E-3-94 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA FACSIMILE: (604) 660-1102 AN ORDER IN THE MA TIER OF the Utilities Commission Act, S.B.e. 1980, c. 60, as amended and An Application by Centra Gas British Columbia Inc. BEFORE: M.K. Jaccard, Chairperson; and ) H.J. Page, Commissioner ) March 4, 1994 ORDER WHEREAS: A. On November 3, 1993 Centra Gas British Columbia Inc. - Fort St. John District ("Centra-FSI") requested approval of a Letter Agreement dated October 15, 1993 amending the November 1, 1986 Gas Purchase Contract ("Conoco Arrangement") with Centra Gas Inc. [now Westcoast Gas Services Inc. ("WGSI")] for deliveries from Co no co Canada Limited ("Conoco"); and B. Commission Order No. E-29-93 directed that Centra-FSJ gas supply arrangements for the Fort St. John District, including the October 15, 1993 Letter Agreement amending the Conoco Arrangement, and its strategy to ensure compliance with the Rules for Energy Supply Contracts, would be reviewed as part of the 1994 Revenue Requirements hearing set down by Order No. G-122-93; and C. On February 3, 1994 Centra-FSJ applied to the Commission for approval of a November 1, 1993 Peaking Gas Management Contract with WGSI; and D. Under the Peaking Gas Management Contract, WGSI will supply peaking gas to the Fort St. John District for the period November 1, 1993 to November 1, 1996; and E. The Commission has reviewed Centra-FSJ gas supply arrangements at the public hearing and found their approval, with certain specific directions, to be in the public interest. NOW THEREFORE pursuant to Section 85.3 of the Utilities Commission Act and the Rules, the Commission orders as follows: 1. Centra-FSJ is directed to bring its baseload supply contract(s) into compliance with the Rules by December 31, 1994 at the latest and to file progress reports at the end of each calendar quarter on activities to restructure its supply portfolio. The Applicant is to provide justification, in the context of its IRP process, that all changes are in the public interest. 2. In its first quarterly progress report, Centra-FSJ is directed to file a complete description of the offline service it has obtained, the use that is being made of this service and the tolls and fees for use of the service. Centra-FSJ is directed to establish a deferral account for the use of offline service other than for Fort St. John customers and to record, commencing November 1, 1993, the difference between the toll paid to Westcoast and the fair market value of the service.
3. Centra Gas British Columbia Inc. is directed to undertake a review of gas supply management alternatives comparing the cost and benefits of using WGSI, other brokers or an internal gas supply group, and to obtain Commission approval, prior to extending its commitment to WGSI. 4. The Commission approves the Letter Agreement dated October 15, 1993 amending the Conoco Arrangement. 5. The Commission approves the Peaking Gas Management Contract with WGSI dated November 1, 1993, including the supply and pricing arrangements under the Contract for the 1993/94 gas year. DA TED at the City of Vancouver, in the Province of British Columbia, this BCUC/Order/CG-PkgGasContr-WGSI 2 day of March, 1994. BY ORDER ) //v/ Dr. Mark K. faccard Chairperson
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