Via Email
cdonohue@png.ca September 16, 2011
Mr. C.P. Donohue
Director, Regulatory Affairs & Gas Supply
Pacific Northern Gas Ltd.
950 – 1185 West Georgia Street
Vancouver, BC V6E 4E6
Dear Mr. Donohue:
Re: Pacific Northern Gas (N.E.) Ltd.
Natural Gas Commodity Charges effective October 1, 2011
for the Fort St. John/Dawson Creek and Tumbler Ridge Service Areas
On September 6, 2011 Pacific Northern Gas (N.E.) Ltd. [PNG(N.E.)] filed with the British Columbia Utilities Commission (Commission) its 2011 Third Quarter Report (the Report) on gas supply costs and Gas Cost Variance Account (GCVA) balances for its Fort St. John/Dawson Creek (FSJ/DC) and Tumbler Ridge Divisions. The Report is based on forecasted natural gas prices using the average of 5 consecutive days forward gas price forecasts ending August 22, 2011.
The Report forecasts for its FSJ/DC Division the ratio of gas commodity cost recoveries at current rates to forecast gas commodity costs over the following 12 months, to be 1.008 which is within the established 0.95 to 1.05 dead band range guideline. The Report requests approval to maintain current gas commodity rates and the current GCVA commodity credit rate rider effective October 1, 2011.
The Report forecasts for the Tumbler Ridge Division the ratio of gas commodity cost recoveries at current rates to forecast gas commodity costs over the following 12 months, to be 1.024 which is within the established 0.95 to 1.05 dead band range guideline. The Report requests approval to maintain the current gas commodity rate and the current GCVA commodity credit rate rider effective October 1, 2011.
The Report also requests there be no changes to rate riders associated with existing deferral accounts nor to any ‘company use’ gas costs or riders.
The request to maintain rates at the current level is consistent with the Commission’s quarterly gas cost review Guidelines and is accepted by the Commission.
Yours truly,
Alanna Gillis
TS/yl