Order No. P.971229-4A
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.
Monday, the 29th day of December, A.D., 1997
BEFORE
Wayne D. Cheverie, Q.C., Chair
Ginger Breedon, Vice-Chair
Debbie MacLellan, Commissioner
Decision and Order
Further to the Commission's Order No. P.970826-4A, Kelli Lester, Pricing Representative of Irving Oil Limited, filed with the Island Regulatory and Appeals Commission (the "Commission") on 15 December 1997 an application to increase the product prices contained in Irving’s presently approved propane schedule by 1.1 cents per litre, with the exception of product sold under the category entitled "Cylinder Exchange Centres".
This application was also accompanied by Schedule "D" entitled "OBG Sarnia Propane Prices" covering average propane acquisition costs for the periods 4 August to 29 September 1997 and from 6 October to 24 November 1997. Also attached was Schedule "E" entitled "Proposed Propane Prices"
The Commission considered Irving’s application for increases to its currently-approved product prices and reviewed the supporting documentation at its meeting this date. A review of Schedule "D" indicated that while the previous adjustment to propane prices was in relation to the "OBG Sarnia Propane Prices" for the period June/July 1997, this supporting documentation compares October/November, 1997 prices with the August/September, 1997 prices rather than the June/July, 1997 prices. However, using the August/September, 1997 figures does not change that fact that an increase in prices of 1.1 cents per litre would be just and reasonable, and granted approval to the requested increases, effective 12:01 a.m. on Thursday, 1 January 1998, in accordance with the attached Order.
Order
THE COMMISSION HEREBY ORDERS THAT the propane prices charged by Irving Oil Limited, effective 12:01 a.m., Thursday, 1 January 1998, be in accordance with those contained in Appendix "A" to this Order, and that these prices appear on all invoices covering sales or deliveries of propane, and remain in effect until otherwise ordered by the Commission.
AND IT IS FURTHER ORDERED THAT Irving Oil Limited provide the Commission with information based on average OBG Sarnia Propane Prices relating to the two-month period (December, 1997/January, 1998) on or before 15 February 1998, and continue this practice every two months thereafter, whether or not an application for price adjustments is being made.
DATED at CHARLOTTETOWN this 29th day of DECEMBER, A.D., 1997.
BY THE COMMISSION:
Chair
Vice-Chair
Commissioner
APPENDIX "A"
IRVING OIL LIMITED
SCHEDULE OF PROPANE GAS RATES - METRIC
PROVINCE OF PRINCE EDWARD ISLAND
EFFECTIVE: 1 January 1998
Price per Cylinder Equivalent per Litre (Based on 89.1 litres per cylinder) 1 to 15 cylinders a year $46.51 $0.5220 16 to 50 cylinders a year 43.20 0.4849 More than 50 cylinders a year 42.51 0.4771 Gas rates for portable cylinders
Size Weight Price per Lb.
2 LB 1.0 KG $1.37 5 LB 2.3 KG 0.76
10 LB 4.5 KG 0.63 20 LB 9.0 KG 0.54 25 LB 11.3 KG 0.52 30 LB 13.6 KG 0.53 33 LB 15.0 KG 0.53 40 LB 18.1 KG 0.53 Price per Litre
Carburetion cylinders
Customer's own cylinders $0.4789
***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 $0.5343
Next 36 litres 0.4991
All the rest 0.4463
***Minimum charge at any delivery is $15.00***
Domestic home heating (all zones)
a) Total home heat $0.4147
b) Partial home heat (auxiliary or space heating) 0.4400
Commercial and Industrial Rates
Bulk delivery
Annual consumption
First 4,500 litres 0.4642
4,501 to 22,800 litres 0.4378
22,801 to 34,000 litres 0.4334
34,001 to 60,000 litres 0.4268
Over 60,000 litres 0.4224
Industrial and warehouse heating
10,000 litres and over 0.3708
Swimming Pools
Annual consumption
First 2,300 litres 0.4422
Over 2,300 litres 0.4334
***Rental on 420's is $25.00 per cylinder per year***
Laundromats
Annual Consumption
First 45,000 litres 0.4290
Over 45,000 litres 0.4224
Dispensing Units 0.4226
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 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
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 $0.3869 + tax From 22,75l to 45,500 litres 0.3825 + tax From 45,501 to 68,250 litres 0.3781 + tax From 68,251 to 113,750 litres 0.3737 + tax 113,751 litres and over 0.3693 + tax B) Individual retail prices (Non-fleet users) 0.4265 + tax
Provincial Motive Fuel Taxes
Current motive fuel tax per litre $0.130
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 (1 technician) - $53.00 per hour
Commercial (2 technicians)- $65.00 per hour
Domestic (1 technician) - $45.00 per hour
Domestic (2 technicians) - $60.00 per hour
NOTE: No mileage fee charged.
