Regulatory and Appeals Commission (IRAC), Prince Edward Island

Title: Order PW20-017 - Petroleum - Wholesale Licensees and Propane - Pricing (Apr-10-2020)

Click here for a PDF version of this Order

Dockets P-1-1, P-6-1A, P-6-12A, P-6-2A, P6-11A & P-6-9A

Order PW20-017

IN THE MATTER of prices charged by wholesaler licensees for petroleum products;

AND

IN THE MATTER of applications by Irving Energy Distribution and Marketing, Kenmac Energy Inc., Superior Plus Inc. (dba Superior Propane), Parkland Fuel Corporation (dba Island Petroleum) and Noonan Petroleum Ltd. regarding propane pricing.

BEFORE THE COMMISSION

on Thursday, the 9th day of April, 2020

J. Scott MacKenzie, Q.C., Chair
M. Douglas Clow, Vice-Chair
Erin T. Mitchell, Commissioner
Terry McKenna, Commissioner

Order

IN THE MATTER of prices charged by wholesaler licensees for petroleum products;

AND

IN THE MATTER of applications by Irving Energy Distribution and Marketing, Kenmac Energy Inc., Superior Plus Inc. (dba Superior Propane), Parkland Fuel Corporation (dba Island Petroleum) and Noonan Petroleum Ltd. regarding propane pricing.

AND UPON reviewing and considering current international, national and regional market and related conditions;

AND UPON it appearing to the Commission that:

1) An increase in all gasoline prices in both the dealer and consumer schedules of 2.0 cents per litre (cpl);

2) A decrease in the diesel prices in both the dealer and consumer schedules of 1.0 cpl; and

3) A decrease in the furnace fuel and stove oil prices in the consumer schedule of 1.0 cpl;
will result in prices that are just and reasonable;
AND UPON receiving:

1)  The application of Irving Energy Distribution and Marketing (Irving) on April 7, 2020 for an increase of 0.2 cents per litre (cpl) in its propane pricing schedule based on increased costs;

2)   The application of Kenmac Energy Inc. (Kenmac) on April 6, 2020 for an increase of 0.2 cpl in its propane pricing schedule based on increased costs;

3)   The application of Superior Plus Inc. (Superior) on April 7, 2020 for an increase of 1.1 cpl in its propane pricing schedule based on increased costs;

4)   The application of Parkland Fuel Corporation (Island Petroleum) on April 6, 2020 for an increase of 0.5 cpl in its propane pricing schedule based on increased costs; and

5) The application of Noonan Petroleum Ltd. (Noonan) on April 6, 2020 for an increase of 0.2 cpl in its propane pricing schedule based on increased costs;

AND UPON it also appearing to the Commission that:

1)    An increase of 0.2 cpl in Irving�s propane schedule;

2)    An increase of 0.2 cpl in Kenmac�s propane schedule;

3)    An increase of 1.1 cpl in Superior�s propane schedule;

4)    An increase of 0.5 cpl in Island Petroleum�s propane schedule; and

5)    An increase of 0.2 cpl in Noonan Petroleum�s propane schedule;
will result in prices that are just and reasonable;
NOW THEREFORE, pursuant to the Island Regulatory and Appeals Commission Act and the Petroleum Products Act,

IT IS ORDERED THAT

the prices contained in the attached Dealer Petroleum Prices Schedule shall be effective 12:01 a.m. Friday, April 10, 2020;

the prices contained in the attached Posted Consumer Petroleum Prices Schedule shall be the maximum prices charged by the respective licensee, effective 12:01 a.m. on Friday, April 10, 2020;

the attached dealer prices, with H.S.T. added, shall be indicated on all documents accompanying deliveries of these products;

effective 12:01 a.m. Friday, April 10, 2020, the maximum propane prices charged by:

a. Irving Energy Distribution and Marketing be in accordance with Appendix "A" to this Order;

b. Kenmac Energy Inc. be in accordance with Appendix "B" to this Order;

c. Superior Plus Inc. be in accordance with Appendix "C" to this Order;

d. Parkland Fuel Corporation be in accordance with Appendix "D" to this Order; and

e. Noonan Petroleum Ltd. be in accordance with Appendix "E" to this Order

the propane prices approved herein shall appear on all invoices covering sales or deliveries of propane; and

the prices determined in this Order, with adjustments resulting from tax changes only, shall remain in effect until otherwise ordered by the Commission.

DATED at Charlottetown, Prince Edward Island, this 9th day of April, 2020.

BY THE COMMISSION:

J. Scott MacKenzie, Q.C., Chair
M. Douglas Clow, Vice-Chair
Erin T. Mitchell, Commissioner
Terry McKenna, Commissioner

Notice:
Section 58 of the Petroleum Products Act reads as follows:

58. Where any person has the status of a party or is an intervenor in any hearing before the Commission, he is entitled

(a) to appeal the decision of the Commission to the Court of Appeal; and
(b) to participate as a party in the hearing of an appeal.

and an appeal shall be on a question of law or jurisdiction only and be governed by section 13 of the Island Regulatory and Appeals Commission Act.

Sections 13.1 (1) and (2) of the Island Regulatory and Appeals Commission Act provide as follows:

13.(1) An appeal lies from a decision or order of the Commission to the Court of Appeal upon a question of law or jurisdiction.
(2) The appeal shall be made by filing a notice of appeal in the Court of Appeal within twenty days after the decision or order appealed from and the rules of court respecting appeals apply with the necessary changes.

The information in this Order is confidential until the price changes take effect. Any unauthorized use or communication of this information by licensees or their employees, and in particular, any disclosure of the contents of this Order to the public, or to the media, prior to 12:01 a.m. on the date in which these price changes come into effect, is strictly prohibited, and may result in license suspension or monetary penalty.

Click here to access the Dealer Petroleum Prices Schedule

Click here to access the Posted Consumer Petroleum Prices Schedule

APPENDIX "A"

IRVING ENERGY DISTRIBUTION AND MARKETING

EFFECTIVE APRIL 10, 2020
MAXIMUM (EX. TAX) PRICES
PRINCE EDWARD ISLAND

CATEGORY
CENTS PER LITRE

Bulk Propane Delivery - Maximum Price

69.2

Dispensing Units
63.2

Carburation and Portable Cylinders
73.3

33 lb. Carburation Cylinders:

Handling Fee
$3.00
Per Cylinder

Rental Through CAT Rentals
$4.00
Per Cylinder

Rental Rates for Cylinders and Tanks:

100 lb. Portable Cylinder $ 36.00 Per Year

200 lb. Fixed Cylinder $ 30.00 Per Installation Per Year

420 lb. Fixed Cylinder $ 91.00 Per Installation Per Year

334 Gallon Fixed Tank $ 60.00 Per Installation Per Year

500 Gallon Fixed Tank $150.00 Per Installation Per Year

1,000 Gallon Fixed Tank $250.00 Per Installation Per Year

1,750 Gallon Fixed Tank $250.00 Per Installation Per Year

2,000 Gallon Fixed Tank $250.00 Per Installation Per Year

Service Rates:

     All installations will be charged on the basis of time and materials used.

     Cylinder and tank removal fees are not to exceed $75.00 per tank.

APPENDIX "B"

KENMAC ENERGY INC.

EFFECTIVE APRIL 10, 2020
MAXIMUM (EX. TAX) PRICES
PRINCE EDWARD ISLAND

CATEGORY
CENTS PER LITRE

Bulk Propane Delivery - Maximum Price

69.5

Dispensing Units
63.5

Carburation and Portable Cylinders
73.6

33 lb. Carburation Cylinders:

Handling Fee
$3.00
Per Cylinder

Rental Rates for Cylinders and Tanks:

33 lb. Portable Cylinder $3.60 Per Month

100 lb. Portable Cylinder $ 36.00 Per Month

200 lb. Fixed Cylinder $ 30.00 Per Installation Per Year

420 lb. Fixed Cylinder $ 79.00 Per Installation Per Year for Each Tank

334 Gallon Fixed Tank $ 110.00 Per Installation Per Year

500 Gallon Fixed Tank $110.00 Per Installation Per Year

1,000 Gallon Fixed Tank $250.00 Per Installation Per Year

1,750 Gallon Fixed Tank $250.00 Per Installation Per Year

2,000 Gallon Fixed Tank $250.00 Per Installation Per Year

Service Rates:

     All installations will be charged on the basis of time and materials used.

     Cylinder and tank removal fees are not to exceed $75.00 per tank.

APPENDIX "C"

SUPERIOR PLUS INC.

EFFECTIVE APRIL 10, 2020
MAXIMUM (EX. TAX) PRICES
PRINCE EDWARD ISLAND

CATEGORY
CENTS PER LITRE

Bulk Propane Delivery - Maximum Price

68.9

Bulk Propane Delivery - Maximum Price

63.4

Carburation and Portable Cylinders

87.0

Rental Rates for Cylinders and Tanks:

33 lb. Cylinder $3.60 Per Month

100 lb. Cylinder $ 3.60 Per Month

Residential Installations $ 79.00 Per Installation Per Year for Each Tank

Commercial Installations $ 110.00 Per Year for First Tank;

Additional $10.00 Per Year for Each Added Tank

Smart Tank Sensor $120.00 Additional Per Year

Service Rates:

     All installations will be charged on the basis of time and materials used.

     Cylinder and tank removal fees are not to exceed $75.00 per tank.

APPENDIX "D"

PARKLAND FUEL CORPORATION

EFFECTIVE APRIL 10, 2020
MAXIMUM (EX. TAX) PRICES
PRINCE EDWARD ISLAND

CATEGORY
CENTS PER LITRE

Bulk Propane Delivery - Maximum Price
68.4

Rental Rates for Cylinders and Tanks:

420

lb. Fixed Cylinder

$80.00

Per Installation Per Year. Each Additional Tank $40.00 Per Year. Generator Tanks $80.00 Per Year

    334/500

Gallon Fixed Tank

$125.00

Per Installation Per Year. Each Additional Tank $65.00 Per Year. Generator Tanks $150.00 Per Year

1000

Gallon Fixed Tank

$200.00

Per Installation Per Year. Each Additional Tank $100.00 Per Year. Generator Tanks $250.00 Per Year

1750/2000

Gallon Fixed Tank

$250.00

Per Installation Per Year. Each Additional Tank $125.00 Per Year. Generator Tanks $500.00 Per Year

Tank Monitor

$50.00

Per Installation Per Year

Service Rates:

All installations will be charged on the basis of time and materials used.

Cylinder and tank removal fees are not to exceed $110.00 per tank.

APPENDIX "E"

NOONAN PETROLEUM LTD.

EFFECTIVE APRIL 10, 2020
MAXIMUM (EX. TAX) PRICES
PRINCE EDWARD ISLAND

CATEGORY
CENTS PER LITRE

Bulk Propane Delivery - Maximum Price

69.5

Dispensing Units
63.5

Carburation and Portable Cylinders
73.6

33 lb. Carburation Cylinders:

Handling Fee
$3.00
Per Cylinder

Rental Rates for Cylinders and Tanks:

33 lb. Portable Cylinder $3.60 Per Month

100 lb. Portable Cylinder $ 36.00 Per Month

200 lb. Fixed Cylinder $ 30.00 Per Installation Per Year

420 lb. Fixed Cylinder $ 79.00 Per Installation Per Year for Each Tank

334 Gallon Fixed Tank $ 110.00 Per Installation Per Year

500 Gallon Fixed Tank $110.00 Per Installation Per Year

1,000 Gallon Fixed Tank $250.00 Per Installation Per Year

1,750 Gallon Fixed Tank $250.00 Per Installation Per Year

2,000 Gallon Fixed Tank $250.00 Per Installation Per Year

Service Rates:

     All installations will be charged on the basis of time and materials used.

     Cylinder and tank removal fees are not to exceed $75.00 per tank.