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 effective July 1, 2013
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner
N.E. MacMurchy, Commissioner
B.A. Magnan, Commissioner June 13, 2013
D.M. Morton, Commissioner
C. van Wermeskerken, Commissioner
O R D E R
WHEREAS:
A. By Order G-138-10 and its accompanying Reasons for Decision, the British Columbia Utilities Commission (Commission) approved the treatment of various components of the Cost of Gas for FortisBC Energy (Whistler) Inc. [FEW, formerly known as Terasen Gas (Whistler) Inc.], which include determining the FEW Gas Cost Recovery Charge from the FortisBC Energy Inc. (FEI) Rate Schedule 3 commodity and midstream gas cost allocation and recovery rates;
B. By Order G-181-12 dated November 29, 2012, the Commission approved FEW’s Gas Cost Recovery Charge of $3.912/gigajoule (GJ), effective January 1, 2013;
C. On June 6, 2013, FEI filed its 2013 Second Quarter Gas Costs Report, which includes a Commodity Cost Recovery Charge proposed rate increase of $0.936/GJ in the Rate Schedule 3 commodity related charges;
D. On June 6, 2013, FEW filed its 2013 Second Quarter Gas Cost Report on the Gas Cost Recovery Charge that was based on the five-day average forward prices ending May 21, 2013, and on FEI’s Rate Schedule 3 commodity and midstream gas cost allocation and recovery rates (2013 Second Quarter Report);
E. The 2013 Second Quarter Report requested approval for an increase of $0.936/GJ in the Gas Cost Recovery Charge to a rate of $4.848/GJ, effective July 1, 2013;
F. The Gas Cost Recovery Charge requested within the 2013 Second Quarter Report would be equivalent to an increase of approximately $84 or 5.6 percent per year for a typical Whistler residential customer’s annual bill based on an average annual consumption of 90 GJ;
G. The Commission has reviewed the 2013 Second Quarter Report and considers the requested rate change is warranted.
NOW THEREFORE pursuant to Section 61(4) of the Utilities Commission Act, the Commission orders as follows:
1. The requested increase to the Gas Cost Recovery Charge to a rate of $4.848/GJ is approved, effective July 1, 2013, as set out in the 2013 Second Quarter Report.
2. FortisBC Energy (Whistler) Inc. must notify all affected customers of the rate change by way of a bill insert or bill message with the next monthly gas billing, to be submitted to the Commission prior to its release.
DATED at the City of Vancouver, In the Province of British Columbia, this 13th day of June 2013.
BY ORDER
Original signed by:
D.M. Morton
Commissioner