December 4, 2024

Bill Andrews and Tom Hackney

BCSEA filed a final argument staunchly opposing BCUC approval of FortisBC Energy Inc.’s (FEI’s) $50-million proposal to truck LNG (liquefied natural gas) from the Lower Mainland to Kelowna for storage and injection into the local gas distribution system at times of peak demand.

BCSEA said the Commission should ‘tap the brakes’ on the endless cycle of growing natural gas distribution capacity, followed by growing peak demand for natural gas, followed by growing natural gas distribution capacity in the Project area.

FEI made the Proposal after the Commission rejected (with BCSEA’s support) FEI’s proposed $350-million Okanagan Capacity Upgrade (new pipeline) Project in December 2023. In that decision, the Commission found that in the short term there could be a shortfall in pipeline capacity to meet peak demand (i.e., on the coldest winter evenings) in the Project area. However, the Commission found that climate policy measures to limit GHG emissions could reduce peak demand for gas in the Project area over the mid- to long-term when customers would still be paying for the pipeline option that was no longer needed. The Commission directed FEI to look into the options and propose something different. Notably, as BCSEA highlighted, the Commission did not limit FEI to supply-side options.

BCSEA pointed to several recent decisions (here, here, here, and here) in which the BCUC acknowledged current uncertainty with respect to the continued role of the natural gas system in British Columbia. BCSEA argued that the Commission should invite FEI to examine and report on targeted peak-demand reduction measures in the Project area, such as demand response contracts with large customers, limits on new connections with BCUC approval to limit FEI’s “obligation to serve” in the Project area, and a detailed plan for prioritized service reductions to minimize inconvenience and harm during a capacity shortfall.