BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -168-07 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 Application by Pacific Northern Gas (N.E.) Ltd. (Fort St. John/Dawson Creek and Tumbler Ridge Divisions) for Approval of 2008 Revenue Requirements and Rates BEFORE: L.A. O’Hara, Commissioner December 19, 2007 O R D E R WHEREAS: A. On October 10, 2007, Pacific Northern Gas (N.E.) Ltd. (“PNG (N.E.)”) Fort St. John/Dawson Creek (“FSJ/DC”) and Tumbler Ridge (“TR”) Divisions filed for approval of its 2008 Revenue Requirements Application (“the Application”) to amend its rates on a permanent basis, effective January 1, 2008, pursuant to Section 58 of the Utilities Commission Act (“the Act”); and B. PNG (N.E.) FSJ/DC Division projects a revenue deficiency of approximately $750,000 for the 2008 test year primarily due to higher cost of service in 2008. PNG (N.E.) estimates the average delivery charge rate increases for residential customers in the Fort St. John and Dawson Creek service areas are 7.5 percent and 8.1 percent, respectively. The average delivery charge rate increases for small commercial customers for the two service areas are 6.9 percent and 9.2 percent, respectively; and C. PNG (N.E.) TR Division projects a revenue sufficiency of approximately $23,000 for the 2008 test year primarily due to lower cost of service in 2008. The Application proposes to decrease the gas delivery charge in rates for all customers of the PNG (N.E.) TR Division. PNG (N.E.) estimates the average delivery charge rate decreases for residential customers and small commercial customers are 2.1 percent and 2.0 percent, respectively, in the Tumbler Ridge service area; and D. By Order No. G-128-07 dated October 17, 2007 the Commission established a Preliminary Regulatory Timetable and allowed for Intervenors’ written submission on the review process; and E. The Commission by Order No. G-134-07 dated November 6, 2007 confirmed the Preliminary Regulatory Timetable as permanent and established a Negotiated Settlement Process for the Application; and F. By Letter No. L-93-07 dated November 22, 2007 the Commission established the return on common equity (“ROE”) for a low-risk benchmark utility for the year 2008; and . . ./2
2 G. On November 23, 2007 PNG (N.E.) provided an update to its Application that revised the FSJ/DC Division revenue deficiency to $802,000 and the TR Division revenue sufficiency to $44,000. The update included the approved 2008 ROE for each Division; and H. The Negotiated Settlement discussions were held in Vancouver on November 27 and 28, 2007. A Negotiated Settlement Agreement was reached among the participants and circulated to all Registered Intervenors and the Commission on December 7, 2007. No comments were received from the Intervenors who had not participated in the Negotiated Settlement discussions; and I. The Commission has reviewed the Negotiated Settlement Agreement for PNG (N.E.)’s 2008 Revenue Requirements and considers that approval is warranted. NOW THEREFORE pursuant to Section 58 of the Act the Commission orders as follows: 1. The Negotiated Settlement Agreement for PNG (N.E.)’s 2008 Revenue Requirements as issued on December 7, 2007 and attached as Appendix A to this Order is approved. 2. PNG (N.E) is to file amended Summary of Rates and Bill Comparison schedules for the FSJ/DC Division and TR Division based on the Negotiated Settlement Agreement. 3. The Commission will accept, subject to timely filing, amended permanent Gas Tariff Rate Schedules in accordance with this Order. DATED at the City of Vancouver, in the Province of British Columbia, this 19 Attachment Orders/G-168-07_PNGNE 2008RR Settlement BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-168-07 th day of December 2007. BY ORDER Original signed by: L.A. O’Hara Commissioner
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