Orders

IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

An Application by Terasen Gas Inc. -

Fort Nelson Service Area

for Approval to Amend its Schedule of Rates

BEFORE:               D.A. Cote, Commissioner                                             September 30, 2010

O  R  D  E  R

WHEREAS:

A.      British Columbia Utilities Commission (the Commission) Order G-147-09 approved the Terasen Gas Inc. (TGI) Application for the 2010 Deferral Account Treatment for the Fort Nelson Service Area (TG Fort Nelson);

B.      Order G-147-09 approved the continuation of delivery rates as set by Order G-172-08 except that, effective January 1, 2010, the Revenue Stabilization Adjustment Mechanism (RSAM) rate rider was to decrease to $0.037/GJ, the continuation of existing deferral accounts and the establishment of two new rate base deferral accounts (IFRS Transitional Deferral Account and ROE & Capital Structure Deferral Account), the disposition of which would be determined in a future revenue requirements application;

C.      On September 8, 2010, TG Fort Nelson submitted its 2011 Revenue Requirements Application seeking approval to recover a revenue deficiency of $295,000 through a permanent increase in its delivery rates, effective January 1, 2011;

D.      The Application seeks approval to decrease the RSAM rate rider, effective January 1, 2011, from $0.037/GJ by $0.004/GJ for a total rate rider of $0.033/GJ;

E.       The Application also seeks approval of a new rate base deferral account, 2011 RRA Costs Deferral;

F.       TG Fort Nelson submits that a written hearing process is appropriate for the review of the Application and proposes a timetable for the regulatory review process;

G.     The Commission considers that establishing a written public hearing and regulatory timetable for the registration of Interveners and for the review of the Application is necessary and in the public interest.  

NOW THEREFORE the Commission orders as follows:

1.       The Application will be examined by a Written Public Hearing process, in accordance with the Regulatory Timetable attached as Appendix A to this Order.

2.       The Application, together with any supporting materials, will be made available for inspection at the TGI Office, 16705 Fraser Highway, Surrey, BC, V4N 0E8, at the Town of Fort Nelson municipal offices at 5319 -50^th Avenue South, Fort Nelson, BC and at the British Columbia Utilities Commission, Sixth Floor, 900 Howe Street, Vancouver, B.C., V6Z 2N3, and will also be made available on the TGI and Commission websites at www.terasengas.com and www.bcuc.com. 

3.       Interveners and Interested Parties should register with the Commission, in writing or by electronic submission, by Friday, October 15, 2010.  Interveners should specifically state the nature of their interest in the Application, and identify generally the nature of the issues that they intend to pursue during the proceeding and the nature and extent of their anticipated involvement in the review process.

4.       TGI Fort Nelson will publish in display-ad format, the Notice of Application and Written Public Hearing, attached as Appendix B, in the appropriate Fort Nelson local news publications, as soon as it is possible to do so.

DATED at the City of Vancouver, In the Province of British Columbia, this      First        day of October 2010.

                                                                                                                                BY ORDER

                                                                                                                                  Original signed by:

                                                                                                                                D.A. Cote

                                                                                                                                Commissioner

Attachments

Appendix A

to Order G-149-10

Page 1 of 1

Terasen Gas Inc. -

Fort Nelson Service Area

Application for Approval of 2011 Revenue Requirements

REGULATORY TIMETABLE

Terasen Gas Inc. 

Fort Nelson Service Area

Application for Approval of 2011 Revenue Requirements

The APPLICATION

On September 8, 2010, Terasen Gas Inc. – Fort Nelson Service Area (TG Fort Nelson or the Company) applied to the British Columbia Utilities Commission (the Commission) for approval of its 2011 Revenue Requirements (the Application) on a permanent basis, pursuant to sections 58, 60 and 61 of the Utilities Commission Act (the Act), effective January 1, 2011.  The Application seeks approval, on a permanent basis effective January 1, 2011, to decrease the Revenue Stabilization Adjustment Mechanism (RSAM) rate rider from $0.037/GJ by $0.004/GJ for a total rate rider of $0.033/GJ.  The Application also seeks a revenue requirement increase of $295,000 for the 2011 test year, effective January 1, 2011, resulting in an average of 20.37 percent increase on a delivery margin basis for all customers.

THE REGULATORY PROCESS

The Commission has established a Written Public Hearing process for submissions and the regulatory review of the Application.

Intervention

Persons who expect to actively participate in the TG Fort Nelson proceeding should register as Interveners with the Commission, and should identify the issues that they intend to pursue as well as the nature and extent of their anticipated involvement in the review process.  Interveners will each receive a copy of the Application, all correspondence, filed documentation, and should provide an email 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 a copy of the Executive Summary in the Application and a copy of the Commission’s Decision when issued.

Interveners and Interested Parties should register in writing, no later than Friday, October 15, 2010.  Notification by mail, courier delivery, facsimile, email or on-line registration 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 website.

Public Inspection of the Application

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  Telephone:  1-800-663-1385              Internet:  www.bcuc.com

Terasen Gas Office, 16705 Fraser Highway, Surrey, BC  V6N 0E8  Internet:  www.terasengas.com

                Town of Fort Nelson municipal offices, 5319 -50th Avenue South, Fort Nelson, BC

For further information, please contact Ms. Erica M. Hamilton, Commission Secretary, as follows:

Telephone:     (604) 660-4700           Telephone:     (B.C. Toll Free) 1-800-663-1385

Facsimile:        (604) 660-1102           E-mail:              commission.secretary@bcuc.com