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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 I S S I O N O R D E R N U M B E R G-29-03 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 Terasen Gas Inc. (formerly known as BC Gas Utility Ltd.) for Approval of a Multi-Year Performance-Based Rate Plan to Set Rates for 2004-2008 BEFORE: P. Ostergaard, Chair ) R.H. Hobbs, Commissioner ) April 29, 2003 N.F. Nicholls, Commissioner ) O R D E R WHEREAS: A. In accordance with the determinations from the 2003 Revenue Requirements Decision, BC Gas Utility Ltd. (“BC Gas”) applied to the Commission on April 17, 2003 for approval of its Multi-Year Performance-Based Rate Plan (“the PBR Plan”) to set rates for 2004 to 2008 pursuant to Sections 58 and 61 of the Utilities Commission Act (“the Act”), (“the Application”); and B. On April 25, 2003, BC Gas changed its name to Terasen Gas Inc. (“Terasen Gas”); and C. Similar to the 1998-2001 PBR plan, the PBR Plan proposes incentives for those elements of cost of service over which Terasen Gas has the greatest control. For those items over which Terasen Gas has limited or no control, the PBR Plan maintains the same regulatory treatment as was used in the 1998-2001 plan through the use of deferral accounts, flow-throughs and Annual Reviews; and D. The PBR Plan estimates a 0.48 percent general rate increase on utility margin effective for 2004; and E. The Commission, in its desire to deal efficiently with issues relating to the Application, requires that an initial timetable and a process for dealing with the issues be established. . . ./2
B R IT IS H C O LU M B I A U T IL I T I E S C O M M IS S I ON O R D ER N U M B E R G-29-03 2 NOW THEREFORE the Commission orders as follows: 1. Terasen Gas shall provide a copy of this Order, by facsimile if possible, to all Intervenors and Interested Parties registered in BC Gas proceedings in 2002. Terasen Gas shall also publish a copy of the Notice of Workshop and Pre-hearing Conference, attached as Appendix B, in local news publications in order to adequately notify its customers. 2. Intervenors and Interested Parties should inform the Commission, in writing, by Monday, May 12, 2003 of their intention to actively intervene in the proceeding, or become Interested Parties. Registered Intervenors will receive from Terasen Gas copies of the Application, all correspondence and filed documentation. Interested Parties will receive the Applications Executive Summary and copies of all Orders issued. 3. A Workshop and Pre-hearing Conference, to review the Application and to discuss procedural matters for the Negotiated Settlement Process will be held on Thursday, May 15, 2003 commencing at 9:00 a.m. at the Sheraton Vancouver Wall Centre Hotel, 1088 Burrard Street, Vancouver, B.C. A proposed timetable has been established for the issuance of information requests, responses and negotiations as shown in Appendix A. 4. Following the Pre-hearing Conference, the Commission will issue a regulatory timetable for the review of the Application. DATED at the City of Vancouver, in the Province of British Columbia, this 29 th day of April 2003. BY ORDER Original signed by: Peter Ostergaard Chair Attachment Orders/BCG 2004-08 Wkshp//PHC
An Application by Terasen Gas Inc. (formerly known as BC Gas Utility Ltd.) for Approval of a Multi-Year Performance-Based Rate Plan to Set Rates for 2004-2008 REGULATORY AGENDA ACTION Terasen Gas to provide and publish the Notice of Workshop and Pre-hearing Conference Intervenor Registration Workshop and Pre-hearing Conference Information Requests Issued (proposed) Information Responses (proposed) Negotiations commence (proposed) APPENDIX A to Order No. G-29-03 Page 1 of 1 DATES (2003) Saturday, May 3 Monday, May 12 Thursday, May 15 Friday, May 23 Friday, May 30 Monday, June 9
SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA web site: http://www.bcuc.com TERASEN GAS INC. (formerly BC Gas Utility Ltd.) Application for Approval of a Multi-Year Performance-Based Rate Plan to Set Rates for 2004-2008 NOTICE OF WORKSHOP AND PRE-HEARING CONFERENCE Date: Time: Location: THE APPLICATION In accordance with the determinations from the 2003 Revenue Requirements Decision, BC Gas Utility Ltd. applied to the B. C. Utilities Commission (“the Commission”) on April 17, 2003 for approval of its Multi-Year Performance-Based Rate Plan (“the PBR Plan”) to set rates for 2004 to 2008. The PBR Plan estimates a 0.48 percent general rate increase in the delivery charge for all customers effective for 2004. On April 25, 2003, BC Gas Utility Ltd. changed its name to Terasen Gas Inc. (“Terasen Gas”). Similar to the four-year performance-based rate plan that expired in 2001, the 2004-2008 PBR Plan proposes incentives for those elements of cost of service over which Terasen Gas has the greatest control. For those items over which Terasen Gas has limited or no control, the PBR Plan proposes the same regulatory treatment as was used in the 1998-2001 plan through the use of deferral accounts, flow-throughs and Annual Reviews. The PBR Plan proposes allowances for operating and maintenance and capital expenditures based on the BC Consumer Price Index less 0.75 percent, 50/50 sharing by customers and shareholders of achieved efficiencies after cost recovery, annual reviews and off-ramps that trigger a complete regulatory review if there is a serious degradation in service quality indicators or if the two-year average achieved rate of return on equity after sharing exceeds or drops below the allowed rate of return on equity by 200 basis points. PUBLIC INSPECTION OF THE APPLICATION The Application and supporting material are available for inspection at the Head Office of Terasen Gas at 1111 West Georgia Street, Vancouver, B.C. and at the B.C. Utilities Commission, Sixth Floor, 900 Howe Street, Vancouver, B.C. The Application is available for viewing or http://www.terasen.com. PARTICIPATION IN THE WORKSHOP AND PRE-HEARING CONFERENCE The purpose of the Workshop and Pre-hearing Conference is to review the Application and to discuss procedural matters for a Negotiated Settlement Process. The Commission will subsequently determine the regulatory timetable for the review of the Application. APPENDIX B to Order No. G-29-03 Page 1 of 2 TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 Thursday, May 15, 2003 9:00 a.m. Sheraton Vancouver Wall Centre Hotel Grand Ballroom A 1088 Burrard Street Vancouver, B.C. downloading from Terasen Gas web site at .../2
APPENDIX B to Order No. G-29-03 Page 2 of 2 Persons who expect to actively participate in the review process should register as Intervenors with the Commission Secretary, in writing, by Monday, May 12, 2003. Intervenors will receive copies of the Application, all correspondence and filed documentation. Persons not expecting to actively participate, but who have an interest in the Terasen Gas Application, should register as Interested Parties with the Commission Secretary, in writing, by Monday, May 12, 2003. Interested Parties will receive a copy of the Applications Executive Summary and all Orders issued. COMMENTS If you wish to comment on the Application without becoming an Intervenor, you may write to the Commission Secretary stating your views. All letters of comment will be provided to Terasen Gas, intervenors and the Commission and will become part of the public record in the proceeding. 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 Facsimile: (604) 660-1102 B.C. Toll Free: 1-800-663-1385 E-mail: commission.secretary@bcuc.com
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