ORDER NUMBER
G-343-20
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Resort Gas Ltd.
Gas Cost Reconciliation Account and Commodity Rate Decrease
BEFORE:
B. A. Magnan, Panel Chair
C. Brewer, Commissioner
T. A. Loski, Commissioner
R. I. Mason, Commissioner
on December 21, 2020
ORDER
WHEREAS:
A. On November 27, 2020, on behalf of Resort Gas Ltd. (Resort Gas), Sun Peaks Mountain Resort Municipality filed with the British Columbia Utilities Commission (BCUC) a Gas Cost Reconciliation Account (GCRA) report, which includes actual and projected GCRA balances (GCRA Report), and requested a decrease of $1.024 per gigajoule (GJ) in the Total Gas Commodity Charge from the current rate of $12.154/GJ to $11.13/GJ for each rate group (Residential, Small Commercial and Large Commercial), effective January 1, 2021 (Application);
B. By Order G-137-20A dated June 8, 2020, the BCUC approved an increase in the Total Gas Commodity Charge to $12.154/GJ for Resort Gas, effective July 1, 2020;
C. Resort Gas’s commodity and transportation costs (Commodity portion) and storage costs (Storage portion) are tracked through two separate balances within the GCRA. The GCRA Report shows a $180,168 deficit balance in the Commodity portion of the GCRA and a $29,935 surplus balance in the Storage portion of the GCRA, for a total net GCRA deficit balance of $150,233 as of October 31, 2020;
D. The requested $1.024/GJ decrease in the Total Gas Commodity Charge comprises of:
i. A decrease in the Gas Commodity Charge – Propane of $1.085/GJ from $11.805/GJ to $10.72/GJ;
ii. An increase in the Gas Commodity Charge – Storage of $0.061/GJ from $1.539/GJ to $1.60/GJ; and
iii. No change in the Gas Commodity Charge – GCRA of ($1.19)/GJ;
E. The requested decrease arises as a result of current and forecast propane commodity, transportation and storage costs; current and forecast propane consumption levels; and the amortization of the outstanding Commodity and Storage portions of the GCRA over a 12-month period;
F. The requested rate changes using current delivery rates would result in a decrease in the annual bill before taxes of $18.43 for an average townhouse consuming 18 GJ annually and $87.04 for an average single-family house residential customer consuming 85 GJ annually; and
G. The BCUC reviewed the GCRA Report and considers that Resort Gas’s requested rate changes are warranted.
NOW THEREFORE pursuant to section 61(4) of the Utilities Commission Act, the BCUC orders the following:
1. The revised tariff page as filed within the Application is accepted for filing.
2. Resort Gas commodity rates are set as follows for each rate group (Residential, Small Commercial, and Large Commercial), effective January 1, 2021:
|
Gas Commodity Charges |
Rate (per GJ) |
|
Gas Commodity Charge – Propane |
$10.72 |
|
Gas Commodity Charge – Storage |
$1.60 |
|
Gas Commodity Charge – GCRA |
($1.19) |
|
Total Gas Commodity Charge |
$11.13 |
3. Resort Gas is to inform its customers of the approved rates in a timely manner by way of a customer notice.
4. Resort Gas is directed to file a report with the BCUC by May 31, 2021 on the GCRA balances, including but not limited to propane price forecasts, commodity cost forecasts and GCRA balances for the following twelve months and, if necessary, proposed changes to commodity rates.
DATED at the City of Vancouver, in the Province of British Columbia, this 21st day of December 2020.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner