B.C. Reg. 147/2026, deposited July 24, 2026, under the UTILITIES COMMISSION ACT [section 3]. Order in Council 360/2026, approved and ordered July 24, 2026.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that Direction No. 5 to the British Columbia Utilities Commission, B.C. Reg. 245/2013, is amended as set out in the attached Schedule.

— A. DIX, Minister of Energy and Climate Solutions; J. WICKENS, Presiding Member of the Executive Council.

Schedule

1 Section 1 of Direction No. 5 to the British Columbia Utilities Commission, B.C. Reg. 245/2013, is amended

(a) by repealing the definition of "CNG",

(b) in paragraph (b) of the definition of "CNG service" by striking out "CNG" and substituting "compressed natural gas",

(c) in the definition of "expansion facilities" by striking out "owned and operated" and substituting "operated and owned or leased",

(d) by adding the following definition:

"first nation" includes a person authorized to act on behalf of Indigenous peoples who hold rights recognized and affirmed by section 35 of the Constitution Act, 1982; ,

(e) by repealing the definition of "LNG agreement",

(f) in paragraph (f) of the definition of "LNG service" by adding "and marine LNG service" after "including LNG dispensing service",

(g) by repealing the definition of "long-term LNG service",

(h) by adding the following definitions:

"marine LNG rate schedule" means the utility’s Liquefied Natural Gas (LNG) and Renewable LNG (RLNG) Sales, Transport, Dispensing and Jetty Service Rate Schedule 48 set out in Appendix 6 attached to this direction;

"marine LNG revenue deficiency regulatory account" means an account to capture the first 10 annual variances between

(a) the forecast cost of service in relation to marine LNG service, and

(b) the forecast revenues in relation to that service under the marine LNG rate schedule that are used by the commission in setting rates for applicable customers;

"marine LNG service" means any service referred to in section 3, 4, 5, 6 or 9 of the marine LNG rate schedule;

"marine LNG variance regulatory account" means an account to capture the following variances:

(a) the first 10 annual variances between the forecast cost of service in relation to marine LNG service and the actual cost of service in relation to that service;

(b) the first 10 annual variances between the forecast revenues from marine LNG service under the marine LNG rate schedule and the actual revenues from that service under the marine LNG rate schedule; ,

(i) by repealing the definition of "operation period",

(j) by repealing the definition of "phase 1B facilities" and substituting the following:

"phase 1B facilities" means all of the following:

(a) expansion facilities other than phase 1A facilities or LNG storage facilities;

(b) the Tilbury Island electrical facilities;

(c) the Tilbury Island jetty;

(d) a new cryogenic pipeline and related facilities for the purpose of providing marine LNG service at the Tilbury Island jetty; ,

(k) by repealing the definition of "specified agreement", and

(l) by adding the following definitions:

"Tilbury Island electrical facilities" means a new 230 kilovolt electric transmission line, and related facilities, from the Arnott substation of the authority to the expansion facilities, to be constructed, operated and owned or leased by a utility;

"Tilbury Island jetty" means a jetty at Tilbury Island to be constructed, operated and owned or leased by a utility for the purpose of providing marine LNG service; .

2 Section 4 (2) is amended

(a) in paragraph (b) (i) (B) by striking out "$400 million" and substituting "$2.2 billion",

(b) in paragraph (c) by adding the following subparagraph:

(iv) amounts paid, under the Electric Tariff of the authority, by the utility in relation to upgrades necessary to connect the Tilbury Island electrical facilities to the Arnott substation of the authority; , and

(c) by adding the following paragraphs:

(f) allow the utility to establish a marine LNG revenue deficiency regulatory account for the purposes of the operation of the phase 1B facilities;

(g) set rates for applicable customers in such a way as to allow

(i) the utility to recover a return on the balance in the marine LNG revenue deficiency regulatory account equal to the utility’s weighted average cost of capital, and

(ii) the marine LNG revenue deficiency regulatory account to be cleared from time to time and within a reasonable period by allowing the balance to be returned to or recovered from applicable customers;

(h) allow the utility to establish a marine LNG variance regulatory account for the purposes of the operation of the phase 1B facilities;

(i) set rates for applicable customers in such a way as to allow the marine LNG variance regulatory account to be cleared from time to time and within a reasonable period by allowing the balance to be returned to or recovered from applicable customers.

3 The following sections are added:

Marine LNG rate schedule

10 (1) Within 30 days of the date this section comes into force, the commission must issue an order setting the marine LNG rate schedule as a rate for FortisBC Energy Inc.

(2) The commission must not do anything to amend, cancel or suspend the marine LNG rate schedule, except on application by the utility.

(3) If FortisBC Energy Inc. applies to the commission to amend a charge in the marine LNG rate schedule, the commission must not set the charge by reference to charges imposed by other providers providing similar services.

(4) The commission must not exercise a power under the Act in a way that would directly or indirectly prevent FortisBC Energy Inc. from providing marine LNG service under the marine LNG rate schedule.

Co-ownership of Phase 1B facilities

11 (1) This section applies if FortisBC Energy Inc. makes an application to the commission in relation to

(a) the disposition of one or more of the phase 1B facilities to a limited partnership through which FortisBC Energy Inc. and a first nation would hold ownership interests in those phase 1B facilities, and

(b) the lease of one or more of the phase 1B facilities by the limited partnership to FortisBC Energy Inc.

(2) The commission must not exercise a power or perform a duty under the Act in a way that would directly or indirectly prevent FortisBC Energy Inc. from disposing of and leasing back one or more of the phase 1B facilities as contemplated in an application described in subsection (1), unless the commission determines the disposition and lease would materially increase the amounts paid by applicable customers through rates set under the Act for FortisBC Energy Inc.

4 The attached Appendix 6 is added.

Appendix 6

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