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SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and An Application by Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd. for 1996 Revenue Requirements and Interim Rate Changes BEFORE: M.K. Jaccard, Chairperson; and ) December 21, 1995 L.R. Barr, Deputy Chairperson ) ORDER WHEREAS: A. On November 28, 1995 Pacific Northern Gas Ltd. ("PNG") and Pacific Northern Gas (N.E.) Ltd. ["PNG (N.E.)"] applied to the Commission, pursuant to Sections 64 and 106 of the Utilities Commission Act, for approval to amend its Gas Tariff rate schedules on an interim and permanent basis effective January I, 1996 ("the Application"); and B. The Applicant also filed and included the impacts of the following documents for the purposes of interim increases, subject to Commission review and approval: Cost of Gas Pass-Through based on approved prices; Application dated October 31, 1995 for approval of various deferral accounts for 1995; A 1995 Depreciation Study; Revised calculation of rates for various customer classes to reflect the directions contained in the Commission's Rate Design Decision dated December 15, 1995; A 1996 Rate Design Application for the Tumbler Ridge service area dated December 20, 1995; and C. The Commission has considered the above requests and determines that approval on an interim basis is in the public interest. NOW THEREFORE the Commission orders PNG and PNG (N.E.) as follows: 1. The Commission approves for PNG and PNG (N.E.) the interim rate changes as shown in Appendix A, attached to this Order, effective January 1, 1996, subject to refund or reimbursement to affected customers, with interest at the average prime rate of the principal bank with which PNG conducts its business. 2. A public hearing into the Application is set to commence on Monday, April 1, 1996 in a location to be announced later ba~ed on the locality and interest of registered intervenors.
2 3. A Pre-hearing Conference to deal with the public hearing is scheduled to commence at 9:00 a.m. Wednesday, January 31, 1996 in the Commission's Hearing Room, 6th Floor, 900 Howe Street, Vancouver, B.C. 4. The Application and supporting materials are to be made available at the Head Office of PNG and PNG (N.E.), Suite 1400 - 1185 West Georgia Street, Vancouver, B.C. and at each district office located in its service area. The Application will also be available for inspection at the British Columbia Utilities Commission, 6th Floor, 900 Howe Street, Vancouver, B.c. 5. PNG and intervenors are directed to comply with the timing deadlines as set out in the attached Notice of Public Hearing. 6. PNG/PNG(N.E.) is to publish the attached Notice of Public Hearing in the business sections of the Vancouver Sun and Province and in local newspapers in its service area during the week of January 8, 1996. DATED at the City of Vancouver, in the Province of British Columbia, this of December, 1995. BY ORDER Dr. Mark K. Jac:caJ'd Chairperson Order/PNG-96RR Appr. Order & Notice
Pacific Northern Gas Ltd SUMMARY OF 1996 PROPOSED RATE CHANGES Retail Rate$ 1996 Effective Rev. Req. Customer Classification January 1.1995 In~l'Case ($IGJ) ($IGJ) Besidential (Rate 1 ) 5.636 0.286 Commercial Small Commercial (Rate 2) 5.070 0.220 Large Comm¢f~;1 Firm (Rate 2) 4.794 0..220 Large Commercial [nterr (Rate 4) 2.634 0.141 Total Commercial Seasonal Off·Peak (Rate 6) 3.400 0.247 NGV (Rate 7) 2.941 0.113 Small Indu6trial S:des (Rate 5) 3.739 0.124 Tranllport 1.143 0.124 lnterruptiblo 0.992 0.100 Tolal SmalllndUsrriai urge Industrial Methane! Firm Tranllporut;on 0.8992 0.0904 Interruptible 0.2277 0.0213 Sub-tocal Skeens Cellulose Inc. Firm Transportation 1.0841 0.1095 Interruptible 0.9924 0.1000 Oefiency Sub-rotaJ Euroean Pulp & Paper Firm Transportation 1.0437 0.1053 Interruptible 0.9924 0.1000 SUb-to~1 Alean Smelters & Chemicals Firm Transportation 1.2007 0.1215 Interruptible 0.9924 0.1000 SUb·rocal B.C. Hydro Monthly Demand Ch"r~e 1447.450 149.08 Interruptible 0.9924 0.1000 iCATECH9S,XL$ ,~~,A --PP E N -D -IX -A to Order No. G-117-9 Page 1 of 3 1996 1996 Retail Rates Gas Supply Rate Effective Decrease C.siml January 1.1996 Retail Rate ChaoSe.s ($IGJ) ($/GJ) ($IGJ) ($/GJ) (%) (0.485) 0.540 5.977 0.341 6.0"" (0.492) 4.798 (0.212) (5.4%) (0.492) 4.522 (0.2n) (5.7%) (0.461) 2.314 (0.320) (12.1%) (0.562) 3.065 (0.315) (9.3%) (0.449) (0.029) 2.576 (0.365) (12.4%) (0.597) (0.345) 2.922 (0.817) (.21.9%) (0.021) (0.234) 1.012 (0.131) (11.4%) (0.021) 1.071 0.079 8.0% (0.021) (0.0002) 0.968 0.0692 7.7% (0.021) 0.2280 0.0003 0.1% (0.021) (0.0524) 1.120 0.0361 3.3% (0.021) 1.0714 0.0790 8.0% (0.021) (0.1842) 0.944 (0.0999) (9.6%) (0.021) 1.0714 0,0790 8.0% (0.021) (0.0457) 1.255 0.0548 4.6% (0.021) 1.0714 0.0790 8.0% 0.000 1.596.53 149.08 10.3% (0.021) 1.071 0.0790 8.0%
Pacific Northern Gas (N.E.) Ltd Dawson Creek Division SUMMARY OF PROPOSED RATE CHANGES EFFECTIVE JANUARY 1,1996 1996 Test Year Gross Customer Classification Gas Deliveries Margin (GJ) ($) Residential 671361 1.303,043 Small Commercial 501553 793,312 I..arge Commercial 113510 168,239 TOTAL 1286424 2,264,594 Rebil Rates Effective Rev. Requ. Customer Classific,,ujsn January 1.1995 ~ ('$/GJ) ($/GJ) Residential 4.142 0.135 Smafl Commercial 3.762 0,110 Large Commercia] 3.554 0.103 APPENDIX A to-order-No. G-117-95 Page 2 of 3 Alloeation of Rev. Req. Gas Supply 1996 Net Revenue Rate COlit Rate Rate Defleiency Changes Changes .Q.Wg,Q Changes ($) ($1GJ) ($/GJ) (S/GJ) ($IGJ) 90,337 0.135 (0.223) 0.282 0.194 54.999 0.110 (0.206) (0.256) (0.353) 11,664 0.103 (0.106) (0.536) (0.540) 157,000 157.000 Gas Supply 1995 Retail Rates Cost Rate Proposed 'h Chanlles Design January 1.1996 Change (S/GJ) (SJGJ) ($/GJ) (0223) 0.282 4,~6 4.68% (0.206) (0.256) 3.409 (9.38%) (0.106) (0.536) 3.014 (15.18%)
Pacific Northern Gas (N.E.) Ltd Tumbler Ridge Division SUMMARY OF PROPOSED RATE CHANGES EFFECTIVE JANUARY 1, 1996 1996 Test Year Gross Customer Cla6llification Gas Deliveries Margin (GJ) ($) Residential 113731 393.412 Small Commercial 65026 165.614 Quinmtte Coal ltd 141000 (1) 350,912 Sceptre Resourees PI Thunder Well 36500 (1) 90.912 TOTAl. 356257 1.000.850 Retail Rates effective R.1I,Requ. Customer CI"ssilicati2.!J January 1.1996 D~creaiS (S/GJ) (S/GJ) Residen1i.:l1 5.484 (0.142) SmaU Commerc:ial d.570 (0.10d) Quintette Coal ltd 4.319 (0,102) Sceptre Resourcea 4.371 (0.102) Tl1underWe/l NOTES; ,. The figures of 141000 GJ and 36500 GJ are the minimum annu~j take or pay obligations and not lIle forecast aCllJilf deliveries to each customer. 2. Scepfre's fixed foe of $120.000 per year for gas proco$$fng and lr3nsportslion setvices for ill: Murray River well is proje~d ID remain the same for the 1996 test year.APPENDIX A to-Order-No. G-117-95 Page 3 of 3 Allocation of Rev. Req. Glu.Supply 1986 Net Revenue Ram Cost Rate RaI2 Surplus Chances Ch3n9~s ~ ChanliE ($) ($/GJ) (S/GJ) ($IGJ) (S/GJ) (16.116) (0.142) (0253) 0.545 O.lS· (6.754) (0.104) (021::;) 0.423 O.lOE (14.375) (0.102) (0.063) (0.605) (0.770 (3.n4) (0.102) (0.113) (0.114) (0.329' (41.000) (41.000) Gas Supply 1996 Retail Rates Cost Rare Proposed % Changes Q.WIm Ji!nuary 1.1998 Change ($/GJ) ($IGJ) (S/GJ) (0.253) 0.545 5.635 2.75% (0.213) 0,423 4.676 2.32% (0.053) (0.605) 3.549 (17.S2%) (0.113) (0.114) 4.042 (7.52 0 "')
SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA FACSIMILE: (604) 660-1102 PACIFIC NORTHERN GAS LTD. and PACIFIC NORTHERN GAS (N.E.) LTD. 1996 REVENUE REQUIREMENTS NOTICE OF PUBLIC HEARING Time: 9:00 a.m. Date: Monday, April 1, 1996 Location: To be determined. THE APPLICATION Pacific Northern Gas Ltd. ("PNG") and Pacific Northern Gas (N.E.) Ltd. ["PNG (N.E.)"] applied to the Commission to change rates to all customers on an interim and permanent basis effective January 1, 1996. The Commission approved an interim rate change as per Order No. G-117-95. The Commission indicated that the Application would be reviewed at a public hearing to commence on April 1, 1996 in a location to be announced later based on the locality and interest of registered intervenors. PRE-HEARING MATTERS The Commission staff will be issuing information requests on the Application to PNG/PNG (N.E.) in order to clarify matters. Commission staff will attempt to identify potential issues, clarify or answer questions of participants in advance of the public hearings at a pre-hearing conference scheduled for 9:00 a.m., January 31, 1996 in the Commission's Hearing Room, 6th Floor, 900 Howe Street, Vancouver, B.C. PUBLIC INSPECTION OF THE APPLICATION The Application and supporting material are available for inspection at the following locations: Pacific Northern Gas Ltd. Head Office: Suite 1400, 1185 West Georgia Street, Vancouver, B.C. V6E 4E6 District Offices: Vanderhoof, Burns Lake, Houston, Smithers, Terrace, Kitimat, Prince Rupert and Dawson Creek, Tumbler Ridge, B.C. An Executive Summary of the Application is available, at no charge, to interested parties upon request from PNG. Copies of the Application and supporting material are also available for inspection at the office of the British Columbia Utilities Commission, 6th Floor, 900 Howe Street, Vancouver, B.C. V6Z 2N3.
2 INTERVENTIONS Intervenors who wish copies of the Application and other information are urged to register with the Commission and PNG as soon as possible. Intervenors and interested parties are to advise the Commission Secretary of their intention to participate in proceedings not later than February 15, 1996. INFORMATION REQUESTS Registered Intervenors or Interested Parties requesting additional information from the Applicant should do so as soon as possible, but no later than February 23, 1996. Information Requests shall be responded to by PNG no later than March 11, 1996. SUBMISSIONS BY INTERVENORS Written submissions or evidence from Intervenors is required to be filed, one copy each, with the Commission Secretary and PNG, by March 18, 1996. PARTICIPANT FUNDING All parties intending to apply for Participant Funding must first register with the Commission and obtain the guidelines for participant funding. All parties must then file a budget by March 11, 1996 consistent with the Commission's Rate Sheet as outlined in Order No. G-117-93. CLARIFICATION Persons intending to participate in the, Pre-hearing Conference and who are uncertain as to the manner in which to proceed, may contact Mr. Robert J. Pellatt, Commission Secretary or Mr. Simon Wong, Manager, Rates and Finance - Petroleum; by telephone at 660-4700, or B.C. Toll Free: 1-800-663-1385, in writing to the above address, or faxed to 660-1102. The Commission can also be reached on the Government Electronic Mail System ("GEMS") and on the Internet at bcuc@pop.bcinet.gov.bc.ca. BY ORDER obert 1. Pellatt Order/PNG-96RR Appr.Order & Notice
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