Order No. P.961018-1
IN THE MATTER of the Petroleum Products Act, R.S.P.E.I. 1988, Cap. P-5.1;
- and -
IN THE MATTER of an application filed under the Petroleum Products Act, supra, by Irving Oil Limited for amendments to its propane pricing schedule.
Friday, the 18th day of October, A.D., 1996
BEFORE
John L. Blakney, Vice-Chairman
James Nicholson, Commissioner
Anne McPhee, Commissioner
Decision and Order
Further to the Commission's Order No. P.960104-1, Claudette Maxwell, Pricing Representative of Irving Oil Limited, filed with the Island Regulatory and Appeals Commission (the "Commission") on 27 September 1996 an application for pricing adjustments which involved reducing the present fourteen categories (some with several levels) contained in its present pricing schedule to two pricing categories. The Commission reviewed this application on 1 October 1996 and determined that a public hearing into this matter would be necessary. Tentative dates were fixed and the Company was notified to this effect.
Following receipt of this advice, Ms. Maxwell filed an interim application to increase the prices contained in Irving’s presently approved schedule by 2.8 cents per litre, with the exception of product sold under the category entitled "Cylinder Exchange Centres". As well, amendments to the annual cylinder and tank rental fees as contained in this approved schedule were indicated. This application was accompanied by Schedule "A" entitled "Proposed Propane Rates" and Schedule "B" entitled "OBG Sarnia Propane Prices" covering the periods 6 November to 25 December 1995 and 5 August 1996 to 30 September 1996. Correspondence accompanying this application contained a statement to the effect that Irving’s cost of propane had been similarly affected as indicated in Schedule "B".
This application required amendments to Schedules "A" and "B", and upon notification to this effect, the Applicant filed revised Schedules "A" and "B" on 15 October 1996.
On 17 October 1996, Mr. John DeCourcey, Regional Manager of Irving Oil Limited, advised the Commission that Irving wished to withdraw its application of 27 September 1996 relating to a reduction in the number of categories, and the proposed public hearing was withdrawn from the schedule.
The Commission considered Irving’s request for increases to its currently-approved prices and reviewed the supporting documentation filed at its meeting this date. The supporting information indicated that since prices were adjusted in January of 1996, it would be just and reasonable to increase prices by 2.8 cents per litre based on the average costs over the August/September 1996 period. The Commission therefore granted approval to the requested increases in all pricing categories (with the exception of the category entitled "Cylinder Exchange Centres"), effective 12:01 a.m. on Tuesday, 22 October 1996.
The Commission also determined that if the Applicant is desirous of having its pricing applications based on average propane acquisition costs in the future, it should do so on a similar basis as is currently in effect for crude cost adjustments to other refined product prices. The Company, therefore, is to provide the Commission with similar propane cost information relating to the next two-month period (October/November, 1996) on or before 15 December 1996, and continue this practice every two months thereafter, whether or not an application for price adjustments is being made.
With regard to the requested adjustments to the annual cylinder and tank rental rates, no justification for these revisions was included with the application. The Commission therefore deferred consideration of this matter, with the Company to submit affidavit evidence in support of the requested changes.
THE COMMISSION HEREBY ORDERS THAT the propane prices charged by Irving Oil Limited, effective 12:01 a.m., Tuesday, 22 October 1996, be in accordance with Appendix "A" to this Order, and that these prices shall appear on all invoices covering sales or deliveries of propane, and shall remain in effect until otherwise ordered by the Commission.
AND IT IS FURTHER ORDERED THAT consideration of the requested adjustments to the annual cylinder and tank rental charges included in Appendix "A" filed with the application be deferred pending receipt of affidavit evidence which supports these requested changes.
AND IT IS FURTHER ORDERED THAT Irving Oil Limited provide the Commission with information based on average OBG Sarnia Propane Prices relating to the next two-month period (October/November, 1996) on or before 15 December 1996, and continue this practice every two months thereafter, whether or not an application for price adjustments is being made.
DATED at CHARLOTTETOWN this 18th day of OCTOBER, A.D., 1996.
BY THE COMMISSION:
Vice-Chairman
Commissioner
Commissioner
APPENDIX "A"
IRVING OIL LIMITED
SCHEDULE OF PROPANE GAS RATES - METRIC
PROVINCE OF PRINCE EDWARD ISLAND
EFFECTIVE: 22 OCTOBER 1996
Price per Cylinder Equivalent per Litre (Based on 89.1 litres per cylinder) 1 to 15 cylinders a year $47.53 $0.5335 16 to 50 cylinders a year $44.23 $0.4964 More than 50 cylinders a year $43.53 $0.4886 Gas rates for portable cylinders
Size Weight Price per Lb.
2 LB 1.0 KG $1.38 5 LB 2.3 KG $0.77
10 LB 4.5 KG $0.64 20 LB 9.0 KG $0.55 25 LB 11.3 KG $0.53 30 LB 13.6 KG $0.54 33 LB 15.0 KG $0.54 40 LB 18.1 KG $0.54 Price per Litre
Carburetion cylinders
Customer's own cylinders $0.4904
***Plus $2.50 monthly rental per cylinder on company-owned cylinders***
Domestic Propane Rates
Bulk delivery system (ADS) (10 week delivery)
At each delivery -
First 36 litres $0.5458
Next 36 litres $0.5106
All the rest $0.4578
***Minimum charge at any delivery is $15.00***
Domestic home heating (all zones)
a) Total home heat $0.4262
b) Partial home heat (auxiliary or space heating) $0.4515
Commercial and Industrial Rates
Bulk delivery
Annual consumption
First 4,500 litres $0.4757
4,501 to 22,800 litres $0.4493
22,801 to 34,000 litres $0.4449
34,001 to 60,000 litres $0.4383
Over 60,000 litres $0.4339
Industrial and warehouse heating
10,000 litres and over $0.3823
Swimming Pools
Annual consumption
First 2,300 litres $0.4537
Over 2,300 litres $0.4449
***Rental on 420's is $25.00 per cylinder per year***
Laundromats
Annual Consumption
First 45,000 litres $0.4405
Over 45,000 litres $0.4339
Dispensing Units $0.4341
Service Rates
Installation charges
All installations will be charged on the basis of time and materials used.
Time will be figured on the inclusion of travel time and shop time where applicable.
Service labour rates
Commercial - $53.00 per hour
Domestic - $43.00 per hour
Mileage fee (policy #52)
a) Minimum fee for up to 8 km $2.80
b) Standard fee for over 8 km $0.35 per km
c) Maximum fee for over 70 km $25.00
Yearly Rental on Cylinders and Tanks
100 lb. cylinder $10.00 each 200 lb. cylinder $15.00 each
420 lb. cylinder $25.00 each 334 gallon tank $40.00 each 500 gallon tank $75.00 each 1,000 gallon tank $125.00 each 1,750 gallon tank $175.00 each 2,000 gallon tank $175.00 each Propane Motive Fuel Pricing
A) Motive fuel propane prices for fleet owners only with their own dispensing units of not less than 2,000 USWG capacity or 7,570 litres
No. of Litres Price per Litre From 0 to 22,750 litres $0.3984 + tax From 22,75l to 45,500 litres $0.3940 + tax From 45,501 to 68,250 litres $0.3896 + tax From 68,251 to 113,750 litres $0.3852 + tax 113,751 litres and over $0.3808 + tax B) Individual retail prices (Non-fleet users) $0.4380 + tax
Provincial Motive Fuel Taxes
Current motive fuel tax per litre $0.120
Cylinder Exchange Centres
Wholesale Retail
to Dealer to Consumer
Filled 9.09 kg cylinder (propane only/G.S.T. not included) $9.00 $13.32
