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, 2013
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner September 12, 2013
N.E. MacMurchy, Commissioner
B.A. Magnan, Commissioner
D.M. Morton, Commissioner
C. van Wermeskerken, Commissioner
O R D E R
WHEREAS:
A. By Order G-138-10 and its accompanying Reasons for Decision, the British Columbia Utilities Commission (Commission) approved the treatment of various components of the Cost of Gas for FortisBC Energy (Whistler) Inc. [FEW, formerly known as Terasen Gas (Whistler) Inc.], which include determining the FEW Gas Cost Recovery Charge from the FortisBC Energy Inc. (FEI) Rate Schedule 3 commodity and midstream gas cost allocation and recovery rates;
B. By Order G-95-13 dated June 13, 2013, the Commission approved the FEW Gas Cost Recovery Charge of $4.848/gigajoules (GJ), effective July 1, 2013;
C. On September 6, 2013, FEI filed its 2013 Third Quarter Gas Cost Report, which includes a recommended Commodity Cost Recovery Charge proposed rate decrease of $0.641/GJ in the Rate Schedule 3 commodity related charges, effective October 1, 2013. FEI recommended a commodity decrease flow through, based on the more current price strip of the five-day average ending September 3, 2013 for the Lower Mainland, Inland, and Columbia Service Areas to capture more accurately the market forward prices;
D. On September 6, 2013, FEW filed its 2013 Third Quarter Gas Cost Report (FEW Report) on the Gas Cost Recovery Charge that was based on the five-day average forward prices ending August 23, 2013 and ending September 3, 2013. The FEW Report also includes FEI’s Rate Schedule 3 commodity and midstream gas cost allocation and recovery rates;
E. Using the five-day average forward prices ending September 3, 2013, FEW requests approval for a decrease of $0.641/GJ in the Gas Cost Recovery Charge to a rate of $4.207/GJ, effective October 1, 2013;
F. The Gas Cost Recovery Charge requested within the FEW Report would be equivalent to a decrease of approximately $58 or 3.6 percent per year for a typical Whistler residential customer’s annual bill based on an average annual consumption of 90 GJ;
G. By Order G-147-13 dated September 12, 2013, the Commission approved a rate decrease of 0.641/GJ from $3.913/GJ to $3.272/GJ, effective October 1, 2013, to the FEI Commodity Cost Recovery Charge for sales rate classes within the Lower Mainland, Inland, and Columbia Service Areas, which include the FEI Rate Schedule 3 commodity related charges;
H. The Commission has reviewed the FEW Report and considers that the requested rate change is warranted.
NOW THEREFORE pursuant to Section 61(4) of the Utilities Commission Act, the Commission orders as follows:
1. The requested decrease to the Gas Cost Recovery Charge to a rate of $4.207/GJ is approved, effective October 1, 2013, as set out in the FortisBC Energy (Whistler) Inc. (FEW) 2013 Third Quarter Report.
2. FEW must notify all affected customers of the rate change by way of a bill insert or bill message to be submitted to the Commission for review prior to its release with the next monthly gas billing
DATED at the City of Vancouver, in the Province of British Columbia, this 13th day of September 2013.
BY ORDER
Original Signed By:
D. M. Morton
Commissioner