Welcome to Star Gas
We take great pride in our commitment to the resort, to its residences and businesses and to its many visitors from Canada, the United States and from abroad. We provide a lower cost alternative to other heat sources and do so safely and efficiently. Stargas' pipeline was completed in the fall of 1999; it currently serves 287 residential and commercial customers at Silver Star Resort. If you'd like to discuss any aspect of our operations at Silver Star Resort we'd be delighted to do so.
October 7, 2016
Stargas filed two applications with the British Columbia Utilities Commission that, if approved, will result in a $1.88 increase of the variable charge per gigajoule from the current rate of $10.33 to $12.21. The first application seeks BCUC approval:
- To amend the utility’s current cost of service calculation to exclude amortization to be replaced by debt service,
- To refinance by funding a replacement term loan, the net proceeds of which will be used to redeem preferred shares.
- To reduce the delivery component of the variable charge.
- To increase the hourly rate for management fees by BC CPI factor
If approved as filed, the delivery component of our variable charge would be reduced from its current $7.38 per gigajoule by 45 cents to $6.93; increases in the volume delivered, together with the replacement of $100,000 of preferred shares with term bank debt allow for the lower cost per gigajoule. Stargas has received and responded to the Commission's IR#1 and to the questions raised by the Silver Star Property Owners Association and is awaiting further direction and/ or an interim or final order on the application.
The second application contemplated an increase in the commodity component of the variable charge from $2.95 per gigajoule to $5.07 per gigajoule and was based on our estimate of volumes and our forecast cost of the commodity (at a date coinciding with the application) net of the refund of the over recovery of $19,870 generated in the fiscal year ended May 31, 2016. We received and responded to the questions raised by the BCUC and, based on increases in price estimates and volume changes sought and had approved (by BCUC Order G158-16) to increase our commodity price to $5.28 per gigajoule.