IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.
Application for Approval of Payment Transfer Fee
BEFORE: L.F. Kelsey, Commissioner
H.G. Harowitz, Commissioner
K.A. Keilty, Commissioner
N.E. MacMurchy, Commissioner October 9, 2014
I.F. MacPhail, Commissioner
B.A. Magnan, Commissioner
C. van Wermeskerken, Commissioner
O R D E R
WHEREAS:
A. On June 3, 2014, Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd (PNG) applied to the British Columbia Utilities Commission (Commission) for approval to add a new fee related to the administration of account payment transfers to the Standard Fees and Charges Schedule of the Consolidated Gas Sales Tariff approved by the Commission by Order G-127-11(Application);
B. The Application requests a Payment Transfer Fee of $20 will apply on a per incident basis to customers who, after being formally advised to update their banking profile to reflect their new PNG account number, the customer continues to make payments to an inactive PNG customer number;
C. PNG states that it has to manually transfer and apply the payments to the correct active PNG customer account number which requires significant administrative effort by PNG staff;
D. PNG explained that it informs the customers by telephone, customer bill messages and by letter if they have not updated their banking profile but some customers do not respond. The proposed Payment Transfer Fee is described as a nominal fee that may be charged per occurrence subsequent to the first instance of a required payment transfer;
E. On July 23, 2014, the Commission issued an information request to PNG and on September 12, 2014 PNG responded satisfactorily;
F. PNG indicates that it incurs costs of approximately $12 per transfer and stated that a fee of $15.00 would recover the actual costs incurred and may be an effective deterrent; and
G. The Commission reviewed the Application and considers that approval is warranted.
NOW THEREFORE pursuant to section 61 of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. A Payment Transfer Fee of $15.00 is approved for Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd., effective immediately.
2. The request to include the Payment Transfer Fee in the General Terms and Conditions for Gas Sales on the Standard Fees and Charges Schedule is approved, effectively immediately, for Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.
DATED at the City of Vancouver, in the Province of British Columbia, this Ninth day of October 2014.
BY ORDER
Original signed by:
L.F. Kelsey
Commissioner