BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -37-08 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 (Whistler) Inc. regarding Propane Commodity Charges effective April 1, 2008 BEFORE: L.F. Kelsey, Commissioner A.A. Rhodes, Commissioner March 13, 2008 P.E. Vivian, Commissioner O R D E R WHEREAS: A. By Order No. G-155-07 the Commission increased the propane commodity rates for Terasen Gas (Whistler) Inc. (“Terasen Whistler”) effective January 1, 2008; and B. On March 7, 2008 Terasen Whistler filed its 2008 First Quarter Gas Cost Report (the “Application”); and C. Using a propane price forecast based on an average of 50 percent of the February 27, 2008 NYMEX WTI Light Sweet Crude Oil futures and 50 percent of the February 27, 2008 NYMEX Mt. Belvieu Propane futures, and based on the existing rates, the projected pre-tax deferral balance at March 31, 2008 of $263,736 deficit is forecast to change to a pre-tax deficit balance of $231,104 at June 30, 2008 and a pre-tax deficit balance of $869,780 at March 31, 2009. The rate change trigger mechanism was calculated to be 94.0 percent, which does not fall within the deadband range of 95 percent to 105 percent set out in Letter No. L-5-01; and D. Terasen Whistler requests a commodity rate increase, via Rate Rider A, from $8.018 per gigajoule to $9.186 per gigajoule corresponding to a rate increase of $1.168 per gigajoule effective April 1, 2008. This equates to an increase of approximately $105 or 5.1 percent in the annual bill of a typical residential customer, based on consumption of 90 gigajoules; and E. The Commission has considered the requested change to Rate Rider A for Terasen Whistler in the circumstances of the balance in the propane cost deferral account, the uncertainty of propane price forecasts and a desire to limit rate volatility, and has concluded that an increase in the propane commodity rate for Terasen Whistler at this time is not in the public interest. . . ./2
2 NOW THEREFORE the Commission orders as follows: 1. The Commission denies the Application of Terasen Whistler for an increase to Rider A for Whistler effective April 1, 2008. 2. The Commission will hold the information in Tab 5 of the Application confidential. DATED at the City of Vancouver, In the Province of British Columbia, this 13 Orders/G-37-08_TGW 2008 First Quarter Rates BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-37-08 th day of March 2008. BY ORDER Original signed by L.F. Kelsey Commissioner
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