IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by FortisBC Energy Inc.
Regarding 2011 Third Quarter Gas Cost Report and
Rate Changes effective October 1, 2011 for the Fort Nelson Service Area
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner September 8, 2011
O R D E R
WHEREAS:
A. By Order G-190-10 dated December 10, 2010, the British Columbia Utilities Commission (Commission) approved the Gas Cost Recovery Charge for the Fort Nelson Service Area, effective January 1, 2011;
B. On September 1, 2011, FortisBC Energy Inc. (FEI) filed its 2011 Third Quarter Report on the Gas Cost Reconciliation Account (GCRA) balance and Gas Cost Recovery Charges for the Fort Nelson Service Area effective October 1, 2011, that were based on the five-day average of the August 16, 17, 18, 19, and 22, 2011 forward gas prices (the 2011 Third Quarter Report);
C. The 2011 Third Quarter Report forecast that gas cost recoveries at current rates would be 114.1 percent of costs for the following 12 months, and requested approval for a decrease of $0.619/GJ in the Gas Cost Recovery Charges for natural gas customers in Fort Nelson Service Area, effective October 1, 2011;
D. This equates to a decrease to a typical residential customer’s annual bill, based on an annual consumption of 140 GJ, of approximately $87 or 7.9 percent;
E. FEI requests that the forecast gas cost information in Tab 5 of the Application be held confidential, on the basis that it contains market sensitive information;
F. The Commission has determined that the requested changes, as outlined in the 2011 Third 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 $0.619/GJ decrease in the Gas Cost Recovery Charge for the Fort Nelson Service Area to $4.396/GJ effective October 1, 2011, as set out in FEI’s 2011 Third Quarter Report for Fort Nelson Service Area.
2. FEI will notify all customers that are affected by the rate changes with a bill insert or bill message to be included with the next monthly gas billing.
3. 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 9th day of September, 2011.
BY ORDER
Original signed by:
L.F. Kelsey
Commissioner