BRIT ISH COLU MBIA UTIL IT IES COM MISSION ORDER N UMBER G ‐159‐08 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 Stargas Utilities Ltd. for Acceptance of a Transaction Confirmation under its Natural Gas Supply and Management Services Agreement with Direct Energy Marketing Limited BEFORE: L.F. Kelsey, Commissioner P.E. Vivian, Commissioner October 30, 2008 A.A. Rhodes, Commissioner O R D E R WHEREAS: A. By Order G‐163‐06 dated December 18, 2006, the British Columbia Utilities Commission (the “Commission”) approved changes to rates for Stargas Utilities Ltd. (“Stargas”), effective November 1, 2006; and B. By Order E‐16‐07 dated August 23, 2007, the Commission accepted for filing a Natural Gas Supply and Management Services Agreement (the ”Agreement”) between Stargas and Direct Energy Marketing Limited (“DEML”) dated July 26, 2007; and C. On August 31, 2008 Stargas requested approval of a $0.71/GJ increase in its commodity charges, which would increase the commodity component of its rates to $10.31/GJ for residential customers and to $10.52/GJ for commercial customers, effective November 1, 2008. Stargas’ variable rates would become $18.06/GJ for residential customers and $18.27/GJ for commercial customers; and D. On September 8, 2008 Stargas revised its application to request an increase of $0.51/GJ in its commodity charges; and E. By letter dated September 15, 2008, the Commission requested further information from Stargas, and Stargas responded to the Information Request on September 23, 2008; and F. In its September 23, 2008 letter, Stargas included a Natural Gas Transaction Confirmation (the “Transaction Confirmation”) dated September 5, 2009 that is Schedule A.02 to the Agreement. The Transaction Confirmation established a fixed price for most of the gas deliveries to Stargas for the period November 1, 2008 to November 1, 2009; and . . ./2
BRIT ISH COLUMBIA UTIL IT IES COMMISSION ORDER NUMBER G‐159‐08 2 G. On October 3, 2008 DEML on behalf of Stargas provided further information which indicates that the fixed price in the Transaction Confirmation is made up of the forward price of gas at Sumas as of September 5, 2008, plus a significant DEML “Margin” or profit; and H. By correspondence dated October 23, 2008, Stargas withdrew its application for a change to its commodity rates effective November 1, 2008, on the basis that the additional gas costs starting November 1, 2008 would accumulate in its Gas Cost Variance Account for recovery from ratepayers in subsequent years; and I. By correspondence dated October 24, 2008, Stargas provided information regarding billings for gas deliveries while the Transaction Confirmation is under review by the Commission; and J. The Commission has considered the matter and has determined that a written public hearing should be established to review the Transaction Confirmation. NOW THEREFORE the Commission orders as follows: 1. Pursuant to Section 71 of the Utilities Commission Act (the “UCA”), the Commission establishes a written public hearing to review whether the Transaction Confirmation is in the public interest. 2. The Regulatory Timetable for the hearing is attached as Appendix A to this Order. 3. Stargas will publish the Notice of Application and Written Public Hearing that is Appendix B to this Order in a local Vernon newspaper as soon as possible and in any case by Wednesday, November 12, 2008 and will advise the Commission when it has been published. 4. Stargas will provide each of its customers with a copy of this Order by Wednesday, November 12, 2008 and will advise the Commission when this has been completed. DATED at the City of Vancouver, in the Province of British Columbia, this 30 th day of October 2008. BY ORDER Original signed by: L.F. Kelsey Commissioner Attachments G‐159‐08_Stargas_TransactionConfirmationDEML_RegTimetable
APPENDIX A to Order G‐159‐08 Page 1 of 1 An Application by Stargas Utilities Ltd. for Acceptance of a Transaction Confirmation under its Natural Gas Supply and Management Services Agreement with Direct Energy Marketing Limited REGULATORY TIMETABLE ACTION DATE (2008) Publication of Notice Wednesday, November 12 Registration of Intervenors and Interested Parties with the Commission Wednesday, November 19 Information Requests to Stargas Friday, November 21 Stargas Responses to Information Requests Monday, December 1 Stargas Written Final Submission Friday, December 7 Intervenors Written Final Submissions Wednesday, December 12 Stargas Reply Submission Monday, December 17
APPENDIX B to Order G‐159‐08 Page 1 of 2 An Application by Stargas Utilities Ltd. for Acceptance of a Transaction Confirmation under its Natural Gas Supply and Management Services Agreement with Direct Energy Marketing Limited NOTICE OF APPLICATION AND WRITTEN PUBLIC HEARING THE APPLICATION On August 31, 2008, Stargas Utilities Ltd. applied for Commission approval of a $0.71/GJ increase in the commodity component of its natural gas rates effective November 1, 2008. On September 23, 2008, Stargas also applied for Commission acceptance of a Natural Gas Transaction Confirmation pursuant to its Natural Gas Supply and Management Services Agreement, which would establish a fixed price for most of Stargas’ gas purchases over the period November 2008 through October 2009. On October 23, 2008, Stargas withdrew its request for a rate change, on the basis that the additional gas costs starting November 1, 2008 under the Transaction Confirmation would accumulate in its Gas Cost Variance Account for recovery from ratepayers in subsequent years. THE REGULATORY PROCESS By Order G‐159‐08, the Commission established a written public hearing to review whether the Transaction Confirmation is in the public interest. The Regulatory Timetable for the hearing is appended to the Order. INTERVENTION Persons who expect to actively participate in the Stargas proceeding should register as Intervenors with the Commission, and should identify the issues that they intend to pursue and the nature and extent of their anticipated involvement in the review process. Intervenors will each receive a copy of the Application and all correspondence and filed documentation, and should provide an e‐mail address, if available. Persons not expecting to actively participate, but who have an interest in the proceeding, should register as Interested Parties. Interested Parties will receive all Orders and Decisions issued. Intervenors and Interested Parties should register in writing, no later than Wednesday, November 19, 2008. Notification by mail, fax or e‐mail is acceptable. All submissions and/or correspondence received from active participants or the general public relating to the Application will be placed on the public record and posted to the Commission’s web site.
APPENDIX B to Order G‐159‐08 Page 2 of 2 PUBLIC INSPECTION OF THE DOCUMENTS The Application and supporting materials will be available for inspection at the following locations: British Columbia Utilities Commission Sixth Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Stargas Utilities Ltd. 2287 Selkirk Drive Kelowna, BC V1V 2N6 Internet www.bcuc.com For further information, please contact Ms. Erica Hamilton, Commission Secretary, or Mr. Brian Williston, Director, Engineering and Energy Markets, as follows: Telephone: (604) 660‐4700 BC Toll Free: 1‐800‐663‐1385 Facsimile: (604) 660‐1102 E‐mail: Commission.Secretary@bcuc.com
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