ORDER NUMBER
G-254-24
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
FortisBC Energy Inc.
Permanent Rates and Amending Agreement No. 2 for McRae’s Environmental Ltd.
For Fuelling Service from the Langford CNG Station
BEFORE:
B. A. Magnan, Commissioner
W. E. Royle, Commissioner
September 27, 2024
ORDER
WHEREAS:
A. On September 12, 2024, FortisBC Energy Inc. (FEI) applied to the British Columbia Utilities Commission (BCUC), pursuant to sections 59 to 61 of the Utilities Commission Act, for approval of the rates established in a second amending agreement, dated September 5, 2024 (Amending Agreement No. 2), to a fuelling services agreement between FEI and McRae’s Environmental Ltd. (McRae’s) (McRae’s-Langford Agreement) on a permanent basis, effective October 1, 2024 (Application);
B. By Order G-56-13, the BCUC accepted that the Greenhouse Gas Reduction (Clean Energy) Regulation (GGRR) established the need for Compressed Natural Gas (CNG) and Liquefied Natural Gas fuelling stations that are undertaken by FEI as prescribed undertakings as defined by the GGRR, and that these prescribed undertakings are exempt from the Certificate of Public Convenience and Necessity requirements for the term of the GGRR;
C. By Order G-187-13 and Decision and Order G-311-21, the BCUC found that the CNG station located at FEI’s Victoria Regional Office Facility in Langford, BC (Langford Fuelling Station) met the requirements for a prescribed undertaking as defined by the GGRR;
D. By Order G-17-18, the BCUC approved the rates established in the McRae’s-Langford Agreement, which established the terms, conditions, and rates for McRae’s to receive CNG fuelling services from the Langford Fuelling Station, on a permanent basis, effective November 1, 2017;
E. By Order G-54-20, the BCUC approved an amendment to the McRae’s-Langford Agreement which reduced the minimum annual quantity from 1,900 gigajoules (GJ) per year to 900 GJ per year, effective March 1, 2020;
F. On September 5, 2024, FEI and McRae’s entered into Amending Agreement No. 2 to extend the initial term of the agreement from 10 years to 12 years, increase the minimum annual quantity from 900 GJ to 1,500 GJ, and amend the capital rate and operations and maintenance rate to be consistent with the current rates that apply to all other customers of the Langford Fuelling Station as approved by Order-311-21, effective October 1, 2024; and
G. The BCUC has reviewed the Application and determines that approval of the rates and terms established in Amending Agreement No. 2 is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, the BCUC orders as follows:
1. The rates established in the McRae’s-Langford Agreement as amended by Amending Agreement No. 2 are approved on a permanent basis, effective October 1, 2024.
2. FEI is to file Amending Agreement No. 2 in tariff supplement form for endorsement by the BCUC within 15 days of the date of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 27th day of September 2024.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner