BR I T I S H CO L U M B I A UT I L I T I E S COM M I S S I ON OR D E R NU M B E R G -120-05 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 Pacific Northern Gas Ltd. Application for Approval of 2005 Revenue Requirements BEFORE: R.H. Hobbs, Chair November 17, 2005 L.A. Boychuk, Commissioner O R D E R WHEREAS: A. On December 17, 2004, Pacific Northern Gas Ltd. – West Division (“PNG-West”) filed for approval of its 2005 Revenue Requirements Application (“the RR Application”) to amend its rates on an interim and final basis, effective January 1, 2005, pursuant to Sections 89 and 58 of the Utilities Commission Act (“the Act”); and B. The RR Application proposes to increase delivery rates to all customers, except West Fraser Mills and Methanex Corporation, as a result of increases in cost of service and lower gas deliveries to most customer classes; and C. The RR Application requests approval to increase its common equity thickness from 36 percent to 51 percent in 2005; and D. On December 17, 2004, PNG-West filed an application to convert PNG-West to an income trust structure (the “IT Application”, “Applications”); and E. On December 7, 2004 PNG-West filed its Fourth Quarter 2004 Report on gas supply costs and Gas Cost Variance Account (“GCVA”) balances (“the Report”) which requested approval of increases effective January 1, 2005 to Gas Supply Charges based on November 24, 2004 forward natural gas prices and a November 10, 2004 propane price forecast. PNG-West proposed no change be made to the GCVA rate rider; and F. The Report projects significant GCVA credit balances for PNG-West Core Market Sales and Company Use Gas at the end of December 2004; and G. By Order No. G-114-04, the Commission approved an interim rate increase in the delivery rates for all classes of customers, except West Fraser Mills and Methanex Corporation based on the deemed equity component of 36 percent effective January 1, 2005 subject to refund with interest; and …/2
BR I T I S H CO L U M B I A UT I L I T I E S COM M I S S I ON OR D E R NU M B E R G-120-05 3 H. By Order No. G-114-04, the Commission also held a Pre-Hearing Conference (“PHC”) in Vancouver on January 20, 2005 to address procedural matters related to the Applications, including the identification of principal issues and the process options for review of the Applications; and I. By Order No. G-15-05, the Commission established a second PHC for PNG-West on April 13, 2005 followed by an oral public hearing from May 10, 2005 to May 13, 2005 into the IT Application along with the common equity thickness in the RR Application; and J. The Commission in its September 9, 2005 Decision approved for PNG the IT Application and deferred the review of the appropriate 2005 deemed capital structure to a separate process; and K. By Letter No. L-84-05, the Commission scheduled a Negotiated Settlement Process for the review of the PNG-West RR Application; and L. The Negotiated Settlement discussions were held in Vancouver on October 12 and 13, 2005 and a proposed Settlement Agreement regarding the RR Application was agreed to by PNG-West and the Intervenors; and M. The Commission has reviewed the proposed Settlement Agreement for PNG-West and considers that approval is warranted. NOW THEREFORE the Commission orders as follows: 1. The Commission approves for PNG-West the Settlement Agreement attached as Appendix A, the Terms of Settlement along with supporting schedules showing the effects of the changes arising from the Negotiated Settlement. 2. The interim rates for PNG-West established by Order No. G-114-04 are approved as permanent rates effective January 1, 2005. 3. PNG-West is to file permanent Gas Tariff Rate Schedules that are 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 18 th day of November 2005. BY ORDER Original signed by: Robert H. Hobbs Chair Attachment PNG- 2005 Revenue Requirements
APIPENDIXA to Order No. 6-1 20-05 Page 1 of 18 SIXTH FLOOR, 900 H O W E STREET, aox 250 TELEPHONE: (W?)M 10-4700 VANCOUVER, B.C. VGZ 2N3 CANADA BC TOLL FREE: 1-800.663-13 85 FACSIMILE: (604) 0-1102 web site: http://www.bcuc.com VIA E-MAIL October 19,2005 Dear Registered Intervenors: Re: Pacific Northern Gas Ltd. - West DDision ("PNG-W") Negotiated Settlement 2005 Revenue Reauirement Awplication Enclosed with this letter is the proposed settlement package for PNG-W 2005 Revenue Requirement Application. This settlement package is now public and is being submitted to the Commission and all Intervenors Also enclosed are Letters of Acceptance from the Pafiicipants in the negotiated senlelnent process. Prior to consideration by the Commission, Intewenors who did not parlicipate in the settlement negotiations are requested to provide to the Commission their comments on the settlement package by Wednesday, October 26,2005. Thereafter, the Commission will consider the settlernent package. A public hearing may not be required unless there is significant opposition to the proposed settlement. Yours mly, William J. Grant FYKfrt Atlachments cc: Mr. Craig Donohue Director, Regulatory Affairs and Gas Supply Pacific Northern Gas Ltd.
APPENDAI X to Order No. (3-1 20-0.5 Page2of 18 SlXTH FLOOR. PW HOWE STREET. BOX 2.50 HONE: (604) 660470 VANCOUVER. B.C. V6Z 2N3 CANADA BCTOLL FREE: 1.&M663-130$ web site: bttp://www.bcuc.com FACSIMILE: (a6)60 1102 October 17,2005 Dear Parlicipanlts: Re: Pacific Northern Gas Ltd. -West Division (""PNG-W") Negotiated Settlement 2005 Revenue Reauirement A~~l ica t ion Enclosed is the revised Negotiated SeMlement Agreement for PNG-W 2005 Revenue Requirement Application along with suppofiing documen@a s per the amendments submilted by PNG on October 17,2005. Pkase review the revised Negotiated SeMlement Agreement along with the supporting documents and provide your wrinen correspondence confirming your acceptance ofthis Settlement by Thursday, Octokr 20,2005. BY Monday, October 24, 2005, the Negotiated SeMlement package and Leners of Comment from the participants will be made public and forwarded to the Commission for its review. Prior to consideration by the cornmission, Intervenors who did not parl-licipatei n the senlement negotiations will be requested $0 provide lo the Cornmission their commenls on the senlement package by Friday, October 28, 2005. Thereafier, the Commission will consider the seltlernenl packhtge. A public hearing may not be required unless there is significant opposition lo the proposed sealement. FY Wrt Anachments cc: Mr. Craig Donohue Director, Regulatory Affairs and Gas Supply Pacific Northern Gas Ltd.
APPENDIX A to Order No. G- 120-05 Page 3 of 18 Pacific Northern Gas Ltd. VNG-West Division) 2005 Revenue Requirements Application NEGOTIATED SETTLENIlENT AGREEMENT October 13,2005 The fo11owing sets out the agreement reached on October 13,2005 among the parties that pafiicipated in the negotiated settlement process in respect of the PNG-West Division 2005 Revenue Requirements Application to the B.C. Utilities Commission dated Deceiiiber 17, 2004 as updated on February 18, 2005 (herein referred to as the "Feb. 1 8'05 Application"). I. Gas Deliveries Forecast The 2005 gas deliveries forecast for all customer classes as set out in the Feb. 18'05 Application is accepted by the parties. The budgeted operating expenses of $6.77 million and budgeted maintenance expenses of $443,000 as set out in the Feb. 18'05 Application are accepted by the parties. The budgeted adininistrative and general expenses of $6.283 million in the Feb. 18'05 Application have increased to $6.326 million due to a change in the allocation of insurance cost recoveries from PNG@.E.) under the Commission's May 5, 2005 decision on PNG(N.E.)'s 2005 revenue requirement application and due to annualizilig the actual expenses to August 2005 for life and disability insurance and pension funding. The revised provision of $6.326 million is accepted by the parties.
APPENDIXA to Order No. 6-12 0-05 Page 4 of 18 The other cost of service items set forth in the Cost of Service Comparison Table provided at page 3 of the Feb. 18'05 Application in addition to operating, maintenance, administrative and general expenses are accepted by the parties as follows. I Total I $8.021 I PNG filed a letter with the Colnmission dated January 18, 2005 requesting Comlnission approval to record the original cost of the propanelair plant less salvage recoveries and the costs to relocate the plant to the West Fraser Kitimat mill ("relocation costs") in an interest bearing deferral account. The requested amortization period was 20 years using depreciation as the determinant of the annual amortization expense. The parties agreed to reduce the requested deferral account by $165,000 and to transfer to rate base the overhead construction costs allocated to the relocation costs plus associated AFUDC. The parties agreed that the remaining applied for costs, adjusted for the actual salvage value of $27,000 on the sale of the propane tanks, be recorded in an interest bearing defenal account and be amortized in customer rates over the ten year period commencing with 2005. The 2005 budgeted capital expenditures of $9.925 nill lion as set out in Utility Rate Base Schedule 2 of the Feb. 18'05 Application are accepted by the parties. The parties acknowledge that the $9.925 million figure reflects work in progress as of December 31, 2004 plus budgeted 2005 capital additions. Most of the work in progress as of December 31, 2004 was for the Salmon River directional drilling project, which was substantially completed in 2004, but not tied into service until mid 2005. This resulted in the Salmon River crossing 2004 expenditures of approximately $4.5 million appearing in the budgeted 2005 capital additions.
to Order No. 6-12 0-05 Page 5 of 18 7. Income T a x Calculation The 2005 provision for income tax was adjusted to reflect the impact of the July 1, 2005 decrease of 1.5 percent in the provincial corporate income tax rate. This adjustment effectively reduced the annual income tax rate by 0.75 percent. The cost of service in the attached settlement regulatory schedules reflects this change. PNG applied to increase its deemed common equity thickness from 36 percent to its actual common equity thickness of 51 percent. The Commission considered the common equity thickness evidence filed by PNG in its 2005 revenue requirements application at the hearing into PNG's application for approval to convert to an income trust. The Commission stated the following at page 13 of the Income Tmst Decision: "Commission Panel Deteminations The Commission Panel accepts that PNG simply cannot raise sufficient debt to balance its capital structure at a deemed common equity of 36 percelit. Equally, PNG has 51 percent common equity in its 2005 actual capital structure and would, therefore, not have to raise debt this year if that actual capital were accepted for ratemaking purposes. However, it is not clear to the Commission Panel whether some other deemed capita1 structure with a common equity percentage between 36 percent and 51 percent would not allow PNC to borrow the remaining debt on reasonable terms, based on the improved cash flow of the higher deemed equity ratio. PNG did not lead compelling evidence in these circumstances to assist the Commission Panel to specify an optimal capital structure for 2005, or until an income trust structure can be put in place. In the event that PNG's rates for 2005 are to be resolved by a R'egotiated Settlement Process (""NSP93, the Commission Panel will allow the participants in that process l o consider the most appropriate deemed capital structure to be approved for 2005. Commission Panel Determinatioms in Section 9.3 also address an NSP. The Commission accepts PNG's request that the 2005 ROE for PNG- West be established at 65 basis points above the benchmark utility ROE (t'.e, 9.68%).'" The parties were unable to reach agreement on what common equity thickness should be deemed for rate making purposes in 2005. PNG continues to submit that its filed expert evidence supports its application for approval of a 51 percent common equity thickness to ensure that PNG earns a fair and reasonable retum. The intervenors that participated in the settlement discussions disagree with this position. While they agree that the deemed common equity thicklless for rate making purposes should be
APPENDIX A to Order No. 6-120-05 Page 6 of 1 8 greater than 36 percent, they are of the opinion that the appropriate deemed common equity thickness would be in the lower end of the range of 40 to 45 percent and on this basis that PNG would have access to additional long term debt as a result of the cash Row generated by the higher common equity thickness. To reach a settlement the parties have agreed to not specify a deemed common equity thickness in the attached settlement regulatory schedules. In addition, the parties have agreed that the interim rates effective January 1, 2005 will be made permanent for 2005. The interim rates are based on a revenue deficiency of $1.204 million compared to the applied for revenue deficiency of $2.631 million. All of the adjustments to the Feb 18'05 Application set forth in this settlement agreement together with the return on equity less settlement allowance figure in the attached settlement regulatory schedules generates the agreed to 2005 revenue deficiency of $1.190 million. The $14,000 difference between the interim rates and the settlement revenue deficiency figures reflects the impact of applying to the interim rates the different gas deliveries forecasts set forth in the original 2005 revenue requirements application dated December 17,2004 and in the updated Feb. 18'05 Application. The Methmex contract temination payment deferral account is accepted by the parties on the basis set forth in PNG9s letter to the Commission dated October 4, 2005. The parties acknowledge that the 2006 revenue requirements application vvill provide for crediting part of the Methanex contract temination payment to the 2006 cost of service subject to approval of the Commission in its review of the 2006 revenue requirements application. 10. Commission Staff Issues List Settlement The Commission Staff prepared an issues list to facilitate the settlement negotiations. The parties agree that the attached Commission Staff Issues List Settlement accurately docments the parties' settlement of the issues identified by the Comlnission Staff.
PaciEc Northern Gas Ltd, (PNG-West Division) 2005 Revenue Requirements Application Commission Staff Issues List Settlement (October 13,2005) Application Requests Operating Expenses r In-line inspection decreased significantly. Use previously approved deferral account for any variances from budget. e No compressor overhaul in 2005. PNG would be permitted to record the cost of an unplanned repair in its Compressor Overhaul Defenal Account. Safe@ and ReliabiliCy Emergency response time exceeded 40 min in 25 occunences during 2004. Propane Air Plant e The set up cost was not justified, since there was no commitment from West Fraser Mills e Ainortization period of 20 years for plant cost / Company Use Gas Requirements APPENDIX A to Order No. 6-12 0-05 Page 7 of 18 2005 Settlement References Rev Req'm ("00) $78 1 Accept as filed with Tab 1 p.3 SCC '05 deferral Acct 665 account addition to Acct 666 be decreased Accept as filed PNG to review its BCOAPO methods. IR#1 Q.16 b, p.17 I Reduce the setup cost by $165K r Allocate Overl~ead and related AFUDC into rate base * Base on 10 yr levelized amortization for net asset / Accept as filed
Unaccounted for Gas The UAFG was in fact a small gain in the last two years and PNG has taken steps to investigate and reduce the magnitude ofthe UAFG gains. Stress Corrosion Cracking Deferral Account Capital Additions 2005 budget Customer Care Cost Accounts (7 1 1 / 7 13 / 7 14) increase due primarily to allticipated activity for these accounts Administrative and General Expenses * Life and disability insurance - more expensive on a stand-alone basis from Duke since Dec 2003. r Directors' Fee Captive I~lsurancec ompany - pending Income Trust decisioll$50k for start up and $25k anliual administrative costs APPENDIX A to Order No. 6-12 0-05 Page 8 of 18 r Accept as filed - UAFG factor set to 0% for 2005 No dead band for deferral. UAFG gains to continue to be reflected as credit in GCVA / 51 88 1 Reduce by 560K to Rev Appl'n after tax addition of Tab 2 p.6 5128K Accept as filed BCOAPO IR # I Q.2 p.1 BCUC IR #1 Q.3 p.3 Acct 728 Pending IT Decision Acct 723 No impact
Post Retirement BeneEt r Compliance with Commission Directives for 2004 Revenue Requirement and Letter L-6-05 Insurance Deferral Account - Terrorist Acts To capture any costs incurred to repair damages caused by a terrorist act. This treament was approved by the Commission in 2004 BCUC Proceedings Deferral Account Budgeted regulatory proceeding cost for 2005 of $299,000 net of taxes ($456k gross) includes the Revenue Requirement and IT Applications. general plant assets 47k net of taxes amortize ove I There is an increase of 3.2% from 2004 Decision to 2005 Test year Insurance Receivable - cash working capital The insurance receivable relates to the Copper River pipeline break in 2002. The amount was received in January 2005 and has been removed from working capital in February 18, 2005 updated schedules. to Order No. G-120-05 Page 9 of 18 $105 Accept as filed BCUC IR #I Q7.5.4 Accept as filed $193 r Reduce 2005 Revised amortization lo Appl'n $80K Tab 2 p.7 e IT regulatory cost deferred until resolution of IT conversion Tab 1 p. 1 BCUC IR#l 412 Tab 2 p.7 BCUC IR # I . Q.13 Accept as filed BCUC IR subject to #1 q.15 adjustments from pp.23 - 24 NSP settlement 0 Confimed that the BCUC R insurance is applied #I , 0.29 to reduce the Copper River pipeline break.
Load Forecast - 2005 Deliveries Forecast (Feb 18/05) Residential - 1,64 1,263 GJ Small Commercial - 1,011,670 GJ * Granisle - 13,896 GJ e Other Core Market - 309,000 GJ Small Industrial - 504,150 GJ e Transportation Sewice - 927,000 GJ Large Industrial - 28,827,082 GJ Gas deliveries are forecast to be lower in 2005 compared to the forecast approved in Decision 2004 which accounts for the projected margin reduction. RSAM r 2005 opei~ingb alance reconciliation Equiv Tihieknessrneturn on Cquily r As per Order (3-84-05 p. 13 - 65 basis points above the benchmark utility ROE Methanex Contract Termination Payment (Ocl, 4, 2005 Letter to Commissiion from PNG) * Record the net afrer tax amount of $15 million including interest into a credit defenal account to be anortized over the period ending October 31, 2009 subject to Commission approval of annual amortization upon review of annual revenue requirement applications. APPENDIX A to Order No. (3-120-05 Page 10 of 18 * For settlement purposes cornnlon equity thickness to be unidentified. * Return less settlement allowance to result in no increase to interim rates revenue deficiency Accepted PNG Letter Oct 4,2005
Pacific Northern Gas Ltd. (PNG-West Division) Test Year 2005 vs. Decision 2004 COST OF SERVICE COMPARISON ($000) NSP EXPENSES 2005 Operating Labour Other Sub-total Malntenance Labour Other Sub-total Administrative and General Labour Total Company Benefits Other Sub-total Total (0,M , A 8 6)E xcluding Go. Use Transfers to Capital Operating Transfers io Capital Admin. & Gen. Properly Taxes Depreciation Amortization Other Income Shared Service Recovery from PNG [N.E.) (1,313) Total Expenses Excluding Co, Use 21,560 Income Taxes 4,235 Return on Common Equity Less Settlement Allowance 5,857 Short Term Debt Long Term Debt Preferred Shares Total Cost of Service Excluding Co. Use 37,432 Company Use Gas Cost 1,235 T -ot al Cost of Service l -nc lud~ngC o U -se Cost 38,667 2004 to 2005 Cost of Service Increase (Decrease) APPENDIX A to Order No. 6-12 0-05 Page 1 1 of 18 Declsion Difference 2004 Total Subtotal (1,271) (421 343 21,537 23 23 3,889 346 (85) 37,399 33 -33 1,187 .. 3 8, -58 6 33 2004 to 2005 Margin Decrease '1,2 57 2005 Revenue Deficiency 1,190
Pacific Northern Gas Ltd. (PNG-West Division) UTlLITY INCORIE & RETURN SCHEDULE 1 Line NSP Feb. 18'05 2005 Application Energy sales (TJ) 4 018 4 018 Average rate per GJ $13.3 1 $13.63 Transportation service (TJ) 29217 29217 Average rate per GJ $0.58 $0.59 Total deliveries (TJ) 33 234 33 234 Utility revenue Energy sales $52,404 $52,405 Interim rates - sales 1,052 2,338 Transportation service 16,834 16,834 interlm rates - transportation 138 293 70,427 7 1,869 Cost of sales 3 1,760 31,762 Gross margin Operating expenses 7,593 7,593 Maintenance expenses 443 443 Admln. & general expenses 5,711 5,668 Property taxes 3,250 3.250 Depreciation 6,682 6,675 Amortizatioil 748 875 Unusual deductions 0 Invest~nentin come, other revenue (1,632) (1,630) 2003 Scitlement Allowance 0 22,795 22,875 Earned return before incoine taxes 15,872 17,232 Income taxes 4,235 4,880 Earned return Utility rate base $133,450 $133,197 Return on rate base 8.72% 9.27% APPENDIX A to Order No. 6-12 0-05 Page 12 of 18 (000's) Actual 2004 Difference Source 3 943 75 Tab Rates, page 9 $11.38 $1.93 29 789 ( 573) Tab Rates, page 9 $0.59 ($0.01) 33 732 ( 498) Tab Rates, page 9 $44,870 $7,533 0 1,052 Tab Rates, page 7 17,481 (648) 0 138 Tab Rates, page 7 62,352 8,075 23,870 7,890 Tab Rates, page 8 7,733 (139) Tab 1, page 2, line 6 514 (71) Tab I , page 2, line 10 6,000 (288) Tab I , page 2, line 16 3,149 101 Tab I , page 6, line 5 6,440 241 Tab 2, page 3, line 45 752 (4) Tab 2, page 6, line 20 0 0 0 (1,507) (25) Tab I , page 8, line 5 0 0 0 22,980 ( 1 85) 15,502 370 4,148 87 Tab 3, page 1, line 14 $133,473 ($23) Tab 2, page 1, line 23 8.51% 0.21% Tab 5, page 1 , line 23
Pacific Northern Gas Ltd. (PNC-West Division) UTILITY RATE BASE SCHEDULE 2 Line NSP Feb. 18'05 No 2005 Application Plant in senrice beginning of yeat Additions Disposals (at cost) Plant in service end of year Acculnulated dcprcciatioi? Net plant in scn~ice nd ofyear Net plant beginning of year Net plant in service midyear Adjustment - expenditure timing Contributions for construction Construction advances Deferred income taxes Work in progress, no AFUDC Unamortized deferred chhrges Cash working capital Other working capital Utility rate base, midyear APPENDIX A to Order No. 6-12 0-05 Page 13 of 18 (000's) Actual 2004 Difference Source Tab 2, page 2, line 46 Tab 2, page 2, line 46 Tab 2, page 2, line 46 Tab 2, page 3, line 39 Tab 2, pages 2 & 3, lines 46 & 39 Tab 2, page 4, line 17 Tab 2, page 5, line 5 Tab 2, page 6, line 14 Tab 2, page 9, line 10 Tab 2, page 14, line 15
APPENDIAX to Order No. 6-12 0-05 Page 14 of 18 Pacific Northern Gas Ltd. (PNG-West Division) lNCQME TAXES SCHEDULE 3 (000's) Line NSP Feb. 18'05 Actual No. 2005 Application 2004 Difference Source 1 Calculation ofTaxable Income 2 Earned return before income taxes $15,872 $17,232 $15,502 $370 Tab 1, page 1, line 33 3 Interest (5,430) (5,426) (5,850) 420 Tab 5, page 1, lines 4,9 & 21 4 Permanent differences 71 7 1 46 25 5 Timing differences 1,549 1,793 1,732 (183) Tab 3, page I , line 28 6 7 Taxable income $12,062 $13,670 $1 1,430 $632 8 9 Calculation of Income Tax Experlse 10 Income taxes payable 4,071 4,716 3,943 128 I1 Part1.3tax 164 164 204 (41) 12 Deferred income tax 0 0 0 0 13 14 Income tax expense $4,235 $4,880 $4,148 $87 15 16 Particulars of Timing Difirences 17 A. Tax Effects Subject To Flo\through 18 Depreciation $6,682 $6,675 $6,440 $24 I Tab I, page I, line 24 19 Amortization 748 875 752 (4) Tab 1, page I , line 25 20 Capital cost allowance (4,902) (4,828) (4,627) (275) 2 1 Overheads capitalized (869) (821) (1.01 1) 143 22 Other (1 0% (108) 179 (288) 23 24 $1,549 $1,793 $1,732 ($183) 25 B. Tax Effects Subject To Deferral 26 Deferred charges 0 0 0 0 27 28 Timing ditTcrences $1,549 $1,793 $1,732 ($183) 29 30 Tax rate 33.75% 34.50% 34.50% 31 Surtax rate 1.12% 1.12% 1.12%
Pacific Northern GUSL td, (PNG-Wesl Divisicsn) CORIPI? \RISON O F REVENIJE D E F I C l E N C l E S USING IN1'ERIM R A T E S AND OCT.13 ,2005 N S P R A T E S E F F E C T I V E JANU,\R'If 1,20L)5 Feb. 18'05 App. 2005 2005 ZOOS Allocution of Rate Changes Test Year Gross Normalizcd Revenue Customer Classification DeIiveries Rlsrgin Gross Margin Deficiency (GJ) (S) (S) (S) Residentixl (Rate 1 ) 1,641,263 11,410,450 11,410,450 589,268 Granisle (Rate I -Propane) 13,896 58,741 58,741 3,034 Commercial Small Cornmercial Finu (Rate 2) 1.01 1,670 6,024,727 6,024,727 3 11,134 Large Conlmercial Firm (Rnte 3) 126,038 708,542 708,542 36,591 Commercial Transport (Rate 23) 64,502 217,098 217,098 11.212 Large Commercial Inter? (Rate 4) 68,648 177,982 177,982 9,191 Total Commercial 1,270,858 7,128,349 Seasonal Off-Peak (Rate 6) 24,402 82,336 82,336 4,252 NGV (Rate 7) 25,397 49,407 49,407 2,552 Small Industrial Sales ( R ~ t e5 ) 504,152 1,059,041 1,059,041 54,692 Transport 939,543 1,674,244 1,674,244 86,463 Deficiency lncuiled (7 1,678) 0 0 Deficiency Make-up 59,135 13,246 Totrsl Small Industrial 1,431,152 2 746 531 22,521.150 11,262,075 2,875.850 920,272 25,100.000 12.182.317 2,371,405 2,015,697 2.371.405 2 015 697 lcnn Smelters & Chemicals rill Transportatboo 429,609 700,653 700,653 36,184 602,069 1,072,225 1,072,225 55,373 1-031 ,678 1.772.878 .C. Hydro - Interruptible 24,000 70,624 70,624 3,647 APPENDIXA to Order No. 6-12 0-05 Page 15 of 18 Rev. Def. Rev. Def. Using Interim Diflerence Between Tor Oct,13't15 Interim Rate Rates & Fcb. l8'05 Oet. 13'05 NSP & NSP Rev. Drr. Changes App. Volumes Revised Oct. 17'05 ESP ($/GI) (S/GJ) ($1 ($) 0.359 0.354 581,007 8,26 1 0.218 0.208 2,890 143 0.306 0.303 306,536 4,598 0.306 0.303 38,190 (1,598) 0.174 0.172 11,094 117 0.134 0.132 9,062 130 0.174 0.171 4,173 79 0.100 0,099 2,514 37 0.098 0.097 48,903 5,789 0.098 0.097 91,136 14,673) 0 0.000 0.000 IFdram IQ NSP Relp CMwe Cornpawn 1 0 io NSP Rsu 0.f CPwgen
APPENDIXA to Order No. 6-12 0-05 The Page 16 of 18 Richard J. Gathercole 687-3006 British Coilumbia Sarah Khan 6874 13 4 Public Interes t Patricia MacDonald 687-301 7 Advocacy Gentre James L. Quail 687-3034 Articled Student 687-3044 208-1090 West Pender Street Vancouver, BC V6E 2N7 Barristers & Solicitors Tel: (604) 687-3063 Fax: (604) 682-7896 ernail: bcoiac@bc~iac.com h t t D : h ~ ~ ~ . b c ~ i a c . ~ o m October 18, 2005 VIA E-MAIL William J. Grant BC Utilities Commission Sixtli Floor - 900 Howe Street Vancouver, BC V6Z 2N3 Re: Pacific Northern Gas Ltd, - West Division (""PNG-W"') Negotiated Settlement 2005 Revenue Requirements Application I have now had an opportunity to review the Revised Negotiated Settlement Agreement along with the supporting documents. This will confirm BCOAPO's acceptance of this Settlement. Yours sincerely, BC PUBLIC INTEREST ADVOCACY CENTm ORIGINA IN F E E SIGNED BY: Richard J. Gathercole Executive Director c: Craig Donohue Director, Regulatory Affairs and Gas Supply Pacific Northern Gas Ltd. Grant Bierlmeier Senior Policy Advisor Ministry of Energy, Mines and Petroleum Resources
APPENDIX A to Order No. 6-1 20-05 Page 17 of 18 October 18,2005 Via E-Mail bill.grant@bcuc.com Mr. Willia~nJ . Grant British Columbia Utilities Colnmission Sixth Floor, 900 Howe Street, Box 250 Vancouver, BC V6Z 2N3 Dear Mr. Grant: Re: Pacific Northern Gas Ltd. - West Division (""PNG West") 2005 Revenue Requirements Application Negotiated Settlement This letter is to inform you that the Ministry of Energy, Mines and Petroleum Resources ("the Ministry") confirms that it accepts the revised Negotiated SeMlement Agreement provided on October 17,2005. Sincerely, Original signed by: Grant Bierlmeier Senior Policy Advisor CC: Craig Donohue Director, Regulatory Affairs and Gas Supply Pacific Northern Gas Ltd. Richard J. Gathercole Executive Director BC Public Interest Advocacy Centre Ministry of Oil and Gas Policy Branch 5thF loor, 1810 Bianshard Street Energy, Mines and Oil and Gas Division PO BOX 931 8 Stn Prov Govt Petroleum Resources Victoria, BC V8W 9N3
APPENDIX A to Order No. 6-12 0-05 Page 18 of 18 Pacific Northern Gas Ltd. Suite 950 1185 West Georgia Street Vancouver, ~r i t ighC olumbia V6E 4E6 Tel: (604) 691-5673 Craig P. Donohue Tel: (604) 697-6210 Director, Regulatory Affairs & Gas Supply Emaii: cdonohue@png.ca Via E-Mail and Mail October 19,2005 British Columbia Utilities Commission 61h Floor, 900 Wowe Street Vancouver, B.C. V6Z 2N3 Attention: Robert J. Pellatt Commission Secretary Dear Sir; Re: Pacific Northern Gas Ltd,-West Division (bb"PNG-W") PNG confirms its acceptance of the Negotiated Settlement Agreement (the "Agreement") for the PNG-W 2005 Revenue Requirements Application enclosed with the Commission's October 17, 2005 letter to the parlicipants to the negotiated settlement process. It is my understanding that the Agreement will now be made public and forwarded to intervenors that did not participate in the negotiated settlement process to obtain their comments on the Agreement. 1 also understand that the Commission will consider the Agreement after it receives cominents froin the other intervenors. Please advise when the Agreetnent is distributed to the other intervenors as PNC would like to know when the Agreement has been made public. Yours truly, C.P. Donohue CC. R.J. Gathercole 6.B ierlmeier
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