IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Terasen Gas Inc.
Regarding 2010 Second Quarter Gas Cost Report
and Rate Changes effective July 1, 2010
for the Fort Nelson Service Area
BEFORE: D.A. Cote, Commissioner June 10, 2010
L.F. Kelsey, Commissioner
WHEREAS:
A. By Order G-155-09 dated December 10, 2009, the British Columbia Utilities Commission (Commission) approved the Gas Cost Recovery Charge for the Fort Nelson Service Area, effective January 1, 2010; and
B. On June 3, 2010, pursuant to Commission Letter L-5-01, Terasen Gas Inc. (Terasen Gas) filed its 2010 Second Quarter Report on the Gas Cost Reconciliation Account (GCRA) balance and gas commodity recovery charges for the Fort Nelson Service Area effective July 1, 2010, that were based on May 25, 2010 forward gas prices (the 2010 Second Quarter Report); and
C. The 2010 Second Quarter Report forecasted that gas commodity charges at current rates would be 109.1 percent of costs for the following 12 months, and requested a decrease of $0.525/GJ in gas commodity recovery charges for natural gas customers in Fort Nelson Service Area, effective July 1, 2010; and
D. This equates to a decrease to a typical residential customer’s annual bill, based on an annual consumption of 140 GJ, of approximately $74 or 6.1 percent; and
E. The Commission has determined that the requested changes, as outlined in the 2010 Second Quarter Report, should be approved.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the Commission orders as follows:
1. The Commission approves a $0.525/GJ decrease in the Gas Cost Recovery Charge for Fort Nelson Service Area to $5.784/GJ effective July 1, 2010, as set out in Terasen Gas’ 2010 Second Quarter Report for Fort Nelson Service Area.
2. Terasen Gas is to provide a descriptive explanation of the final rates by way of a bill insert and customer notice to all affected customers with the next monthly gas billing, to be submitted to the Commission in draft prior to its release.
DATED at the City of Vancouver, in the Province of British Columbia, this 10th day of June 2010.
BY ORDER
Original signed by:
D.A. Cote
Commissioner