Orders

 

ORDER NUMBER

G-102-25

 

IN THE MATTER OF

the Utilities Commission Act, RSBC 1996, Chapter 473

 

and

 

Pacific Northern Gas (N.E.) Ltd.

2025 to 2027 Revenue Requirements

for the Fort St. John/Dawson Creek and Tumbler Ridge divisions

 

BEFORE:

M. Jaccard, Panel Chair

E. B. Lockhart, Commissioner

T. A. Loski, Commissioner

 

on April 22, 2025

 

ORDER

WHEREAS:

 

A.      On April 2, 2025, Pacific Northern Gas (N.E.) Ltd. (PNG(NE)) filed its 2025–2027 Revenue Requirements Application (RRA) with the British Columbia Utilities Commission (BCUC) for its Fort St. John/Dawson Creek and Tumbler Ridge divisions pursuant to sections 58 to 61, 89 and 90 of the Utilities Commission Act seeking permanent approval of its 2025, 2026 and 2027 basic charges and delivery rates, and its 2025 Revenue Stabilization Adjustment Mechanism (RSAM) rate rider (Application), effective January 1, 2025;

B.      In the Application, PNG(NE) seeks an order granting relief pursuant to sections 58 to 61, 89 and 90 of the Utilities Commission Act to allow PNG(NE) to amend its 2025 basic charges, delivery rates, and RSAM rate rider on an interim and refundable or recoverable basis, effective May 1, 2025, pending the regulatory process for the review of the Application (Amended Interim Rates);

C.      By Order G-333-24 dated December 12, 2024, the BCUC approved PNG(NE)'s request for interim approval of its basic charges, delivery rates and RSAM rate rider on an interim and refundable or recoverable basis, effective January 1, 2025. The BCUC also directed PNG(NE) to file its 2025 to 2026 RRA by February 28, 2025;

D.      By letters dated February 20, 2025 and March 12, 2025, PNG(NE) requested extensions to the deadline to file its 2025 to 2026 RRA, in part to allow additional time to incorporate an additional year to the test period. The BCUC granted the request to extend the filing deadline to April 2, 2025;

E.       For Fort St. John/Dawson Creek, PNG(NE) is seeking approval to increase the basic charges and delivery rates on an interim and refundable or recoverable basis, effective May 1, 2025, from the currently approved interim rates effective January 1, 2025, for the following rate classes, among other rate classes:

 

1.       Basic charges:

                                             i.            from $8.28/month to $8.64/month for Residential service;

                                           ii.            from $8.29/month to $8.65/month for Small Commercial service;

2.       Delivery charges:

                                             i.            for Fort St. John, from $6.893/gigajoule (GJ) to $7.190/GJ for Residential service;

                                           ii.            for Dawson Creek, from $6.695/GJ to $6.992/GJ for Residential service;

                                         iii.            for Fort St. John, from $5.197/GJ to $5.415/GJ for Small Commercial service;

                                         iv.            for Dawson Creek, from $4.660/GJ to $4.878/GJ for Small Commercial service;

F.       For Fort St. John/Dawson Creek, PNG(NE) is also seeking approval for an increase in the RSAM rate rider on an interim and refundable or recoverable basis, applicable to Residential and Small Commercial customers, from a debit rate rider of $0.927/GJ as approved on an interim basis, effective January 1, 2025, by Order G-333-24 to a debit rate rider of $0.961/GJ, effective May 1, 2025;

G.      For Tumbler Ridge, PNG(NE) is seeking approval to decrease the basic charges and delivery rates on an interim and refundable or recoverable basis, effective January 1, 2025, from the currently approved interim rates effective January 1, 2025, for the following rate classes, among other rate classes:

1.       Basic charges:

                                             i.            from $10.24/month to $9.96/month for Residential service;

                                           ii.            from $10.27/month to $9.98/month for Small Commercial service;

2.       Delivery rates:

                                             i.            from $13.216/GJ to $12.589/GJ for Residential service;

                                           ii.            from $10.443/GJ to $9.961/GJ for Small Commercial service;

H.      For Tumbler Ridge, PNG(NE) is also seeking approval for a decrease in the RSAM rate rider on an interim and refundable or recoverable basis, applicable to Residential and Small Commercial customers, from a debit rider of $1.248/GJ as approved on an interim basis, effective January 1, 2025, by Order G-333-24 to a debit rider of $1.238/GJ, effective May 1, 2025; and

I.         The BCUC has commenced the review of the Application and determines that approval of Amended Interim Rates and the establishment of a regulatory timetable are warranted.

 

NOW THEREFORE pursuant to sections 58 to 61 and 89 of the Utilities Commission Act, the BCUC orders as follows:

 

1.       PNG(NE) is approved to use the 2025 basic charges, delivery rates and the RSAM rate rider set forth in Tab 6 of the Application on an interim basis, effective May 1, 2025.

2.       Any variance between the interim rates effective January 1, 2025 and May 1, 2025, as compared to the permanent rates effective January 1, 2025 that are determined by the BCUC following final disposition of the Application, is subject to refund or recovery by PNG(NE), with interest at the average prime rate of PNG(NE)'s principal bank for its most recent year.

3.       The regulatory timetable is established, as set out in Appendix A to this order, for the review of the Application.

4.       PNG(NE) is directed to file with the BCUC, the rate schedules reflecting the amended interim approvals for endorsement within 30 business days of the date of this order.

5.       PNG(NE) is directed to provide public notice for the review of the Application as follows:

a.       Publish its Application and this order with accompanying appendices on its website and provide a copy of the Application and this order to all interveners in the PNG(NE) 2023 to 2024 RRA proceeding by no later than Tuesday, April 29, 2025

b.       Publish the Public Notice in Appendix B to this order on all its current social media platforms, on or before Tuesday, April 29, 2025. Weekly reminder posts that include the Public Notice must be published on each of these platforms until the conclusion of the intervener registration period on Friday, May 23, 2025.

c.       Provide a copy of the public notice in Appendix B to this order to all customers, by email wherever possible and other means as needed, as soon as practicable but by no later than Friday, May 16, 2025.

6.       PNG(NE) is directed to provide to the BCUC:

a.       Confirmation of compliance with the public notice requirements in Directives 5(a) and 5(b) of this order, except for the weekly social media reminder posts, including a list of social media platforms on which notice was posted and a list of all parties notified by Thursday, May 1, 2025.

b.       Confirmation of compliance with Directive 5(b)’s public notice requirement regarding weekly social media reminder posts in accordance with the regulatory timetable by Tuesday, May 27, 2025.

c.       Confirmation of compliance with Directive 5(c) of this order by no later than Wednesday, May 21, 2025.

 

DATED at the City of Vancouver, in the Province of British Columbia, this              22^nd              day of April 2025.

 

BY ORDER

 

Electronically signed by Mark Jaccard

 

M. Jaccard

Commissioner

 

 

Attachment

Pacific Northern Gas (N.E.) Ltd.

2025 to 2027 Revenue Requirements

for the Fort St. John/Dawson Creek and Tumbler Ridge divisions

 

 

 

 

 

Pacific Northern Gas (NE) Ltd. 2025–2027 Rates Application

On April 2, 2025, Pacific Northern Gas (N.E.) Ltd. (PNG(NE)) applied to the British Columbia Utilities Commission (BCUC) for approval to change rates over the next three years for customers in its Fort St. John, Dawson Creek, and Tumbler Ridge divisions.

 

PNG(NE) requested that the rate changes apply to the basic and delivery charges for all rate classes for the three years.

 

For Fort St. John and Dawson Creek residential and small commercial customers, the requested rate changes to basic and delivery charges as compared to prior year rates would be an increase of approximately 9% for each year: 2025, 2026 and 2027.

 

For Tumbler Ridge residential and small commercial customers, the requested rate changes as compared to prior year rates would be a decrease of approximately 2% for each year: 2025, 2026 and 2027. 

 

PNG(NE) also requested approval to change the Revenue Stabilization Adjustment Mechanism (RSAM) rate rider, which is applicable to Residential and Small Commercial customers, for 2025 to $0.961 per gigajoule for Fort St. John and Dawson Creek, and to $1.238 per gigajoule for Tumbler Ridge.

 

The overall annual bill impact for the average customer in 2025, compared to 2024 rates, is between -8.4% and
-13.9%, which includes the cost of gas and the removal of the carbon tax.

 

For 2025 rates, the BCUC approved and applied a portion of the increase to rates on January 1, 2025, and the remainder will be applied on May 1, 2025. The rates were approved on an interim basis while the BCUC reviews PNG(NE)’s application for permanent rates, among other items. Any difference between interim and permanent rates will be recovered from or refunded to customers.

 

The BCUC is holding an open and transparent review process to review PNG(NE)’s 2025-2027 revenue requirements application. To learn more, please visit the proceeding webpage.

CONTACT INFORMATION
Pacific Northern Gas (N.E.) Ltd. 750 – 888 Dunsmuir Street Vancouver, BC  V6C 3K4   E: Regulatory@png.ca   P: 604.691.5680	British Columbia Utilities Commission Suite 410, 900 Howe Street Vancouver, BC  V6Z 2N3   E: Commission.Secretary@bcuc.com   P: 604.660.4700