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 January 1, 2014
and
an Application by FortisBC Energy (Whistler) Inc.
for Approval of Deferral Account Treatment for 2014 and changes to the
Revenue Stabilization Adjustment Mechanism Rate Rider
and
Rate Changes effective January 1, 2014 for FortisBC Energy (Whistler) Inc.
BEFORE: C.A. Brown, Commissioner
N.E. MacMurchy, Commissioner November 28, 2013
B.A. Magnan, Commissioner
D.M. Morton, Commissioner
R.D. Revel, 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), which included 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-148-13 dated September 13, 2013, the Commission approved the FEW Gas Cost Recovery Charge of $4.207/GJ, effective October 1, 2013;
C. On October 11, 2013, FEW filed the Application for Deferral Account Treatment for 2014 and Changes to the Revenue Stabilization Adjustment Mechanism (RSAM) Rider (Deferral/RSAM Application) pursuant to sections 59 to 61 and 89 of the Utilities Commission Act (Act);
D. In the Deferral/RSAM Application, FEW seeks approval to maintain the current 2013 delivery rates and reset the RSAM rider, effective January 1, 2014. FEW also seeks approval to reduce the amortization period for the RSAM from three years to two years;
E. On November 22, 2013, FEW filed its 2013 Fourth Quarter Gas Cost Report (FEW Report) on the Gas Cost Recovery Charge that was based on the five-day average forward prices of November 8, 11, 12, 13, and 14, 2013;
F. FEW requests approval for an increase of $0.179/GJ in the Gas Cost Recovery Charge, to a rate of $4.386/GJ, effective January 1, 2014;
G. The proposed change to the RSAM Rider requested in the Deferral/RSAM Application combined with the Gas Cost Recovery Charge requested within the FEW Report is equivalent to an increase of approximately $46 or 3.0 percent per year for a typical Whistler residential customer’s annual bill based on an average annual consumption of 90 GJ;
H. The Commission has reviewed the 2013 Fourth Quarter Report and considers the request rated change is warranted;
I. The Commission reviewed and considered the Deferral/RSAM Application and determines that the requested change to the RSAM rider should be approved and that the RSAM amortization period should be changed from three years to two years. The remainder of the Deferral/RSAM Application will be the subject of a future Order.
NOW THEREFORE pursuant to sections 59 to 61 and 89 of the Utilities Commission Act:
1. The Commission approves the requested increase to the Gas Cost Recovery Charge to a rate of $4.386/GJ effective January 1, 2014 as set out in the 2013 Fourth Quarter Report.
2. The Commission approves the amortization period for the Rate Stabilization Adjustment Mechanism shall be decreased from three years to two years.
3. The Commission approves the requested change to the Rate Stabilization Adjustment Mechanism rider to set it at $0.658/GJ effective January 1, 2014 as set out in the Deferral/RSAM Application.
4. FortisBC Energy (Whistler) Inc. must notify all customers of the rate change by way of a bill insert or bill message with the next monthly gas billing, to be submitted to the Commission prior to its release.
5. FEW must file amended Gas Tariff Rate Schedules in accordance with this Order in a timely manner.
DATED at the City of Vancouver, In the Province of British Columbia, this 29th day of November, 2013.
BY ORDER
Original Signed By:
D.M. Morton
Commissioner