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 has filed two applications with the British Columbia Utilities Commission that, if approved as filed, will result in a $1.75 increase of the variable charge per gigajoule from the current rate of $10.33 to $12.08. 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.
The attached notice from the BCUC outlines their schedule for participant review of the delivery rate application.
The second application contemplates an increase in the commodity component of the variable charge from $2.95 per gigajoule to $5.07 per gigajoule and is based on our estimate of volumes and our forecast cost of the commodity net of the refund of the over recovery of $19,870 generated in the fiscal year ended May 31, 2016.
The British Columbia Utilities Commission has issued the following order:
ORDER NUMBER G-155-16
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
Stargas Utilities Ltd.
Application to Vary Delivery Rate, Amend Cost of Service Formula and Approve Replacement Term Financing/Redemption of Preferred Shares
H. G. Harowitz, Commissioner
D. J. Enns, Commissioner
M. Kresivo, Commissioner
R. I. Mason, Commissioner
R. D. Revel, Commissioner
on October 6, 2016
A. On September 26, 2016, Stargas Utilities Ltd. (Stargas) filed an application with the British Columbia Utilities Commission (Commission) for, among other things, interim and permanent approval of a $0.45 per gigajoule delivery rate decrease for all customers, effective November 1, 2016 (Application);
B. The Application also requests the approval of replacement term financing, the redemption of $100,000 of preferred shares, amendments to the cost of service formula and an increase to the rates for management services; and
C. The Commission has commenced review of the Application and finds that the establishment of a regulatory timetable and approval of the requested delivery rate decrease on, an interim and refundable basis is warranted.
NOW THEREFORE the British Columbia Utilities Commission orders as follows:
1. Pursuant to section 89 of the Utilities Commission Act, Stargas Utilities Ltd.'s application for an interim delivery rate decrease of $0.45 per gigajoule for all customers, effective November 1, 2016, is approved on an interim and refundable basis.
2. Any variance between the interim rates and the permanent rates as determined by the Commission following final disposition of the Application are subject to refund/recovery, with interest at the average prime rate of Stargas Utilities Ltd.'s principal bank for its most recent year.
3.Stargas Utilities Ltd. is directed to file the interim tariff pages with the Commission within 10 business days of the issuance of this order.
4.Stargas Utilities Ltd. is directed to provide notice of the Application and this order to affected customers by Friday, October 21, 2016. Stargas Utilities Ltd. is also directed to post a copy of this order on the Stargas Utilities Ltd. website and at all Silver Star Resort centers.
5.The Regulatory Timetable for the review of the Application is established as set out in Appendix A to this order.
6.Interveners who wish to participate in the regulatory proceeding are to register with the Commission by completing a Request to Intervene Form, available on the Commission's website at http://www.bcuc.com/Registration-Intervener-Laspx by the date established in the Regulatory Timetable attached as Appendix A to this order and in accordance with the Commission's Rules of Practice and Procedure.
Dated at the City of Vancouver, in the Province of British Columbia, this 6th day of October 2016
H.G. Horowitz. Commissioner
to order G-155-16
page 1 of 1
Stargas Utilities Ltd.
Applicaiton to Vary Delivery Rates, Amend Cost of Service Formula and
Approve Replacement Term Financing/Redemption of Preferred Shares
ACTION DATE (2016)
Stargas Utilities Ltd. to provide notice to customers Friday, October 21
Intervenor Registration Friday, October 28
Commission Information Request No. 1 Wednesday, November 2
Intervenor Information Request No. 1 Friday, November 4
Stargas Utilities Ltd. Responses to Commission and
Intervenor Information Requests Monday, November 14
Letter of Comment Deadline Monday, November 14
Further process to be determined