Order No. P.980224-4A

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.

Tuesday, the 24th day of February, A.D., 1998

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.971229-4A, Kelli Lester, Pricing Representative of Irving Oil Limited, filed with the Island Regulatory and Appeals Commission (the "Commission") on 16 February 1998 an application to decrease the product prices contained in Irving’s presently approved propane schedule by 1.8 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 "Sarnia Posting" covering average propane acquisition costs for the periods 6 October to 24 November 1997 and from 1 December 1997 to 26 January 1998. Also attached was Schedule "E" entitled "Proposed Propane Prices"

The Commission considered Irving’s application for decreases to its currently-approved product prices and reviewed the supporting documentation at its meeting this date and granted approval to the requested decreases, effective 12:01 a.m. on Sunday, 1 March 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., Sunday, 1 March 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 (February/March, 1998) on or before 15 April 1998, and continue this practice every two months thereafter, whether or not an application for price adjustments is being made.

DATED at CHARLOTTETOWN this 24th day of FEBRUARY, A.D., 1998.

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 March 1998

Price Per Cylinder
 (Based on 89.1 Litres Per Cylinder)		 Equivalent Per Litre
1 to 15 Cylinders a Year $44.91 $0.5040
16 to 50 Cylinders a Year $41.60 $0.4669
More than 50 Cylinders a Year $40.91 $0.4591
Gas Rates for Portable Cylinders

Size

 Weight Price Per Lb.
2 LB 1.0 KG $1.33
5 LB 2.3 KG $0.72
10 LB 4.5 KG $0.59
20 LB 9.0 KG $0.50
25 LB 11.3 KG $0.48
30 LB 13.6 KG $0.49
33 LB 15.0 KG $0.49
40 LB 18.1 KG $0.49

Carburetion Cylinders

 Price Per Litre

Customer's Own Cylinders

 $0.4609

Domestic Propane Rates
Bulk Delivery System (ADS)        (10 Week Delivery)

     At Each Delivery -

                                       First 36 Litres

 $0.5163
                                       Next 36 Litres $0.4811
                                       All the Rest $0.4283
                                       ***Minimum charge at any delivery is $15.00***
Domestic Home Heating (All Zones)
     a)   Total Home Heat $0.3967
     b)   Partial Home Heat (Auxiliary or Space Heating) $0.4220
Commercial and Industrial Rates
Bulk Delivery
     Annual Consumption
          First 4,500 Litres $0.4462
          4,501 to 22,800 Litres $0.4198
          22,801 to 34,000 Litres $0.4154
          34,001 to 60,000 Litres $0.4088
          Over 60,000 Litres $0.4044

Industrial and Warehouse Heating
          10,000 Litres and Over $0.3528

Swimming Pools
     Annual Consumption
          First 2,300 Litres $0.4242
          Over 2,300 Litres $0.4154

Laundromats
    Annual Consumption
          First 45,000 Litres $0.4110
          Over 45,000 Litres $0.4044

Dispensing Units

 $0.4046
Yearly Rental on Cylinders and Tanks
33 Lb. Cylinder $36.00 Each ($3.00/Month)
100 Lb. Cylinder $36.00 Each
200 Lb. Cylinder $30.00 Each
420 Lb. Cylinder $40.00 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 of 7,570 Litres
No. of Litres Price Per Litre
          From           0 to  22,750 Litres $0.3689 + Tax
          From 22,751 to  45,500 Litres $0.3645 + Tax
          From 45,501 to  68,250 Litres $0.3601 + Tax
          From 68,251 to 113,750 Litres $0.3557 + Tax
          113,751 Litres and Over $0.3513 + Tax
     B)   Individual Retail Prices (Non-Fleet Users) $0.4085 + Tax
Propane 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
     Commerical (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