BC Utilities Commission approves Terasen Gas propane rate increases
December 19, 2007
Surrey, BC – The BC Utilities Commission (BCUC) approved changes to Terasen Gas rates that will increase the annual propane bills of Whistler and Revelstoke residential customers by about 13 and 15 per cent respectively. The new rates take effect January 1, 2008.
For Whistler residential customers this works out to an annual increase in commodity charges of about $241. Revelstoke residential customers can expect an annual increase in commodity and delivery charges of about $234, depending on consumption.
“Terasen Gas purchases propane on behalf of our customers and passes its cost on without mark up.” said Jan Marston, Vice President, Gas Supply and Transmission. “We earn revenue on the delivery of propane and work hard to reduce the impact of rising commodity costs through our purchasing and hedging strategies.”
Propane is a commodity traded on the open market like oil, coffee and lumber. Factors affecting the price of propane include weather, supply and demand and the price of other energy commodities.
Propane prices have been following the steep rise in crude oil over the past year. The increases are a result of these rising commodity prices.
Terasen Gas and the BCUC regularly review propane rates to ensure customers receive piped propane service at fair and reasonable prices. Every three months, we review our commodity cost – the price we pay to buy propane on behalf of our customers. Once a year, we also review delivery costs – what we charge to deliver propane to homes and businesses.
Terasen Gas is mainly composed of the operations of Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc., both indirect wholly owned subsidiaries of Fortis Inc. Fortis Inc., the largest investor-owned distribution utility in Canada, serves almost two million gas and electric customers and has $10 billion of assets. Its regulated holdings include Terasen Gas and electric utilities in five Canadian provinces and three Caribbean countries. Fortis Inc. owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. It also owns hotels and commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at http://www.fortisinc.com/ or http://www.sedar.com/.
Terasen Gas may include forward-looking statements in this release which reflect management’s expectations regarding the Company’s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expects”, “intend” and similar expressions have been used to identify the forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to the Company’s management. By their very nature, forward-looking statements are based on underlying factors or assumptions which are subject to inherent risks and uncertainties surrounding future expectations generally. Such risk factors or assumptions include, but are not limited to, general economic, market and business conditions, regulatory developments, gas distribution operating risks, natural gas prices and supply, weather and competition. Terasen Gas cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward looking statements. For additional information with respect to certain of these risks or factors, reference should be made to Terasen Gas’s continuous disclosure materials filed from time to time with Canadian Securities Regulatory Authorities. Terasen Gas disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Media contact:
Joyce Wagenaar
Corporate Communications Manager
Phone: (604) 592-7682
E-mail: joyce.wagenaar@terasengas.com
Joyce Wagenaar
Corporate Communications Manager
Phone: (604) 592-7682
E-mail: joyce.wagenaar@terasengas.com
Scott Thomson
Vice President, Regulatory Affairs & Chief Financial Officer
Terasen Inc. and Terasen Gas
Phone: (604) 592-7784
E-mail: scott.thomson@terasengas.com
Vice President, Regulatory Affairs & Chief Financial Officer
Terasen Inc. and Terasen Gas
Phone: (604) 592-7784
E-mail: scott.thomson@terasengas.com
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