ORDER NUMBER
G-337-22
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Pacific Northern Gas (N.E.) Ltd.
2022 Revenue Requirements Application
for the Fort St. John/Dawson Creek and Tumbler Ridge Divisions
Compliance Filing of Regulatory Schedules in Accordance with Order G-292-22
BEFORE:
B. A. Magnan, Panel Chair/Commissioner
on November 24, 2022
ORDER
WHEREAS:
A. On November 30, 2021, Pacific Northern Gas (N.E.) Ltd. [PNG(NE)] filed its 2022 Revenue Requirements Application (RRA) with the British Columbia Utilities Commission (BCUC) for the Fort St. John/Dawson Creek (FSJ/DC) and Tumbler Ridge (TR) Divisions pursuant to sections 58 to 61 of the Utilities Commission Act (UCA);
B. By Order G-379-21, the BCUC, among other things, approved PNG(NE)'s delivery rates and Revenue Stabilization Adjustment Mechanism (RSAM) rate rider on an interim and refundable/recoverable basis, effective January 1, 2022;
C. British Columbia Old Age Pensioner’s Organization, Active Support Against Poverty, Council of Senior Citizen’s Organizations of BC, Disability Alliance BC, and Tenant Resource and Advisory Center, known collectively as BCOAPO et al. (BCOAPO), Residential Consumer Intervener Association (RCIA), and the District of Tumbler Ridge (DTR) registered as interveners in the PNG(NE) 2022 RRA proceeding (2022 RRA proceeding);
D. On March 7, 2022, PNG(NE) filed its amended application for approval of 2022 delivery rates and RSAM rate rider on a permanent basis (Application);
E. By Order G-292-22 and accompanying decision the BCUC approved the 2022 delivery rates and RSAM rate rider filed in the Application on a permanent basis subject to the adjustments identified by PNG(NE) during the 2022 RRA proceeding and to the directives and determinations in the decision (Decision);
F. On November 10, 2022, PNG(NE) filed its revised regulatory schedules in accordance with Directive 11 of Order G-292-22, which reflect the directives and determinations outlined in the Decision (Compliance Filing). As part of the Compliance Filing, PNG(NE) requests approval of an alternative treatment for the 2022 delivery rates and RSAM rate rider from that approved by the Decision as follows:
1. PNG(NE) requests approval for the FSJ/DC and TR Divisions, to make the 2022 interim delivery rates approved by Order G-379-21 permanent and to refund the difference between the 2022 interim delivery rates and the 2022 delivery rates as calculated in the financial schedules of the Compliance Filing (2022 Calculated Delivery Rates) to the customers of each division by way of a rate adjustment rider that would apply to 2023 deliveries; and
2. PNG(NE) requests approval for the FSJ/DC and TR Divisions, to make the 2022 interim RSAM rate rider approved by Order G-379-21 permanent and to record for each division the difference between the 2022 interim RSAM rate rider and the 2022 RSAM rate rider as calculated in the financial schedules of the Compliance Filing (2022 Calculated RSAM rate rider) in the RSAM interest bearing deferral account for amortization in 2023.
G. On November 16, 2022, the BCUC established a procedural timetable and invited BCOAPO, RCIA and DTR to provide comments on PNG(NE)’s proposed treatment of the 2022 delivery rates and RSAM rate rider and for PNG(NE) to reply. No comments were filed by BCOAPO, RCIA or DTR and on November 22, 2022, PNG(NE) requested that the BCUC proceed to grant the approvals sought in the Compliance Filing; and
H. The BCUC reviewed the Compliance Filing and considers that a variance of Order G-292-22 is warranted.
NOW THEREFORE pursuant to section 99 of the UCA, the BCUC orders that Order G-292-22 be varied as follows:
1. Directive 1 of Order G-292-22 is varied to read:
PNG(NE)’s 2022 interim delivery rates approved by Order G-379-21 are approved as permanent, effective January 1, 2022.
2. Directive 2 of Order G-292-22 is varied to read:
PNG(NE)’s 2022 RSAM rate rider approved on an interim basis by Order G-379-21 is approved as permanent, effective January 1, 2022.
3. Directive 12 of Order G-292-22 is varied to read:
For the FSJ/DC and TR Divisions, PNG(NE) is directed to refund the difference between the 2022 permanent delivery rates and the 2022 Calculated Delivery Rates through a rate adjustment rider on 2023 deliveries with interest at the average prime rate of PNG(NE)’s principal bank for its most recent year. PNG(NE) is also directed to record for each of the divisions the difference between the 2022 permanent RSAM rate rider and the 2022 Calculated RSAM rate rider in the RSAM interest bearing deferral account for amortization in 2023.
4. PNG(NE) is directed to file with the BCUC the tariff rate schedules reflecting the permanent approvals for endorsement within 15 business days of the date of this order.
DATED at the City of Vancouver, in the Province of British Columbia, this 24th day of November 2022.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner