IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
Sun Peaks Utilities Co., Ltd.
Application for Approval of a Gas Commodity Rate Decrease
BEFORE: L. F. Kelsey, Commissioner
K. A. Keilty, Commissioner December 17, 2015
D. M. Morton, Commissioner
O R D E R
WHEREAS:
A. By Order G-114-15, dated July 2, 2015, the British Columbia Utilities Commission (Commission) approved a decrease in the Total Gas Commodity Charge to $13.066 per gigajoule (GJ) for the Sun Peaks Utilities Co., Ltd. (SPUCL) service area, effective July 1, 2015;
B. As requested by the Commission in Order G-114-15, SPUCL filed a Gas Cost Reconciliation Account (GCRA) report, which includes actual GCRA balances up to October 31, 2015 (GCRA Report). At October 31, 2015, the Commodity portion and the Storage portion of the GCRA balance were deficits of $32,284 and $29,270 respectively, which combined for a total net GCRA deficit balance of $61,554;
C. On November 17, 2015, SPUCL filed an application for a decrease of $1.441/GJ in the Total Gas Commodity Charge to $11.625/GJ effective January 1, 2016 (Application). In order to obtain this decrease in the Total Gas Commodity Charge, SPUCL seeks approval for:
i. an increase of $0.638/GJ in the Gas Commodity Charge – Propane rate from $8.662/GJ to $9.300/GJ;
ii. maintaining the Gas Commodity Charge – Storage rate at $2.325/GJ; and
iii. a decrease of $2.079/GJ in the Gas Commodity Charge – GCRA rate from $2.079/GJ to $0.000/GJ;
D. Using current delivery rates, the Total Gas Commodity Charge decrease requested in the Application would decrease the average annual bill for a typical customer by approximately 5.2 percent for a townhouse, 8.0 percent for a detached house, 8.7 percent for a small commercial customer, 8.8 percent for a large commercial customer, and 8.9 percent for a large hotel; and
E. The Commission reviewed the GCRA Report and the Application and finds that the requested changes to the commodity rates are warranted.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the British Columbia Utilities Commission orders the following:
1. The Sun Peaks Utilities Co., Ltd. (SPUCL) Gas Commodity Charge – Propane and the Gas Commodity Charge – GCRA rates are set as $9.300/GJ and $0.000/GJ respectively, effective January 1, 2016.
2. The SPUCL Gas Commodity Charge – Storage remains unchanged at $2.325/GJ, effective January 1, 2016.
3. SPUCL is to inform its customers of the approved rates in a timely fashion by way of a customer notice.
4. SPUCL is to file with the Commission, in a timely manner, amended Gas Tariff pages in accordance with this Order.
5. SPUCL is directed to file a report with the Commission by June 16, 2016, on the Gas Cost Reconciliation Account balances, updated forecast propane costs for the following 12 months and, if necessary, proposed changes to commodity rates to be effective July 1, 2016. The report should also include an update on options being evaluated to convert SPUCL from propane to natural gas should any significant developments arise.
DATED at the City of Vancouver, in the Province of British Columbia, this 17th day of December 2015.
BY ORDER
Original signed by:
D. M. Morton
Commissioner