ORDER NO. P-2-97 SIXTH FLOOR, 900 HOWE STREET, BOX 250 a TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA FACSIMILE: (604) 660-1102 IN THE MATTER OF the Pipeline Act, R.S.B.C. 1979, c. 328, as amended and An Application by Trans Mountain Enterprises of British Columbia Limited for Approval of 1997 Tolls on its Jet Fuel Pipeline BEFORE: M.K. Jaccard, Chairperson; and ) L.R. Barr, Deputy Chairperson ) February 28, 1997 O R D E R WHEREAS: A. On NovemberÊ22, 1996 Trans Mountain Enterprises of British Columbia LimitedÊ(ÒTMEÓ) applied to the Commission for approval of a 1.3Êpercent increase in its tolls on the Jet Fuel Pipeline effective JanuaryÊ1, 1997Ê(Òthe ApplicationÓ), pursuant to SectionÊ44 of the Pipeline ActÊ(ÒtheÊActÓ). The Application included an increase to depreciation, income taxes and capital expenditures that were partially offset by projected increases in throughput; and B. On December 23, 1996 the Vancouver Airline Fuel Committee and the Airline Shippers (Òthe AirlinesÓ) complained to the Commission about the Application and raised specific concerns about the proposed toll increase. The Commission reviewed the Application on the AirlinesÕ complaint and, by Order No.ÊP-1-97, set the current tolls as interim, subject to refund or invoice with interest, effective January 1, 1997; and C. The AirlinesÕ complaint was resolved through discussions with Commission staff and TME and a revised Application was filed on FebruaryÊ20, 1997. The revised Application requested a 9.2Êpercent decrease in tolls due to significant reductions in depreciation expense, income taxes and a slight increase in throughput; and D. TME indicated that the revised Application used a Return on Equity (ÒROEÓ) of 10.5Êpercent, and that any adjustment to the ROE, due to a similar adjustment for TMEÕs parent, will be reflected in the quarterly monitoring reports; and . . . /2
2 E. The Commission has reviewed the revised Application and finds that a decision on TMEÕs 1997 tolls is required. NOW THEREFORE the Commission orders as follows: 1. The Commission approves pursuant to the Act, a 9.2Êpercent permanent reduction in the 1997 Tolls of TME on the Jet Fuel Pipeline, effective JanuaryÊ1, 1997. 2. The current interim tolls, collected in accordance with Order No.ÊP-1-97 and in excess of the permanent tolls approved by this Order, are to be refunded to all Shippers with interest from JanuaryÊ1, 1997 to the date of refund. 3. TME is to adjust the ROE used in calculating its 1997 Tolls to be equal to the ROE rate approved for its parent, and account for such variance calculation in the quarterly monitoring reports to its Shippers. DATED at the City of Vancouver, in the Province of British Columbia, thisÊÊÊÊ4thÊÊÊÊÊÊÊday of March, 1997. BY ORDER Original signed by: Dr.ÊMark K. Jaccard Chairperson Orders/TME-Õ97TOLLS
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