B R IT I S H C O L U M B I A U T I L I T I E S C O M M I S S I ON O R D E R N U M B E R G-94-00 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 New Rates BEFORE: P. Ostergaard, Chair ) L.R. Barr, Deputy Chair ) October 5, 2000 K.L. Hall, Commissioner ) O R D E R WHEREAS: A. On September 28, 2000, Pacific Northern Gas Ltd. (“PNG”) filed for approval an application to increase its rates on an interim and final basis, effective October 1, 2000 and January 1, 2001 (“the Application”), pursuant to Sections 91 and 58 of the Utilities Commission Act; and B. The Application proposed to increase rates to all customers as a result of liquidity issues caused by the July 1, 2000 Methanex plant shutdown and higher costs of purchasing the natural gas commodity; and C. Subsequent to the filing of the Application, on October 4, 2000, PNG advised the Commission that it had reached an agreement in principle with Methanex on a new firm gas transportation service to October 31, 2009. The agreement in principle is subject to certain conditions and has yet to be signed by PNG pending Commission action on PNG’s request for approval of interim rates effective October 1, 2000. In view of the agreement in principle, PNG requested certain changes to the interim rates applied for in the Application, effective October 1, 2000; and D. PNG has also requested that the Commission hold its review of the Application in abeyance until December 1, 2000, which is the date that PNG and Methanex have fixed for finalizing their agreement and removing the conditions precedent; and E. The Commission has reviewed the evidence and finds that an interim rate increase is required. . . ./2
2 NOW THEREFORE the Commission orders as follows: 1. The Commission approves an interim rate increase to all classes of customers, in accordance with the “Summary of Rates Effective October 1, 2000” (attached as Appendix A to this Order), subject to refund with interest at the average prime rate of PNG’s principal bank following a public hearing, for the primary purpose of reducing PNG’s cash flow requirements. 2. PNG is to inform all affected customers of the interim rate increase by way of a customer notice, to be submitted to the Commission in draft form prior to its release. 3. The Commission will accept, subject to timely filing, amended Gas Tariff Rate Schedules in accordance with this Order. 4. A Regulatory Agenda and Timetable for the review of PNG’s Application will be determined by the Commission after December 1, 2000. DATED at the City of Vancouver, in the Province of British Columbia, this 6 Attachment Order/PNG Interim Rate IncrsB R I T I S H C O L U M B I A U T I L I T IE S C O M M IS S I O N O R D E R N U M B ER G-94-00 th day of October 2000. BY ORDER Original signed by: Peter Ostergaard Chair
Pacific Northern Gas Ltd. Summary of Rates Effective October 1, 2000 Revised October 4, 2000 ($/GJ unless otherwise specified) July 1, 2000 Customer Class Applicable Rates Residential (RS 1) Monthly Fixed Charge $10.75 Natural Gas Delivery Charge 3.216 Gas Supply Charge 5.953 9.169 Propane Delivery Charge 1.311 Gas Supply Charge 11.600 12.911 Commercial Sales (RS 2) Monthly Fixed Charge $10.75 Delivery Charge 2.886 Gas Supply Charge 5.910 8.796 Commercial Transport (RS 3) Monthly Fixed Charge $125.00 Delivery Charge 2.076 Commercial Interruptible (RS 4) First 220 GJ or less $1,227.58 Additional GJ Delivery Charge 1.696 Gas Supply Charge 3.572 5.268 Small Industrial (RS 5) First 320 GJ or less $1,948.05 Additional GJ Delivery Charge 1.476 Gas Supply Charge 4.569 6.045 Seasonal Off-Peak (RS 6) Off Peak First 220 GJ or less $1,482.92 Additional GJ Delivery Charge 1.742 Gas Supply Charge 4.499 6.241 Peak First 6 GJ or less Delivery Charge 2.242 Gas Supply Charge 4.499 Additional GJ 6.741 Delivery Charge 5.371 Gas Supply Charge 4.499 9.870 NGV (RS 7) Monthly Fixed Charge $10.75 Delivery Charge 1.435 Gas Supply Charge 4.186 5.621 October 1, 2000 October 1, 2000 Rate Adjustment Applicable Rates $10.75 0.322 3.538 0.678 6.631 1.000 10.169 1.311 11.600 12.911 $10.75 0.289 3.175 0.711 6.621 1.000 9.796 $125.00 0.208 2.284 $129.36 $1,356.94 0.170 1.866 0.418 3.990 0.588 5.856 $218.56 $2,166.61 0.148 1.624 0.535 5.104 0.683 6.728 $154.00 $1,636.92 0.174 1.916 0.526 5.025 0.700 6.941 0.174 2.416 0.526 5.025 0.700 7.441 0.174 5.545 0.526 5.025 0.700 10.570 $10.75 0.144 1.579 0.490 4.676 0.634 6.255 Interim Rates October 1, 20 PNG - Core Market 10/10/00
Pacific Northern Gas Ltd. Summary of Rates Effective October 1, 2000 Revised October 4, 2000 ($/GJ unless otherwise specified) Customer Supp. No. Skeena Prince Rupert Firm T-Service and IT-Sales/Service Below CD 1, 1A Thompson Creek Mine Firm T-Service and IT-Sales Below CD 2 Eurocan Firm T-Service and IT-Sales/Service Below CD 3, 3A Canfor Firm T-Service and IT-Sales Below CD 6 Alcan Firm T-Service and IT-Sales/Service Below CD 7, 7A Methanex Firm T-Service and IT-Sales/Service Below CD 16, 16A Modified Depreciation Rate 17, & 25 Unbooked Deferred Taxes Rate Plateau Forest Firm T-Service and IT-Sales Below CD 18 West Fraser (PIR) Firm T-Service and IT-Sales Below CD 19 Skeena Smithers Firm T-Service and IT-Sales Below CD 20 Skeena Terrace Firm T-Service and IT-Sales Below CD 21 B.C. Hydro Monthly Demand Charge 10 IT Sales IT Sales/Service Above CD Methanex 17 All Others July 1, 2000 October 1, 2000 October 1, 2000 Applicable Rates Rate Adjustment Applicable Rates 1.1171 0.1117 1.2288 1.0643 0.1123 1.1766 0.9633 0.0963 1.0596 1.0480 0.1123 1.1603 1.0635 0.1064 1.1699 0.9420 0.0942 1.0362 - 0.0000 - - 0.0000 1.1150 0.1123 1.2273 1.1327 0.1123 1.2450 1.1868 0.1123 1.2991 1.1884 0.1123 1.3007 $1,582.80 $0.00 $1,582.80 1.1655 0.1166 1.2821 0.3292 0.0329 0.3621 1.1655 0.1166 1.2821 Interim Rates October 1, 20 10/10/00
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