Orders

ORDER NUMBER

G-6-19

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Sun Peaks Mountain Resort Municipality

Gas Cost Reconciliation Account and Commodity Rate Decrease

BEFORE:

B. A. Magnan, Commissioner

R. I. Mason, Commissioner

R. D. Revel, Commissioner

on January 10, 2019

ORDER

WHEREAS:

A.      On November 29, 2018, on behalf of Resort Gas Ltd., Sun Peaks Mountain Resort Municipality (SPMRM) filed with the British Columbia Utilities Commission (BCUC) a Gas Cost Reconciliation Account (GCRA) report, which includes actual and projected GCRA balances (GCRA Report), and requested a decrease of $2.1325 per gigajoule (GJ) in the Total Gas Commodity Charge from $15.8435/GJ to $13.7110 for each rate group (Residential, Small Commercial and Large Commercial), effective January 1, 2019;

B.      By Order G-127-18 dated July 12, 2018 the BCUC approved an increase in the Total Gas Commodity Charge to $15.8435/GJ for SPMRM, effective July 1, 2018;

C.      SPMRM‘s commodity and transportation costs (Commodity portion) and storage costs (Storage portion) are tracked through two separate balances within the GCRA. The GCRA Report, which includes actuals up to October 31, 2018, shows a $60,719 surplus balance in the Commodity portion of the GCRA and a $696 surplus balance in the Storage portion of the GCRA, for a total net GCRA surplus balance of $61,415;

D.      The requested $2.1325 /GJ decrease in the Total Gas Commodity Charge comprises of:

                    i.      A decrease in the Gas Commodity Charge – Propane of $2.2210/GJ from $14.0550/GJ to $11.8340;

                  ii.      A decrease in the Gas Commodity Charge – Storage of $0.1480/GJ from $1.7700/GJ to $1.6220; and

                iii.      An increase in the Gas Commodity Charge – GCRA of $0.2365/GJ from $0.0185/GJ to $0.2550/GJ;

E.       The requested decrease arises as a result of current and forecast propane commodity, transportation and storage costs; current and forecast propane consumption levels; and the amortization of the outstanding Commodity and Storage portions of the GCRA over a 12-month period;  

F.       The requested rate changes, using current delivery rates, would result in a decrease in the annual bill before taxes of $38.39 for an average townhouse consuming 18 GJ annually and $181.26 for an average single family house residential customer consuming 85 GJ annually; and

G.      The BCUC reviewed the GCRA Report and considers that SPMRM’s requested rate changes are warranted.

NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the BCUC orders the following:

1.       SPMRM commodity rates are set as follows for all rate groups (Residential, Small Commercial and Large Commercial), effective January 1, 2019:

2.       SPMRM is to inform its customers of the approved rates in a timely manner by way of a customer notice.

3.       SPMRM is directed to file a report with the BCUC by May 31, 2019, on the GCRA balances, including but not limited to propane price forecasts, commodity cost forecasts and GCRA balances for the following twelve months and, if necessary, proposed changes to commodity rates.

DATED at the City of Vancouver, in the Province of British Columbia, this       10^th        day of January 2019.

BY ORDER

Original signed by:

B. A. Magnan

Commissioner