BCUC Decision for FortisBC 2017/2018 Rate Application : 12/8/2016

Following is the order from the BCUC in the FortisBC's 2017/2018 Rate  Application.  To see the full document with attachments click here .  Order 1 speaks to the rate increases which are 6.86% effective Jan 2017 and 6.94% effective Jan 2018.


NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, and for the reasons attached to Appendix A of this order, the British Columbia Utilities Commission orders as follows:

Order G-162-16 Page 2 of 2 Orders/G-162-16_FEFN-2017-2018_reasons:

1. FortisBC Energy Inc.’s requested delivery rate increase of 6.86 percent effective January 1, 2017 and an additional delivery rate increase of 6.94 percent effective January 1, 2018 for the Fort Nelson service area are approved.

2. The Revenue Stabilization Adjustment Mechanism Rate Rider is approved to be set at $0.268 per gigajoule effective January 1, 2017.

3. Adoption of updated depreciation and net salvage rates as provided in the Application, effective January 1, 2017, are approved.

4. The establishment of the following deferral accounts are approved:
a. A rate base deferral account for the 2017-2018 Revenue Requirement Application costs with an amortization period of two years commencing in 2017;
b. A rate base deferral account for the 2016 Cost of Capital Application costs with an amortization period of three years commencing in 2017;
c. A rate base deferral account for the 2017 Rate Design Application costs; and
d. A non-rate base deferral account to transfer a portion of the 2017 revenue deficiency to 2018.

5. FortisBC Energy Inc. is approved to delay the disposition of the non-rate base Fort Nelson First Nations Right-of-Way Agreement deferral account to the next revenue requirement proceeding.

6. The British Columbia Old Age Pensioners’ Organization et al.’s proposal to record in a deferral account the annual variances between forecast and actual Shared Services fees allocated from FortisBC Energy Inc. to the FortisBC Energy Inc. Fort Nelson service area is rejected.

7. FortisBC Energy Inc. is directed to file the supporting calculations for the residential and small commercial use per customer and customer additions forecasts in its future revenue requirement applications for the Fort Nelson service area.

8. FortisBC Energy Inc. is directed to file as a compliance filing the finalized financial schedules for the 2017 and 2018 test periods no later than 60 days from the date of this order.

DATED at the City of Vancouver, in the Province of British Columbia, this 9th day of November 2016. BY ORDER

Original signed by: B. A. Magnan Commissioner

Attachment