../BCUC Jan 1, 2019 Commodity Rate App Letter Sun Peaks Mountain Resort Municipality. 106 – 3270 Village Way, Sun Peaks, British Columbia, V0E 5N0 T: 250-578-2020 / F: 250-578-2023 / E-mail: [email protected]– www.sunpeaksutilities.com November 29, 2018 Patrick Wruck Commission Secretary B.C. Utilities Commission 6th Floor – 900 Howe Street Vancouver, B.C. V6Z 2N3 Via email: [email protected]Dear Mr. Wruck; Re: British Columbia Utilities Commission (BCUC) Order G-127-18 On behalf of Resort Gas Ltd., Sun Peaks Mountain Resort Municipality (SPMRM, formerly Sun Peaks Utilities) was directed on July 12, 2018 by the BCUC Order G-127-18 to provide a report on the Gas Cost Reconciliation Account balances, an updated forecast of propane prices going forward and if necessary, proposed changes to commodity rates. Therefore, please find the attached documents for your review: 1. Propane Price Forecast for November 2018 to December 2019. 2. Gas Cost Reconciliation Account (GCRA) detail for the 10-month period January 1, 2018 to October 31, 2018. 3. Commodity Rate Application c/w Gas Cost Reconciliation Account (GCRA) projection for the period November 1 to December 31, 2018 and the 12 months to December 31, 2019. The combined GCRA balance at October 31, 2018 is negative $61,415 which is $64,407 less than the $2,992 balance projected by the July 1, 2018 rate application model. The propane price forecast now projects lower pricing over the next 14 months. Using these prices, and the recommended $2.1325 per Gj rate decrease, the combined GCRA account balance is projected at December 31, 2019 to be $69.00. We continue to monitor propane prices going forward and at this time believe it is prudent to apply for a commodity price decrease of $2.1325 per GJ. This represents a 13.5% commodity price decrease which would be effective January 1, 2019. Resort Gas Ltd. did exercise the option on July 20, 2018 to pre-purchase 2,000,000 litres of propane for deliver from November 2018 to March 2019 at $0.2780 per litre ($CAD) to help ensure stable gas prices. Customers will be advised in the December 2018 Newsletter of this Gas Commodity Price Decrease Application. A copy of the newsletter is attached for your reference.
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../BCUC Jan 1, 2019 Commodity Rate App Letter
Sun Peaks Mountain Resort Municipality. 106 – 3270 Village Way, Sun Peaks, British Columbia, V0E 5N0
Re: British Columbia Utilities Commission (BCUC) Order G-127-18
On behalf of Resort Gas Ltd., Sun Peaks Mountain Resort Municipality (SPMRM, formerly Sun Peaks Utilities) was directed on July 12, 2018 by the BCUC Order G-127-18 to provide a report on the Gas Cost Reconciliation Account balances, an updated forecast of propane prices going forward and if necessary, proposed changes to commodity rates.
Therefore, please find the attached documents for your review: 1. Propane Price Forecast for November 2018 to December 2019. 2. Gas Cost Reconciliation Account (GCRA) detail for the 10-month period January 1, 2018 to
October 31, 2018. 3. Commodity Rate Application c/w Gas Cost Reconciliation Account (GCRA) projection for the period
November 1 to December 31, 2018 and the 12 months to December 31, 2019. The combined GCRA balance at October 31, 2018 is negative $61,415 which is $64,407 less than the $2,992 balance projected by the July 1, 2018 rate application model.
The propane price forecast now projects lower pricing over the next 14 months. Using these prices, and the recommended $2.1325 per Gj rate decrease, the combined GCRA account balance is projected at December 31, 2019 to be $69.00.
We continue to monitor propane prices going forward and at this time believe it is prudent to apply for a commodity price decrease of $2.1325 per GJ. This represents a 13.5% commodity price decrease which would be effective January 1, 2019. Resort Gas Ltd. did exercise the option on July 20, 2018 to pre-purchase 2,000,000 litres of propane for deliver from November 2018 to March 2019 at $0.2780 per litre ($CAD) to help ensure stable gas prices. Customers will be advised in the December 2018 Newsletter of this Gas Commodity Price Decrease Application. A copy of the newsletter is attached for your reference.
Should you have any comments or questions concerning this information or wish to discuss any aspect of Resort Gas Ltd., please contact the undersigned at 250-578-2020.
Sincerely Sun Peaks Mountain Resort Municipality Acting for Resort Gas Ltd.
Pat Miller Public Works Manager
Attachments
Customer Newsletter 8 – December 2018
Resort Gas Ltd. Tariff Page # 7, Revision 2
Schedule A – Propane Price Forecast for November 2018 to December 2019.
Schedule B – Gas Cost Reconciliation Account (GCRA) – detail for the 10-month period from January 1, 2018 to October 31, 2018.
Schedule C – Commodity Rate Application c/w Gas Cost Reconciliation Account (GCRA) to December 31, 2019
GAS COMMODITY RATE DECREASE APPLIED FOR – Effective January 1, 2019 Based on the bi-annual review of Gas Commodity Rates required by the British Columbia Utilities Commission (BCUC) under Order G-127-18, and in response to the current cost of propane, Resort Gas Ltd. has reviewed the impact on gas usage rates and have filed an application for a Propane Commodity Rate Decrease with the BCUC to be effective on January 1, 2019. If approved by the Commission this rate decrease would be effective January 1, 2019 and would first appear on your February 2019 invoice. The following are examples of the effects of the rate change applied for. Impact of Commodity & Delivery Charges per Gj
Customer Type Current Rates Commodity
Proposed Rate Jan 1, 2019 Commodity
Average Annual Cost Decrease *
Residential Condo $15.8435 $13.7110 $38.39 Single Family Home $15.8435 $13.7110 $181.26 Small Commercial $15.8435 $13.7110 $754.91 Avg. Large Commercial $15,8435 $13.7110 $9,084.45 Large Commercial $15.8435 $13.7110 $21,325.00
* Annual average cost decrease shown includes commodity, delivery and basic charges pending approval. A copy of the application, price projection filed with the BCUC is posted under ‘Gas Tariff & Rates’ tab on our website at www.sunpeaksutilities.com. If you have any questions regarding this rate change, please email us at [email protected] or call 250-578-2020. GAS METER SAFETY REMINDER: The winter season is upon us and Sun Peaks would like to remind you and your guests to keep Gas Winter Safety in mind. Why is it so important to keep your meter clear? - Accumulated snow places stress on your meter piping - damage to the piping can cause a gas leak. Blocked vents in your Gas Meter Set may result in abnormal pressure, affect appliance operation, and interrupt service. A cover such as a single full sheet of plywood placed at a 45o angle over the meter set can deflect snow and ice while still allowing access to the meter. This simple precaution may prevent a hazardous situation.
Keeping your meter clear permits easy access and enables quick and accurate readings. Knowing that we read meters the last week of each month will make it easy for you to plan to double check and clear any obstructions. We appreciate your help. If you are not sure on how to safely clear your meter, please contact the Utility at 250-578-2020 or 250-319-0629 and we would be pleased to advise you. If necessary, Sun Peaks Municipality will clear meters of ice, snow or other materials to
‘make safe’. The Gas Tariff’s Terms and Conditions allow a charge for this work to be added to your monthly Utility bill. The charge for the first time this work is required during a one-year period is $50 and each additional time is $100. Remember that gas is a safe commodity if treated properly. If you do smell gas (rotten egg smell) in your home, please leave and call 250-319-0629 or 9-1-1 as soon as it is safe to do so. Should you have any questions on these or any other utility matters, please contact us at the Municipal office at 250-578-2020 and press 1 or via email at [email protected]. In the event of an after-hour utility emergency, dial 250-319-0629 for the Utilities’ on-call staff. If the matter is urgent, dial 9-1-1.
Resort Gas Ltd. - Gas Tariff General Terms and Conditions – Page 7 2nd Revision
Issued: Nov 29, 2018 Accepted for filing: _________________________
By: Pat A. Miller By: Original Signed by _______________________ Manager Commission Secretary RESORT GAS LTD. BRITISH COLUMBIA UTILITIES COMMISSION ../BCUC 2ND REV PG 7 EFF JAN 1 2019 Commission Order No.
Effective Date: ___________________________
Table of Charges - Gas Service will be provided in accordance with the following Rate Groups. The Rate Groups are available in all territory served by SPUCL, provided adequate capacity exists in SPUCL’s system. Applicability by Rate Group Rate Group 1: Residential Service - This Rate Group is applicable to Gas supplied at one Premises for use in approved appliances for all residential applications in single-family residences, separately metered single-family townhouses, rowhouses and apartments and single metered property with four or less dwelling units. Rate Group 2: Small Commercial Service - This Rate Group is applicable to Gas supplied at one Premises for Customers with a normalised annual consumption of less than 2,000 gigajoules of Gas, for use in approved appliances in municipal, commercial, institutional, small industrial operations or a single metered property with five or more dwelling units. Rate Group 3: Large Commercial Service - This Rate Group is applicable to Gas supplied at one Premises for Customers with a normalised annual consumption of greater than 2,000 gigajoules of Gas, for use in approved appliances in municipal, commercial, institutional small industrial operations and single metered property with five or more dwelling units.
Rates for Gas Service Rate Group 1 Residential
Rate Group 2 Small
Commercial
Rate Group 3 Large
Commercial
1 Basic Charge per Month $18.00 $30.00 $120.00 2 Delivery Charge per gigajoule of Gas
delivered $2.8175 $2.8175 $3.3175
3 Gas Commodity Charge - Propane per gigajoule of Gas delivered $11.8340 $11.8340 $11.8340 D
4 Gas Commodity Charge - Storage per gigajoule of Gas delivered $1.6220 $1.6220 $1.6220 D
5 Gas Commodity Charge - GCRA per gigajoule of Gas delivered $0.2550 $0.2550 $0.2550 I
6 Spare $0.0000 $0.0000 $0.0000
7 Total Gas Commodity Charge - per gigajoule of Gas delivered (addition of items 3 to 6)
$13.7110 $13.7110 $13.7110 D
Note: Minimum Charge per Month - The minimum charge per Month will be the Basic Charge listed above.
../BCUC Jan 1, 2019 Commodity Rate App Letter
Sun Peaks Mountain Resort Municipality. 106 – 3270 Village Way, Sun Peaks, British Columbia, V0E 5N0
Forecast propane price Canadian $ / Litre, FOB Alberta
May 18, 2018
Pricing Forecast Nov 28, 2018
Pricing Forecast November 2018 $0.28821 $0.22830 December 2018 $0.28821 $0.22880 January 2019 $0.30874 $0.22950 February 2019 $0.30968 $0.22850 March 2019 $0.28957 $0.22010 April 2019 $0.25141 $0.19500 May 2019 $0.22491 $0.19310 June 2019 $0.22285 $0.19170 July 2019 $0.22097 $0.19290 August 2019 $0.22143 $0.19750 September 2019 $0.22713 $0.20220 October 2019 $0.23463 $0.23510 November 2019 $0.24448 $0.24020 December 2019 $0.25294 $0.24520
Note: Forecast provided by Superior Liquid Fuels on November 28, 2018
Resort Gas Ltd.Proposed 2019 Commodity Rate Application (To take effect Jan 1, 2019)November 28, 2018
IndexSchedule Tab
Customers and Consumption Sch 1 Cust InfoNumber of customers, consumption statistics, growth
Propane Cost Projection12 Months ended December 31, 2018 Sch 2 Pro CostYear ended December 31, 2019 Sch 3 Pro Cost
GCRA Summary by year, 2017 to December 31/19 Sch 4 GCRA Yr.Annual consumption, Vapourizer & Unaccounted propane estimate, etc.
GCRA Commodity detail projection by month12 Months ended December 31, 2018 Sch 5 GCRA ComYear ended December 31, 2019 Sch 6 GCRA Com
GCRA Storage detail projection by month12 Months ended Dec 31/18 and year ended Dec 31/19 Sch 7 GCRA Stor
Application for Commodity Price Change, showing GCRA balance at Dec 31, 2018 & 2019 Sch 8 Appl
Customer Gas Cost Change Sch 9 % Change
Page 1 of 10
Resort Gas Ltd.Proposed 2019 Commodity Rate Application (To take effect Jan 1, 2019)Customers & Consumption - Propane
November 28, 2018 Schedule 1
Actual Actual Estimate Forecast Average
Year ended December 31 2016 2017 * 2018 * 2019 2016-18
Average consumption by Rate GroupGroup 1 residential # customers, avg. over year 873 883 904 981 Total avg annual usage (Note 1) 40.1 46.6 46.2 44.3 44.3 Group 2 small commercial # customers, avg over year 20.0 21.0 23.5 25.0 Total avg annual usage (Note 1) 303 440 442 395 395.2 Group 3 large commercial # customers, avg over year 11.0 11.0 11.0 11.0 Total avg annual usage (Note 1) 3,537 4,366 4,467 4,124 4,123.6
Change in annual consumption by Rate GroupGroup 1 residential 10.4% 16.3% -0.8% -4.1%Group 2 small commercial -3.4% 45.2% 0.5% -10.7%Group 3 large commercial 12.6% 23.4% 2.3% -7.7%
Annual consumption by Rate GroupGroup 1 residential 34,978 41,108 41,765 43,460Group 2 small commercial 6,064 9,242 10,393 9,880Group 3 large commercial 38,910 48,026 49,142 45,360
Total 79,952 98,376 101,300 98,700
% Change in annual consumption 10.6% 23.0% 3.0% -2.6%
# Customers, end of year (December 31)Group 1 residential 877 888 920 1,042 Group 2 small commercial 20 22 25 25 Group 3 large commercial 11 11 11 11
Actual Forecast Forecast ProjectedMonthly Data, 2018 Jan - Oct Nov Dec Total 2018Propane Purchased in AdvancePropane, liters, November - March pre-b 600,000 300,000 600,000 1,500,000 Fixed Price ($Can/litre) 0.22230 0.27800 0.27800 Truck Transportation ($Can/litre) * 0.05160 0.06800 0.06800 Price, Sun Peaks ($Can/litre) 0.27390 0.34600 0.34600
Current Market price estimate Alberta basket ($Can/litre) 0.24217 0.22830 0.22880 Truck Transportation ($Can/l) * 0.06700 0.06800 0.06800 Price, Sun Peaks ($Can/litre) 0.30917 0.29630 0.29680
Propane Delivered: (Liters) At Market prices 2,491,181 109,760 36,685 2,637,626 At Fixed price 600,000 300,000 600,000 1,500,000 Total Propane deliveries (L) 3,091,181 409,760 636,685 4,137,626
Propane inventory, end of month (L) 285,768 285,768 285,768 285,768Propane inventory, end of month (%) 63.0% 63% 63% 63%
Propane Cost: Purchased at market prices $ 770,202 32,522 10,888 813,612 At Fixed price, Nov - March pre-buy 164,342 103,800 207,600 475,742 Total Propane Cost ($Can) 934,544 136,322 218,488 1,289,354
Propane Cost per litre purchased: $/L 0.3023 0.3327 0.3432 0.3116
Propane Cost per Gj: ($/GJ) 11.912 13.108 13.521 12.278
* Truck Transportation ($/L)The Superior Gas Liquids supply agreement which is effective on April 1/18 to March 31/20 provides for a fixed freight rate based on the gas plant source inAlberta with no additional charge when road restrictions are in place, plus a fuel surcharge.The rate from Northern Alberta and Southern Alberta are $.70 and $.65 respectively per L.Assume a 50/50 split between Northern & Southern Alberta plus a fuel surcharge of $.005 /L. 0.0680$
Page 3 of 10
Resort Gas Ltd. Proposed 2019 Commodity Rate Application (To take effect Jan 1, 2019)
Propane Cost Projection, year ending December 31, 2019November 28, 2018 Schedule 3
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ProjectedMonthly Data, 2019 Jan '19 February March April May June July August Sep October Nov Dec'19 Total 2019
* Truck Transportation ($/L)The Superior Gas Liquids supply agreement which is effective on April 1/18 to March 31/20 provides for a fixed freight rate based on the gas plant source inAlberta with no additional charge when road restrictions are in place, plus a fuel surcharge.The rate from Northern Alberta and Southern Alberta are $.70 and $.65 respectively per L.Assume a 50/50 split between Northern & Southern Alberta plus a fuel surcharge of $.005 /L. 0.0680$
Page 4 of 10
Resort Gas Ltd.oposed 2019 Commodity Rate Application (To take effect Jan 1, 2019)Gas Cost Reconciliation Account - 2017 to December 31, 2019
November 28, 2018 Schedule 4
Actual Estimate ForecastYear ended December 31 2017 2018 2019
Annual consumption by customers (GJ) A 98,376 101,300 98,700
Vaporizer Fuel Use (%) B/A 1.53% 1.37% 1.50%Vaporizer Fuel Use (GJ) B 1,503 1,389 1,481Total consumption (GJ) A+B=C 99,879 102,689 100,181Unaccounted For (GJ) G-C=D 2,550 1,607 4,007Unaccounted For (%) D/C=E 2.55% 1.57% 4.00%Unaccounted For (%) Average of last 3 years
Propane Truck Deliveries (litres) 3,977,866 4,137,626 4,104,996(Increase) Decrease in propane inventory 57,834 (28,350) - Propane Usage from Tanks (Litres) F 4,035,700 4,109,276 4,104,996Propane Usage from Tanks (GJ) F/39.4=G 102,429 104,296 104,188Average Price (cents/litre) L/F=H 27.59 31.38 30.52Purchase quantity/GJ of Sales G/A=I 1.0412 1.0296 1.0556Commodity Cost of Sales (cents/litre) HxI=J 28.73 32.30 32.22Commodity Cost of Sales ($/GJ) Jx39.4=K $11.319 $12.728 $12.694
Resort Gas Ltd.GCRA Commodity Account - Projected year ended December 31,2019 Proposed 2019 Commodity Rate Application (To take effect Jan 1, 2019) Schedule 6
November 28, 2018Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ProjectedJan'19 February March April May June July August Sep October Nov Dec'19 Total
Days per month 31 28 31 30 31 30 31 31 30 31 30 31 365
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ProjectedJan 1 - Dec 31, 2019 Jan'19 February March April May June July August Sep October Nov Dec'19 TotalDays per month 31 30 31 31 30 31 30 31 31 28 31 30 365
Increase (Decrease) in GCRA account balance 3,151 15,626 18,777
Total GCRA Account Projection Commodity Storage TotalGCRA at Jan 1/18 27,384 (18,781) 8,603 Change, Jan 1 - Dec 31/18 (86,175) 3,151 (83,024) GCRA at Dec 31/18 (58,791) (15,630) (74,421) Change, Jan 1 - Dec 31/19 58,865 15,626 74,490 GCRA Balance at Dec 31/19 73 (4) 69
Page 9 of 10
Resort Gas Ltd.Customer Gas Cost Change Proposed 2019 Commodity Rate Application (To take effect Jan 1, 2019)November 28, 2018 Schedule 9
Current Rates Proposed Rates Change
RateAnnual
Cost RateAnnual
Cost Annual Cost %Average Residential User (Condo, Townhouse)