SURREY,
BC, Sept. 5, 2023 /CNW/ - The British Columbia
Utilities Commission (BCUC) has issued its decision on Stage 1 of
the generic cost of capital (GCOC) proceeding which determined the
allowed return on equity (ROE) and approved capital structure for
FortisBC Energy Inc (FEI) and FortisBC Inc. (FBC), a subsidiary of
Fortis Inc. (TSX: FTS) (NYSE: FTS).
Respectively, FEI and FBC are the largest investor‐owned natural
gas and electricity utilities in British
Columbia and their allowed earnings are regulated by the
BCUC. In determining the fair return for both utilities, financial
and business risks were considered, multiple financial models and
analyses were reviewed, and expert testimonies were heard over the
course of the proceeding.
Effective January 1, 2023, the
following has been approved:
- The allowed ROE for FEI have been set at 9.65% and the common
equity in the approved capital structure has been set at 45%.
- The allowed ROE for FBC has been set at 9.65% and the common
equity in the approved capital structure has been set at 41%.
The allowed ROE and approved capital structure will remain in
effect until otherwise determined by the BCUC.
Current rates for the utilities were approved on an interim
basis, pending the outcome of Stage 1 of the GCOC proceeding. With
this decision, both utilities will now file for permanent
rates.
The GCOC proceeding will now move onto Stage 2, which will
determine the cost of capital for other utilities in B.C. Stage 2
begins in November 2023.
The decision and orders are available online.
About FortisBC Energy Inc. and
FortisBC Inc.
FortisBC Inc. and FortisBC Energy Inc. do business as
FortisBC, a regulated utility focused on providing safe and
reliable energy, including natural gas, electricity, Renewable
Natural Gas and propane. FortisBC employs approximately 2,652
British Columbians and serves more than 1.25 million customers in
135 B.C. communities. FortisBC owns
and operates two liquefied natural gas storage facilities and four
regulated hydroelectric generating plants, approximately 7,316
kilometres of transmission and distribution power lines, and
approximately 51,174 kilometres of gas transmission and
distribution pipelines. FortisBC is indirectly, wholly owned by
Fortis Inc., a leader in the North American regulated electric and
gas utility industry. FortisBC Inc. and FortisBC Energy Inc. use
the FortisBC name and logo under license from Fortis Inc. For
further information on FortisBC, visit www.fortisbc.com. For
further information on Fortis Inc.,
visit fortisinc.com.
SOURCE FortisBC