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
service area and agree that the costs incurred by TGI to provide AES will not be recovered
in TGVI's natural gas service rates. Any direct costs, sales and marketing O&M and other
development costs incurred by TGVI in assisting TGI in pursuit of AES will be directly
charged to the TGI New Energy Solutions Deferral Account of TGI by timesheets or other
direct charge.
9. Natural Gas for Vehicles (“NGV”)
The Commission Issue No. 2 in the Commission Panel’s “Issues of Particular Concern to the
Commission Panel” stated:
“Natural Gas Vehicles (“NGV”) – if NGV is to proceed why should the natural gas ratepayer fund
this initiative rather than Terasen’s non-regulated businesses or the competitive market?”
The Parties agree:
(a) The new NGV Service Rate Schedule (as set out in the Application Appendix J-4) – the
NGV Service Rate Schedule should be approved as filed; and
(b) NGV Grants will be accounted for on a net-of-tax basis in a deferral account and
amortized over a five year term (the same treatment as under TGI Rate Schedule 6 (as
set out in the Application, Part III, Section C, Tab 3, page 224); and
(c) The marketing costs in support of NGV that are included in the Application are
appropriately included in the 2010 and 2011 cost of service.
(d) Upon acceptance of this Agreement by the Commission, TGVI withdraws its request in
the Application for the following:
i. Compression and Refueling Service Rate Schedule; and
ii. the Compression Service (“CS”) Test; and
APPENDIX A
to Order G-140-09
Page 11 of 102
iii. NGV non-rate base deferral account for Compression Equipment Costs and
Expenses.
The Parties acknowledge that these requests are being withdrawn by TGVI to facilitate a
settlement on other issues presented in the Application. The Parties agree that TGVI’s
withdrawal of its requests regarding NGV is without prejudice to TGVI’s right to bring
forward similar requests in 2010 or 2011 or otherwise in the future. The Parties
acknowledge that TGVI intends to develop this area of business and that TGVI
anticipates it will bring forward applications on NGV projects to the Commission on a
case-by-case basis during the term of this Agreement and in future years. The Parties
agree that TGVI is at liberty to do so.