Order No. P.990804-2A

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 Section 32 of the Petroleum Products Act, supra, by Superior Propane Inc. for the elimination and restructuring of certain of its pricing categories and increases of 2.75 cents per litre in propane prices in all remaining categories.

Wednesday, the 4th day of August, A.D., 1999

BEFORE

Wayne D. Cheverie, Q.C., Chair
Ginger Breedon, Vice-Chair


Decision and Order


Further to the Commission's Decision and Order No. P.980625-2A, Michael (Mike) Doyle, Branch Manger of Superior Propane Inc. ("Superior") filed with the Island Regulatory and Appeals Commission (the "Commission") on 28 July 1999 an application requesting permission to increase the price of propane in Superior’s pricing categories by 2.75 cents per litre. This application was supported by a declaration of Mike Doyle, Branch Manager, Charlottetown and a covering letter which indicated that propane acquisition costs have increased by a total of 2.75 cents per litre since Superior’s prices were last approved.

This Declaration was supported by a Schedule entitled "Sarnia-Amoco Wholesale Propane Posted Price", which Schedule indicated that the Company had experienced a net increase of 2.75 cents per litre since prices were last adjusted.

In reviewing this application at its meeting of 29 July 1999, it was noted by the Commission that the application, if approved, would result in the elimination and restructuring of certain pricing categories, and additional information in this regard was requested.

The Applicant filed a further letter in support of its application on 29 July 1999, and explained that in an effort to further simplify its pricing schedule, it was requesting the elimination of classes of customers which have had no or very little customer application. Staff requested further information in this regard, which additional information was filed on 3 August 1999. This additional information suggested that with respect to the pricing categories relating to Grain Drying and Pool Heating, some customers might be affected in a negative way, and it was decided that until such customers have an opportunity to have input with respect to the proposed changes, that the existing categories should remain.

The Commission’s consideration of Superior’s application for pricing reductions and supporting documentation filed, as well as of propane pricing data obtained from other sources, result in approved price increases as contained in Appendix "A" to this Order.

In accordance with Regulation 15 made pursuant to the Petroleum Products Act, the prices authorized with respect to "Agents" and "Auto Propane" have been rounded to the nearest one-tenth of a cent. It is suggested by the Commission that for ease of implementation, all prices submitted for approval in the next application filed by Superior Propane Inc. for pricing adjustments be rounded to the nearest one-tenth of a cent.

THE COMMISSION THEREFORE ORDERS that Superior’s propane pricing schedule be altered by removing or restructuring certain categories as applied for with the above-noted exceptions, and that the pricing categories and propane prices to be charged by Superior Propane Inc., effective 12:01 a.m., Friday, the 6th day of August 1999, be in accordance with Appendix "A" to this Order, and that the authorized prices appear on all invoices accompanying propane deliveries and remain in effect until otherwise ordered by the Commission.

AND THE COMMISSION FURTHER ORDERS that a copy of the invoice for product delivery covering the next delivery of propane to Superior following the effective date of the prices approved by this Order be submitted to the Commission on or before 1 September 1999.

AND THE COMMISSION FURTHER ORDERS that a document entitled "Sarnia-Amoco Wholesale Propane Posted Price of Propane" (which similar schedule has been filed in support of all previous applications for price changes by Superior Propane Inc.) containing posted prices to the end of the previous month, be submitted to the Commission by the 15th of every second month, whether or not an application for pricing adjustments is submitted (next filing due 15 September 1999).

DATED at CHARLOTTETOWN this 4th day of AUGUST, A.D., 1999.

BY THE COMMISSION:

Chair

Vice-Chair


APPENDIX "A"

SUPERIOR PROPANE INC.

EFFECTIVE: 6 AUGUST 1999 - PRINCE EDWARD ISLAND REGION

Category

Cents Per Litre

Bulk Sales

ADS (Automatic Delivery Service)

0-500 L

50.33

501-1200 45.93
1201-2000 39.33
Over 2000 37.93

Pool Heating

39.93

Commercial

0-5000 L 44.78
5000 - 15000 L 40.93
15001 - 50000 L 36.48
Over 50000 31.43

Grain Drying

Under 50,000 litres per year

35.73

Over 50,000 litres per year

29.73

Carburation Lift Truck (Customer's Bulk Storage)

42.53

Agent Traditional

36.80

Auto Propane

     Retail 42.40
     Fleet 42.40
     Agent 41.40
Cylinders

Per Cylinder Price

Cents Per Litre

40 Lb. 20.74 58.25
33 Lb. 17.13 58.25
30 Lb. 15.55 58.25
25 Lb. 12.95 58.25
20 Lb. 12.08 67.89
10 Lb. 6.18 69.49
100 Lb. 45.79 51.45
100 Lb. (Delivered) 51.00 57.30
Commercial and Roofing
100 Lb. User 39.79 44.71
40 Lb. User 20.74 58.25