IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Terasen Gas Inc., Terasen Gas Inc. – Fort Nelson Service Area,
Terasen Gas (Whistler)
Inc. and Terasen Gas (Vancouver Island) Inc.
to Revise the Administration and Invoicing of the Basic Charge
BEFORE: L.F. Kelsey, Commissioner
D. Morton, Commissioner January 6, 2011
N.E. MacMurchy, Commissioner
O R D E R
WHEREAS:
A. On November 30, 2010, Terasen Gas Inc. (TGI), Terasen Gas Inc. – Fort Nelson Service Area (TG FTN), Terasen Gas (Whistler) Inc. (TGW) and Terasen Gas (Vancouver Island) Inc. (TGVI) (collectively the Terasen Utilities) filed an application with the British Columbia Utilities Commission (Commission) pursuant to section 61 of the Utilities Commission Act (Act). The Terasen Utilities request approval to change the mechanism for administering and invoicing the Basic Charge from a monthly basis to a daily basis and to amend the definition of the term Basic Charge in the TGI General Terms and Conditions (GT&Cs), effective January 1, 2012 (Application);
B. The Terasen Utilities also request early approval of the Application by January 15, 2011;
C. On December 13, 2010, the Terasen Utilities amended the Application to request the addition of the term Basic Charge and its definition into the TGVI Standard Terms and Conditions and the TGW Stating Terms and Conditions, effective January 1, 2012 (Amended Application);
D. The Amended Application states that benefits from changing from invoicing the Basic Charge from a monthly basis to a daily basis include reduced implementation and sustainment efforts and improved ability to communicate with customers;
E. The Commission issued Information Request (IR) No. 1 on December 17, 2010 and the Terasen Utilities responded on December 23, 2010;
F. In the response to IR No. 1, the Terasen Utilities state that the costs associated with communicating the change in the Basic Charge will be contained within the overall Customer Care Enhancement Project’s communications plan costs. The Terasen Utilities are also of the view that any cost savings associated with the change in the Basic Charge would be part of future Revenue Requirement Applications for the Terasen Utilities;
G. The Commission has reviewed the Amended Application and finds that approval is warranted.
NOW THEREFORE pursuant to section 61 of the Act, the Commission orders as follows:
1. The Terasen Utilities proposal in the Amended Application to revise the administration and the invoicing of the Basic Charge from a monthly basis to a daily basis, effective January 1, 2012 is approved.
2. The amendments to the definition of the term Basic Charge in the TGI General Terms and Conditions, as described Appendix B of the Amended Application and the addition of the term “Basic Charge” and its definition to the TGVI Tariff Standard Terms and Conditions and TGW Tariff Stating Terms and Conditions, effective January 1, 2012 are approved.
3. The Commission will accept, subject to timely filing, the revised Tariff pages for the affected Rate Schedules for Commission endorsement.
4. Terasen Utilities should provide any cost savings due to the change in the administration and the invoicing of the Basic Charge from a monthly basis to a daily basis in the next Revenue Requirement Applications for the Terasen Utilities.
DATED at the City of Vancouver, in the Province of British Columbia, this 7th day of January 2011.
BY ORDER
Original signed by:
D. Morton