ORDER NUMBER
G-66-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Pacific Northern Gas Ltd.
Application for Approval of PNG-West’s 2019 UAF Loss above 1.0 Percent
BEFORE:
B. A. Magnan, Commissioner
E. B. Lockhart, Commissioner
T. A. Loski, Commissioner
R. I. Mason, Commissioner
on March 26, 2020
ORDER
WHEREAS:
A. On February 26, 2020, Pacific Northern Gas Ltd. (PNG) applied to the British Columbia Utilities Commission (BCUC) for approval to record 2019 actual unaccounted for (UAF) losses above 1.0 percent in the PNG-West UAF Gas volume deferral account (Application), as established in the PNG-West 2018-2019 Revenue Requirements Decision (2018-2019 RRA Decision);
B. In Directive 12 of Order G-151-18 dated August 15, 2018 accompanying the 2018-2019 RRA Decision, the BCUC approved the continued use of the UAF volume deferral account on the basis that the UAF volume forecast for the Test Year 2018 and Test Year 2019 are set at zero with PNG recording the variance between zero percent and a loss of up to 1.0 percent without having to seek BCUC approval;
C. PNG were further directed to file an application with the BCUC to obtain approval to record UAF losses above 1.0 percent in the UAF deferral account;
D. In the Application, PNG submits that the 2019 actual UAF losses were 2.1 percent of total sales and transportation volumes or 107,812 gigajoules (GJ), which has a value of $148,500 before tax at the 2019 approved Company Use gas commodity cost of $1.377/GJ;
E. The difference between the 1.0 percent UAF losses, for which PNG did not need further BCUC approval, and the 2.1 percent actual 2019 UAF loss is 57,160 GJ with a value of $78,700 before tax; and
F. The BCUC has reviewed the Application finds that approval is warranted.
NOW THEREFORE pursuant to sections 59 to 61 of the Utilities Commission Act, the BCUC orders as follows:
1. The BCUC approves recording the 2019 actual UAF volume of 2.1 percent in the PNG-West UAF Gas volume deferral account.
2. PNG is directed to file with the BCUC its 2019 UAF gas volume report by September 15, 2020.
DATED at the City of Vancouver, in the Province of British Columbia, this 26th day of March 2020.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner