ORDER NUMBER
G-349-22
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Inc.
Annual Review for 2023 Rates
BEFORE:
E. B. Lockhart, Panel Chair
C. M. Brewer, Commissioner
A. Pape-Salmon, Commissioner
on December 5, 2022
ORDER
WHEREAS:
A. On June 22, 2020, the British Columbia Utilities Commission (BCUC) issued its Decision and Order G-165-20 for FortisBC Energy Inc. (FEI) and Order 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 (Annual Review) process to set rates for each year;
B. By letter dated June 28, 2022, FBC proposed a regulatory timetable for the Annual Review of its 2023 rates;
C. By Order G-193-22 dated July 15, 2022, the BCUC established a regulatory timetable for the annual review of FBC’s 2023 rates, which included the anticipated date for FBC to file its annual review materials, the deadline for intervener registration, one round of information requests, a workshop, FBC’s response to undertakings at the workshop, intervener written final arguments and FBC written reply argument;
D. On August 5, 2022, FBC submitted its Annual Review for 2023 Rates Application seeking, among other things, pursuant to sections 59 to 61 and 89 of the Utilities Commission Act (UCA), approval of a general rate increase of 3.99 percent over 2022 rates (Application);
E. By letter dated November 29, 2022, FBC submitted a request to the BCUC for approval of an amended general rate increase of 3.98 percent over 2022 rates, on an interim and refundable/recoverable basis, effective January 1, 2023, pending the BCUC’s final decision on the Application (Interim Rates Application). The amended rate request is based on a re-calculation of the forecast 2023 revenue deficiency and resulting rates due to adjustments identified by FBC during the regulatory review process and which were explained at the workshop;
F. In the Interim Rates Application, FBC clarifies that its request for interim rates does not equate to a request for the BCUC to make a final decision on the issue of whether rates for 2023 are approved on a permanent basis, or if rates will remain interim pending the outcomes of FBC’s 2023-2027 Demand Side Management Plan proceeding and Stage 1 of the BCUC’s Generic Cost of Capital proceeding as requested by FBC in the Application, at this time;
G. The Panel has reviewed the Interim Rates Application and determines that the approval of interim rates is warranted, effective January 1, 2023.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the UCA, the BCUC orders as follows:
1. FBC’s request for a general rate increase of 3.98 percent over 2022 rates is approved on an interim, and refundable/recoverable basis, effective January 1, 2023. The BCUC will determine the manner by which any variance between the approved interim rates and rates as determined by the BCUC following its final determinations on the Application, including interest if any, will be refunded to or collected from ratepayers at the time the BCUC renders its final decision on the Application.
2. FBC is directed to file with the BCUC, 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 5th day of December 2022.
BY ORDER
Original signed by:
E. B. Lockhart
Commissioner