On January 15, 2024, the BCUC approved the request from Fortis Energy Inc. (FEI) to proceed with its Transmission Integrity Management Capabilities project for FEI’s interior transmission system.
The project involves making modifications to the eight pipelines in the interior transmission system to allow FEI to use high-tech tools for detecting cracks and other pipeline imperfections. The two-year project is estimated to cost $84.6 million.
It’s notable that the BCUC approved this project based on a 70-year financial analysis (a 65-year estimated service life for transmission assets plus five years construction). The newly-approved assets are expected to be in use until 2094, considerably beyond the legislated net-zero carbon date of 2050.
This is in rather stark contrast to the BCUC’s recent rejection of FEI’s request to increase the capacity of its interior transmission system, while acknowledging that it will soon exceed capacity due to growing demand.
Taken together, the two decisions suggest the BCUC believes the gas system in BC will not continue to grow, but won’t go away either. The picture should become clearer when the BCUC issues its decision on FEI’s long-term gas resource plan in the coming months.