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

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CONFIDENTIAL
NEGOTIATED SETTLEMENT AGREEMENT
TERASEN GAS (VANCOUVER ISLAND) INC.
DATED THURSDAY, NOVEMBER 5
NOW THEREFORE THE PARTIES AGREE AS FOLLOWS
PART I – GENERAL
1. Agreement a Product of Compromise
The Parties recognize and emphasize that this Agreement is the product of compromise on
the part of all Parties, yielding an overall package that the Parties consider to be fair, just
and reasonable. The Parties agree that any compromises resulting from this Agreement are
without prejudice to the Parties’ ability to take different positions after 2011 and without
prejudice to the Parties right to intervene in any applications contemplated in or resulting
from this Agreement.
2. Whole Agreement
The Parties agree that, unless otherwise stated in this Agreement, portions of this
Agreement cannot be removed or changed by the Commission without nullifying the whole
Agreement.
3. TGVI to Manage Business
The Parties agree that TGVI will have the discretion to manage its business and determine
how best to allocate the overall O&M and Capital expenditures stipulated in this Agreement.
4. Final IFRS Rate-regulated Activity Standard
APPENDIX A
to Order G-140-09
Page 7 of 102
The Parties acknowledge that this Agreement is predicated on the Final IFRS Rateregulated
Activity Standard permitting the financial accounting treatment contemplated in
this Agreement in the manner outlined in the current Exposure Draft on Rate-regulated
Activities. The Parties agree that if, in TGVI’s opinion, the Final IFRS Rate-regulated Activity
Standard differs from the current Exposure Draft on Rate-regulated Activities so as not to
permit the financial accounting treatment contemplated in this Negotiated Settlement
Agreement, which among other things anticipates the recognition of regulatory assets and
liabilities for external reporting purposes, then TGVI is at liberty to apply to the Commission
during the period of this Agreement for a determination of that issue, and to seek changes in
the regulatory treatment contemplated in this Agreement to accord with the Final IFRS Rateregulated
Activity Standard, with the resulting impacts flowed through into rates
commencing in 2011.