BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -29-05 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by Terasen Gas (Whistler) Inc. for Approval of a Propane Cost Increase to Rider A effective April 1, 2005 BEFORE: L.F. Kelsey, Commissioner L.A. Boychuk, Commissioner March 17, 2005 O R D E R WHEREAS: A. Commission Order No. G-14-04 approved a Settlement Agreement for the 2004 and 2005 Revenue Requirements of Terasen Gas (Whistler) Inc. (“Terasen Whistler”); and B. The Settlement Agreement established a Propane Commodity Charge of $13.855 per gigajoule for 2005, which includes a Commodity Cost of Propane of $9.801 per gigajoule; and C. The Settlement Agreement also included a Rider A of $0.376 per gigajoule effective January 1, 2004 to recover in 2004 the projected debit balance at the end of 2003 in the Gas Cost Variance Account (“GCVA”) of $178,800 after tax. The actual after-tax GCVA debit balance at the end of 2003 was $326,696; and D. The Settlement Agreement stated that Terasen Whistler will continue to review the cost of propane quarterly, and will file applications for changes to Rider A as needed; and E. Commission Order No. G-86-04 approved an increase in Rider A to $2.330 per gigajoule effective October 1, 2004; and F. On March 7, 2005, Terasen Whistler requested a Rider A increase of $1.405 per gigajoule to $3.735 per gigajoule effective April 1, 2005. The proposed rate increase would increase the annual bill for a typical residential customer by approximately 8.2 percent; and G. The proposed rate increase consisted of $0.741 per gigajoule due to higher forecast propane prices for the next 12 months, and $0.664 per gigajoule due to the projected GCVA balance at the end of March 2005; and H. On March 16, 2005, Terasen Whistler filed a revised submission that included a more recent projection of the GCVA balance and a reassessment of the relationship between propane and crude oil forward prices (the “Revised Application”); and . . ./2
2 E. In the Revised Application, Terasen Whistler requested a Rider A increase of $1.103 per gigajoule to $3.433 per gigajoule effective April 1, 2005. The rate change would increase the annual bill for a typical residential customer by approximately 6.4 percent; and F. The Commission concludes that the change to Terasen Whistler propane rates should be approved. NOW THEREFORE the Commission orders as follows: 1. The Commission approves for Terasen Whistler a $1.103 per gigajoule increase in Rider A to $3.433 per gigajoule effective April 1, 2005. 2. Terasen Whistler is to file with the Commission a permanent Gas Tariff Rate Schedule in accordance with this Order and to notify all affected customers of the rate increase in a timely fashion. DATED at the City of Vancouver, in the Province of British Columbia, this 22 Orders/TGW_Propane Cost-Rider A BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-29-05 nd day of March 2005. BY ORDER Original signed by: L.A. Boychuk Commissioner
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