B R I T I S H C O L U M B IA U T I L I T I E S C O M M I S S I O N a O R D E R N U M B E R G-117-98 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by Pacific Northern Gas Ltd. for Approval of a 1999 Rate Increase BEFORE: P. Ostergaard, Chair ) L.R. Barr, Deputy Chair ) K.L. Hall, Commissioner ) December 17, 1998 F.C. Leighton, Commissioner ) P.G. Bradley, Commissioner ) O R D E R WHEREAS: A. On December 1, 1998 Pacific Northern Gas Ltd. (“PNG”) filed, pursuant to Sections 91 and 58 of the Utilities Commission Act, a 1999 Revenue Requirements Application (“the Application”), for approval to increase its rates on an interim and final basis, effective January 1, 1999; and B. On December 15, 1998 PNG filed revisions to its Application allowing for a revised load forecast; and C. The Application as filed would result in rate increases of 10.43 percent for residential customers to a maximum of 13.42 percent for seasonal off-peak customers, based upon PNG’s forecast of gas prices in 1999; and D. The Commission requested PNG to provide an alternative gas cost calculation based upon current forward market prices for 1999; and E. PNG provided calculations indicating rate increases of 7.83 percent for residential customers to a maximum of 9.93 percent for seasonal off-peak customers, based on December 7, 1998 forward gas prices for 1999; and
B R I T I S H C O L U M B IA U T I L I T I E S C O M M I SS I O N O R D E R N U M B ER G-117-98 2 F. The Commission has reviewed the PNG Application and is satisfied that approval of an interim rate increase is necessary; and G. The Commission requires that a timetable and process for dealing with the final 1999 revenue requirements be established. NOW THEREFORE the Commission orders as follows: 1. The Commission approves for PNG an interim rate increase effective January 1, 1999, including gas cost changes that are based upon December 7, 1998 forward market prices for natural gas as previously provided by PNG. 2. PNG is to inform all affected customers of the interim increase in rates by way of a customer notice, to be submitted in draft to the Commission for prior approval. 3. The Commission will hold a Pre-Hearing Conference on PNG's Application on Friday, January 15, 1999 commencing at 9:00 a.m. (10:00 a.m. in Dawson Creek) with video conferencing facilities in Vancouver, Terrace and Dawson Creek. The Pre-Hearing Conference will address procedural matters which will include, but not be limited to, the following: • scheduling, • completeness of the Application, • identification of principal issues, • process (workshops, information requests, settlement negotiations or public hearings), • location(s) of the proceedings, and • other matters that will enable the proceeding to efficiently cover and review all aspects of the Application.
B R IT I SH C O L U M B IA U T I L I T I E S C O M M I S S I O N O R D ER N U M B E R G-117-98 3 4. PNG will publish, in display-ad format, the attached Notice of Pre-Hearing Conference in the Vancouver Sun, the Province, and in community newspapers in its service areas by December 31, 1998. 5. PNG is to provide a copy of this Order, by facsimile if possible, to all Intervenors and Interested Parties registered in the 1998 PNG Revenue Requirements Application, as well as all Large Industrial Customers, as soon as possible. 6. Intervenors and Interested Parties should inform the Commission, in writing, by January 8, 1999, of their intention to intervene and/or to attend the Pre-Hearing Conference. 7. Following the results of the Pre-Hearing Conference, the Commission will issue an Order and a Regulatory Timetable to registered intervenors outlining further steps to be followed in the review of the Application. DATED at the City of Vancouver, in the Province of British Columbia, this 23rd day of December, 1998. BY ORDER Original signed by: P. Ostergaard Chair Attachment Order/PNG-1999COS&RD D.Cr&FSJ
APPENDIX A to Order No. G-117-98 Page 1 of 2 ROBERT J. PELLATT SIXTH FLOOR, 900 HOWE STREET, BOX 250 COMMISSION SECRETARY a VANCOUVER, B.C. CANADA V6Z 2N3 Commission.Secretary@bcuc.com TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 NOTICE OF PRE-HEARING CONFERENCE PACIFIC NORTHERN GAS LTD. PACIFIC NORTHERN GAS (N.E.) LTD - TUMBLER RIDGE DIVISION PACIFIC NORTHERN GAS (N.E.) LTD - DAWSON CREEK DIVISION CENTRA GAS FORT ST. JOHN INC. Application for Approval of a 1999 Revenue Requirements Application and 1998 Fort St. John/Dawson Creek Cost of Service Allocation/Rate Design Study Date: Friday, January 15, 1999 Time: 9:00 am (10:00 a.m. in Dawson Creek) Locations: Department of Fisheries & Oceans Offices 555 West Hastings Street – Room 455 Vancouver, B.C. with video-conferencing links to : North Coast Regional Correspondence School 3211 Kenney Street Terrace, B.C. V8G 3E9 Community Skills Centre 1105 103 rd Avenue Dawson Creek, B.C. V1G 2G8 THE APPLICATIONS On November 4, 1998 PNG (N.E.) - Dawson Creek Division and Centra FSJ filed their 1998 Cost of Service Allocation/Rate Design Study. On December 1, 1998 PNG, PNG (N.E.) and Centra FSJ applied to the Commission for approval to increase rates on an interim and final basis, effective January 1, 1999. PNG has requested that the Applications be dealt with through the B.C. Utilities Commission’s Negotiated Settlement Process. THE REGULATORY PROCESS The Commission will hold a Pre-Hearing Conference in Vancouver, Terrace and Dawson Creek via video-conferencing facilities, on Friday, January 15, 1999 to discuss procedural matters which will include, but not be limited to, the following: .../2
APPENDIX A to Order No. G-117-98 Page 2 of 2 • scheduling, • completeness of the Applications, • identification of principal issues, • process (workshops, information requests, settlement negotiations or public hearing), • location(s) of the proceedings; and • other matters that will enable the proceeding to efficiently cover and review all aspects of the Applications. PUBLIC INSPECTION OF THE APPLICATIONS Pacific Northern Gas Ltd.: Head Office: Suite 1400, 1185 West Georgia Street, Vancouver, B.C. V6E 4G6 District Offices: Vanderhoof, Burns Lake, Houston, Smithers, Terrace, Kitimat and Prince Rupert, Dawson Creek, Tumbler Ridge and Fort St. John. An Executive Summary of the Applications is available to Interested Parties upon request from the Applicants at no charge. British Columbia Utilities Commission: Sixth Floor, 900 Howe Street, Vancouver, B.C. V6Z 2N3. INTERVENTIONS Intervenors and Interested Parties should inform the Commission in writing, by January 8, 1999, of their intention to become Intervenors or Interested Parties, and/or attend the Pre-Hearing Conference. Registered Intervenors who actively participate in the review process will receive copies of the Application and all correspondence and filed documentation. Interested Parties who register with the Commission will receive a copy of the Application’s Executive Summary, all Orders issued, as well as the Commission’s Decision. PARTICIPANT ASSISTANCE All parties intending to apply for Participant Assistance must submit a budget estimate by January 22, 1999 consistent with the Commission's Participant Assistance/Cost Award Guidelines as outlined in Order No. G-97-98. Copies of these Guidelines are available upon request. FURTHER INFORMATION For further information, please contact Mr. Robert J. Pellatt, Commission Secretary, or Mr. Barry McKinlay, Manager, Rates and Finance as follows: Telephone: (604) 660-4700 E-Mail: Commission.Secretary@bcuc.com Facsimile: (604) 660-1102 Telephone: (B.C. Toll Free) 1-800-663-1385 BY ORDER Original signed by: Robert J. Pellatt
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