IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by FortisBC Energy (Whistler) Inc.
Regarding Gas Cost Recovery Charge effective October 1, 2011
BEFORE: L.F. Kelsey, Commissioner September 8, 2011
C.A. Brown, Commissioner
O R D E R
WHEREAS:
A. By Commission Order G-188-10 dated December 10, 2010, the British Columbia Utilities Commission (Commission) approved the FortisBC Energy (Whistler) Inc. (FEW) Gas Cost Recovery Charge of $5.823/GJ and the Rate Rider A rate of $0.948/GJ refund amount, effective January 1, 2011;
B. On September 2, 2011, FortisBC Energy Inc. (FEI) filed its 2011 Third Quarter Gas Cost Report for Lower Mainland, Inland and Columbia Service Areas Commodity Cost Reconciliation Account (CCRA) and Midstream Cost Reconciliation Account (MCRA) Quarterly Gas Costs (FEI Third Quarter Report) which forecast that the commodity cost recoveries at existing rates would be 114.1 percent of costs for the following 12 months;
C. On September 6, 2011, FEW filed its 2011 Third Quarter Gas Cost Report on the Gas Cost Reconciliation Account (GCRA) balance and gas commodity recovery charges for the Whistler service area effective October 1, 2011, that were based on the five-day average forward prices ending August 22, 2011 (FEW Third Quarter Report) and the FEI Lower Mainland Rate Schedule 3 commodity and midstream rates set out in the FEI Third Quarter Report;
D. The FEW 2011 Third Quarter Report requests Commission approval of the following items related to rates based on the Commission approval of full flow through of the CCRA surplus which results in the FEI Commodity Cost Recovery Charge being decreased to a rate of $4.005/GJ effective October 1, 2011:
a) Approval for a $0.619/GJ decrease in the Gas Cost Recovery Charge, to a rate of $5.204/GJ, effective October 1, 2011;
b) Approval for an offsetting increase of $0.619/GJ in Rate Rider A, to a rate of $0.329/GJ refund amount, effective October 1, 2011;
E. The combined effect of the rate changes effective October 1, 2011 requested within the FEW 2011 Third Quarter Report will make the unit rate for a residential customer in the Whistler service area remain unchanged;
F. The Commission has determined that the requested changes, as outlined in the FEW 2011 Third Quarter Report, should be approved.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the Commission orders as follows:
1. The Commission approves, as requested within the FEW 2011 Third Quarter Report, the following changes to FEW rates:
a) Approval for a $0.619/GJ decrease in the Gas Cost Recovery Charge, to a rate of $5.204/GJ, effective October 1, 2011;
b) Approval to reset Rate Rider A, to a rate of $0.329/GJ refund amount, effective October 1, 2011.
2. FEW is to inform all customers affected by the rate change.
DATED at the City of Vancouver, in the Province of British Columbia, this 9th day of September 2011.
BY ORDER
Original signed by:
L.F. Kelsey
Commissioner