BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -66-07 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 Terasen Gas Inc. regarding Propane Commodity Charges effective July 1, 2007 for the Revelstoke Service Area BEFORE: L.F. Kelsey, Commissioner June 14, 2007 L.A. Zaozirny, Commissioner O R D E R WHEREAS: A. On March 2, 2007 Terasen Gas Inc. (“Terasen Gas”) proposed to utilize a propane price forecast based on an average of 50 percent NYMEX West Texas Intermediate (“WTI”) Light Sweet Crude Oil futures and 50 percent NYMEX Mt. Belvieu Propane futures to calculate forecast deferral balances and for the purpose of determining commodity recovery rates it its quarterly gas cost reports for Revelstoke; and B. On June 8, 2007 Terasen Gas filed its 2007 Second Quarter Gas Cost Report for Revelstoke; and C. Using a propane price forecast based on an average of 50 percent of the June 1, 2007 NYMEX WTI Light Sweet Crude Oil futures and 50 percent of the June 1, 2007 NYMEX Mt. Belvieu Propane futures, and based on the existing rates, the projected pre-tax deferral balance at June 30, 2007 of $124,250 surplus was forecast to change to a pre-tax deficit balance of $286,200 at June 30, 2008. The rate change trigger mechanism was calculated to be 91.8 percent which does not fall within the dead-band range of 95 percent to 105 percent; and D. Terasen Gas has requested a propane reference price increase from $0.3252 per litre to $0.3542 per litre, which is an increase of $0.0290 per litre corresponding to a rate increase of $1.180/GJ, effective July 1, 2007. This equates to an increase of approximately $94 or 6.6 percent in the annual bill of a typical residential customer, based on consumption of 80 gigajoules annually; and E. The Commission concludes that the requested changes to the propane reference price and propane rates for Revelstoke are necessary at this time. . . ./2
2 NOW THEREFORE pursuant to Section 61(4) of the Utilities Commission Act, the Commission approves a propane reference price increase of $0.0290 per litre to $0.3542 per litre, which corresponds to an increase of $1.180 per gigajoule in customer rates, effective July 1, 2007. Terasen Gas will inform all customers affected by the rate change in a timely fashion. DATED at the City of Vancouver, in the Province of British Columbia, this 14 Orders/G-66-07_TGI Revelstoke 2nd Qrtr Propane Rates BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-66-07 th day of June 2007. BY ORDER Original signed by L.F. Kelsey Commissioner
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