ORDER NUMBER
G-34-17
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Port Alice Gas Inc.
Application for Approval to Increase
the Basic Charge and Facility Charge
BEFORE:
B. A. Magnan, Commissioner
on March 14, 2017
ORDER
WHEREAS:
A. On December 7, 2015, Port Alice Gas Inc. (PAG) applied to the British Columbia Utilities Commission (Commission) for an order approving an increase in the Basic Charge from $6.00 per month to $0.40 per day (nominally $12.00 per month) and to increase the Facility Charge from $17.32 to $38.90 per cubic meter of propane for all customers, effective January 1, 2016 (Application);
B. By Order G-211-15 on December 21, 2015, the Commission approved the requested rate changes on an interim and refundable basis, effective January 1, 2016;
C. On March 14, 2016, PAG filed a submission requesting that the utility be released from its obligations to operate as a regulated utility, and that PAG and the Commission no longer invest time in the Application while the request for PAG to be released from regulated utility operations is being considered. PAG requested that the interim increase in the Basic Charge and Facility Charge remain in effect while the requests are being considered;
D. By Order G-45-16 on April 6, 2016, the Commission suspended the Application subject to Directive 2 in the order, which directed PAG to file a separate application that fully describes the modifications to PAG operations that are being requested, and directed that the interim and refundable increases in the Basic Charge and the Facility Charge remain in effect until the Commission makes a future determination;
E. On May 6, 2016, PAG filed a Variance Request of Order G-211-15 and notice related to section 88 (3) of the Utilities Commission Act (UCA) requesting approval of the following items:
• Decrease the interim Facility Charge from $0.389 per litre to $0.289 per litre, effective as soon as possible and preferably effective as of April 1, 2016;
• Increase the interim Basic Charge for Commercial Customers from $0.40 per day to $0.50 per day, effective as soon as possible and preferably effective as of April 1, 2016; and
• An extension of its application for relief under section 88 (3) of the UCA to June 30, 2016 (Variance Request);
F. On May 11, 2016, PAG filed a submission clarifying that the correct unit of measurement for the Facility Charge is dollars per litre, and that the proposed Facility Charge is $0.389 per litre ($389.00 per cubic meter of propane) effective January 1, 2016, not $38.90 per cubic meter of propane as originally applied for and approved by Order G-211-15;
G. On May 17, 2016, Order G-211-15 was rescinded and replaced by Order G-69-16;
H. On May 20, 2016, Order G-72-16A approved the PAG request to decrease the interim Facility Charge from $0.389 per litre to $0.289 per litre and to increase the interim Basic Charge from $0.40 per day to $0.50 per day for Commercial Customers on an interim basis, effective June 1, 2016;
I. On July 22, 2016, PAG filed an application with the Commission for an exemption from Part 3 of the UCA in relation to PAG’s operation of the propane air grid assets and sale of propane in the Village of Port Alice, British Columbia;
J. On November 18, 2016, the Commission issued a draft order to the Minister of Energy and Mines recommending, under section 88(3) of the UCA, the exemption of PAG from the requirements of Part 3 of the UCA except for sections 25, 38, 42, 43, and 44;
K. On February 8, 2017, Ministerial Order No. 044 granted advance approval to the Commission to exempt PAG from the requirements of Part 3 of the UCA, except for the sections as noted above;
L. On February 22, 2017, Order G-21-17 exempted PAG from Part 3 of the UCA, except for sections 25, 38, 42, 43, and 44, for its operation of the propane air grid assets and sale of propane in the Village of Port Alice, effective, February 22, 2017; and
M. The Commission reviewed the Application, the Variance Request and evidence filed in the proceeding and makes the following determinations.
NOW THEREFORE pursuant to sections 59-61 of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The Port Alice Gas Inc. request to increase the Basic Charge of $6.00 per month by $0.40 per day (nominally $12.00 per month) is approved on a permanent basis, effective January 1, 2016 to February 21, 2017.
2. The Port Alice Gas Inc. request to increase the Facility Charge to $0.389 per litre of propane is approved on a permanent basis, effective January 1, 2016 to May 31, 2016.
3. The Port Alice Gas Inc. request to decrease the Facility Charge from $0.389 per litre to $0.289 per litre of propane is approved on a permanent basis, effective June 1, 2016 to February 21, 2017.
4. The Port Alice Gas Inc. request to increase the Basic Charge for Commercial Customers from $0.40 per day to $0.50 per day, is approved on an permanent basis, effective June 1, 2016 to February 21, 2017.
5. Port Alice Gas Inc. is directed to file revised pages for endorsement by the Commission within 30 days of the date of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 15th day of March 2017.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner