B 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 I S S I O N O R D E R N U M B E R G-6-01 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 Sun Peaks Utilities Co., Ltd. for Approval of a Propane Cost Flow-through Rate Increase BEFORE: P. Ostergaard, Chair ) P.G. Bradley, Commissioner ) January 9, 2001 N.F. Nicholls, Commissioner ) O R D E R WHEREAS: A. Commission Order No. C-11-98, dated June 30, 1998, approved a Certificate of Public Convenience and Necessity (“CPCN”) for Sun Peaks Utilities Co., Ltd. (“SPUCL”) to operate an underground propane grid system at the Sun Peaks Resort Community near Kamloops, B.C.; and B. On October 10, 2000, SPUCL filed propane supply contracts between Link Petroleum Services Ltd. and Distributed Energy Services Co. Ltd. (“DESCO”) dated November 16, 1997, June 24, 1999, and July 1, 1999, that together supplied propane to SPUCL for the period November 18, 1997 through November 30, 2000 (the “Link Propane Supply Contracts”); and C. On November 15, 2000, SPUCL filed a propane supply contract between Autogas Propane Ltd. (“Autogas”) and BCG Services Inc. (formerly DESCO) dated October 2000, to supply propane to SPUCL for the period December 1, 2000 through August 31, 2001; and D. In the November 15, 2000 filing, SPUCL identified that its $8.56/GJ Gas Commodity Charge is comprised of a $1.1905/GJ Storage charge, a $6.00/GJ Propane charge, a $0.60/GJ DESCO charge, and a $0.7695/GJ SPUCL charge; and E. In the November 15, 2000 filing, SPUCL also requested approval of a $5.56/GJ (approximately $0.141 per litre) increase in the Gas Commodity Cost - Propane component of its rates, to $11.56/GJ (approximately $0.294 per litre) effective December 15, 2000. The increase is to recover the higher cost of propane that SPUCL is paying and expects to pay over 2001, based on current forward market prices for propane; and . . ./2
B R IT I S H C O LU M B I A U T I L IT I E S C O M M IS S I ON O R D E R N U M B ER G-6-01 2 F. In the November 15, 2000 filing, SPUCL also requested a shift of the $0.7695/GJ SPUCL charge from the current Gas Commodity Charge to the Delivery Charge, as an accounting change that will be revenue neutral to SPUCL and customers; and G. In the November 15, 2000 filing, SPUCL identified that the Gas Cost Reconciliation Account debit balance to the end of March 2000 of $206,691 was comprised of a Storage Cost Reconciliation Account debit balance of $150,400, and a Propane Cost Reconciliation Account debit balance of $56,291 including the cost of liquid propane in storage; and H. By letter dated January 8, 2001, BCG Services Inc. confirmed that it has agreed to amend its Utility Services Agreement with SPUCL to allow SPUCL to purchase the Propane Storage Facilities at Sun Peaks at the depreciated net book value at the expiration of the 10 year term of the agreement; and I. The Commission, by Order No. G-5-01, approved the rates that were filed as part of the CPCN Application; and J. The Commission has considered the Application and other material submitted by SPUCL, and considers that the rate increase should be approved. NOW THEREFORE pursuant to Sections 71 and 61(4) of the Utilities Commission Act, the Commission orders as follows: 1. The Commission accepts the Link Propane Supply Contracts for filing. The Commission also accepts the October 2000 Autogas Propane Supply Contract, subject to SPUCL filing a fully executed copy of the document in a timely manner. 2. The Commission approves an increase in the Gas Commodity Charge – Propane from $6.00/GJ to $11.56/GJ, effective December 15, 2000. 3. The Commission approves the movement of the $0.7695/GJ SPUCL charge from the Gas Commodity Charge to the Delivery Charge, effective December 15, 2000. …/3
3 The foregoing approvals will result in the following rates: Delivery Charges - Residential Delivery Charges - Small Commercial Delivery Charges - Large Commercial Gas Commodity Charge - Propane Gas Commodity Charge - Storage Gas Commodity Charge - DESCO Gas Commodity Charge - SPUCL Gas Commodity Charge (All Classes) 4. The Commission approves a Propane Cost Reconciliation Account for SPUCL, for the recording of the cost of propane purchases and transportation, the cost of vaporizer fuel and lost and unaccounted for propane, revenue from the Gas Commodity Charge – Propane, and interest on the account balance. 5. The Propane Cost Reconciliation Account is deemed to have a debit balance of $56,291 as of the end of March 2000. Within three months of the end of each fiscal year, SPUCL is directed to file with the Commission a statement summarizing the transactions in the Propane Cost Reconciliation Account over the previous year, and identifying the account balance at year-end. 6. The Commission will accept, subject to timely filing, amended Gas Tariff Rate Schedules in accordance with the terms of this Order. The filed tariff pages for permanent rates, prior to and effective December 15, 2000, should identify the components of the Gas Commodity Charge as set out above. 7. SPUCL is to inform all affected customers of the approved rate increase by way of a customer notice. DATED at the City of Vancouver, in the Province of British Columbia, this 16 Orders/SunPeaks Cost of Gas PassThruB R I T 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 O N O R D E R N U M B ER G-6-01 Rates Effective Previous Rates December 15, 2000 $/GJ $/GJ 1.40 2.1695 1.40 2.1695 1.90 2.6695 6.00 11.56 1.1905 1.1905 0.60 0.60 0.7695 0.00 8.56 13.3505 th day of January 2001. BY ORDER Original signed by: Peter Ostergaard Chair
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