FEI-FEVI 2010 EEC Report filed March 31, 2011 - FortisBC

APPENDIX A
to Order G-141-09
Page 91 of 110
TERASEN GAS INC. June 1, 2009 Section C
Tab 13
CALCULATION OF EARNING SHARING MECHANISM (RIDER 3) Schedule 70
FOR THE YEARS ENDING DECEMBER 31, 2010 TO 2011
($000s)
2010 2010 & 2011 2010 & 2011 2010 2011
2010 2011 TOTAL 2010 2011 TOTAL True-up & Res ESM Capital Incentive ESM ESM
Line Volumes Volumes Volumes Margin Margin Margin Amortization Amortization Amortization Unit Rider Unit Rider
No. Particulars (TJ) (TJ) (TJ) ($000s) ($000s) ($000s) ($000s) ($000s) ($000s) ($/GJ) ($/GJ)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
1
2
3
Earnings Sharing Mechanism (ESM) Rider 3 Calculation
4 Non-Bypass
5 Rate 1 - Residential 67,829.2 67,190.5 135,019.7
$ 306,966 $ 305,757 $612,724 ($304) ($7,715) $2,232 ($0.040) ($0.046)
6 Rate 2 - Small Commercial 24,374.3 24,603.1 48,977.4
82,200 82,972 165,171
(83) (2,081)
599
($0.029) ($0.034)
7 Rate 3 / 23 - Large Commercial 22,952.6 23,345.7 46,298.3
60,218 61,243 121,461
(60) (1,529)
441
($0.023) ($0.027)
8 Rate 4 - Seasonal Service 184.6 184.6 369.2
248 248 496
-
(6)
2
($0.011) ($0.011)
9 Rate 5 / 25 - General Firm Service 15,565.0 15,470.1 31,035.1
30,469 30,413 60,882
(30) (767)
222
($0.017) ($0.020)
10 Rate 6 - NGV 103.8 103.8 207.6
377 377 753
-
(9)
3
($0.024) ($0.033)
11 Rate 7 / 27 - Interruptible 5,197.7 5,186.1 10,383.8
6,258 6,247 12,505
(6) (157)
45
($0.010) ($0.012)
12 Rate 22 - Large Industrial Transportation 11,579.4 11,560.2 23,139.6
9,332 9,318 18,651
(9) (235)
68
($0.007) ($0.008)
13 Rate 22A - Inland 4,904.7 4,904.7 9,809.4
3,920 3,920 7,841
(4) (99)
29
($0.007) ($0.008)
14 Rate 22B - Elkview Coal 646.1 646.1 1,292.2
112 112 224
-
(3)
1
$0.000 ($0.002)
15
16
Rate 22B - All Other 1,856.3 1,856.3 3,712.6
1,037 1,037 2,075
(1) (26)
8
($0.005) ($0.005)
17 Total Non-Bypass 155,193.7 155,051.2 310,244.9
$501,138 $501,645 $1,002,783 ($497) ($12,627) $3,650 (1)
18
19
(X-Ref - Tab C-13, Schedule 22; - Tab C-13, Schedule 24)
20 Note 1:
21 Terasen Gas is projecting a 2009 return on equity of 11.41%, which is 2.94% higher than
22 the allowed ROE of 8.47%. Under the earnings sharing mechanism, Terasen Gas is to share
23 equally with its customers, earnings variances between the authorized level of earnings as
24 determined annually under the settlement and the actual earnings of the utility. Accordingly,
25 customer's portion of the 2009 earnings surplus is $18.038 million. The detailed calculations
26
27
for 2009 are as follows:
28 After Tax surplus available for sharing = $858.965 million x (11.41% - 8.47%) = $25,254 million
29 Customers' 50% share (Net-of-Tax) = $12.627 million
30 Customers' 50% share (Pre-Tax) = $18.038 million
31 2010 2011 Total
32 The total amortization balance of $13.690 is made up of: Amortization Period Pre-Tax Net-Of-Tax Pre-Tax Net-Of-Tax Pre-Tax Net-Of-Tax
33 2008 true-up ($12.029m per '07 A/Review, $12.739m per '08 A/Rpt) 2011 $710 $508 $0 $0 $710 $508
34 Tax Adjustment on 2008 ESM True Up (15) (11)
(15) (11)
35
36
695 497 -
-
695 497 (Column 8, Line 17)
37 2009 pre-tax Customers' 50% share 2010 and 2011 9,036 6,461 9,003 6,617 18,039 13,078
38 Tax Adjustment on 2009 ESM (190) (136) (429) (315) (618) (451) (Column 9, Line 17)
39
40
8,846 6,325 8,574 6,302 17,420 12,627 (X-Ref - Tab C-13, Schedule 68)
41 2009 End Of Term Capital Incentive Mechanism 2010 and 2011 (3,372) (2,411) (1,686) (1,239) (5,058) (3,650) (Column 10, Line 17)
42 (X-Ref - Tab C-13, Schedule 69)
43 Total Balance - Refund to Customers in 2010 and 2011 $6,169 $4,411 $6,888 $5,063 $13,057 $9,474 (X-Ref - Tab C-13, Schedule 54; Schedule 55 line 39, columns 8 & 9)