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 Superiors
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 Superiors 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 Commissions consideration of Superiors
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 Superiors 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