UPDATE: Stargas Delivery Rate Application to the BCUC
On September 26th, 2016, Stargas Utilities Ltd. filed an application with the British Columbia Utilities Commission (“BCUC”) for:
(a) Interim and permanent approval of a $0.39 per gigajoule delivery rate decrease for all customers, effective November 1, 2016;
(b) Approval to replace Stargas’ existing term loan with a $300,000 term loan at an interest rate of prime plus I.25% and
(c) Approval to redeem 1,000 Class G preferred shares having a par value of $100,000.
The Silver Star Property Owners Association Filed for and received “Intervenor Status” for the application. The SSPOA objected to (amongst other things):
- The Stargas proposal to substitute debt payments for amortization
- The high cost of administration provided by a non-arm’s length party which is family to the sole shareholder of Stargas
- The high cost of installation of gas service line and meter at $1920.00
Over the 4 Months since the first documents were filed by the SSPOA on October 13th the BCUC has sought 2 information requests and held a Streamlined Review Process (“SRP”). Final Arguments were filed by the SSPOA on February 10, 2017 and can be viewed at: http://www.bcuc.com/Documents/Arguments/2017/DOC_48742_02-10-2017_SSPOA-Final-Argument-AMENDED.pdf
The original submission by the SSPOA which outlines many of the concerns that were presented to the BCUC can be viewed at:
The BCUC will over the next few months review all of the information and will issue an Order which we hope, will reflect the concerns expressed by the SSPOA. This is the first time since 2002 that there have been any meaningful challenges to any Stargas applications.
You can see all of the submissions related to the application by going to the BCUC website: http://www.bcuc.com/ApplicationView.aspx?ApplicationId=561