Acts and Regulations

2012-49 - Rates and Tariffs

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NEW BRUNSWICK
REGULATION 2012-49
under the
Gas Distribution Act, 1999
(O.C. 2012-146)
Filed April 16, 2012
Under section 95 of the Gas Distribution Act, 1999, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the Rates and Tariffs Regulation -Gas Distribution Act, 1999.
Definitions
2The following definitions apply in this Regulation.
“Act” means the Gas Distribution Act, 1999.(Loi)
“cost of service method or technique” means the method or technique of approving or fixing rates and tariffs based on the cost of providing distribution services in accordance with generally recognized utility regulatory principles and practices.(méthode ou technique fondée sur le recouvrement des coûts)
“market based method or technique” means the method or technique of approving or fixing rates and tariffs based on the principles and practices generally adopted by the Board before January 1, 2012, in relation to the holder of the general franchise.(méthode ou technique axée sur le marché)
Classes of customers
3The following classes of customers are prescribed for the purposes of section 52 of the Act:
(a) Small General Service;
(b) Mid-General Service;
(c) Large General Service;
(d) Contract General Service;
(e) Industrial Contract General Service;
(f) Off-Peak Service; and
(g) Contract Power Plant Service.
Rates and tariffs
4(1)The Board shall, when approving or fixing just and reasonable rates and tariffs under section 52 of the Act for each class of customers, adopt the cost of service method or technique, with a revenue to cost ratio not exceeding 1.2:1 for any class of customers, provided that the rates and tariffs for any class of customers shall not exceed the rates and tariffs that would apply to that class of customers if determined through the application of the market based method or technique.
4(2)In determining rates and tariffs for classes of customers under subsection (1) utilizing the market based method or technique, the Board shall use electricity as the alternative energy source and ensure a target savings level of 20% for the Small General Service class, and use No. 2 Heating Oil as the alternative energy source and ensure a target savings level of 15% for those classes of customers other than the Small General Service class.
4(3)The Board shall, when approving or fixing just and reasonable rates and tariffs under section 52 of the Act, ensure that the expenses and investments included in the revenue requirement are prudent.