ORDER NO. G-39-97 SIXTH FLOOR, 900 HOWE STREET, BOX 250 a 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 BC Gas Utility Ltd. for Approval of Rate Schedule 14 Agreements with Industrial Customers BEFORE: M.K. Jaccard, Chairperson; ) L.R. Barr, Deputy Chairperson; and ) April 10, 1997 K.L. Hall, Commissioner ) O R D E R WHEREAS: A. The Commission, by Order No.ÊG-98-96, approved a negotiated Settlement into the BCÊGas Utility Ltd.Ê(ÒBCÊGasÓ) 1996 Rate Design Application that included the reconstruction of Rate ScheduleÊ14 as an on-system commodity sales option whereby the utility could negotiate supply and price terms that would meet the needs of a particular industrial customer; and B. The revised ScheduleÊ14 provides that all charges, as set out in the Sales Agreement with the customer, are subject to prior approval by the Commission; and C. On MarchÊ21, 1997 BCÊGas filed for Commission approval nine Rate ScheduleÊ14 Sales Agreements with industrial customers for the 1996/97 gas contract year. On AprilÊ8, 1997 BCÊGas amended an agreement with Northwood Pulp and Timber Limited to include a firm sale for the period April through October 1997; and D. The Commission has reviewed the filing and finds that the Sales Agreements are required to be approved. NOW THEREFORE the Commission orders as follows: 1. The Commission approves for BCÊGas, for the 1996/97 gas contract year, the nine Rate ScheduleÊ14 Sales Agreements identified in AppendixÊA to this Order, subject to timely filing of the executed Sales Agreements in standard Tariff Supplement format. . . . /2
2 2. In future BCÊGas is directed to not sell gas at a fixed price under Rate ScheduleÊ14 (including under a price conversion option) unless it is capable of arranging for an off-setting fixed price purchase. BCÊGas will be expected to justify its action when it chooses not to fix the price of an off-setting purchase quantity. 3. BCÊGas is directed to file future Rate ScheduleÊ14 Sales Agreements with the Commission not less than 15Êdays prior to the commencement of deliveries under the contract. DATED at the City of Vancouver, in the Province of British Columbia, this ÊÊÊÊÊÊ10thÊÊÊÊÊÊÊÊÊday of April, 1997. BY ORDER Original signed by: Lorna R. Barr Deputy Chairperson and Acting Chair Order/BCG-RS 14 Agreements
Appendix A 1996/97 Rate Schedule 14 Sales Agreements COMPANY PERIOD 1 Island Paper Mills November 96- March 97 April 96-October 97 2 Central Heat November 96-October 97 Distribution Ltd. November 96-October 97 3 Scott Paper Limited November 96- March 97 April 97- October 97 4 Northwood Pulp November 96-October 97 and Timber Limited (North Central Plywood) November 96-October 97 5 Tilbury Cement November 96-October 97 November 96-October 97 6 British Columbia's November 96-October 97 Children's Hospital November 96-October 97 7 Northwood Pulp and April 97-October 97 Timber Limited November 96-October 97 November 96-October 97 8 Canadian Forests November 96-October 97 Products Ltd. (Prince George Pulp November 96-October 97 & Paper) 9 Canadian Forests November 96-January 97 Products Ltd. February 97-October 97 (Panel and Fibre Division) November 96-October 97 APPENDIX A Order No. G-39-97 Page 1 of 1 DAILY SALES MAXIMUM GJ/d Firm 4,500 Interruptible As Requested Interruptible As Requested Spot As Requested Firm 3,000 Interruptible As Requested Interruptible As Requested Spot As Requested Interruptible As Requested Spot As Requested Interruptible As Requested Spot As Requested Firm @ Stn2 5,751 Interruptible As Requested Spot As Requested Interruptible As Requested Spot As Requested Firm 1,500 Interruptible As Requested Spot As Requested
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