B R I T 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 E R N U M B E R G-26-03 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 Centra Gas Whistler Inc. for Approval of its 2003 Revenue Requirements BEFORE: P. Ostergaard, Chair ) R.H. Hobbs, Commissioner ) April 17, 2003 O R D E R WHEREAS: A. On December 10, 2002, Centra Gas Whistler Inc. (“Centra Whistler”) applied to the British Columbia Utilities Commission (“the Commission”) to increase its propane commodity charge from $11.613/GJ to $12.782/GJ, and to decrease Rider A from $0.987 per gigajoule to $0.569 per gigajoule, both effective January 1, 2003 on an interim basis (“the Application”); and B. Commission Order No. G-94-02 approved the Application for interim rates, subject to refund after review; and C. Commission Order No. G-5-03 established a Negotiated Settlement Process; and D. The Negotiated Settlement Process was held on March 25, 2003 and a proposed Settlement Agreement regarding the Application was agreed to by Centra Whistler, Intervenors and Commission staff; and E. The Commission has reviewed the proposed Settlement Agreement and considers that approval is in the public interest. NOW THEREFORE the Commission orders as follows: 1. The Commission approves for Centra Whistler the Settlement Agreement, attached as Appendix A, which decreases the interim energy charge for all customers to $12.522 per gigajoule, and increases the Gas Cost Deferral Account Rider to $0.610 per gigajoule, effective January 1, 2003. …/2
2 2. Centra Whistler is to inform all customers of the final rates by way of a customer notice. 3. Centra Whistler is to file a permanent Gas Tariff Rate Schedule that is in accordance with the terms of the Settlement Agreement and this Order. DATED at the City of Vancouver, in the Province of British Columbia, this 29 Attachment Orders/CGW/2003RR NegStlmntB R IT I S H C O L U M B IA U T I L I T IE S C O M M I SS I O N O R D ER N U M B E R G-26-03 th day of April 2003. BY ORDER Original signed by: Peter Ostergaard Chair
APPENDIX A to Order No. G-26-03 Page 1 of 19 Centra Gas Whistler Inc. 2003 Revenue Requirements Application Negotiated Settlement Agreement Centra Gas Whistler Inc. (Centra Gas or the Company) filed its 2003 Revenue Requirement and Rate Application (the Application) on December 10, 2002 with the British Columbia Utilities Commission (the Commission or the BCUC). The Application sought approval to amend its schedule of rates on an interim basis effective January 1, 2003, until such time as a review of the Application was complete, and final rates could be established effective as of the same date. Commission Order G-94-02 approved the application for a 5.96% rate increase, effective January 1, 2003 subject to refund after review of the Application should final rates be different from interim rates. Commission Order G-5-03 established a regulatory timetable with which to deal with the review of the Application, establishing an Information Request and negotiated settlement process. Commission Order G-11-03 superceded G-5-03, moving the date of the negotiated settlement process from March 18, 2003 to March 25, 2003. Notices of the negotiated settlement process were published in the Whistler Pique and the Question on February 21, 2003 and February 20, 2003 respectively. On February 14, 2003, the Commission issued its information request SR1. Centra Gas responded to SR1 on March 14, providing responses to the BCUC and Intervenors. No other information requests were received. On March 21, 2003 Centra updated its Application, requesting a 7.56% rate increase to reflect 2002 actual results and revised forecasts. A settlement conference was held in Whistler on March 25, 2003 at the Coast Whistler Hotel, commencing at 10:00 AM. In attendance were Commission staff, representatives of the Regional Municipality of Whistler, Intrawest Corporation, and Centra Gas, all of whom participated in the settlement discussions. At the conference a Negotiated Settlement was reached by all parties, establishing proposed final rates for Whistler rate payers being served from the propane distribution grid of $7.50 per month fixed monthly charge plus a commodity rate of $13.132/GJ, consisting of a commodity sales rate of $12.522/GJ and Rider A of $0.610/GJ. Proposed final rates will be effective January 1, 2003, resulting in a retroactive credit adjustment to all customers of $0.219/GJ for gas consumed from January 1, 2003 to March 31, 2003 that was billed at interim rates. The agreed proposed final rates result in a 4.22% increase to customers over existing 2002 approved rates as shown on the attached schedules that form part of this negotiated settlement package. Subsequent to the Negotiated Settlement, Centra Gas determined that there was an error in the model used to determine the proposed final rates. Within the model, the revenues for January and February 2003 were based on interim rates approved by Order G-94-02, and not based on approved existing 2002 rates, effectively understating the revenue deficiency used to calculate proposed 2003 rates. Corrected, the agreed to adjustments set out below would result in a proposed commodity rate of approximately $13.39/GJ. However, in order to respect the expectation of the parties to the negotiated settlement that the commodity
APPENDIX A to Order No. G-26-03 Page 2 of 19 rate would be $13.132/GJ, Centra Gas has reduced the forecast commodity cost of propane in the attached schedules to $8.665/GJ from the $8.911/GJ discussed in the settlement conference. This settlement agreement includes the following adjustments to the Application: Issue 1 – Updated 2002 Actual Results Centra Gas has provided updated 2002 Actual results in the attached Schedules that form part of this Negotiated Settlement. Issue 2 – Load Forecasts Centra Gas recognizes that the load forecast provided in the March 21 Submission may be conservative, but that the potential for low volumes in 2003 is high. However, all parties agree to a volume forecast for 2003 of 720,000 GJ based on 170,000 GJ for Residential, 290,000 GJ for Commercial, and 260,000 GJ for Large Commercial. Issue 3 – Sales Margin Differential Account All parties agree to the continuation of the Sales Margin Differential Account in 2003. The account will record the impact on sales margin resulting from the difference between normalized actual energy sales, and forecast energy sales. This mechanism has resulted in a decrease to Centra Gas’s allowed risk premium of 15 basis points to 60 basis points over the benchmark utility allowed ROE, from 75 basis points over the benchmark utility allowed ROE, as calculated under the Commission’s automated adjustment mechanism. Issue 4 – Cost of Gas All parties agreed to a forecast cost of propane for 2003 of $8.911/GJ. However, to rectify the modeling error identified above, the revised cost of propane will be $8.665/GJ for 2003. The Cost of Gas Deferral Account will continue to record the difference between actual cost of propane and forecast cost of propane. Cost of propane will be subject to quarterly reviews.
APPENDIX A to Order No. G-26-03 Page 3 of 19 Issue 5 – Bad Debt Expense All parties agree that Centra will reduce its 2003 forecast of bad debt expense to 2002 actual bad debt experience of $11,700. If a single bad debt over $5,000 occurs in 2003, that amount will be deferred. The disposition of that account will be determined in the next revenue requirements application. Issue 6 – Mains Lowering Costs All parties agree that Centra will remove the $20,000 of mains lowering from the 2003 forecast of capital expenditures in the calculation of Rate Base. In addition to the above, the parties agreed to the following: Issue 7 – Gas Purchasing Costs Centra Gas commits to investigate potential synergies with BC Gas, both in the commodity cost of propane, and in the administrative costs for purchasing propane. Issue 8 – UAF Centra Gas commits to further review of the UAF factor within cost of propane. Centra will canvas other propane utilities to determine what their UAF factors are to determine the reasonableness of the Centra Gas proposal. Issue 9 – DSM Centra Gas agrees to develop a Terms of Reference for DSM programs, and to submit an RFP seeking qualified consultants to assist in the development of those DSM programs. Cost effective DSM measures will form part of the Centra Gas CPCN Application for capacity upgrades needed to meet customer peak day demand growth. The Company and the participants agree to hold confidential the discussions held on March 25, 2003, until agreed to by the participants and released publicly by Commission staff. Agreement to this settlement is on a without prejudice basis. Any position taken or statement made during discussions, by the participants or the Company, will not be made public, or restrict in any way, positions taken in future proceedings concerning other applications.
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION REVENUE DEFICIENCY AND POTENTIAL RATE INCREASE LINE 1 Rate Base 2 Earned Return @ Existing Rates 3 Existing Rate of Return on Rate Base 4 Proposed Rate of Return on Rate Base 5 Proposed Earned Return after Tax 6 Revenue Deficiency/(Surplus) Before Tax 7 PROPOSED RECOVERY OF REVENUE DEFICIENCY 8 Revenue Deficiency/(Surplus) Before Tax 9 Total Energy Sales - GJ 10 Rate Increase/(Decrease) - $ / GJ 11 Existing Commodity Sales Rate - $/GJ 12 Proposed Commodity Sales Rate - $/GJ 13 % Cost of Service Increase/(Decrease) over Existing Sales Rate - $/GJ 14 Incremental RateRider Increase/(Decrease) - $ / GJ 15 Existing Rider A to Recover Gas Cost Deferral Account - $/GJ 16 Proposed Rider ’A’ to Recover Gas Cost Deferral Account - $/GJ 17 % Rate Rider ’A’ Increase/(Decrease) over Existing Rate Rider ’A’ - $/GJ 18 Incremental Fixed Charge Increase - $/Month 19 Existing Fixed Charge - $/Month 20 Proposed Fixed Charge - $/Month 21 % Fixed Charge Increase over Existing Fixed Charge - $/Month 22 Incremental Combined Commodity Rate Increase/(Decrease) - $/GJ 23 Existing Combined Commodity Rate - $/GJ 24 Proposed Final Combined Commodity Rate - $/GJ 25 % Increase/(Decrease) Over Existing Combined Commodity Rate - $/GJ APPENDIX A to Order No. G-26-03 Page 4 of 19 S 7.1 2003 Forecast Reference Comment $ 16,794,048 S 9.1 $ 6 57,777 S 8.1 3.92% S 8.1 6.56% S 14.1 $ 1,102,025 S 14.1 $ 6 54,518 S 7.2 $ 6 54,518 720,000 S 15.3 $ 0 .909 $ 1 1.613 $ 1 2.522 7.83% $ ( 0.377) $ 0 .987 $ 0 .610 -38.20% $ - $ 7.50 $ 7.50 0.00% $ 0 .532 $ 1 2.600 $ 1 3.132 4.22%
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION REVENUE REQUIREMENT LINE 1 Cost of Sales 2 Total Operating Expenses 3 Total Depreciation 4 Total Amortization 5 Total Municipal Taxes 6 Total Taxes Payable @ Proposed Rates 7 Projected / Proposed Return on Rate Base 8 Total Revenue Requirement Reconciliation of Revenue Requirement 9 Total Propane Sales Revenue @ Existing Rates 10 Total Other Revenue 11 Total Revenue @ Existing Rates 12 Revenue Deficiency / (Surplus) 13 Total Revenue Requirement APPENDIX A to Order No. G-26-03 Page 5 of 19 S 7.2 2003 Forecast Reference 6,468,142 S 16.1 823,245 S 17.1 468,516 S 10.4 (161,470) S 13 1 / S 13.2 288,526 S 19.5 248,026 S 19.2 / S 19.4 1,102,025 S 14.1 9,237,011 8,560,508 S 15.4 21,986 S 15.7 8,582,493 654,518 9,237,011
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION UTILITY INCOME LINE 1 Energy Sales - GJ - Normalized Actuals True up to Negotiated Settlement Energy Sales - GJ - Negotiated Settlement 2 Propane Sales Revenue @ Existing Rates 3 Cost of Sales 4 Gross Margin Margin Deferral - per Negotiated Settlement 5 Other Revenue @ Existing Rates 6 Net Utility Revenue 7 Expenses 8 Direct Operating and Maintenance 9 Shared Service Cost Allocation 10 Municipal Taxes 11 Depreciation 12 Amortization - Regulatory Costs 13 Amortization - Property Tax Differential 14 Amortization - Interest Rate Differential 15 Amortization - Gas Cost Differential (July 1-Dec. 31/01 Bal.) 16 Amortization - BC Capital Tax Differential 17 Amortization - Gas Cost Differential 18 Amortization - Margin Differential 19 Amortization - BC Rail Strike 20 Amortization - CIS Development Costs 21 Total Expenses 22 Operating Income 23 Utility Income Before Income Taxes 24 Total Taxes Payable 25 Net Utility Income 26 Mid - Year Rate Base 27 Earned Return Percentage on Mid-Year Rate Base APPENDIX A to Order No. G-26-03 Page 6 of 19 S 8.1 2002 2003 Actual Forecast Reference 6 90,866 720,000 S 15.1 31,709 7 22,575 8 ,210,592 8 ,560,508 S 15.4 5 ,487,637 6 ,468,142 S 16.1 2,722,956 2 ,092,365 1 24,798 20,711 21,986 S 15.7 2,868,465 2 ,114,351 5 40,035 607,078 S 17.1 2 12,554 216,167 S 17.1 2 71,517 288,526 S 19.5 4 38,254 468,516 S 10.4 11,697 12,700 S 13.1 - (15,545) S 13.1 ( 8,362) (239,467) S 13.1 ( 185,588) - S 13.1 (5,075) - S 13.1 - - S 13.1 - 76,751 S 13.1 5,108 - S 13.1 4,091 4 ,091 S 13.3 1 ,284,231 1 ,418,817 1 ,584,233 6 95,534 1,584,233 6 95,534 269,217 37,757 S 19.1 & S 19.4 1,315,017 657,777 1 6,785,317 16,794,048 S 9.1 7.83% 3.92%
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION RATE BASE Line GROSS PLANT IN SERVICE 1 Beginning of Year 2 End of Year 3 Average Mid-Year Balance Adjustment for deferred balances 4 added to GPIS as at January 1 5 Adjusted Average Balance ACCUMULATED DEPRECIATION 6 Beginning of Year 7 End of Year 8 Average Mid-Year Balance 9 NET MID-YEAR PLANT IN SERVICE 10 MID-YEAR ALLOCATED COMMON PLANT 11 WORKING CAPITAL 12 MID-YEAR RATE BASE 13 Total Actual Expenditures: 14 Included in Mid Year Gross Plant in Service 15 Adjustment to Rate Base for January 1 inclusion in GPIS APPENDIX A to Order No. G-26-03 Page 7 of 19 S 9.1 2002 2003 Actual Forecast Reference $ 1 6,708,402 $ 1 7,879,081 S 10.2 - S 10.3 1 7,879,081 1 8,291,196 S 10.2 - S 10.3 17,293,741 18,085,138 $ 3 14,115 $ - 17,607,856 18,085,138 $ ( 1,810,954) $ (2,217,158) S 10.4 ( 2,217,158) (2,655,384) S 10.4 (2,014,056) (2,436,271) 15,593,800 15,648,867 104,335 104,335 1,087,182 1,040,846 S 12.1 $ 1 6,785,317 $ 1 6,794,048 Approved System Expansion Capital Expend. $ 6 28,229 $ - 3 14,115 - $ 3 14,115 $ -
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION WORKING CAPITAL LINE 1 Cash Working Capital 2 Inventory - Materials & Services 3 Propane Inventory & Fort Saskatchewan Storage 4 Refundable Contributions 5 Customer Security Deposits 6 Employee Withholdings 7 Sub-Total 8 Mid-Year Deferred Items (After Tax) 9 Regulatory Costs 10 Property Tax Differential 11 Interest Rate Differential 12 Settlement Margin Differential 13 Rider "A" 14 Cost of Gas Differential (July 1- Dec. 31/01) 15 Gas Cost Differential (Outlook 2002) 16 BC Rail Strike - Freight 17 BC Capital Tax 18 Total Deferred Items 19 Total Working Capital Requirements APPENDIX A to Order No. G-26-03 Page 8 of 19 S 12.1 2002 2003 Actual Forecast Reference 97,392 114,189 S 12.2 37,105 25,975 S 12.3 690,148 924,790 S 12.3 (20,039) (56,226) S 12.3 (18,919) (14,812) S 12.3 (3,388) (3,388) S 12.3 782,299 990,528 4,773 (0) S 13.1 (7,773) (7,773) S 13.1 (134,377) (119,733) S 13.1 38,375 38,375 S 13.1 504,618 139,448 S 13.1 (89,115) - S 13.1 (14,173) - S 13.1 2,554 - S 13.1 0 0 S 13.1 304,883 50,317 S 13.1 1,087,182 1,040,846
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION CASH WORKING CAPITAL LINE Net Lag AMOUNT PAID / ACCRUED 1 Cost of Gas 1.5 2 OM&A 29.1 3 Municipal Taxes 41.5 4 Provincial Sales Tax (PST) (20.3) 5 Income Tax and Large 20.1 Corporation Tax 6 BC Capital Tax (31.6) 7 Goods and Services Tax (GST) 0.3 AMOUNT REQUIRED (Total adjusted for lead/lag days) 8 Cost of Gas 9 OM&A 10 Municipal Taxes 11 Provincial Sales Tax (PST) 12 Income Taxes 13 BC Capital Tax 14 Goods and Services Tax (GST) 15 Total Cash Working Capital APPENDIX A to Order No. G-26-03 Page 9 of 19 S 12.2 2002 2003 Actual Forecast Reference 5,487,637 6,468,142 S 16.1 7 52,589 823,245 S 17.1 2 46,240 288,526 S 19.5 4 37,554 4 49,207 2 36,403 2 48,026 S 19.1,2 & 4 2 6,732 - S 19.3 5 76,191 6 00,775 2 2,552 2 6,581 6 0,001 6 5,634 2 7,997 3 2,805 ( 24,335) (24,983) 1 3,018 1 3,658 ( 2,314) - 474 4 94 9 7,392 1 14,189
A P P E N D I X A t o O r d e r N o . G -2 6 -0 3 P a g e 1 0 o f 1 9 CENTRA GAS WHISTLER INC. S 13.1 2003 REVENUE REQUIREMENT APPLICATION RATE BASE DEFERRED COSTS - SUMMARY (After Tax) 2002 Actual Actual Actual 2002 2001 Gross 2002 2002 2002 Ending Additions/ Less Net 2002 Ending Mid-Year Line Deferred Item Balance Adjustment (Deductions) Taxes Additions Amortization Balance Balance 1 2002 Regulatory Costs 9,545 0 3,498 (1,347) 2,151 11,697 (0) 4,773 2 Interest Rate Differential (29,287) 0 (355,352) 136,811 (218,541) (8,362) (239,467) (134,377) 3 Rider "A" (to June 30, 2001) 705,674 9,809 (669,790) 257,869 (411,921) 0 303,562 504,618 4 Cost of Gas Diff. (July to December 31,2001) (181,909) (185,588) 3,679 (89,115) 5 Gas Cost Differential (2002 Outlook Period) 0 (46,090) 17,745 (28,345) 0 (28,345) (14,173) 6 BC Rail Strike 5,108 0 0 0 5,108 0 2,554 7 B.C. Capital Tax Differential 0 (5,075) 0 0 0 (5,075) 0 0 8 Property Tax Differential 0 (25,277) 9,732 (15,545) 0 (15,545) (7,773) 9 Sales Margin Differential 0 124,798 (48,047) 76,751 0 76,751 38,375 10 Total Deferred Items 509,131 4,734 (968,212) 372,762 (595,451) (182,220) 100,635 304,883 Forecast 2003 FORECAST 2003 2002 Gross 2003 2003 2003 Ending Additions/ Less Net 2003 Ending Mid-Year Line Deferred Item Balance Adjustment (Deductions) Taxes Additions Amortization Balance Balance 1 2003 Regulatory Costs (0) 20,000 (7,300) 12,700 12,700 (0) (0) 2 Interest Rate Differential (239,467) 0 0 (239,467) 0 (119,733) 3 Property Tax Differential (15,545) 0 0 (15,545) 0 (7,773) 4 Sales Margin Differential 76,751 0 0 76,751 0 38,375 5 Rider "A" 278,896 $ ( 439,206) 160,310 (278,896) 0 139,448 Total Deferred Items 100,635 (419,206) 153,010 (266,196) (165,561) (0) 50,317
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION NON-RATE BASE DEFERRED COSTS - SUMMARY (After Tax) 2002 Actual 2001 2002 Ending Gross Line Deferred Item Balance Adjustment Additions(Deductions) 6 Banner CIS Development Costs 2 5,256 - 7 Whistler Pipeline Investigation 1 ,743,875 (709,489) 32,022 8 Function Junction Tank Upgrade 6 28,229 (628,229) 9 Total Deferred Items 2 ,397,361 (1,337,718) 32,022 2003 FORECAST 2002 2003 Ending Gross Line Deferred Item Balance Adjustment Additions(Deductions) 10 Banner CIS Development Costs 2 1,624 - 11 Whistler Pipeline Investigation 1 ,089,538 2,460 12 Total Deferred Items 1 ,111,162 2,460 A P P E N D I X A t o O r d e r N o . G -2 6 -0 3 P a g e 1 1 o f 1 9 S 1 2002 2002 Less Net 2002 Ending Interest Taxes Additions Amortization Balance 747 (288) 459 4,091 2 1,6 57,654 (34,525) 55,151 - 1 ,089,5 - - - 58,401 (34,813) 55,610 4,091 1 ,111,1 2003 2003 Less Net 2003 Ending Interest Taxes Additions Amortization Balance 750 (274) 476 4,091 1 8,0 39,679 (14,483) 27,656 - 1 ,117,1 (14,757) 28,132 4,091 1 ,135,2
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION COST OF CAPITAL Line 2003 Forecast @ Proposed Capitalization 1 Debt 10,916,131 65.00% 2 Equity 5,877,917 35.00% 3 Mid-Year Rate Base 16,794,048 100.00% 2003 Forecast @ Existing Capitalization 4 Debt 10,916,131 65.00% 5 Equity 5,877,917 35.00% 6 Mid-Year Rate Base 16,794,048 100.00% 2002 Actual Capitalization 7 Debt 10,910,456 65.00% 8 Equity 5,874,861 35.00% 9 Mid-Year Rate Base 16,785,317 100.00% 2002 Allowed Capitalization 10 Debt 10,910,456 65.00% 11 Equity 5,874,861 35.00% 12 Mid-Year Rate Base 16,785,317 100.00% APPENDIX A to Order No. G-26-03 Page 12 of 19 S 14.1 Annual Annual Embedded Cost Earned Interest Cost Component Return Cost 4.70% 3.06% 513,058 513,058 10.02% 3.51% 588,967 6.56% 1,102,025 513,058 Annual Embedded Cost Earned Interest Cost Component Return Cost 4.70% 3.06% 513,058 513,058 2.46% 0.86% 144,719 3.92% 657,777 513,058 Annual Annual Embedded Cost Earned Interest Cost Component Return Cost 6.52% 4.24% 711,144 711,144 10.28% 3.60% 603,873 7.83% 1,315,017 711,144 Annual Embedded Cost Earned Interest Cost Component Return Cost 6.59% 4.28% 718,999 718,999 9.73% 3.41% 571,624 7.69% 1,290,623 718,999
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION ENERGY SALES - GJ 2003 Forecast LINE JAN FEB. MAR APR Actual Actual Normalized Normalized RESIDENTIAL 1 No. of Customers 1,830 1,838 1,843 1,853 2 Use per Customer - GJ 12.54 11.24 11.28 8.16 3 TOTAL RESIDENTAL - GJ 22,941 20,658 20,782 15,117 COMMERCIAL 4 No. of Customers 311 3 13 313 313 5 Use per Customer - GJ 111.05 104.12 108.92 84.07 6 TOTAL COMMERCIAL -GJ 3 4,538 32,589 34,093 26,313 LARGE COMMERCIAL 7 No. of Customers 19 19 1 9 1 9 8 Use per Customer - GJ 2,073.3 1,465.63 1,516.27 1,156.12 9 TOTAL LARGE COMMERCIAL - GJ 39,392 27,847 28,809 21,966 10 TOTAL ENERGY SALES - GJ 96,871 81,094 83,684 63,396 A P P E N D I X A t o O r d e r N o . G -2 6 -0 3 P a g e 1 3 o f 1 9 S 15.3 Forecast MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC TOTAL 1,862 1,875 1,880 1,882 1,895 1,912 1,927 1,944 1,877 5.17 3 .52 2.70 2.70 3.65 6 .30 9.74 13.57 90.56 9,633 6,601 5,071 5,086 6,912 12,046 18,778 26,374 170,000 3 13 3 13 313 313 3 14 318 323 3 24 316 58.82 4 4.71 45.93 45.90 45.19 63.16 88.81 118.39 919.08 18,412 13,994 1 4,375 1 4,367 14,190 20,086 28,686 38,357 290,000 19 19 1 9 19 19 2 0 2 0 20 19 795.61 594.45 680.91 680.54 601.37 850.35 1,295.74 1,767.95 1 3,478.21 15,117 11,295 12,937 12,930 11,426 17,007 25,915 35,359 260,000 43,161 31,889 32,384 32,384 32,528 49,140 73,378 100,090 720,000
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION SALES REVENUE - $ 2003 Forecast LINE JAN FEB. MAR APR 1 RESIDENTIAL Fixed Monthly $ 1 3,725 $ 13,785 $ 13,823 $ 13,898 2 Commodity $ 266,414 $ 2 39,901 $ 2 41,338 $ 175,558 3 TOTAL RESIDENTIAL $ 280,139 $ 2 53,686 $ 2 55,161 $ 189,456 4 COMMERCIAL Fixed Monthly $ 2,333 $ 2,348 $ 2 ,348 $ 2 ,348 5 Commodity $ 401,090 $ 3 78,456 $ 3 95,925 $ 305,569 6 TOTAL COMMERCIAL $ 403,422 $ 3 80,804 $ 3 98,273 $ 307,916 7 LARGE COMMERCIAL Fixed Monthly $ 143 $ 143 $ 1 43 $ 143 8 Commodity $ 457,459 $ 3 23,387 $ 3 34,560 $ 255,095 9 TOTAL LARGE COMMERCIAL $ 457,602 $ 3 23,530 $ 3 34,703 $ 255,238 10 TOTAL SALES REVENUE $ 1,141,163 $ 9 58,020 $ 9 88,136 $ 752,610 11 Forecast RATE RIDER "A" Pre Tax Revenue $ 5 9,092 $ 49,468 $ 51,048 $ 38,672 A P P E N D I X A t o O r d e r N o . G -2 6 -0 3 P a g e 1 4 o f 1 9 S 15 Forecast MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC TOTAL $ 1 3,965 $ 14,063 $ 14,100 $ 14,115 $ 14,213 $ 14,340 $ 14,453 $ 14,580 $ 1 69,05 $ 111,871 $ 76,653 $ 58,892 $ 59,068 $ 80,274 $ 1 39,894 $ 2 18,064 $ 306,284 $ 1,974,2 $ 125,836 $ 90,716 $ 72,992 $ 73,183 $ 94,486 $ 1 54,234 $ 2 32,516 $ 320,864 $ 2,143,2 $ 2,348 $ 2,348 $ 2 ,348 $ 2 ,348 $ 2,355 $ 2,385 $ 2 ,423 $ 2,430 $ 28,3 $ 213,814 $ 1 62,515 $ 1 66,940 $ 166,843 $ 164,789 $ 2 33,264 $ 3 33,127 $ 445,437 $ 3,367,7 $ 216,162 $ 164,863 $ 1 69,288 $ 169,190 $ 167,144 $ 2 35,649 $ 3 35,549 $ 447,867 $ 3,396,1 $ 143 $ 143 $ 1 43 $ 143 $ 143 $ 150 $ 1 50 $ 150 $ 1,7 $ 175,549 $ 1 31,164 $ 1 50,241 $ 150,160 $ 132,690 $ 1 97,503 $ 3 00,948 $ 410,624 $ 3,019,3 $ 175,692 $ 1 31,306 $ 1 50,384 $ 150,302 $ 132,832 $ 1 97,653 $ 3 01,098 $ 410,774 $ 3,021,1 $ 517,689 $ 3 86,885 $ 3 92,663 $ 392,675 $ 394,462 $ 5 87,536 $ 8 69,163 $ 1,179,505 $ 8,560,5 $ 26,329 $ 19,453 $ 19,754 $ 19,754 $ 19,843 $ 29,976 $ 44,761 $ 61,056 $ 4 39,20
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION COST OF GAS -2003 FORECAST Jan-03 Feb-03 Mar-03 Apr-03 May-03 1 Sales Volumes (GJ) 96,871 81,094 8 3,684 63,396 43,161 2 UAF 2.9987% 2,905 2,432 2 ,509 1,901 1,294 3 Purchase Volumes (GJ) 99,776 83,526 8 6,194 65,297 44,456 4 Forecast Unit Cost of Gas $ 8.665 $ 8.665 $ 8.665 $ 8.665 $ 8.665 5 Forecast Cost of Gas ($) $ 864,578 $ 723,767 $ 746,884 $ 565,816 $ 385,218 6 Forecast Cost of Gas ($/GJ) $ 8.665 $ 8.665 $ 8.665 $ 8.665 $ 8.665 7 Forecast Cost of Gas ($) $ 864,578 $ 723,767 $ 746,884 $ 565,816 $ 385,218 8 Deferral Account Additions - - - - - 6 Gas Supply O&M ($) 1.9% 3,509 3,509 3 ,509 3,509 3,509 (allocated from Centra BC at prev year + CPI) 7 Total Cost of Gas ($) $ 868,087 $ 727,277 $ 750,394 $ 569,325 $ 388,727 A P P E N D I X A t o O r d e r N o . G -2 6 -0 3 P a g e 1 5 o f 1 9 S 16 Forecast Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Total 31,889 32,384 32,384 32,528 49,140 73,378 100,090 720,00 956 9 71 9 71 975 1,474 2,200 3,001 21,59 3 2,846 33,355 33,355 33,504 50,613 75,578 103,091 741,59 $ 8.665 $ 8 .665 $ 8 .665 $ 8.665 $ 8.665 $ 8.665 $ 8.665 8.66 $ 284,615 $ 2 89,027 $ 2 89,025 $ 290,317 $ 438,575 $ 654,902 $ 893,307 $ 6,426,03 $ 8.665 $ 8 .665 $ 8 .665 $ 8.665 $ 8.665 $ 8.665 $ 8.665 $ 8.66 $ 284,615 $ 2 89,027 $ 2 89,025 $ 290,317 $ 438,575 $ 654,902 $ 893,307 $ 6,426,03 - - - - - - - 3,509 3 ,509 3 ,509 3,509 3,509 3,508 3,508 42,1 $ 288,124 $ 2 92,536 $ 2 92,534 $ 293,827 $ 442,085 $ 6 58,410 $ 896,816 $ 6,468,14
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION DIRECT & ALLOCATED COMMON OPERATING & MAINTENANCE EXPENSES - SUMMARY LINE GROSS DIRECT EXPENSES Operations 1 Manufactured Gas Production 2 Transmission 3 Distribution 4 General Operation 5 Total Operations 6 General and Administration 7 Sales Promotion 8 Customer Accounting 9 Administration and General 10 Total General and Administration 11 Maintenance 12 Manufactured Gas Production 13 Transmission 14 Distribution 15 Total Maintenance 16 Total Gross Direct Expenses 17 LESS: Direct Capitalization 18 Total Net Direct Expenses 19 Total Net Allocated Common Expenses 20 TOTAL NET O & M 21 Average Number of Customers 22 Average Direct Cost per Customer 23 Average Allocated Common Costs per Customer 24 Average Total O&M Cost per Customer APPENDIX A to Order No. G-26-03 Page 16 of 19 S 17.1 2002 2003 Actual Forecast Reference 184,606 186,615 S17.2 - 584 S17.2 285,520 339,261 S17.2 7,295 14,149 S17.2 477,421 540,609 - - S17.3 26,488 25,439 S17.3 92,748 109,740 S17.3 119,236 135,179 19,543 20,462 S17.4 - 5,959 S17.4 10,095 12,240 S17.4 29,638 38,661 626,295 714,449 86,260 107,371 540,035 607,078 212,554 216,167 752,589 823,245 2,076 2,212 S15.1 $ 260 $ 274 $ 102 $ 98 $ 363 $ 372
CENTRA GAS WHISTLER INC. 2003 REVENUE REQUIREMENT APPLICATION INCOME TAXES @ PROPOSED RATES Line 1 Proposed Earned Return After Tax 2 Less Financial Expenses 3 Accounting Income After Tax ADD: 4 Depreciation 5 Amortization of Deferreds (Tax Adjusted): 6 Regulatory Costs 7 Property Tax Differential 8 Interest Rate Differential 9 Settlement Margin Differential 10 Cost of Gas Differential (July 1 - Dec. 31/01) 11 Earnings/Rider Adjustment 12 Gas Cost Differential (Outlook 2002) 13 BC Rail Strike - Freight 14 BC Capital Tax Differential 15 Banner CIS Development Costs 16 Meals and Entertainment 17 Large Corporations Tax 18 Total Additions DEDUCT: 19 Capital Cost Allowance 20 CCA Loss Carryforward Taken 21 Admin. O/H Capitalized - current year 22 CEC 23 AFUDC Deferred Debits/(Credits): 24 Regulatory Costs 25 South Plant Trucking 26 Interest Rate Differential 27 Freight Start Up 28 Rider "A" 29 Earnings/Rider Adjustment 30 Gas Cost Differential 31 Banner CIS Development Costs Total Deductions 32 Taxable Income After Tax 33 Tax Gross Up (I minus effective tax rate) 34 Taxable Income 35 Gross Federal Tax 36 Reduction to Federal Tax 37 Net Federal Tax APPENDIX A to Order No. G-26-03 Page 17 of 19 S 19.2 2003 Forecast Proposed Reference 1,102,025 S 14.1 513,058 S 14.1 588,967 468,516 S 10.4 12,700 S 13.1 (15,545) S 13.1 (239,467) S 13.1 76,751 S 13.1 - S 13.1 - S 13.1 - S 13.1 - S 13.1 - S 13.1 4,091 S 13.2 2,140 37,757 S 19.4 346,943 523,238 S 19.3 - 45,000 S 19.3 1,862 S 19.3 - S 13.1 - S 13.1 - S 13.1 - S 13.1 - S 13.1 - S 13.1 - S 13.1 - S 13.2 570,100 365,811 0.6350 576,080 Forecast 2003 28.00% 161,302 5.00% 28,804 23.00% 132,498
APPENDIX A to Order No. G-26-03 Page 18 of 19
APPENDIX A to Order No. G-26-03 Page 19 of 19 From: "Ken Derpak (WB)" <kderpak@intrawest.com> To: "'bill.grant@bcuc.com'" <bill.grant@bcuc.com> Cc: "'barry.mckinlay@bcuc.com'" <barry.mckinlay@bcuc.com>, "'llandry@whistler.ca'" <llandry@whistler.ca> Subject: 2003 revenue settlement Date: Wed, 9 Apr 2003 16:03:22 -0700 Importance: high X-Priority: 1 I wish to confirm my acceptance of the settlement of 4.22 % increase as per your letter of April 2, 2003. I am content with the letter issued and don't need to see another draft prior to issuance. I would like to suggest Lisa as the point person should the press or public want additional comment, trust that is acceptable. I would like to thank all of you, and Brian in addition, for your assistance in this settlement.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.