FEI ALL-INCLUSIVE CODE OF CONDUCT
AND TRANSFER PRICING POLICY
EXHIBIT B-1
Diane Roy
Director, Regulatory Services
Gas Regulatory Affairs Correspondence
Email: [email protected]
Electric Regulatory Affairs Correspondence
Email: [email protected]
FortisBC
16705 Fraser Highway
Surrey, B.C. V4N 0E8
Tel: (604) 576-7349
Cell: (604) 908-2790
Fax: (604) 576-7074
Email: [email protected]
www.fortisbc.com
March 30, 2016
British Columbia Utilities Commission
6th Floor, 900 Howe Street
Vancouver, BC
V6Z 2N3
Attention: Ms. Laurel Ross, Acting Commission Secretary and Director
Dear Ms. Ross:
Re:
FortisBC Energy Inc. (FEI)
British Columbia Utilities Commission Orders G-31-15 and G-65-15 in the
Application for Approval of a Code of Conduct and Transfer Pricing Policy for
Affiliated Regulated Businesses Operating in a Non-Natural Monopoly
Environment
All-Inclusive Code of Conduct and Transfer Pricing Policy – Order G-65-15
Compliance Filing – Request for Extension
FEI hereby requests an approximate two-month extension to the filing date for the allinclusive Code of Conduct (COC) and Transfer Pricing Policy (TPP), as determined by Order
G-65-15 from April 27, 2016 to June 30, 2016, in order to ensure adequate time to consider
and incorporate any potential changes that may be necessary as a result of Order G-39-16.
Background:
On February 27, 2015, the British Columbia Utilities Commission (the Commission) issued its
Decision and Order G-31-15 in the Application by FEI for Approval of a Code of Conduct
(COC) and Transfer Pricing Policy (TPP) for Affiliated Regulated Businesses Operating in a
Non-Natural Monopoly Environment (ARBNNM). Directive No. 1 and 3 of Order G-31-15,
directed as follows:
1. FortisBC Energy Inc. (FEI) is directed to comply with the findings and
determinations in the decision by amending the Code of Conduct and the Transfer
Pricing Policy in a manner consistent with the Commission determinations.
3. FEI is to file for approval a draft all-inclusive Code of Conduct and Transfer
Pricing Policy within one year of final approval of the Code of Conduct and
Transfer Pricing Policy for Affiliated Regulated Businesses Operating in a NonNatural Monopoly.
March 30, 2016
British Columbia Utilities Commission
FEI Orders G-31-15 and G-65-15 All-Inclusive COC and TPP Compliance Filing
Request for Extension
Page 2
On April 7, 2015, in compliance with Directive No. 1 of Order G-31-15, FEI filed its COC and
TPP based on the determinations in the decision and on April 28, 2015, the Commission
issued Order G-65-15 approving the COC and TPP for ARBNNMs as filed. Directive 3 of
Order G-65-15 directed as follows:
FEI is to file for approval, no later than April 27, 2016, a draft all-inclusive Code of
Conduct and Transfer Pricing Policy that covers the interactions between FEI and its
affiliated natural monopoly utilities, FEI and its affiliated non-regulated businesses,
and FEI and its affiliated regulated businesses operating in a non-natural monopoly
environment.
On March 18, 2016, the Commission issued its Decision and Order G-39-16 (the ACGS
Decision) approving the FortisBC Midstream Inc. (FMI) Application to Acquire the Shares of
Aitken Creek Gas Storage ULC (ACGS). Directive No. 3 of Order G-39-16 directed as
follows:
Aitken Creek Gas Storage must file with the Commission a Code of Conduct and a
Transfer Pricing Policy which covers the interactions between Aitken Creek Gas
Storage and its affiliated natural monopoly utilities, and interactions between Aitken
Creek Gas Storage and its affiliated non-regulated businesses, and Aitken Creek Gas
Storage and its affiliated regulated businesses operating in a non-natural monopoly
environment as set out in the attached Reasons for Decision.
Further, in the ACGS Decision, on page 12 of Appendix A, the Commission states:
The Panel directs ACGS to institute a Code of Conduct and Transfer Pricing Policy
(COC/TPP) which covers the interactions between ACGS and its affiliated natural
monopoly utilities, ACGS and its affiliated non-regulated businesses, and ACGS and
its affiliated regulated businesses operating in a non-natural monopoly environment.
The ACGS COC/TPP must be filed for approval by the Commission no later than the
time FEI files its all-inclusive Code of Conduct and Transfer Pricing Policy.
Conclusion:
FEI believes the request to extend the deadline for the filing of its all-inclusive COC and TPP,
pursuant to Order G-65-15, to June 30, 2016, is reasonable and necessary. In the period of
time until FEI has an approved all-inclusive COC and TPP in place, FEI will:

adhere to the existing FEI Code of Conduct for Provision of Utility Resources and
Transfer Pricing Policy for Non-Regulated Businesses dated August 1997 to govern
the relationships and interactions between FEI and ACGS/FMI, for resources
provided by FEI and to address the pricing of the resources and services provided;
and

maintain separation of employees responsible for commercial activities and will not
share the services of FEI employees directly responsible for the portfolio planning
and mitigation and related contract negotiation activities at FEI.
March 30, 2016
British Columbia Utilities Commission
FEI Orders G-31-15 and G-65-15 All-Inclusive COC and TPP Compliance Filing
Request for Extension
Page 3
Granting of the extension request will ensure appropriate consideration of changes that may
be necessary to address the requirement for ACGS to also file a COC and TPP, pursuant to
Order G-39-16, concurrent with FEI’s filing.
If further information is required, please contact the undersigned.
Sincerely,
FORTISBC ENERGY INC.
Original signed:
Diane Roy