BRITISH COLUMB IA UTILITIES COMMISSION ORDER NUMBER G-4S-OO SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com 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 (N.E.) Ltd. Fort St. John/Dawson Creek and Tumbler Ridge Divisions for Approval of 2000 Revenue Requirements BEFORE: P. Ostergaard, Chair ) P.G. Bradley, Commissioner ) April 27, 2000 B.L. Clemenhagen, Commissioner ) ORDER WHEREAS: A. On December 1, 1999, Pacific Northern Gas (N.E.) Ltd. Fort St. John/Dawson Creek and Tumbler Ridge Divisions ["PNG (N.E.)"] filed for Commission approval its 2000 Revenue Requirements Application ("the Application") to increase rates on an interim and final basis, effective January 1, 2000, pursuant to Sections 58 and 91 of the Utilities Commission Act; and B. The Commission reviewed the Application and issued Order No. G-139-99 approving interim rate increases effective January I, 2000; and C. Pursuant to Commission Order No. G-7-00, a Negotiated Settlement Process ("NSP") commenced on March 8, 2000 for PNG (N.E.) resulting in a Settlement Agreement. The Settlement Agreement was released to the public and the Commission Panel on April 13, 2000; and D. On March 27, 2000, Pacific Northern Gas Ltd. ("PNG") responded to the public circulation of the Settlement Agreement stating that PNG's auditors have advised that an Order will be required to permit PNG to account for Other Post Employment Benefits on a pay-as-you-go basis which will be inconsistent with GAAP. This applies to PNG (N.E.) as well; and E. The City of Dawson Creek participated in the NSP and, on March 31, 2000, sent the Commission Secretary a letter stating: "We recognize that gas supply charges payable by PNG increase from time to time and will be passed on to the consumer, however, any other increase proposed by PNG will be unacceptable."; and F. More than 85 percent of the annual cost increase to a typical residential customer is a result of higher natural gas commodity costs, beyond the control of PNG (N.E.); and G. PNG (N.E.)'s operating, maintenance and administrative costs per gigajoule have not increased and total utility costs (other than commodity costs) have increased by one-half of one percent, or $4.53 per year for a typical residential customer; and H. The Commission has reviewed the Settlement Agreement and considers that approval is in the public interest. .. . /2
2 NOW THEREFORE the Commission orders as follows: 1. The Commission approves for PNG (N.E.) the Settlement Agreement attached as Appendix A to this Order. 2. Pursuant to Section 49 of the Utilities Commission Act, the Commission directs PNG (N.E.) to follow an interpretation of the Uniform System of Accounts to account for Other Post Employment Benefits on the pay-as-you-go/cash basis. 3. PNG (N.E.) is to file permanent Gas Tariff Rate Schedules that are in accordance with the terms of the Settlement Agreement and this Order. 4. PNG (N.E.) is to inform all customers of the Settlement Agreement and its effect on rates. DATED at the City of Vancouver, in the Province of British Columbia, this Attachment Orders/PNG(NE)-2000RR NegStlmnt B RITI SH COLUMB IA UTILITIES COMMISSION ORDER NUMBER G-45-00 day of May 2000. BY ORDER Peter Ostergaard Chair
APPENDIX A to Order No. G-45-00 Page 1 of 24 WILLIAM J. GRANT SIXTH FLOOR. 900 HOWE STREET. BOX 250 EXECUTIVE DIRECTOR. VANCOUVER. B.C. CANADA V6Z 2N3 REGULATORY AFFAIRS & PLANNING TELEPHONE: (604) 660-4700 bill.grant@bcuc.com BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 VIA FACSIMILE April 13, 2000 To: Commission Panel Registered Intervenors Re: Proposed Settlement of Issues Pacific Northern Gas (N.E.) Ltd. - Tumbler Ridge Division Pacific Northern Gas (N.E.) Ltd. - Fort St. John / Dawson Creek Division 2000 Revenue Requirements Application Attached please find a copy of the March 10, 2000 Settlement Agreement with regard to the subject Revenue Requirement Application, with the adjusted Revenue Requirements Schedules from Pacific Northern Gas (N.E.) Ltd. The Letters of Endorsement from Registered Participants in the Negotiated Settlement process are also attached. If you are not in agreement with or need clarification on any portion of the proposal, please comment no later than April 25, 2000. Yours truly, W.J. Grant JJHldif Attachments cc: Ms. Jennifer Vandergugten 10407 - 111 Avenue Fort St. John, B.C. VlJ 2V4 PNG(NE)/2000RR-AII DivIPNG(NE)SettlementReleased
APPENDIX A to Order No. G-45-00 Page 2 of 24 WILUAM J. GRANT SIXTH FLOOR. 900 HOWE STREET, BOX 250 EXECUTIVE DIRECTOR. VANCOUVER. B.C. CANADA V6Z 2N3 REGULATORY AFFAIRS & PLANNING TELEPHONE: (604) 660-4700 bill.grant@bcuc.com BC TOLL FREE: 1-600-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 "Q~IJlIQlttTTI' I.. VIA FACSIMILE March 10, 2000 Dear Participants in the Negotiated Settlement Process: Re: Proposed Settlement of Issues - 2000 Revenue Requirements Pacific Northern Gas (N.E.) Ltd. (Fort St. John/Dawson Creek Division) and (Tumbler Ridge Division) ("PNG-NE") The purpose of this letter is to record the proposed settlements achieved with respect to PNG-NE Revenue Requirements Application filed December 1, 1999. The enclosed proposed settlement remains confidential until it is submitted to the British Columbia Utilities Commission for consideration. I, therefore ask that you provide to me your views of the proposal by Friday, March 17, 2000. At that time, the Settlement Agreement will be made public and provided to the Commission and all interested parties. PNG-NE has recalculated the revenue requirements schedules to reflect the settlement adjustments. The resulting rate percentage increases as compared with the Applications are shown on the attached tables. Between the filing of the Applications on December 1, 1999 and the March 9, 2000 Negotiation, the cost of the natural gas commodity continued to increase rapidly compared with last year. This most recent increase, however, is substantially offset by reductions in the Utilities' cost of providing the regulated gas delivery services. Any additional difference in PNG-NE's costs of purchasing natural gas from producers or marketers will be carried forward in a deferral account ( without any profit to PNG-NE ) to be returned to, or collected from, customers in the next year. All the parties recognize that the agreement represents a package proposal within which there has been give and take by all parties. No issue is to be severed from the proposed settlement without allowing signatories the opportunity to address other related issues in the package. In accordance with the NSP Guidelines, the right of parties to dissent from a proposed agreement is explicitly recognized by the Commission. If a party dissents, it can submit a written argument to the Commission panel. If the Commission panel is of the view that the dissent is reasonable and material, it may request written rebuttal argument or, where the settlement review process is to occur at an oral hearing, request argument at the oral hearing. If the dissent is determined to be reasonable and material, the dissenting party retains the right to present evidence and to cross-examine, or to rebut the evidence of others if there is a written hearing. Yours truly, &0. . W.J. Grant WJGllm Enclosure cc: Mr. Craig P. Donohue, Director, Regulatory Affairs and Gas Supply, Pacific Northern Gas Ltd.
APPLICATION Tumbler Ridge Residential Rates Monthly Fixed Charge $8.50 Delivery (Utility costs) Charge $3.155 per GJ Gas (Commodity Costs) Charge $2.454 per GJ Annual Bill on 96.5 GJ use $643.27 Small Commercial Rates \ Monthly Fixed Charge $8.50 Delivery (Utility costs) Charge $2.938 per GJ Gas (Commodity Costs) Charge $2.454 per GJ Annual Bill on 751 GJ use $4.151.39 APPLICATION Fort St. John Residential Rates Monthly Fixed Charge $7.00 Delivery (Utility costs) Charge $2.028 per GJ Gas (Commodity Costs) Charge $3.042 per GJ Annual Bill on 146 GJ use $824.22 Small Commercial Rates Monthly Fixed Charge $7.00 Delivery (Utility costs) Charge $1.848 per GJ Gas (Commodity Costs) Charge $2.967 per GJ Annual Bill on 751 GJ use $3.700.07 APPENDIX A to Order No. G-45-00 Page 3 of 24 SETTLEMENT % Change (PROPOSED) Annual Bill $8.50 n/c $3.029 -3.99% $2.765 12.67% $661.12 2.77% $8.50 n/c $2.856 -2.79% $2.765 12.67% $4.323.37 4.14% SETTLEMENT % Change (PROPOSED) Annual Bill $7.00 n/c $1.880 -7.30% $3.261 7.20% $834.59 1.26% $7.00 n/c $1.745 -5.57% $3.173 6.94% $3.777.42 2.09%
APPENDIX A to Order No. G-45-00 Page 4 of 24 APPLICATION SETTLEMENT % Change Dawson Creek (PROPOSED) Annual Bill Residential Rates Monthly Fixed Charge $7.00 $7.00 nlc Delivery (Utility costs) Charge $1.830 $1.682 -8.09% per GJ Gas (Commodity Costs) Charge $3.042 $3.261 7.20% per GJ Annual Bill on 146 GJ use $795.31 $805.68 1.30% Small Commercial Rates Monthly Fixed Charge $7.00 $7.00 nlc Delivery (Utility costs) Charge $1.310 $1.208 -7.79% per GJ Gas (Commodity Costs) Charge $2.967 $3.173 6.94% per GJ Annual Bill on 751 GJ use $3,296.03 $3,374.13 2.37% Richard J Gathercole Barrister & Solicitor Executive Director British Columbia Public Interest Advocacy Centre 615-815 West Hastings Street Vancouver. BC. V6C IB4 Tel: (604) 667-3083 Fax: (604) 862-7896 email bcpisc@bcpiac.com City of Dawson Creek, Mayor Blair Lekstrom 1753-93 rd Avenue Dawson Creek BC VIG lE7 Phone 250-784-3616 dawsncrk@pris.bc.ca http://www.city.dawson-creek.bc.ca/ City of Dawson Creek, City Clerk/Administrator Jim Noble Box 150 (l0105-12A Street) Dawson Creek BC VI G 4G4 Phone: (250) 784-Fax: (250) 782-3203
APPENDIX A to Order No. G-45-00 Page 5 of 24 Pacific Northern Gas (N.E.) Ltd. (Fort St. JohnlDawson Creek Division) 2000 RATE APPLICATION ADR SETTLEMENT TERMS FORT ST. JOHNIDAWSON CREEK DIVISION Sales Forecast • Use 156 GJ use per account for the Fort St. John residential customers. • Increase the Louisiana Pacific forecast for 2000 from 165 000 OJ to 197 600 GJ. The adjustment of 32600 GJ reflects 25 000 OJ for the existing board plant in Dawson Creek and 7 600 GJ for new facility Louisiana Pacific is expected to complete in late October 2000. Operating, Maintenance, Administrative & General Expenses ("O,M,A&G") • Reduce applied for 2000 gross O,M,A&G expenses by $100,000. Capital • Reduce forecast 2000 projected capital additions to $3,000,000. Gas Supply Costs • Use February 24, 2000 forward gas price strip to determine projected unit gas supply costs. PNGIPNG(NE)/2000RR All Divs/ADR Setlmt Terms-FSJ/DC
Pacific Northern Gas Ltd. APPENDIX A Fort St. JohnlDawson Creek Division to Order No. 0-45-00 DERIVA TION OF 2000 Page 6 of 24 REVENUE DEFICIENCY Test Year ADR 2000 1999 Difference EXPENSES ($000) ($000) ($000) Operating Labour 1.362 1 361 1 Other 1,160 1.145 15 Company Use Gas 134 70 64 Transfers to Capital (229) ( 181 ) 1,48) Total 2.427 2.395 32 Maintenance Labour 90 74 16 Other 136 155 (19) Total 226 229 (3) Administrative and General Labour 0 0 0 Total Company Benefits 378 373 5 Other 631 492 139 Transfers to Capital ( 189) ( 131) (58) Total 820 734 86 Property Taxes, BC Capital tax 654 635 19 Depreciation 114 1 011 103 Amortization 17 21 (4) Other Income (89) (97) 8 TOT AL EXPENSES 5,169 4,928 241 Income Taxes 564 649 (85) Return on Common Equity 926 832 94 Short Term Debt 331 252 79 Long Term Debt 888 833 55 Preferred Shares 3 3 (0) TOTAL COST OF SERVICE 7,881 7,497 384 Revenue increase due to higher deliveries in 2000 142 compared to 1999 Revenue increase to flow through higher company use 64 costs in 2000 compared to 1999 REVENUE INCREASE IN 2000 COMPARED TO 1999 206 2000 REVENUE DEFICIENCY 178 R.EVOEFOOM-AOR R .... O.le." F.ctOR· FS) DO: 03.0812000
Pacific Northern Gas (N.E.) Ltd. (Fort 51. John/Dawson Creek Division) (Fort SI John Area) Bill Companson 1999/2000 Permanent Rates Annual Bill ADR Rates Annual Bill Annual Bill Customer Classification Oct 1, 1999 Estimate Jan 1 2000 Estimate Difference Annual Use $ $ $ % -------Residential 146 GJ Monthly Fixed Charge $700 $700 Delivery Ctlarge ($/GJ) 1 813 $34870 1 88 $35848 $978 2.81% Gas Supply Charge ($/GJ) 2852 $416.39 3.261 $476.11 $5971 14.34% 4665 $76509 5 141 $834 59 $69.50 908% Small Commel cia I 751 GJ Monthly Fixed Charge $7.00 $7.00 Delivery Charge ($/GJ) 1.694 $1,356.19 1 745 $1,394 50 $3830 2.82% Gas Supply Charge ($/GJ) 2.779 $2,087.03 3.173 $2,382.92 $295.89 14.18% 4.473 $3,443.22 , 4.918 _ $~-,?n.4? __ $334.20 9.71% - --- -~ OObillcompansolls-ADR FSJ 0308·20U0 o Q 0..> ~~ ""OZ~ ~ot'f'j ~. Z -.100 o.j::;.~ .....,Vl~ . N j::; ' . 8>
Pacific Northern Gas (N.E ) LId (Fort St. John/Dawson Creek Division) (Dawson Creek Area) 8111 Com~an!>oll 1999/2000 Permanent Rates Annual Bill ADR Rates Annual Bill Annual Bill Customer Classification Oct. 1, 1999 Estimate Jan 1,2000 Estimate Difference Annual Use $ $ $ % Residential. 146 GJ Monthly Fixed Charge $7.00 $7.00 Delivery Charge ($/GJ) 1.615 $319.79 1.682 $329.57 $9.78 306% Gas Supply Charge ($/GJ) 2.852 $416.39 3.261 $476.11 $59.71 14.34% 4.467 $736 18 4943 $805.68 $69.50 9.44% Small Commercial. 751 GJ Monttlly Fixed Charge $700 $700 Delivery Charge ($/GJ) 1 157 $95291 1 208 $991.21 $3830 402% Gas Supply Charge ($/GJ) 2779 $2,087.03 3173 $2,382.92 $295.89 1418% 3.936 $3,039.94 4.381 $3,374.13 $334.20 10.99% OOblllcornpallSOI IS- ...,UP DC 03,01) :"v''':c-o Q 0.. > ~"'CJ 'i:lZ"'CJ cfc;O~ ~6Z 00,0 o.j::>.~ .....,V\~ . N j::> ' .8>
UTILITY INCOME & RETURN SCHEDUl.E I Line C!Q.. Energy ~ak, I r J) :: !\ veragt! rak fJt!f GJ :; rranSp0rliltilln ,t!fvict! (TJ ) 6 !\ verage f,lt..: r..:r ( i J L) rotaldt!li,ene'llJ) III I I Utility rt!\ t!nut! I' Energy saks I -' Intenm ratt!, . ,aks 1-1 rransportatlon service 15 Interim rates· tran;;portation 16 17 18 Cost of 5dks 19 20 Gross margm 21 Operating t!\penses Maintenanct! expenses 24 Admin. & General expenses 25 Property and BC Capital tax 26 Depreciation 27 Amortization 28 Investment IIlCOI11t!. other revenue 29 30 31 Income before Iflcome taxes 33 Income taxe~ 34 :; 5 Earned return 36 37 Utility ratc bd-;e 38 NfiFinl~tQeff AORlt/d~lSe 03/08/00 APPENDIX A to Order No. G-45-00 Page 9 of 24 (OOO'S) rest Year 'lonnalllcJ Forecast ADR 2000 1999 l222 1999 3687 ., 581 3587 3 587 S503 5-1.1 S $4.18 S4.18 1.207 1.095 1,095 1.095 '50.56 )() 5S SO.58 '50.5& -1676 4682 -1682 $18.383 SI-1.958 $14,983 $14.983 178 679 637 637 637 19.240 1'.595 15,620 15.620 11.358 3.107 8,122 8.122 7.882 -;.-187 7,498 7.498 2.427 2.444 2,434 2.395 226 229 229 229 820 891 762 734 654 615 615 635 1.114 1.036 1,036 1.0 I I 17 17 17 21 (89) \ 97) (97) (97) 5.169 :'.13 :' 4,996 4.928 2.713 ~.3)~ 2,502 2.570 564 5:'9 630 649 $2.149 5 I. "'t) ~ $1,872 $1.t)21 525.755 52-1()():' 524,005 S24.(l87 8.34% - -l7° () 7.80% 7 l) 7(~"
Fort St. lohn!Dawson Creek UTILITY RATE BASE SCHEDULE 2 (OOO's) Line t:!.!L. Plant in service beginning of year 2 Additions 3 Disposals 4 5 Plant in service end of year 6 Accumulated depreciation 7 8 Net plant in service end of year 9 10 Net plant begll1ning: of year II 12 Net plant in service midyear 13 14 Contributions in aid of construction 15 Unamortized deferred charges 16 Deferred income taxes 17 Reserve for damages 18 Cash working capital 19 Other working capital 20 11 Utility rate base. midyear NE Fin 2000 ADR #2a 03/08/00 APPENDIX A to Order No. G-45-00 Page 10 of 24 Test Year Normalized Forecast .-\DR Zili2Q 1999 1999 1999 $44,718 S42_2-L; $41,243 S41.628 3,000 2.693 2,693 3.118 249 218 118 218 47,469 44.718 44,718 44.528 13,914 11.771 11,771 12.710 33.555 31.947 31,947 31.818 31.947 30.547 30,547 29.96 7 31,751 .:; 1.247 31,247 30.893 (7,849) (7.881 ) (7,881 ) (7.487 ) 440 345 345 385 (377) ~357) (357) ~3 73) (67) (66) (66) (66, 853 703 703 702 4 14 14 33 $15,755 $24.005 $24,005 $24.087
APPENDIX A to Order No. G-45-00 Page 11 of 24 Fort St. John/Dawson Creek INCOME TAXES SCHEDULE 3 (OOO's) Line Test Year ~ ~ Calculation of Tax.able Income 2 Earned n.:turn bd'ore income taxes $2,713 Intere;;[ (1,219) -I Pern1allt!nt difti:rences I 1 5 Timin~ differences (460) 6 7 faxablt:: Illcome $1,045 8 9 Calculation of Income Tax Ex.pense 10 Incomt! taxes payable $465 [ I Part I 3 tax 59 [2 Deti:rrt!d Income tax 40 13 14 Income tax expense $564 15 16 Particulars of Timing Differences 17 Depreciation $1,114 18 Amortization 17 19 Capital cost allowance (1,223) 20 Deferred charges (89) 21 Overheads capitalized (279) 22 Other 23 24 Timing differences ($460) NE Fin 2000 ADR #2a 03/08/00
Fort Sr. JohniDawson Creek COMMON EQUITY SCHEDULE 4 (OOO's) Line ti2. Opening balance 2 Share capital 3 Contributed surp Ius 4 Retained earn ings 5 6 7 8 Net income 9 Shares issued 10 Preferred dividends II Common dividends 12 13 Closing balance 14 15 16 Midyear common equity 17 Non - utility 18 19 NE Fin 2000 ADR #2a 03/08/00 APPENDIX A to Order No. G-45-00 Page of 24 Test Year Normalized Forecast ADR 2.QQQ 1999 l2.2.2 199<) $7.845 $7.845 $7.845 $7.845 1.090 491 491 521 8.935 8.336 8,336 8.366 904 800 807 82<) (4) (4 ) (4) (4 ) (226) (:W4) (204) (208) $9,609 $8.928 $8,935 $8,<)83 $9,272 $8.632 $8,635 $8,674 $9,272 $8,632 $8,635 $8,674
Fort St. John/Dawson Creek RETURN ON CAPITAL SCHEDULE 5 Line tlQ. Short term borrowings 2 proportion 3 rate of return 4 feturn component 5 6 l.ong term debt 7 proportion 8 fate of return 9 return component 10 II Preferred 5hares 12 proportIOn 13 rate of return 14 return component 15 16 Common equity 17 proportion 18 rate of return 19 return component 20 21 Total capllalization 22 23 Return 011 rate base 24 25 Utility rate base NE Fin 2000 ADR #2a 03/08/00 APPENDIX A to Order No. G-45-00 Page 13 of 24 (OOO's) Test Year 'Jormalized Forecast ADR 2.QQQ 1999 lm l222. $6.01"+ S5.549 $5,546 $5,589 23.35°0 23.12% 23.11% 23.20% 5.50°'0 ..+.50% 4.50% 4.50% 1.28% 1.04% 1.04% 1.04% $10.425 S9,776 $9,776 $9,776 40.48% "+0.72% 40.72% 40.59% 8.52~o 8.52% 8.52% 8.52% 3.45°'0 3.47% 3.47% 3.46% $44 $48 $48 $48 0.17% 0.20% 0.20% 0.20% 6.48% 6.48% 6.48% 6.48% 0.01% 0.01% 0.01% 0.01% $9,272 $8,632 $8,635 $8,674 36.00% 35.96% 35.97% 36.01% 9.99% 8.20% 9.11% 9.59% 3.60% 2.95% 3.28% 3.45% $25,755 $24,005 $24,005 $24,087 8.34% 7.47% 7.80% 7.97% $25,755 524.005 $24,005 $24,087
APPENDIX A to Order No. G-45-00 Page 14 of 24 Pacific Northern Gas (N.E.) Ltd. (Tumbler Ridge Division) 2000 RATE APPLICATION ADR SETTLEMENT TERMS TUMBLER RIDGE DIVISION Operating, Maintenance, Administrative & General Expenses ("O,M,A&G") • Reduce applied for 2000 gross O,M,A&G expenses by $11,000. Capital • Reduce forecast 2000 capital additions by $18,000. Gas Supply Costs • Use February 24, 2000 forward gas price strip to determine projected unit gas supply costs. PNGIPNG(NE)/2000RR All Divs/ADR Sctlmt Tcrms-TR
Pacific Northern Gas (N.E.) Ltd APPENDIX A Tumbler Ridge Division to Order No. G-45-00 Page 15 of 24 DERIVATION OF 2000 REVENUE DEFICIENCY (SUFFICIENCY) Test Year ADR 2000 1999 Difference EXPENSES ($000) ($000) ($000) Operating Labour 197 215 (18) Other 198 187 11 Company Use Gas 128 117 11 Transfers to Capital (2) (2) 0 Total 521 517 4 Maintenance Labour 20 19 1 Other 38 36 2 Total 58 55 3 Administrative and General Labour 0 0 0 Total Company Benefits 45 47 (2) Other 78 71 7 Transfers to Capital (2) ~2) 0 Total 121 116 5 Property Taxes, BC Capital tax 38 45 (7) Depreciation 91 87 4 Amortization 6 9 (3) Other Income (23) (22) (1 ) TOTAL EXPENSES 812 807 5 Income Taxes 60 68 (8) Return on Common Equity 56 63 (7) Short Term Debt 17 (16) 33 Long Term Debt 57 114 (57) Preferred Shares 0 0 0 TOTAL COST OF SERVICE 1,002 1,036 (34) REVENUE DECREASE IN 2000 COMPARED TO 1999 (27) 2000 REVENUE DEFICIENCY (SUFFICIENCY) (7) R EVDEFQOjI4.AOR Rev Def Caus FactOf'i • TR 0310812000 6 52 PM
Pacific Northern Gas (N.E.) Ltd. (Tumbler Ridge Division) Bill Comparison 1999/2000 Permanent Rates Annual Bill Customer Classification Jan. 1, 1999 Estimate Annual Use Residential: 96.5 GJ Monthly Fixed Charge $8.50 Delivery Charge ($/GJ) 3.007 Gas Supply Charge ($/GJ) 2.327 5.334 Small Commercial: 751 GJ Monthly Fixed Charge $8.50 Delivery Charge ($/GJ) 2.827 $2,225.08 Gas Supply Charge ($/GJ) 2.327 $1,747.58 5.154 $3,972.65 ADR Rates Annual Bill Annual Bill Jan. 1,2000 Estimate Difference $ $ $ % $8.50 $392.18 3.029 $394.30 $2.12 0.54% $224.56 2.765 $266.82 $42.27 18.82% $616.73 5.794 $661.12 $44.39 7.20% $8.50 2.856 $2,246.86 $21.78 0.98% 2.765 $2,076.52 $328.94 18.82% 5.621 $4,323.37 $350.72 8.83% OObillcomparisons-ADR TR 03/08/2000 o Q g.> .,;""I"'e ~Z"'e (JQot (i>. Z fj o:0~ o..f.::;.~ I-t;Vl~ . N .f.: ' :; .8>
Tumbler Ridge Division. UTILITY INCOME & RETURN SCHEDULE I (OOO's) Line NQ.. Energy sales (TJ) 2 A verage rate per GJ , .) 4 5 Transportation service (TJ) 6 A verage rate per GJ 7 8 9 Total deliveries (TJ) 10 II Utility revenue 12 Energy sales 13 Interim rates - sales 14 Transportation service 15 Interim rates - transportation 16 17 18 Cost of sales 19 20 Gross margin 21 22 Operating expenses 23 Maintenance expenses 24 Admin. & General expenses 25 Property and BC Capital tax 26 Depreciation 27 Amortization 28 Investment income, other revenue 29 30 31 32 Income before income taxes 33 Income taxes 34 35 Earned return 36 37 Utility rate base 38 NE Fin'200BeA~0#t~te base 03/08/00 APPENDIX A to Order No. G-45-00 Page 17 of 24 Test Year Normalized Forecast ADR 2Q.QQ l22.2 l22.2 .l22.2. 296 302 308 308 $5.61 $5.30 $5.30 $5.31 250 250 250 250 $0.52 $0.48 $0.48 $0.48 546 ) --) . -, 558 558 $1.667 $\.60 \ $1,634 $\,634 (7) 130 120 120 120 \,790 1,721 1,754 1,754 788 707 718 718 1,002 1,014 1,036 1,036 521 517 517 517 58 55 55 55 121 125 116 116 38 45 45 45 91 89 89 87 6 9 9 9 (23) (22) (22) (22) 812 818 809 807 190 196 227 229 60 53 66 68 $130 $143 $161 $161 $1,509 $1.565 $1,565 $1,580 8.61% 9.12% 10.28% 10.19%
Tumbler Ridge Division. UTILITY RATE BASE SCHEDULE 2 (OOO's) Line N2.. 1 Plant in service beginning of year 2 Additions 3 Disposals 4 5 Plant in service end of year 6 Accumulated depreciation 7 8 Net plant in service end of year 9 \0 Net plant beginning of year 11 12 Net plant in service midyear 13 14 Contributions in aid of construction 15 Deferred income taxes 16 Reserve for damages 17 Unamortized deferred charges 18 Cash working capital 19 Other working capital 20 21 Utility rate base, midyear NE Fin 2000 AOR #2a 03/08/00 APPENDIX A to Order No. G-45-00 Page 18 of 24 Test Year Normalized Forecast ADR 2.QQQ l222. l22.2 l22.2 $7,156 7,098 7,098 7,082 24 65 65 166 1 7 7 7 7,179 7,156 7,156 7,241 3,746 3,503 3,503 3,499 3,433 3,653 3,653 3,742 3,653 3,831 3,831 3,817 3,543 3,742 3,742 3,780 (1,561) (1,700) (1,700) (1,710) (440) (439) (439) (438) (129) ( 119) (119) (119) 18 9 9 3 66 61 61 61 11 II I 1 3 $1,509 $1,565 $1,565 $1,580
Tumbler Ridge Division. INCOME TAXES SCHEDULE 3 (OOO's) Line tl2.. I Calculation of Taxable Income 2 Earned return before income taxes 3 Interest 4 Permanent differences 5 Timing differences 6 7 Taxable income 8 9 Calculation of Income Tax Expense 10 Income taxes payable II Part 1.3 tax 12 Deferred income tax 13 14 Income tax expense 15 16 Particulars of Timing Differences 17 Depreciation 18 Amortization 19 Capital cost allowance 20 Deferred charges 21 Overheads Capitalized 22 23 Timing differences NE Fin 2000 ADR #2a 03/08/00 APPENDIX A to Order No. G-45-00 Page 19 of 24 Test Year Normalized Forecast ADR 2OO.Q l2.22 l222. l222. $190 $196 $227 $229 (74) (97) (97) (98) 11 II II 11 26 24 24 22 $153 $134 $165 $164 $68 $60 $73 $73 4 4 4 5 (12) (II) (II) (10) $60 $53 $66 $68 $91 $89 $89 $87 6 9 9 9 (60) (61) (61 ) (61) (9) (13) (13) (13) (2) $26 $24 $24 $22
Tumbler Ridge Division. COMMON EQUITY SCHEDULE 4 (OOO's) Line N2. I Opening balance 2 Share capital 3 Contributed surplus 4 Retained earnings 5 6 7 8 Net income 9 Shares issued 10 Preferred dividends II Common dividends 12 13 Closing balance 14 15 16 Midyear common equity 17 Non - utility 18 19 NE Fin 2000 ADR #2a 03/08/00 APPENDIX A to Order No. G-45-00 Page 20 of 24 Test Year Normalized Forecast ADR 2Q.QQ l222. l222. l2.22 $680 $680 $680 $680 (82) (13) (13) (32) 598 667 667 648 45 55 67 60 ( 155) (136) (136) (92) $488 $586 $598 $616 $543 $626 $633 $632 $543 $626 $633 $632
Tumbler Ridge Division. RETURN ON CAPITAL SCHEDULE 5 (OOO's) Line NQ.. Short term borrowings 2 proportion 3 rate 0 fretum 4 return component 5 6 Long term debt 7 proportion 8 rate of return 9 return component 10 11 Preferred shares 12 proportion 13 rate of return 14 return component 15 16 Common equity 17 proportion 18 rate 0 f return 19 return component 20 21 Total capitalization 22 23 Return on rate base 24 25 Utility rate base NE Fin 2000 ADR #2a 03/08/00 APPENDIX A to Order No. G-45-00 Page 21 of 24 Test Year Normalized Forecast ADR 2Q.QQ l222 .l.222. l222 $316 (360) (367) (351) 20.92% -23.01% -23.46% -22.22% 5.50% 4.50% 4.50% 4.50% 1.15% -1.04% -1.06% -1.00% $650 $1,299 $1,299 $1,299 43.09% 83.01% 83.01% 82.22% 8.75% 8.75% 8.75% 8.75% 3.77% 7.26% 7.26% 7.19% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $543 $626 $633 $632 35.99% 40.00% 40.45% 40.00% 10.25% 7.23% 10.07% 9.99% 3.69% 2.89% 4.07% 4.00% $1,509 $1,565 $1,565 $1,580 8.61% 9.12% 10.28% 10.19% $1,509 $1,565 $1,565 $1,580
APPENDIX A to Order No. G-45-00 Page 22 of 24 PaeIflc Norttlem Qas Ud. Suite 1400 '186 west GeorgIa SWet \Iancol.Nsr. Brltfsh Columbia V6E4E6 (604) 691 ·5862 Fax: (004) 691 ·6869 Craig P. Donohue C!lIlOtQr. ReQldatQIY Alfal,. 6 Gaa SuPP , lY -----------------acue Log # ........2 .f..f?..L_ ViaCouner REC EIVED MAR 1 7 2000 March 17, 2000 Routing .. ~~ ,"II, B"'~,. fE.G.f-cJj.S. ...... B.C. Utilities Commission File No.: 89.4(2000) 6th Floor ~ 900 Howe Street Vancouver. B.C. V6Z2N3 Attention: W.J. Grant Dear Sir: Re: PNG (N.E.l 1000 Rate Application ADR Settlement Further to your letter dated March 10, 2000 seeking comments on the PNG (N.B.) 2000 rate application settlement documentation, PNG (N.E.) recommends the following: 1. When the settlement documentation is released to the Commission and o1her intervenors, the settlement tenus sheet should be split into two pages, one for the Fort St. lolmlDawson Creek division and one for the Tumbler Ridge division. The supporting n:guiatory schedules would then be reproduced for each division and the respective settlement terms sheet attached thereto. 2. The statement under tne heading "Gas Supply Costs" respecting the February 241 2000 forward gu price strip should be reproduced on the settlement terms for the Tumbler Ridge division. 3. The e-mail from Peter Midgley to Bob Cooper should not be reproduced with the material that is released to the Commission and the other registered intervenors. This e-mail W~ intended to only be provided to the parties participating in the ADR to enable them to understand the suppon for the projection of deliveries to the new Louisiana Pacifio facility. Please direct any questions regarding this letter to my attention. C.P. Donohue cc! ADR Participants CPD:sl A1T~l"h
The British Columbia Public Interest , Advocacy Centre 815 - 81 5 West Hastings Street Vancouver. 8. C. V6C 1 84 Tel: (604) 687-3063 Fax: (604) 682-7896 email: bcpiac@bcpiac.com http://www.bcpiac.com ' Via fax and mail: 660-1102 SCUC Logf. ..... ,2!fi..t_._ RECEIVED March 20, 2000 W.J. Grant Executive Director Regulatory Affairs & Planning Be UTILITIES COMMISSION 6th Floor - 900 Howe Street Vancouver, Be V6Z 2V3 Dear Mr. Grant: Re: Proposed Settlement of Issues - 2000 Revenue Requirements Pacific Northern Gas (N.E.) Ltd. (Fort St. JohnlDawson Creek Division) and (Tumbler Ridge Division) CAC(BC) et al. a~cepts the proposed settlement in this matter. Yours sincerely, BC PUBLIC INTEREST ADVOCACY CENTRE Ric rd J. Gathercole Counsel for CAC(BC) et al. RJG:ca p:\msoffice\dick\energy\7I 74\7175WJGrantietdoc APPENDIX A to Order No. G-45-00 Page 23 of 24 MiChael P. Doherty 667-3034 ~ . ..J. Gathef"'Cole 667-3006 Serah Khan 667-4 't 34 .~ Patricie MacDonald . 667-3D 17 Susen Pl"'Oss ..... Carclcled st:Udentl 667-3D63 6errisee,... & SolicitoMl
APPENDIX A to Order No. G-45-00 Page 24 of 24 ~~--------~~~~~~~~~ Box 150 BCUC Log "'m .... .3..0JJI_ "iIi6/" '(fokm6ta Dawson Creek, B.C. VIG4G4 REC EIVEO Thlephone: (250) 784·3600 APR 042000 Fax: (250) 782·3203 RoutingM.-lo If1{ March 31, 2000 ~t/~f~r.t=II====:J Mr. R.J. Pellatt Commission Secretary . Be Utilities Commission 6" Floor, 900 Howe Street Vancouver. BC V6Z2N3 Dear Mr. Pellatt: BE: Proposed Rate Increase - City of Dawson Creek Further to our intervention with regard to PNG's request to the Utilities Commission for a rate increase in 2000, the Council of the City of Dawson Creek formally oppose any increase in rate charges at this time. The economy of the City has suffered the same fate as that of the rest of the Province over the past few years and is just now starting to show some improvement. Any increase in the cost of doing business is a serious concern and one that we cannot support. We recognize that gas supply charges payable by PNG increase from time to time and will be passed on to the consumer, however, any other increase proposed by PNG will be unacceptable. We encourage the Utilities Commission to hold the line on any increase until growth and development are stabilized. We appreciate the opportunity to voice our concerns. ~-:--==-Blair Lekstrom, Mayor
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