IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by FortisBC Energy (Whistler) Inc.
Regarding Gas Cost Recovery Charge and Rate Rider A effective January 1, 2012
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner
N.E. MacMurchy, Commissioner November 24, 2011
D. Morton, Commissioner
O R D E R
WHEREAS:
A. By Order G-155-11 dated September 9, 2011, the British Columbia Utilities Commission (Commission) approved the FortisBC Energy (Whistler) Inc. (FEW) Gas Cost Recovery Charge of $5.204/GJ and the Rate Rider A rate of $0.329/GJ refund amount, effective October 1, 2011;
B. By Order G-177-11 dated October 21, 2011, the Commission approved interim delivery rates, including delivery-related riders, effective January 1, 2012 for FEW;
C. On November 18, 2011, FEW filed its 2011 Fourth Quarter Gas Cost Report on the Gas Cost Reconciliation Account (GCRA) balance and gas commodity recovery charges for the Whistler service area effective January 1, 2012, that were based on the five-day average forward prices ending November 7, 2011 (the 2011 Fourth Quarter Report);
D. The 2011 Fourth Quarter Report requested Commission approval of the following items related to rates based on the FortisBC Energy Inc. commodity rate remaining unchanged at January 1, 2012, and the midstream rate and Rate Rider 6 being reset effective January 1, 2012:
a) Approval for a $0.147/GJ decrease in the Gas Cost Recovery Charge, to a rate of $5.057/GJ, effective January 1, 2012;
b) Approval for a $0.073/GJ reduction in the refund amount of Rate Rider A, thereby setting Rate Rider A to a rate of $0.256/GJ refund amount, effective January 1, 2012;
E. The proposed changes to the Gas Cost Recovery Charge and the GCRA Rate Rider A, excluding any delivery rate impacts effective January 1, 2012, would decrease a typical Whistler residential customer’s annual bill by approximately $7 or 0.5 percent, based on an average annual consumption of 90 GJ;
F. The combined effect of the approved interim delivery rates, including delivery-related riders, effective January 1, 2012, and the Gas Cost Recovery Charge and Rate Rider A rate changes requested within the 2011 Fourth Quarter Report, effective January 1, 2012, will increase the annual bill for a residential customer consuming 90 GJ per year in the Whistler service area by approximately $89, or 6.1 percent;
G. The Commission has determined that the requested changes, as outlined in the 2011 Fourth 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, as requested within the 2011 Fourth Quarter Report, the following changes to FEW rates:
a) A $0.147/GJ decrease in the Gas Cost Recovery Charge, to a rate of $5.057/GJ, effective January 1, 2012;
b) Reset Rate Rider A, to a rate of $0.256/GJ refund amount, effective January 1, 2012.
2. FEW is to provide a descriptive explanation of the final rates by way of a bill insert or customer notice to all customers affected by the rate change, 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 24th day of November 2011.
BY ORDER
Original signed by:
D. Morton
Commissioner