Orders

ORDER NUMBER

G-137-23

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

and

Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.

Commodity Costs Consolidation

BEFORE:

T. A. Loski, Panel Chair

B. A. Magnan, Commissioner

On June 12, 2023

ORDER

WHEREAS:

A.      On April 21, 2023, Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd. [PNG(NE)] (collectively, PNG) filed an application to the British Columbia Utilities Commission (BCUC) to consolidate commodity-related charges across all service areas, including PNG-West, PNG-West (Granisle), PNG(NE) Tumbler Ridge (TR) and PNG(NE) Fort St. John (FSJ) and Dawson Creek (DC) (Application);

B.      Pursuant to sections 58 to 61 of the Utilities Commission Act, PNG seeks BCUC approval of the following:

1.       the consolidation of commodity-related and other costs for all service areas, including Granisle propane and Tumbler Ridge division natural gas supply costs, and to establish a consolidated gas supply commodity charge common to all rate classes based on forecast annual demand;

2.       the consolidation of storage and transportation-related costs for all service areas, and to establish consolidated gas supply demand charges applicable to each rate class based on rate class peak day demand and forecast annual demand;

3.       to accumulate and track all commodity, storage and transportation-related costs in a common Gas Cost Variance Account (GCVA), and to establish a consolidated GCVA Company use rate rider and a consolidated GCVA commodity rate rider common to all rate classes; and

4.       to amend the rate schedules for service to Granisle propane customers to incorporate the consolidated GCVA Company use rate rider;

C.      PNG submits that the proposed commodity rate setting mechanisms will provide Granisle propane customers and Tumbler Ridge natural gas customers with greater rate stability and gas cost relief, while having minimal impacts to other customers in both PNG-West and PNG(NE) FSJ/DC service areas;

D.      PNG proposes a written hearing process for the review of the Application; and

E.       The BCUC has commenced review of the Application and determines that a public hearing process is warranted.

NOW THEREFORE the BCUC orders as follows:

1.       A public hearing process is established for review of the Application in accordance with the regulatory timetable set out in Appendix A to this order (Regulatory Timetable).

2.       PNG is directed to publish on its website the Application, this order and the Regulatory Timetable, and to provide a copy of the same to the following parties by Monday, June 19, 2023:

a.       Registered interveners of the PNG-West 2023–2024 Revenue Requirements Application;

b.       Registered interveners of the PNG(NE) 2023–2024 Revenue Requirements Application;

c.       Registered interveners of PNG’s Application for Approval of a Low Carbon Energy Cost Recovery Mechanism and Biomethane Purchase Agreements; and

d.       All municipalities and regional districts in which PNG operates.

3.       PNG is directed to publish the Public Notice in Appendix B to this order on all of its current social media platforms as soon as reasonably possible but no later than Monday, June 19, 2023. Weekly reminder posts that include the Public Notice must be published on each of these platforms until the conclusion of the intervener registration period.

4.       PNG is directed to provide confirmation of compliance with Directives 2 and 3 by Wednesday, June 21, 2023. Such confirmation must include confirmation of the Public Notice published on PNG’s website and current social media platforms, as well as a list of all parties notified.

DATED at the City of Vancouver, in the Province of British Columbia, this       12^th      day of June 2023.

BY ORDER

Original signed by:

T. A. Loski

Commissioner

Attachment

Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd.

Commodity Costs Consolidation

PACIFIC NORTHERN GAS LTD. AND PACIFIC NORTHERN GAS (N.E.) LTD.

COMMODITY COSTS CONSOLIDATION

On April 21, 2023, Pacific Northern Gas Ltd. and Pacific Northern Gas (N.E.) Ltd. (collectively, PNG) applied to the British Columbia Utilities Commission (BCUC) for approval to consolidate commodity-related charges across all service areas, including PNG-West, PNG-West (Granisle), PNG(NE) Tumbler Ridge (TR) and PNG(NE) Fort St. John (FSJ) and Dawson Creek (DC).

PNG submits that the proposed commodity rate setting mechanisms will provide Granisle propane customers and Tumbler Ridge natural gas customers with greater rate stability and gas cost relief, while having minimal impacts to other customers in both PNG-West and PNG(NE) FSJ/DC. Please visit the Proceeding webpage on bcuc.com under “Our Work” to learn more.

To participate in the proceeding, visit www.bcuc.com/get-involved.

Subscribe to a Proceeding on bcuc.com under “Get Involved” to receive email notifications when public documents are added to the proceeding.