B R I T IS H C O L U M B I A U T IL IT I E S C O M M I S S I ON O R D E R N U M B E R G-94-97 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 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by BCÊGas Utility Ltd. for Approval to Pass Through a Propane Cost Increase to Revelstoke Customers BEFORE: K.L. Hall, Commissioner ) P.G. Bradley, Commissioner ) August 27, 1997 O R D E R WHEREAS: A. On August 19, 1997 BC Gas Utility Ltd. (ÒBC GasÓ) filed an application to increase propane rates by $0.914/GJ to the Revelstoke grid system customers and to increase the reference price from $0.1438/litre to $0.1661/litre for use in the Revelstoke Propane Cost Deferral Account, effective SeptemberÊ1, 1997; and B. The increase in the cost of propane is a result of the new Revelstoke propane supply contract with Link Petroleum Services Ltd. for the period SeptemberÊ1, 1997 to AugustÊ31, 1998, approved by Order No.ÊE-10-97, and the 5-year amortization of the balance in the Propane Cost Deferral Account; and C. On August 26, 1997 The City of Revelstoke confirmed that the disposition of the propane deferral account based on a 5-year recovery period was preferred instead of a 3-year recovery period; and D. The Application requested approval of a one-time credit transfer of $104,010 from the Gas Cost Reconciliation Account which is maintained for natural gas customers to partly offset the unrecovered cost of propane in the Revelstoke Propane Cost Deferral Account. Without the credit transfer, the propane rate increase would be $0.996/GJ and the reference price would be $0.1681/litre; and E. The Commission has reviewed the Application and finds that approval to pass through a propane cost increase to Revelstoke customers is appropriate. . . ./2
B R IT I S H C O LU M B I A U T IL I T I E S C O M M I S S I ON O R D E R N U M B ER G-94-97 2 NOW THEREFORE the Commission orders as follows: 1. Consistent with the principle of non-cross subsidies embodied in the CommissionÕs OctoberÊ10, 1996 Decision and Order No.ÊG-100-96, the Commission denies BC GasÕ request to transfer a $104,010 credit from the Gas Cost Reconciliation Account into the Revelstoke Propane Cost Deferral Account. 2. The Commission, pursuant to Section 61(4) of the Utilities Commission Act, approves for BC Gas an increase in rates of $0.996/GJ to Revelstoke, B.C. grid system customers to recover an increase in the cost of propane approved by Order No.ÊE-10-97 and a 5-year amortization of the Propane Cost Deferral Account effective SeptemberÊ1, 1997. The reference price in the Revelstoke Propane Cost Deferral Account should be set at $0.1681/litre effective September 1, 1997. 3. BC Gas is to prepare a notice informing customers of the increase in rates and change in reference price and provide the Commission with a copy in advance of distribution. 4. BC Gas is to file amended Gas Tariff rate schedules in accordance with the Order. DATED at the City of Vancouver, in the Province of British Columbia, this ÊÊÊÊÊÊ27thÊÊÊÊÊÊday of August, 1997. BY ORDER Original signed by: Kenneth L. Hall Commissioner Order/BCG-Pass Thru Prop Incr-Rvlstk
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