IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Sun Peaks Utilities Co., Ltd.
for Approval of a Change to Customer Rates
BEFORE: L.F. Kelsey, Commissioner
D.A. Cote, Commissioner November 25, 2010
O R D E R
WHEREAS:
A. By Order G-66-09 dated June 8, 2009, the British Columbia Utilities Commission (Commission) approved changes to commodity rates for Residential, Small Commercial and Large Commercial customers of Sun Peaks Utilities Co., Ltd. (SPUCL), effective June 1, 2009;
B. On November 16, 2010, SPUCL filed an application (Application) to amend commodity rates for Residential, Small Commercial and Large Commercial customers effective December 1, 2010, largely as a result of an expected increase in propane costs;
C. In the Application, SPUCL requests approval to increase the Gas Commodity Charge - Propane by $0.929/GJ, from $13.581/GJ to $14.510/GJ;
D. The proposed change will increase the annual bill for typical customers by approximately 3.1 percent for a townhouse, 4.5 percent for a detached house, and 4.9 percent for a Large Commercial customer
E. Notwithstanding the proposed rate increase, the debit balance in the Gas Cost Recovery Account for Commodity is forecast to continue to grow;
F. In the Application, SPUCL also reported its fixed prices for the hedged component of propane supply for winter 2010/11;
G. The Commission has considered the proposed change to propane charges, and finds that the change to customer rates is necessary.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the Commission orders as follows:
1. The Commission approves the increase in the SPUCL Gas Commodity Charge – Propane from $13.581/GJ to $14.510/GJ, effective December 1, 2010.
2. SPUCL is to inform its customers of the approved rates in a timely fashion, by way of a customer notice.
3. By May 16, 2011, SPUCL is directed to file with the Commission a report on Gas Cost Recovery Account balances, forecast propane costs for the following 12 months and, if necessary, proposed changes to commodity rates to be effective June 1, 2011.
DATED at the City of Vancouver, in the Province of British Columbia, this 26th day of November 2010.
BY ORDER
Original signed by:
D.A. Cote
Commissioner