FortisBC Energy Inc. was sent back to the drawing board to supply a growing customer base after Canadian regulators rejected a proposal for a C$327 million ($285 million) natural gas pipeline. 

The British Columbia Utilities Commission (BCUC) in late December denied a certificate of public convenience and necessity for FortisBC’s proposed Okanagan Capacity Upgrade (OCU) project. 

The project would have included a new 406-millimeter diameter (16-inch diameter) natural gas pipeline spanning 18.6 miles from Ellis Creek to Chute Lake. FortisBC also would have added a pressure control station, a block valve station and decommissioned an existing pipeline.

In its application filed in late 2020, FortisBC said OCU would be necessary to serve a forecast peak demand increase on its...