Propane Delivery to Whistler by CN Railcar

Transcription

1 ROBERT J. PELLATT COMMISSION SECRETARY web site: SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 TELEPHONE: (604) BC TOLL FREE: FACSIMILE: (604) VIA February 10, 2006 Log No Canadian National Railway Thornton Yard Suite 200, th Street Surrey, B.C. V3R 6T5 TGW TGVI_ RP-PIPELINE Exhibit No. A-11 Attention: Mr. Peter Ladouceur Assistant Vice President - Sales Dear Mr. Ladouceur: Re: Terasen Gas (Whistler) Inc Resource Plan Update for Conversion of Whistler Propane System to Natural Gas Terasen Gas (Vancouver Isl) Inc. for Pipeline Lateral from Squamish to Whistler Approval of Transportation Service Agreement Propane Delivery to Whistler by CN Railcar Terasen Gas (Whistler) Inc. ( TGW ) has submitted a Certificate of Public Convenience Necessity ( CPCN ) application to the British Columbia Utilities Commission for approval to convert the existing propane distribution system in Whistler to natural gas. This coincides with the Terasen Gas (Vancouver Isl) Inc. CPCN submission to construct a natural gas pipeline from Squamish to Whistler for the 2009 heating season. These submissions, if approved, will result in the discontinuance of propane supply to Whistler some time in 2008 will eliminate the shipment of approximately 250 railcar loads of propane per year. A public hearing to assess the merits of each application has been established for March 23, 2006 under Order No. G-6-06 (attached). In order to assist the Commission in its review of these applications it would be helpful if you would provide a response to the following questions: 1. Prior to the Canadian National Railway ( CN Rail, CNR ) takeover of British Columbia Railway Company ( BC Rail ), BC Rail staged approximately 10 to 12 railcars or one week supply for Whistler during the winter at Squamish without charges. This rotation of cars effectively acted as a storage buffer provided some flexibility to meet load dem swings at Whistler. However, with the change in ownership to CN Rail this service is no longer being provided. Is it CN Rail s policy to restrict the staging of dangerous goods from Squamish or any other nearby location? /2

2 ROBERT J. PELLATT COMMISSION SECRETARY web site: VIA January 25, 2006 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 TELEPHONE: (604) BC TOLL FREE: FACSIMILE: (604) Log No Mr. Scott Thomson Vice President, Finance Regulatory Affairs Terasen Gas Inc Fraser Highway Surrey, B.C. V3S 2X7 TGW TGVI_ RP-PIPELINE Exhibit No. A-5 Dear Mr. Thomson: Re: Terasen Gas (Whistler) Inc Resource Plan Update for Conversion of Whistler Propane System to Natural Gas Terasen Gas (Vancouver Isl) Inc. ( TGVI ) for Pipeline Lateral from Squamish to Whistler Approval of Transportation Service Agreement After consideration of the discussions at the January 17, 2006 Procedural Conference submissions it has received in the interim, the Commission has established the Regulatory Timetable attached to Commission Order No. G A Workshop will be held on Thursday, February 2, 2006 at 9:00 a.m. at the Second Floor Hearing Room, 855 Homer Street, Vancouver, B.C. Following the Workshop, the Commission will develop a proposed Issues List. The Commission will also send out Information Request No. 1 to the Squamish Nation. Depending on the information provided in the response to Information Requests Intervenor Evidence, especially with regard to Squamish Nation consultation TGVI s access to a right-of-way for the pipeline, a second Procedural Conference on March 14, 2006 at 3:00 p.m. at the same location may be required to ascertain whether an Oral Public Hearing is appropriate at this time. The Regulatory Timetable provides for the second Procedural Conference. Yours truly, Original signed by: RB/rt Attachment cc: TGVI_ RR Intervenors CGW 2003RR (CGW03RR) Intervenors Robert J. Pellatt Proceedings/TGW-TGVI Whistler Pipeline Project/Gen Cor/Regulatory Timetable

3 BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-6-06 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA web site: TELEPHONE: (604) BC TOLL FREE: FACSIMILE: (604) IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 A Submission by Terasen Gas (Whistler) Inc. for Review of its of 2005 Resource Plan Update An Application by Terasen Gas (Whistler) Inc. for a Certificate of Public Convenience Necessity to convert its propane grid system to natural gas approval to enter into a Natural Gas Transportation Service Agreement with Terasen Gas (Vancouver Isl) Inc. An Application by Terasen Gas (Vancouver Isl) Inc. for a Certificate of Public Convenience Necessity for a natural gas pipeline lateral from Squamish to Whistler BEFORE: WHEREAS: A.J. Pullman, Panel Chair Commissioner R. Milbourne, Commissioner January 25, 2006 P.E. Vivian, Commissioner O R D E R A. On December 12, 2005, Terasen Gas (Whistler) Inc. ( TGW ) filed with the Commission its 2005 Resource Plan Update ( the Resource Plan ) that provides an assessment of the current future energy requirements at the Resort Municipality of Whistler ( RMOW ) concludes that the existing propane grid system should be converted to natural gas; B. On December 16, 2005, TGW filed with the Commission its application for a Certificate of Public Convenience Necessity ( CPCN ) to convert its system to natural gas for approval to enter into a long-term natural gas transportation agreement with Terasen Gas (Vancouver Isl) Inc. ( TGVI ). In the application, TGW also requests approval to make a capital contribution to TGVI to add the contribution to rate base, to amortize the net book value of the propane facilities to recover pipeline study costs incurred prior to 2004 ( the TGW Application );.../2

4 BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G C. Also, on December 16, 2005, TGVI filed with the Commission its application for a CPCN for construction of a natural gas pipeline lateral to connect RMOW to the TGVI transmission system at Squamish to enter into a Transportation Service Agreement with TGW ( the TGVI Application ). The Resource Plan Application, the TGW Application the TGVI Application will be referred to collectively as the Applications ; D. In the submission, TGW TGVI ( the Companies ) requested that the Commission review the Applications concurrently through a joint proceeding. TGW recommended a written review process proposes a regulatory timetable; E. A Procedural Conference was held on January 17, 2005 all intervenors who wished to make written submissions to the Commission on the proposals outlined during the conference were invited to submit these to the Commission by Friday, January 20, 2005 with the Companies response being due on Monday, January 23, 2006; F. The Commission received responses from British Columbia Hydro Power Authority, the Ministry of Energy Mines Petroleum Resources, the Squamish Nation, The British Columbia Public Advocacy Centre the Vancouver Isl Gas Joint Venture. The Companies responded to these submissions on Monday, January 23, 2005; G. The Commission has reviewed the submissions from the Companies as well as the intervenors determines that an oral public hearing is needed for the regulatory review of the Applications. NOW THEREFORE the Commission orders as follows: 1. The Applications will be examined through an Oral Public Hearing commencing at 9:00 a.m., Thursday, March 23, 2006 at the Second Floor Hearing Room, 855 Homer Street, Vancouver, B.C. 2. The Regulatory Timetable attached as Appendix A to this Order is established for this proceeding. DATED at the City of Vancouver, in the Province of British Columbia, this 25 th day of January BY ORDER Original signed by: A.J. Pullman Panel Chair Commissioner Order/TGW-TGVI_RP_Pipeline_Regualtory Timetable

5 APPENDIX A to Order No. G-6-06 Page 1 of 1 A Submission by Terasen Gas (Whistler) Inc. ( TGW ) for Review of its of 2005 Resource Plan Update An Application by Terasen Gas (Whistler) Inc. for a Certificate of Public Convenience Necessity to convert its propane grid system to natural gas approval to enter into a Natural Gas Transportation Service Agreement with Terasen Gas (Vancouver Isl) Inc. An Application by Terasen Gas (Vancouver Isl) Inc. ( TGVI ) for a Certificate of Public Convenience Necessity for a natural gas pipeline lateral from Squamish to Whistler REGULATORY TIMETABLE Action Date Workshop Thursday, February 2 Applications for Participant Funding Monday, February 6 Intervenors Information Requests No. 1 issued to TGW TGVI Wednesday, February 8 Commission Information Request No. 2 issued to TGW TGVI Wednesday, February 8 Commission Information Request No. 1 issued to the Squamish Nation Wednesday, February 8 TGW TGVI Response to Intervenors Commission Information Requests No. 1 No. 2 respectively Friday, February 17 Squamish Nation Response to Commission Information Request No. 1 Friday, February 17 Intervenors to File Evidence issue Information Request No. 2 to TGW TGVI Friday, February 24 Information Requests to Intervenors Thursday, March 2 Intervenors, TGW TGVI Responses to Information Requests Thursday, March 9 Second Procedural Conference commencing 3:00 p.m. (if required) Tuesday, March 14 Commission Oral Public Hearing at 9:00 a.m. Thursday, March 23

6 2 2. It is TGW s contention that the just in time inventory system imposed by CN Rail still has problems did not meet scheduled deliveries in What are the issues that have to be solved for the just in time delivery system to work satisfactorily? 3. Constructive Placement Intra-Plant Switching costs imposed under CN Rail tariffs to manage the propane railcar deliveries are additional costs not charged by BC Rail. Under what conditions do these charges apply? 4. There have been four CNR derailments in the Sea to Sky Corridor in 2005 TGW reports that there would have been a propane supply shortage if not for warmer than normal weather in Whistler. In order to provide a greater assurance of propane supply, TGW contends that they have had to rely on additional truck traffic to mitigate propane supply disruptions as the railcar delivery is uncertain. What action is CNR taking to reduce derailments improve service in this corridor? Also, can you elaborate on CNR s safety record with regard to shipments through this corridor? 5. TGW further contends that CNR primarily moves freight traffic down through the Fraser Valley now then switches the cars in Vancouver to move them back up to Squamish ultimately to Whistler. This is causing further delay in the shipments adding a degree of uncertainty as to the scheduling. Can you confirm this advise what direction CNR will be taking with regard to operation of the line from Lillooet to Squamish in the future? 6. A private railcar siding may be an option to constructive placement mitigate the loss of Squamish as a staging area storage facility. What is CN Rail s policy with respect to hazardous materials a private siding? (It is assumed that TGW or its supplier would be responsible for the material when it s on this property just as it is at the Mon s terminal in Whistler). Also, can CNR suggest possible suitable locations where sidings exist or a siding could be constructed in close proximity to Whistler? This has also been sent to your address if you have questions on this matter, please contact Robert Brownell at Yours truly, Original signed for: RB/rt Enclosure Robert J. Pellatt PF/TGW-TGI_RP_Pipeline/Gen Cor/A-11_Propane Delivery to Whistler-CNR