approved to maintain delivery rates at existing 2020 rates and to change the RSAM rate rider to a refund of $0.054 per GJ, on an interim basis, effective January 1, 2021 for FEFN.

3.       FEI is directed to refund/recover any differences between the interim and permanent rates, following the final disposition of the Application, with interest calculated at the average prime rate of FEI’s principal bank for its most recent year. 

4.       In accordance with the terms of this order, FEI is directed to file amended tariff pages for FEFN within 30 days of the issuance of this order.

 

DATED at the City of Vancouver, in the Province of British Columbia, this           4^th           day of December 2020.

 

BY ORDER

 

Original signed by:

 

K. A. Keilty

Commissioner

 

 

Attachment

 

 

FortisBC Energy Inc.

Application for Approval of Deferral Account Treatment for 2021 and Changes to the

Revenue Stabilization Adjustment Mechanism Rider for the Fort Nelson Service Area

 

 

 

 

 

 

                *Including submissions on issues raised in IRs and any letters of comment.

                                                     

 

FortisBC Energy Inc. Application for Deferral Account Treatment for 2021 and

Changes to the Revenue Stabilization Adjustment Mechanism Rider

for the Fort Nelson Service Area

On November 6, 2020, FortisBC Energy Inc. (FEI) filed an application with the British Columbia Utilities Commission (BCUC) seeking approvals for the following items in the Fort Nelson service area:

a.                    To maintain existing delivery rates on a permanent basis, effective January 1, 2021;

b.                    To place the forecasted 2021 revenue surplus in a deferral account; and

c.                     To change the Revenue Stabilization Adjustment Mechanism rate rider to a refund of $0.054 per GJ, effective January 1, 2021.

The BCUC is currently reviewing the application.

 

For more information about FEI’s application, visit https://www.bcuc.com/ApplicationView.aspx?ApplicationId=822. To learn more about getting involved, please visit our website (www.bcuc.com/get-involved) or contact us using the information below.

 

GET MORE INFORMATION
FortisBC Energy Inc. 16705 Fraser Highway Surrey, BC, V4N 0E8   E: gas.regulatory.affairs@fortisbc.com   P: 604.576.7000 (local)      800.773.7001	British Columbia Utilities Commission Suite 410, 900 Howe Street Vancouver, BC Canada  V6Z 2N3   E: Commission.Secretary@bcuc.com   P: 604.660.4700