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

10. Biogas
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CONFIDENTIAL
NEGOTIATED SETTLEMENT AGREEMENT
TERASEN GAS (VANCOUVER ISLAND) INC.
DATED THURSDAY, NOVEMBER 5
Issue No. 3 in the Commission Panel’s “Issues of Particular Concern to the Commission
Panel” stated:
“Biogas – could be reviewed by a CPCN which demonstrates market uptake of customers that
are willing to pay the full cost.”
The Parties agree that, upon acceptance of this Agreement by the Commission, TGVI
withdraws its requests in this Application related to Biogas. The Parties acknowledge that
these requests are being withdrawn to facilitate a settlement on other issues presented in
this Application. The Parties agree that TGVI will bring forward an application (the “Biogas
Application”) during the test period that will:
(a) Address the economic assessment model; and
(b) Provide Biogas rates (including green rate, transportation rate, etc.); and
(c) Provide for recovery of costs associated with providing Biogas service.
TGVI may include in the Biogas Application any Biogas Projects under development at that
time. TGVI is, however, not precluded from applying for Commission approval in respect of
individual Biogas Projects at any time, either prior to the Biogas Application or afterwards.
11. CPCN Threshold
Issue No. 6 in the Commission Panel’s “Issues of Particular Concern to the Commission
Panel” stated:
“CPCN threshold – why should the threshold increase from $5 million.”
The Parties accordingly agree that the CPCN threshold will be $5 million for 2010 and 2011.
TGVI’s Category C Capital Expenditures forecast for the forecast period will be revised to
reflect this change (please see item 13 below).
12. Category A Capital
TGVI had utilized an incorrect inflation rate in the Application when calculating the forecast
capital expenditures for Distribution Mains (BCUC IR 1.120.5). The Parties agree to use the
correct inflation rate, resulting in a decrease to the Category A Capital Expenditures of $188
thousand in 2010 and $154 thousand in 2011, and an associated decrease in the Revenue
Requirement in each of those years, from the amounts set out in the Application.
13. Category C Capital
APPENDIX A
to Order G-140-09
Page 12 of 102
As a consequence of the CPCN threshold being established at $5 million for 2010 and 2011
(see item 11 above), TGVI will file a CPCN application for the Victoria Regional Office
project identified in TGVI’s Application. The Category C Capital will consequently be