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
Issue No. 5 in the Commission Panel’s “Issues of Particular Concern to the Commission
Panel” stated:
“2010 Rate Changes – in the event that a 2010 rate reduction were to occur as a result of
negotiations, the current rates should remain unchanged and place the revenue surplus
into a deferral account to apply against 2011 and future rate increases with a phase in
amortization that strives for rate stability.”
The Parties agree that Commission Panel Issue No. 5 is addressed for core market
customers.
The Parties agree that the rates for transportation customers, effective January 1, 2010,
other than those that have specified rates set out in their contract (VIGJV and TGI
Squamish), are as set out below.
(a) BC Hydro
i. Firm Transportation Rate $0.830 per GJ
ii. Summer Interruptible Rate $0.830 per GJ
iii. Winter Interruptible $1.330 per GJ
(b) TG Whistler
i. Firm Transportation Rate $0.930 per GJ
These transport rates are based on TGVI’s current allowed return on equity (“ROE”) of 9.17
per cent and subject to changes flowing from the Commission’s decision in TGVI’s
concurrent ROE and Capital Structure Application 3 , or as adjusted from time to time by the
Commission. Nothing in this Agreement precludes TGVI from applying to the Commission
in 2010 or 2011 for changes to its allowed ROE and capital structure.
The Parties agree to the following formula to reflect changes in the allowed ROE in the
transportation rates, other than those that have specified rates set out in their contract
(VIGJV and TGI Squamish). Every 1 basis points difference in the approved ROE as
compared to the current ROE of 9.17 per cent will cause the firm and interruptible rates to
change in the same direction by 0.034 cents per GJ rounded to the nearest tenth of a cent.
PART III – REQUESTS UNCHANGED FROM THE APPLICATION
The Parties agree to the following items set out in this section, which are consistent with the
proposals in TGVI’s Application.
3 Filed jointly by the Terasen Utilities [TGI, TGVI. and Terasen Gas (Whistler) Inc.] on May 15, 2009.
APPENDIX A
to Order G-140-09
Page 18 of 102