Attention: Mr. Patrick Wruck, Commission Secretary and Manager, Regulatory Support

Transcription

1 B-2 10 th Floor 1111 West Georgia Street Vancouver, BC, V6E 4M3 April 21, 2017 British Columbia Utilities Commission 6 th Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Attention: Mr. Patrick Wruck, Commission Secretary and Manager, Regulatory Support Dear Mr. Wruck: Re: Aitken Creek Gas Storage ULC British Columbia Utilities Commission (the Commission) Order G Aitken Creek Gas Storage ULC (ACGS) Code of Conduct and Transfer Pricing Policy Compliance Filing (the Application) Proposed Regulatory Review Timetable On March 18, 2016, the Commission issued its Decision and Order G (the ACGS Decision) approving the FortisBC Midstream Inc. (FMI) Application to Acquire the Shares of Aitken Creek Gas Storage ULC (ACGS). Order G required ACGS to submit an All- Inclusive Code of Conduct and Transfer Pricing Policy (the ACGS Application) for Commission approval at the time that FortisBC Energy Inc. (FEI) filed its All-Inclusive Code of Conduct and Transfer Pricing Application (the FEI Application). On June 30, 2016, in accordance with the extension granted by Order G-52-16, both FEI and ACGS filed their respective applications. On August 3, 2016, the Commission issued a letter (Log. No ) determining that the FEI Application would be reviewed first, and following its completion and the issuance of a decision, the Commission would review the ACGS Application. On March 1, 2017, the Commission issued its Decision and Order G on the FEI Application (the FEI Decision). ACGS has reviewed the FEI Decision and concluded that no revisions to the ACGS Application which was initially filed on June 30, 2016 are necessary. As part of this filing, ACGS has taken the opportunity to correct minor typographical and referencing errors to its proposed Code of Conduct and Transfer Pricing Policy filed on June 30, ACGS hereby attaches page 6 (Appendix A) of the ACGS Code of Conduct and page 3 of the ACGS Transfer Pricing Policy showing blacklined revisions.

2 April 20, 2017 British Columbia Utilities Commission ACGS Order G Code of Conduct and Transfer Pricing Policy Compliance Filing Proposed Regulatory Review Timetable Page 2 ACGS requests the Commission commence review of the ACGS Application, and proposes the following written review process for the Commission s consideration. A draft procedural order is also attached. Action Date (2017) Intervener Registration Thursday, May 4 Information Request (IR) No. 1 from BCUC and Interveners Thursday, May 25 ACGS Responses to IR No. 1 Thursday, June 15 ACGS Final Argument Thursday, June 29 Interveners Final Argument Thursday, July 6 ACGS Reply Argument Thursday, July 13 If further information is required, please contact the undersigned at (604) Sincerely, AITKEN CREEK GAS STORAGE ULC Original signed: Mike Metza Risk Manager Attachments cc ( only): FEI All-Inclusive Code of Conduct and Transfer Pricing Policy Proceeding Registered Interveners

3 APPENDIX A AFFILIATES OF ACGS as at June 30, FortisBC Alternative Energy Services Inc. (FAES) FAES is a wholly owned subsidiary of FortisBC Holdings Inc. that provides alternative energy solutions, including thermal-energy and geo-exchange systems. The company specializes in designing, owning, operating and maintaining regulated utility thermal assets to help its clients address deferred maintenance, reduce greenhouse gas emissions, support sustainability objectives and improve the performance of thermal energy systems in buildings. For the purpose of this Code of Conduct, FAES is classified as an ARB. FortisBC Energy Inc. (FEI) FEI is a wholly owned subsidiary of FortisBC Holdings Inc, which is an indirect wholly owned subsidiary of Fortis Inc., a Canadian public company. FortisBC Energy Inc. is the largest distributor of natural gas in BC serving approximately 982,000 residential, commercial and industrial and transportation customers in more than 135 communities. For the purpose of this Code of Conduct, FEI is classified as an AU. FortisBC Huntingdon Inc. (FBCH) FBCH is a wholly owned subsidiary of FortisBC Holdings Inc. The Corporations owns two interconnecting pipelines near Abbotsford, British Columbia which are used in the transmission of natural gas to and from the United states. The Corporation is regulated by the National Energy Board, an independent regulatory authority. For the purpose of this Code of Conduct, FBCH is classified as an AU. FortisBC Inc. (FBC) FBC is a wholly owned subsidiary of FortisBC Pacific Holdings Inc, which is an indirect wholly owned subsidiary of Fortis Inc., a Canadian public company. FortisBC Inc. is an integrated regulated electric utility operating in the southern interior of British Columbia, serving approximately 167,600 customers directly and indirectly. For the purpose of this Code of Conduct, FBC is classified as an AU. FortisBC Holdings Inc. (FHI) FHI, a Canadian corporate headquartered in Vancouver, British Columbia, is the parent company of FEI, FAES, FortisBC Midstream Inc and FBCH. A whollyowned subsidiary of Fortis Inc., FortisBC Holdings Inc., is a holding company. Its subsidiaries are the operating companies. For the purpose of this Code of Conduct, FHI is classified as an ANRB. FortisBC Midstream Inc. (FMI) FMI is a holding company and the parent company of ACGS. FortisBC Pacific Holdings Inc. (FPHI) FPHI is a holding company and the parent company of FBC. For the purpose of this Code of Conduct, FPHI is classified as an ANRB. Fortis Inc. (FI) FI is a holding company and the parent company of FHI and FPHI. FI is a diversified, international holding corporation having investments in distribution, transmission and generation assets and utilities. For the purpose of this Code of Conduct, FI is classified as an ANRB. Deleted: H Page 6

4 ACGS Transfer Pricing Policy for Affiliates b) As evidence of compliance with section 2(a) herein, ACGS will: 1. Set up appropriate internal orders for tracking time, documenting the internal order numbers and ensuring that the appropriate individuals charge time to them. ACGS will be responsible for maintaining the internal orders and collecting the appropriate charges. 2. The individuals performing the service must report all time spent on that service by coding their time to the appropriate internal order numbers. If the Transfer Price is set in accordance with section 1(a) above, the Affiliate may review the validity of the charges. 3. The Affiliate will be invoiced for an amount calculated in accordance with the agreement. If the Transfer Price is set in accordance with section 1(a) above, the invoice will include the number of hours and corresponding activities. The methodology for determining a salary level is on the basis of the average of the respective pay grades or job groups for the employees involved. Deleted: b Deleted: b 4. The ACGS Risk and Compliance Manager is responsible for the oversight of safeguards related to the Transfer Pricing Policy, including the ongoing design and operating effectiveness of the timekeeping process and other related controls and safeguards, and the maintenance of adequate records and documentation. 3. Review of Transfer Pricing Policy The Transfer Pricing Policy will be reviewed by ACGS on an annual basis as part of the Code of Conduct compliance review. However, ACGS may make an application to the Commission for approval of changes to the policy. Page 3

5 Sixth floor, 900 Howe Street Vancouver, BC Canada V6Z 2N3 TEL: (604) BC Toll Free: FAX: (604) ORDER NUMBER G-xx-xx IN THE MATTER OF the Utilities Commission Act, RSBC 1996, Chapter 473 and Aitken Creek Gas Storage ULC Application for Approval of the Code of Conduct and Transfer Pricing Policy Order G Compliance Filing BEFORE: Panel Chair/Commissioner Commissioner Commissioner on Date WHEREAS: ORDER A. On March 18, 2016, the British Columbia Utilities Commission (Commission) approved the application by FortisBC Midstream Inc. of the shares of Aitken Creek Gas Storage ULC (ACGS), which required ACGS to file a Code of Conduct (COC) and Transfer Pricing Policy (TPP) for Commission approval concurrent with FortisBC Energy Inc. filing of its All-Inclusive COC and TPP; B. On April 18, 2016, the Commission issued Order G granting an approval to FEI for an extension to the filing of its All-Inclusive COC and TPP, and on June 30, 2016, FEI filed its All-Inclusive COC and TPP (the FEI Application, and ACGS also filed its COC and TPP (the ACGS Application) for Commission approval; C. On August 3, 2016, the Commission issued a letter by Log. No , determining that the FEI Application would be reviewed first, and upon issuance of a decision, the ACGS Application would be reviewed; D. On March 1, 2017, the Commission issued its Decision and Order G on the FEI Application; E. On April 21, 2017, ACGS filed a letter requesting the Commission commence review of the ACGS Application; F. The Commission has reviewed the ACGS request and considers that the establishment of a written regulatory review process and timetable is warranted. NOW THEREFORE the British Columbia Utilities Commission orders as follows: 1. The Regulatory Timetable for the ACGS Code of Conduct and Transfer Pricing Policy Application is set out in Appendix A to this order. /2

6 Order G-xx-xx Page 2 of 2 2. Interveners who wish to participate in the regulatory proceeding are to register with the Commission by completing a Request to Intervene Form, available on the Commission s website at by the date established in the Regulatory Timetable attached as Appendix A to this order and in accordance with the Commission s Rules of Practice and Procedure. DATED at the City of Vancouver, in the Province of British Columbia, this (XX) day of (Month Year). BY ORDER Original signed by: (X. X. last name) Commissioner Attachments FILEPATH

7 APPENDIX A to Order G-xx-xx Page 1 of 1 Aitken Creek Gas Storage ULC Application for Approval of the Code of Conduct and Transfer Pricing Policy Order G Compliance Filing REGULATORY TIMETABLE ACTION DATE (2017) Intervener Registration Thursday, May 4 Information Request (IR) No. 1 from BCUC and Interveners Thursday, May 25 ACGS Responses to IR No. 1 Thursday, June 15 ACGS Final Argument Thursday, June 29 Interveners Final Argument Thursday, July 6 ACGS Reply Argument Thursday, July 13