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, Gas Cost Reconciliation Account and Rate Rider A, and
Revenue Stabilization Adjustment Mechanism Account and Rate Rider 5 effective January 1, 2013
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner November 29, 2012
B.A. Magnan, Commissioner
D.M. Morton, Commissioner
O R D E R
WHEREAS:
A. By Order G-29-12 dated March 9, 2012, the British Columbia Utilities Commission (Commission) approved the FortisBC Energy (Whistler) Inc. (FEW) Gas Cost Recovery Charge of $4.029/GJ, effective April 1, 2012;
B. By Order G-116-12 dated September 6, 2012, the Commission approved the FEW Rate Rider A of $0.329/GJ refund amount, effective October 1, 2012;
C. On November 22, 2012, FEW filed its 2012 Fourth Quarter Gas Cost Report on the Gas Cost Recovery Charge, Gas Cost Reconciliation Account (GCRA) balance, and Revenue Stabilization Adjustment Mechanism (RSAM) account for the Whistler service area that were based on the five-day average forward prices ending November 7, 2012 (2012 Fourth Quarter Report);
D. The 2012 Fourth Quarter Report requested approval for a decrease of $0.117/GJ in Gas Cost Recovery Charge, to a rate of $3.912/GJ, effective January 1, 2013;
E. The 2012 Fourth Quarter Report requested approval to reset Rate Rider A from the current $0.329/GJ refund amount to zero, effective January 1, 2013;
F. The 2012 Fourth Quarter Report requested approval to close the GCRA account effective January 1, 2013 and to transfer any residual balance in the GCRA account at December 31, 2012, to the FortisBC Energy Inc. and FEW shared Midstream Cost Reconciliation Account in 2013;
G. The 2012 Fourth Quarter Report requested approval to reset delivery related RSAM Rate Rider 5 from the current $0.524/GJ to $0.323/GJ, effective January 1, 2013;
H. The approved 2013 delivery rate increase combined with the proposed changes to the Gas Cost Recovery Charge, GCRA Rate Rider A, and RSAM Rate Rider 5 would increase a typical Whistler residential customer’s annual bill by approximately $72 or 5.0 percent, based on an average annual consumption of 90 GJ; and
I. The Commission has determined that the rate requests as outlined in the 2012 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 2012 Fourth Quarter Report, a decrease of $0.117/GJ in the Gas Cost Recovery Charge to a rate of $3.912/GJ, effective January 1, 2013.
2. The Rate Rider A be reset to zero, effective January 1, 2013.
3. The GCRA account be closed effective January 1, 2013, and approves the transfer of any residual balance in the GCRA account at December 31, 2012, to the FortisBC Energy Inc. and FEW shared Midstream Cost Reconciliation Account in 2013.
4. The delivery related RSAM Rate Rider 5 be reset to $0.323/GJ, effective January 1, 2013.
5. FEW is to provide a descriptive explanation of the final rates, by way of a bill insert or customer notice to all affected customers, to be submitted to the Commission prior to its release, with the next monthly gas billing.
DATED at the City of Vancouver, In the Province of British Columbia, this 29th day of November 2012.
BY ORDER
Original signed by:
D.M. Morton
Commissioner