ORDER NUMBER
G-255-23
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
Resort Gas Ltd.
Gas Cost Reconciliation Account and Commodity Rate Adjustment
BEFORE:
B. A. Magnan, Panel Chair
E. Brown, Commissioner
W. E. Royle, Commissioner
September 28, 2023
ORDER
WHEREAS:
A. On August 21, 2023, 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 approval of the following changes to its Gas Commodity Charges or each rate group (Residential, Small Commercial, and Large Commercial), effective September 1, 2023 (Filing);
B. On September 7, 2023, Resort Gas submitted a revised Filing for the proposed changes to the commodity rates.
C. By Order G-366-22 dated December 15, 2022, the BCUC set Resort Gas’s commodity rates as follows for each rate group (Residential, Small Commercial, and Large Commercial), effective January 1, 2023:
Gas Commodity Charges |
Rate (per GJ) |
Gas Commodity Charge – Propane |
$21.91 |
Gas Commodity Charge – Storage |
$1.55 |
Gas Commodity Charge – GCRA |
$0.48 |
Total Gas Commodity Charge |
$23.94 |
D. In its revised Filing, the requested $6.86/Gigajoules (GJ) decrease from $23.94/GJ to $17.08/GJ in the Total Gas Commodity Charge comprises of:
i. A decrease in the Gas Commodity Charge – Propane from $21.91/GJ to $15.63/GJ;
ii. A decrease in the Gas Commodity Charge – Storage from $1.55/GJ to $1.45/GJ; and
iii. A decrease in the Gas Commodity Charge – GCRA from $0.48/GJ to $0/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 estimated bill impact (before tax) of these changes is expected to be a decrease of $123.48 per year for an average townhouse consuming 18 GJ annually, and a decrease of $583.10 for an average single-family house residential customer consuming 85 GJ annually; and
G. The BCUC has completed its review of the Filing and determines 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. Resort Gas’ commodity rates are set as follows for each rate group (Residential, Small Commercial,
and Large Commercial), effective September 1, 2023:
Gas Commodity Charges |
Rate (per GJ) |
Gas Commodity Charge – Propane |
$15.63 |
Gas Commodity Charge – Storage |
$1.45 |
Gas Commodity Charge – GCRA |
$0.00 |
Total Gas Commodity Charge |
$17.08 |
2. The revised tariff page as filed within the Filing is accepted for filing.
3. Resort Gas is directed to inform its customers of the approved rates, within 30 days of the issuance of this order, by way of a customer notice.
4. Resort Gas is directed to file a report with the BCUC by June 30, 2024, on the GCRA balance, 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 28th day of September 2023.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner