BCUC denies pipeline project despite FortisBC warning Okanagan could reach capacity by 2026

A $327 million pipeline expansion project in the Okanagan has been denied by the British Columbia Utilities Commission (BCUC).

On Friday, the BCUC denied FortisBC’s application for the Okanagan Capacity Upgrade project, which would have included the construction, installation and operation of around 30 kilometres of new natural gas pipeline.

FortisBC’s application stated that the pipeline expansion was needed to meet a forecast increase in demand for natural gas in the Okanagan due to population growth.

A release says Fortis expects it will be unable to meet demand with the existing pipeline as early as winter 2026/2027.

However, according to the BCUC, the project was denied because it was not deemed as necessary for public convenience and was not in the public interest.

“The BCUC found that FortisBC’s application did not consider the possibility that demand for natural gas in the Okanagan region could flatten or decrease over the next 20 years, due, in part, to BC’s CleanBC Roadmap commitments, BC Building and BC Energy Step Codes impacts, and other planning guidelines or zoning bylaws,” says the BCUC.

The release says the review of the project application included “multiple” rounds of information requests, a procedural conference, evidence and input from several interest groups and feedback from the public through 96 letters.

The BCUC is already reviewing Fortis’ Revised Renewable Gas Comprehensive Review application, which is seeking approval to provide renewable gas to its customers.

That decision on that application is expected to impact the growth in demand.

BCUC said approving the project would not be “prudent” at this time and directed FortisBC to examine other short-term solutions and file a plan with the BUC by the end of July 2024.