shrinkage allowance

PG&E is requesting your review and support of this adjustment to shrinkage allowances.

All Playtiles are moulded with a shrinkage allowance and will measure over 1 square metre.

Shrinkage allowance takes into account only the solid shrinkage.

Producers or producer groups composed 93% of the stakeholders who supported setting maximum shrinkage allowances to zero.

Based on a nine year average of weigh-over data, the financial impact on industry and producers due to shrinkage allowances is approximately $18 million.

The maximum shrinkage allowance that may be deducted from grain delivered to a licensed primary elevator is zero.

Substantive changes include setting the maximum shrinkage allowances at licensed primary elevators to zero and repealing the 90 day payment regulations.

Setting the maximum shrinkage allowance to zero decreases the flexibility of elevator operators and may limit their options with respect to recovering shrinkage costs.

It is the CGC's view that setting the maximum shrinkage allowance to zero will improve competitiveness among primary elevators and thus increase returns for producers.

By contrast, setting the maximum shrinkage allowances to zero will encourage primary elevators to shift the revenues previously earned from shrinkage to elevator tariffs.

Prior to the paper's release the CGC had also been compiling feedback since July 2000 on the issue of primary elevator maximum shrinkage allowances.

Based on the consultation results, the CGC decided to propose that the maximum shrinkage allowances at primary elevators be set to zero effective August 1, 2003.

PG&E's current adopted shrinkage allowances require customers to deliver more in-kind shrinkage gas than is actually needed on PG&E's pipeline system.

Reducing shrinkage allowances to the proposed levels in PG&E's 2000 BCAP will more accurately reflect currently projected customer usage.

Review shrinkage allowances that grain elevators can deduct from the weight of grain producers deliver to compensate grain companies for weight loss during grain handling.

Schedule X of the CGR, summarized below, sets out the maximum shrinkage allowances for primary elevators; allowances are expressed as percent of scale weight.

In 2001, the CGC reviewed maximum shrinkage allowances at primary elevators in response to several requests and recommendations from producers and the grain industry for a review.

In May 2002, the CGC prepared and distributed a discussion paper on primary elevator maximum shrinkage allowances to all major stakeholders, including producer organizations and the grain industry.

Producers felt that setting the maximum shrinkage allowances to zero would force companies to deal with any existing shrinkage losses as a competitive factor in the price they bid for producers' grain.

Computer Modelling of Shrinkage Allowance in Die Casting Die Design JA Spittle and S.G.R.

The impact of these variables cannot be isolated and captured in the analysis and/or primary elevator weighover data thus making it impossible to set shrinkage allowances on the basis of weighover results.

To the extent that actual shrinkage occurs in the grain handling system, setting the shrinkage allowances to zero will force any existing shrinkage losses to be dealt with by the companies involved.

Under the status quo option the shrinkage deductions remain visible, although as indicated earlier, the typical practice for primary elevators has been to deduct the maximum shrinkage allowance regardless of the actual loss.

With the industry's switch to newer high-throughput elevators, there is a large variability in handling results among primary elevators and it is no longer possible to set shrinkage allowances on the basis of weigh-over results.

Paragraph 116(1)(f) of the CGA states "the Commission may, with the approval of the Governor in Council, make regulations fixing the maximum shrinkage allowance that may be made on the delivery of grain to an elevator."