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BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -83-06 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 Ltd. (“PNG-West”, PNG”) regarding Natural Gas Commodity Charges effective July 1, 2006 for the PNG-West and Granisle Service Areas BEFORE: L.F. Kelsey, Commissioner L.A. Boychuk, Commissioner June 22, 2006 O R D E R WHEREAS: A. Commission Order No. G-28-06 approved for PNG-West permanent Gas Supply Cost Recovery Charges for sales service customers effective April 1, 2006; and B. On June 14, 2006 PNG filed its Second Quarter 2006 Report on gas supply costs and Gas Cost Variance Account (“GCVA”) balances (“the Report”) for PNG-West and Granisle based on May 26, 2006 natural gas and propane forward prices. PNG requests approval of reductions to Gas Supply Cost Recovery Charges and implementation of a commodity GCVA credit rate rider of $0.214/GJ based on a three year amortization of the commodity GCVA balance for PNG-West sales service customers effective July 1, 2006; and C. The proposed change to commodity rates would reduce the annual bill for a typical residential customer by $28 per year or 2.1 percent; and D. In the Report PNG recommends that no change be made to the $0.254/GJ Company-use gas GCVA credit rate rider as of July 1, 2006; and . . ./2
2 E. In the Report PNG recommends that the Company-use Gas Cost Recovery Charge for PNG-West be maintained until the rate is changed effective January 1, 2006 upon the Commissions disposition of PNGs 2006 revenue requirements application; and F. If the forecast PNG-West commodity GCVA balance at the end of June 2006 is amortized over one year, the commodity GCVA credit rider would increase to $0.642/GJ and the annual bill for a typical residential customer in PNG-West would be reduced by $63 or 4.5 percent; and G. In the Report PNG recommends that the propane Gas Supply Cost Recovery Charge for Granisle propane customers be reduced by $1.184/GJ to $16.149/GJ and that the commodity GCVA debit rider be increased by $1.215/GJ. The annual bill for a typical residential customer in Granisle would increase by $3 or 0.1 percent; and H. The Commission concludes that the requested changes to Gas Supply Cost Recovery Charges and GCVA riders for PNG-West and Granisle customers should be approved, except that the PNG-West commodity GCVA credit balance should be returned to customers over one year. NOW THEREFORE pursuant to Section 61(4) of the Utilities Commission Act, the Commission approves for PNG permanent Gas Supply Cost Recovery Charges and commodity and Company-use gas GCVA rate riders for PNG-West and Granisle customers as requested in the Report, except that the commodity GCVA credit rider for PNG-West will be $0.642/GJ effective July 1, 2006, and the total commodity charge for Granisle customers will be maintained as of July 1, 2006. DATED at the City of Vancouver, in the Province of British Columbia, this 4 ORDERS/PNG-NG Commodity-Granisle July 1-06 BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-83-06 th day of July 2006. BY ORDER Original signed by L.A. Boychuk Commissioner
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