FEI-FEVI 2010 EEC Report filed March 31, 2011 - FortisBC

that: “. . . the proposed financial treatment of EEC funding also meets the requirements of IFRS”
and goes on to state that “[i]f, however, after further discussion and closer examination in
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conjunction with auditors and other utilities, the EEC funding failed to pass these [IFRS] tests, then
[Terasen] will revisit the program to ensure that it continues in a fashion which maintains an
alignment on interests between customers, investors and government policy.” (Exhibit B‐1, pp. 81‐
82)
Intervenor Positions
BCSEA‐SCBC comments on Terasen’s “. . . proposal to capitalize incremental EEC expenditures
amortised over 20 years. BCSEA‐SCBC supports this concept, including the 20 year amortisation
period due to the life‐expectancy of gas DSM measures.” (BCSEA‐SCBC Argument, p. 17)
Commission Determination
The Commission Panel accepts Terasen’s proposal to capitalize the approved EEC expenditure to a
regulatory deferral account, and to amortitse the deferral account balances over an appropriate
time period. The related issues of the quantum of the expenditures approved and the appropriate
amortisation period(s) for the program areas are addressed in other sections of this Decision.