Orders

ORDER NUMBER

G-20-22

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

FortisBC Energy Inc.

Application for Common Rates and 2022 Revenue Requirements

for the Fort Nelson Service Area

BEFORE:

A. K. Fung, QC, Panel Chair

E. B. Lockhart, Commissioner

A. Pape-Salmon, Commissioner

on January 31, 2022

ORDER

WHEREAS:

A.      On August 12, 2021, 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 set the delivery rates and the Revenue Stabilization Adjustment Mechanism (RSAM) rate rider for the Fort Nelson service area (FEFN), effective January 1, 2022 (2022 Delivery Rates), and to implement common delivery rates and cost of gas rates for FEFN with FEI, effective January 1, 2023 (Common Rates) (together, the Application);

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

                              (i)            To increase FEFN delivery rates by 3.41 percent on a permanent basis, effective January 1, 2022;

                            (ii)            To change the RSAM rate rider from a credit of $0.333 per gigajoule (GJ) to $0.416 per GJ on a permanent basis, effective January 1, 2022;

                           (iii)            To implement common delivery rates with FEI for FEFN Rate Schedule (RS) 1, RS 2 and RS 3, effective January 1, 2023, including the phase-in of common delivery rates for the FEFN residential customer rate class (RS 1) over 10 years through the creation of a Residential Customer Phase-in Rate Rider, effective January 1, 2023, to mitigate the initial delivery rate impact to FEFN residential customers; and

                           (iv)            To amalgamate FEFN’s gas supply portfolio costs with FEI’s Midstream Cost Reconciliation Account, effective January 1, 2023, which includes charging FEFN customers the same cost of gas rate as FEI and setting FEFN’s midstream rates based on 5 percent of FEI’s midstream rates;

C.      By Order G-227-21, and amended by Order G-315-21, the BCUC established a regulatory timetable for the review of the Application, including: public notice, intervener registration, one round of BCUC and intervener information requests to FEI on 2022 Delivery Rates and Common Rates, a procedural conference on Common Rates, written final and reply arguments on 2022 Delivery Rates, and further process to be determined on Common Rates;

D.      On January 14, 2022, the BCUC issued a letter to FEI and interveners providing further information on the procedural conference on Common Rates, including items to be addressed by the participants;

E.       Pursuant to the regulatory timetable established by Order G-315-21, a web-based procedural conference on Common Rates took place on January 27, 2022; and

F.       The BCUC has reviewed the submissions made at the procedural conference on Common Rates and determines that the establishment of an amended regulatory timetable for the review of the Application is warranted.

NOW THEREFORE the BCUC orders that the regulatory timetable for the review of the Application is amended, as set out in Appendix A to this order.

DATED at the City of Vancouver, in the Province of British Columbia, this              31^st              day of January 2022.

BY ORDER

Original signed by:

A. K. Fung, QC

Commissioner

Attachment

FortisBC Energy Inc.

Application for Common Rates and 2022 Revenue Requirements

for the Fort Nelson Service Area