IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
FortisBC Energy (Whistler) Inc.
Application regarding Gas Cost Recovery Charge effective October 1, 2014
BEFORE: L.F. Kelsey, Commissioner
C.A. Brown, Commissioner
H.G. Harowitz, Commissioner
K.A. Keilty, Commissioner
N.E. MacMurchy, Commissioner
I.F. MacPhail, Commissioner September 11, 2014
B.A. Magnan, Commissioner
D.M. Morton, Commissioner
R.D. Revel, 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), which included 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-38-14 dated March 14, 2014, the Commission approved the FEW Gas Cost Recovery Charge of $5.754/GJ, effective April 1, 2014;
C. On September 3, 2014, FEI filed its 2014 Third Quarter Report on Commodity Cost Reconciliation Account and Midstream Cost Reconciliation Account for the Lower Mainland, Inland and Columbia Service Areas prices (FEI 2014 Third Quarter Gas Cost Report), which includes requested approval of a Commodity Cost Recovery Charge rate decrease of $0.859/GJ in the FEI Rate Schedule 3 commodity related charges, effective October 1, 2014, based on a five-day average of August 13, 14, 15, 18, and 19, 2014 forward gas prices;
D. On September 3, 2014, FEW filed its 2014 Third Quarter Gas Cost Report on the Gas Cost Recovery Charge that was based on the five-day average forward prices for the period ending August 19, 2014 (FEW 2014 Third Quarter Gas Cost Report);
E. In the FEW 2014 Third Quarter Report, FEW requested approval for a flow-through decrease of $0.859/GJ in the FEW Gas Cost Recovery Charge, to a rate of $4.895/GJ, effective October 1, 2014, based on the FEI proposed change in the FEI Rate Schedule 3 commodity related charges set out in the FEI 2014 Third Quarter Gas Cost Report;
F. On September 11, 2014, the Commission issued Order G-133-14 in which the Commission approved the rate change requested by FEI for the FEI Rate Schedule 3 commodity related charges set out in the FEI 2014 Third Quarter Gas Cost Report;
G. The Gas Cost Recovery Charge requested within the FEW 2014 Third Quarter Report is equivalent to a decrease of approximately $77 or 4.6 percent per year for a typical Whistler residential customer’s annual bill based on an average annual consumption of 90 GJ; and
H. The Commission reviewed the FEW 2014 Third Quarter Report and considers the requested rate change is warranted.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act:
1. The Commission approves the requested decrease of $0.859/GJ to the Gas Cost Recovery Charge to a rate of $4.895/GJ, effective October 1, 2014, as set out in the FortisBC Energy (Whistler) Inc. 2014 Third Quarter Report.
2. FortisBC Energy (Whistler) Inc. must notify all 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 12th day of September 2014.
BY ORDER
Original signed by:
D.M. Morton
Commissioner