Orders

ORDER NUMBER

G-380-21

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Resort Gas Ltd.

Gas Cost Reconciliation Account and Commodity Rate Increase

BEFORE:

T. A. Loski, Panel Chair

B. A. Magnan, Commissioner

A. Pape-Salmon, Commissioner

December 16, 2021

ORDER

WHEREAS:

A.      On December 8, 2021, 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 an increase of $9.84 per gigajoule (GJ) in the Total Gas Commodity Charge from the current rate of $14.00/GJ to $23.94/GJ for each rate group (Residential, Small Commercial and Large Commercial), effective January 1, 2022 (Application);

B.      By Order G-193-21 dated June 24, 2021, the BCUC set Resort Gas’s commodity rates as follows for each rate group (Residential, Small Commercial and Large Commercial), effective July 1, 2021 (Existing Commodity Rates):

C.      The requested $9.84/GJ increase in the Total Gas Commodity Charge comprises of:

                     i.      An increase in the Gas Commodity Charge – Propane from $13.60/GJ to 21.41/GJ;

                   ii.      An increase in the Gas Commodity Charge – Storage from $1.90/GJ to 2.03/GJ; and

                 iii.      An increase in the Gas Commodity Charge – GCRA from ($1.50/GJ) to 0.50/GJ;

D.      The requested increase 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;

E.       The requested rate changes using current delivery rates would result in an increase in the annual bill before taxes of $178.92 for an average townhouse consuming 18 GJ annually and $844.90 for an average single-family house residential customer consuming 85 GJ annually; and

F.       The BCUC has determined that the establishment of a regulatory timetable is warranted for the review of the Application.

NOW THEREFORE pursuant to sections 59 to 61 and 89 of the Utilities Commission Act, the BCUC orders as follows:

1.       Resort Gas is directed to set the Existing Commodity Rates as interim and refundable, effective January 1, 2022.

2.       Any variance between approved interim rates and permanent rates as determined at the time the BCUC renders its final decision on the Application will be refunded to or collected from ratepayers, with interest at the average prime rate of Resort Gas’ principal bank for the most recent year.

3.       A public hearing process is established in accordance with the regulatory timetable, as set out in Appendix A to this order.

4.       Resort Gas is directed to file with the BCUC, within 10 business days of the issuance of this order, amended Tariff pages in accordance with the terms of this order.

5.       Resort Gas is directed to provide notice to its customers that the BCUC has initiated a proceeding to review the commodity rates for Resort Gas and the Existing Commodity Rates will be interim, effective January 1, 2022, no later than Thursday, December 30, 2021.

DATED at the City of Vancouver, in the Province of British Columbia, this             16^th            day of December 2021

BY ORDER

Original signed by:

T. A. Loski

Commissioner

Attachment

Resort Gas Ltd.

Gas Cost Reconciliation Account and Commodity Rate Increase