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
• Employees responsible for the programs at TGVI, whose salaries are funded from
EEC funding, will face the prospect of losing their jobs in 2011. This could lead to
employee retention issues. Employee turnover issues may disrupt the program
implementation progress and potentially be more costly if EEC activity is ceased
and later resumed.
• Programs will need to begin winding down in advance of 2011 if the 2011 funding is
not approved. For example, programs will need to have an end date of December
31, 2010 which may not yield positive results since programs will be winding up in
the middle of the heating season.
7.2 The Parties agree that the Commission may sever Section 7.1 (a) and (b) above from
this Agreement, with the remainder of this Agreement remaining in force and effect. If
the Commission severs Section 7.1 (a) and (b), then the Parties agree that the following
provisions take effect:
(a) The Residential and Commercial EEC programs totaling $4.726 million in 2011 will
be removed from the EEC expenditure forecast and the revenue requirements for
2011. (If 7.2 takes effect, the financial schedules in Part IV of this Agreement and
the cost of service/revenue requirements resulting from this Agreement will be
revised to reflect this).
(b) The Parties agree that the first annual report on EEC Activities, which was due to
be filed on March 31, 2010 pursuant to Order No. G-36-09, will instead be filed on
or before June 30, 2010. Concurrent with that report, TGVI will file an application
with the anticipation of a decision within 120 days after filing. The application will
include requests for:
i. approval of the above EEC funding for 2011;
ii. approval of the same financial treatment approved in the EEC Decision; and
iii. approval for the continuation of the portfolio approach and assessment
methodology as approved in the EEC Decision.
8. Alternative Energy Solutions
APPENDIX A
to Order G-140-09
Page 10 of 102
Alternative Energy Solutions ("AES") means Geo-exchange, Solar-thermal and District
Energy Systems as those terms are described in the Application.
The forecast costs of pursuing AES projects in the TGVI service area were included in the
Shared Services cost pool, which is allocated pursuant to the Shared Services Agreement
among TGI, TGVI and TGW. The costs related to AES projects that would otherwise have
been allocated to TGVI have been allocated to TGI's New Energy Solutions Deferral
Account pursuant to the Settlement Agreement for the TGI 2010 and 2011 Revenue
Requirements. Accordingly, TGVI withdraws its requests for relief in the Application relating
to AES. The Parties acknowledge that TGI will be pursuing AES projects within the TGVI