ORDER NUMBER
G-72-16A
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Port Alice Gas Inc.
Application for Approval to Increase
the Basic Charge and Facility Charge
BEFORE:
B. A. Magnan, Commissioner
on May 20, 2016
ORDER
WHEREAS:
A. On December 7, 2015, Port Alice Gas Inc. (PAG) applied to the British Columbia Utilities Commission (Commission) for an order approving an increase in the Basic Charge from $6.00 per month to $0.40 per day (nominally $12.00 per month) and to increase the Facility Charge from $17.32 to $38.90 per cubic meter of propane, effective January 1, 2016 (Application);
B. By Order G-211-15 on December 21, 2015, the Commission approved the requested rate changes on an interim and refundable basis effective January 1, 2016;
C. On March 14, 2016, PAG filed a submission requesting that the utility be released from its obligations to operate as a regulated utility, and that PAG and the Commission no longer invest time in the Application while the request for PAG to be released from regulated utility operations is being considered. PAG requested that the interim increase in the Basic Charge and Facility Charge remain in effect while the requests are being considered;
D. By Order G-45-16 on April 6, 2016, the Commission suspended the Application subject to Directive 2 in the order, which directed PAG to file a separate application that fully describes the modifications to PAG operations that are being requested, and directed that the interim and refundable increases in the Basic Charge and the Facility Charge remain in effect until the Commission makes a future determination;
E. On May 6, 2016, PAG filed a Variance Request of Order G-211-15 and notice related to section 88 (3) of the Utilities Commission Act (UCA) requesting approval of the following items:
• Decrease the interim Facility Fee from $0.389 per litre to $0.289 per litre, effective as soon as possible and preferably effective as of April 1, 2016;
• Increase the interim Basic Charge for Commercial Customers from $0.40 per day to $0.50 per day, effective as soon as possible and preferably effective as of April 1, 2016; and
• An extension of its application for relief under section 88 (3) of the UCA to June 30, 2016;
F. On May 11, 2016, PAG filed a submission clarifying that the correct unit of measurement for the Facility Charge is dollars per litre, and that the proposed Facility Charge is $0.389 per litre ($389.00 per cubic meter of propane) effective January 1, 2016, not $38.90 per cubic meter of propane as originally applied-for and approved by Order G-211-15;
G. On May 17, 2016, Order G-211-15 was rescinded and replaced by Order G-69-16; and
H. The Commission reviewed PAG’s May 6, 2016 submission and determined that the Variance Request of Order G-69-16 and notice related to section 88 (3) of the UCA should be approved.
NOW THEREFORE pursuant to section 89 of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The Port Alice Gas Inc. (PAG) request for an order approving a decrease to the interim Facility Fee from $0.389 per litre to $0.289 per litre for Commercial Customers is approved on an interim basis, effective June 1, 2016.
2. The PAG request for an order approving an increase to the interim Basic Charge for Commercial Customers from $0.40 per day to $0.50 per day, is approved on an interim basis, effective June 1, 2016.
3. The deadline for PAG to file its application for relief under section 88 (3) of the Utilities Commission Act is extended to June 30, 2016.
4. Any differences between the interim and permanent rates that are determined by the Commission following final disposition of the Application are subject to refund/recovery, with interest, at the average prime rate of PAG’s principal bank for its most recent year in the manner as set out by a Commission order that establishes permanent rates.
5. PAG is to inform customers of the change in rates in their next monthly bill, and to provide a copy of this order to the Port Alice Community Centre to provide adequate notice to those parties who may have an interest in or be affected by the Application.
DATED at the City of Vancouver, in the Province of British Columbia, this 24th day of May 2016.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner