IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Corix Multi Utility Services Inc.
for Approval to Decrease Gas Cost Recovery Charge for Propane Service
at Panorama Mountain Resort
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner July 12, 2012
D.M. Morton, Commissioner
R.D. Revel, Commissioner
O R D E R
WHEREAS:
A. In British Columbia Utilities Commission (Commission) Order G-52-10 dated March 18, 2010, Corix Multi Utility Services Inc. (Corix) was directed to use the lesser of the actual unaccounted for gas (UAF) volumes or 4 percent in the determination of costs to be accrued to the Gas Cost Reconciliation Account (GCRA);
B. The Commission noted in Order G-52-10, in the event post April 1, 2010 UAF volumes exceed 4 percent, Corix may apply to the Commission to include additional UAF volumes in the GCRA determination providing the justification for same;
C. On June 25, 2012, Corix applied (Original Application) to the Commission to decrease the Gas Cost Recovery Charge (GCR Charge) for Propane Service at Panorama Mountain Resort (Panorama) effective July 1, 2012;
D. On July 9, 2012, Corix filed a Revised Application to decrease the GCR Charge for Propane Service at Panorama effective July 1, 2012, which replaced the Original Application in its entirety (Revised Application);
E. In the Revised Application Corix estimates the GCRA has a credit balance of $86,757.63 as of June 30, 2012 and proposes to refund this amount in rates by March 31, 2014;
F. In addition, in the Revised Application Corix reports UAF volumes in excess of 4 percent for the period of April 1, 2010 through June 30, 2012, and proposes an adjustment credit of $44,000 to the GCRA to account for these excess UAF volumes;
G. The Revised Application seeks approval to decrease the GCR Charge for Panorama Mountain Resort from $15.743 to $8.570 per gigajoule (GJ) effective July 1, 2012, to reflect a forecast decrease in the cost of propane and to refund the surplus GCRA balance;
H. The proposed rate would result in a $251 per year or 26.9 percent decrease in the annual bill of a typical residential customer and a 32.3 percent decrease in the annual bill of a typical commercial customer;
I. The Commission has reviewed the submissions by Corix and has determined that the proposed rate decrease is appropriate and reasonable.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the Commission orders as follows:
1. The Commission approves a decrease in the Gas Cost Recovery Charge for Panorama Mountain Resort from $15.743 to $8.570 per GJ effective July 1, 2012.
2. Corix will notify all customers affected by the rate change.
3. Corix is to file a report with the Commission by August 31, 2012 providing:
a. details regarding the UAF volumes and the extent to which the UAF factor has exceeded 4 percent for the period from April 1, 2010 to June 30, 2012 and to confirm the proposed treatment of such excess UAF volumes; and
b. a detailed reconciliation of the GCRA for the 2011 calendar year including explanations of any variances from the reconciliation reported in the Revised Application.
DATED at the City of Vancouver, in the Province of British Columbia, this 12th day of July 2012.
BY ORDER
Original signed by:
D.M. Morton
Commissioner