Gazifère Inc.
Impact on Gazifère’s Rates from D-2006-158 Final Decision and
Description of Rider from January 1, 2006 to January 31, 2007
Rate Case 2006
January 1, 2006 Delivery Rates
The Company has designed delivery rates to reflect the Régie’s final decision which
generates a delivery revenue deficiency of $673,600. The rates were designed in
accordance to the evidence filed at G1-3, Document 7, revised 2006-10-16 and are
effective January 1, 2006 (see exhibit GI-3, documents 7.1, 7.2 and 7.3, revised on
December 18, 2006 following the decision D-2006-158).
January 1, 2006 Commodity, Load Balancing and Delivery Rates
In addition to the 2006 final delivery rates, the Company has designed rates to reflect the
impact of the gas cost consequences stemming from the approval of the 2006 volumetric
forecast, contract demand and lost and unaccounted for gas forecast. The impact of the
gas cost changes results in an additional revenue deficiency of $ 843,400 for a total
deficiency of $1,517,000, effective January 1, 2006 (see GI-14, document 2). The
$843,400 is based on January 1, 2006 Rate 200 gas costs. The deviation of the $843,400
is depicted at Exhibit G1-14, document 2, lines 19 plus 21. Subsequent to the
development of the January 1, 2006 rates, the Company has developed final pass-on rates
for April 1, 2006, July 1, 2006, and January 1, 2007. The Company did not have an
October 1, 2006 pass-on. These final pass-on rates reflect the impact of the delivery
revenue requirement and gas cost consequences stemming from the updated volumetric
forecasts. The Company proposes that the adjusted January 1, 2007 rates be
implemented in the February 1, 2007 billing cycle. The rate schedules incorporating
these rates can be found at GI-17, document 1. The deviation of the January 1, 2006 rates
can be seen at GI-14, documents 5 to 10 and the subsequent pass-ons are filed at GI-15,
documents 1 to 1.4 for the April 1, 2006 pass-on, GI-15, documents 2 to 2.4 for the July
1, 2006 pass-on and GI-15, documents 3 to 3.4 for the January 1, 2007 pass-on.
Determination of the Rate Rider from January 1, 2006 to January 31, 2007
The Company is proposing that customers will have a one time billing adjustment on
their February 2007 bill for actual volumes consumed from January 1, 2006 to January
31, 2007. This adjustment reflects the impact of the Régie’s D-2006-158 Final Decision
and Gas Cost consequences. As shown on Exhibit GI-16, document 1, budgeted volumes
from January to March 2006 are multiplied by the unit rate change between the interim
pass-on rate that was effective January 1, 2006 and the final pass-on rate for January 1,
2006. Budgeted volumes from April to June 2006 are multiplied by the unit rate change
between the interim pass-on rate that was effective April 1, 2006 and the final pass-on
rate for April 1, 2006. Budgeted volumes from July to December 2006 are multiplied by
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the unit rate change between the interim pass-on rate that was effective July 1, 2006 and
the final pass-on rate for July 1, 2006. Budgeted volumes from January 2007 are
multiplied by the unit rate change between the interim pass-on rate that was effective
January 1, 2007 and the final pass-on rate for January 1, 2007. The deficiency
accumulated over this thirteen month period is then divided by budgeted volumes to yield
the unit rate rider. This process is done for each rate class and type of service (sales and
T- service) in order to ensure that the derivation of the rider adheres to the rate setting
process. The accumulation over the 12 month period (January to December, 2006) is
depicted in the second last column. This number is slightly less than the $1,517,000
because of the change in UUF amounts from January 1, 2006 to December 31, 2006.
Exhibit GI-16, document 2 depicts the change in unit rate for each period. The interim
unit rates for January 2006 and April 2006 are based on the adjusted unit rates which
reflect the decision D-2006-58 that is, the cost allocation changes approved as well as the
interim 3% increase and were filed to the Régie in the “ajustement du coût du gaz de
juillet 2006” filing.
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Document 1
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Requête 3587-2005
D-2006-158