ORDER NUMBER
G-159-17
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Stargas Utilities Ltd.
Application to Vary Commodity Rates
BEFORE:
R.D. Revel, Commissioner
B.A. Magnan, Commissioner
D.J. Enns, Commissioner
on October 19, 2017
ORDER
WHEREAS:
A. On September 29, 2017, Stargas Utilities Ltd. (Stargas) submitted an application to the British Columbia Utilities Commission (Commission) for approval to decrease the commodity component of rates from $5.28 per gigajoule (GJ) to $4.14 per GJ effective November 1, 2017 (Application). The Application also includes details of Stargas’ Purchase Plan, which is filed on a confidential basis, for the contract year commencing November 1, 2017;
B. By Order G-158-16 dated October 27, 2016, the Commission approved an increase in the gas commodity component of rates charged to Stargas customers from $2.95 to $5.28, effective November 1, 2016;
C. Stargas requests that the confidential components of the Application be kept confidential as they contain commercially sensitive information. Exhibit B-3 and B3a provide the forecast commodity cost details;
D. In the Application, Stargas reports the Gas Cost Variance Account balance as of May 31, 2017, the end of the last fiscal year, is a surplus of $18,905. The requested rate decrease accounts for the refund of the $18,905 surplus and also reflects forecast gas purchase costs for the 2017/18 fiscal year;
E. The Commission reviewed the Application and finds the proposed commodity rate change is warranted. The review of the Stargas Purchase Plan will be addressed in a separate Order.
NOW THEREFORE the Commission pursuant to section 61(4) of the Utilities Commission Act orders as follows:
1. The gas commodity component of rates charged to Stargas customers from $5.28/GJ to $4.14/GJ effective November 1, 2017, is approved.
2. Stargas must include an explanation of the commodity component rate change in its next monthly billing to customers.
3. Stargas must file a report with the Commission by October 1, 2018 on the Gas Cost Variance Account balances and, if necessary, proposed changes to commodity rates to be effective November 1, 2018.
4. The forecast commodity cost details filed in the Application will be kept confidential due to their commercially sensitive nature.
DATED at the City of Vancouver, in the Province of British Columbia, this 19th day of October 2017.
BY ORDER
Original signed by:
R.D. Revel
Commissioner